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Visoka poslovna škola strukovnih studija, Vladimira Perića Valtera 4, Novi Sad, Srbija,
nina.arsic.vps@gmail.com
2
Ekonomsko trgovinska srednja škola, Glavni trg 12, Senta, Srbija, snezana.milosevic@fondmt.rs
3
Visoka poslovna škola strukovnih studija, Vladimira Perića Valtera 4, Novi Sad, Srbija,
dragana_ikonic@yahoo.com
MANIPULATION OF FINANCIAL SERVICE USERS RIGHTS IN SERBIA
AS A PARADIGM AND CONCEPT OF MODERN SOCIETY
Nina Arsić
1
, Snežana Milošević
2
, Dragana Ikonić
3
Abstract:
Modern society is characterized by the simultaneous production and consumption
of risk, which is functioning due to inherent non-critical trust in institutions & system experts.
Support to the economic growth is provided through financial services usage. We are
witnessing a rising level of customer dissatisfaction with their relationship towards financial
institutions, mostly with unresolved dilemmas and problems related to the cost of financial
services and unexpected changes of terms. With the aim of preventing the problem related
to the complaints, it is of great importance for clients to acquire information regarding their
rights and duties on good business practices of financial institutions. Also, they have to know
about the mechanisms of protection of their rights when dealing with financial institutions.
Due to the present risk, an individual must be informed on the characteristics of the financial
service of his interest. This paper aims to provide fragmentary insight into organized
irresponsibility towards users of financial services which are consequently deprived of their
rights in the Republic of Serbia.
Keywords:
financial service users,
financial institutions, modern society, protection of
rights.
1. PRODUCTION AND CONSUMPTION OF RISK AS A CONCEPT OF MODERN
SOCIETY
Modern society could be described as a society of simultaneous production and consumption
of risk. Modern state, as a political and territorial framework of modern society is
characterized by somewhat passive attitude of consumers towards available goods &
services. On the other side, modern society is affected by man's fatalist & cataclysmic views
on future. In such modernity, the individual is concerned with the protection of self and
goods that surround him. The mechanism of simultaneous production and consumption of
risk functions thanks to inherent trust in institutions & system experts which guarantee
safety and trust.
1.1. ELIMINATING THE INFORMATION ASYMETRY IN THE FINANCIAL MARKETS AND THE
PRESERVATION OF FINANCIAL SERVICE USERS TRUST
The notion of risk was present in the European thought a century ago, and it was related
primarily to the insurance. Even though human society was always endangered, the risks
we are facing today are in many ways different from those in the classical industrial society.
These risks differ by quality and quantity, space-time concerns and unforeseen catastrophic
consequences for humans and the whole ecosystem. Such risks are resulting from the
threatening forces of modernization and globalization which transform the risk into global
phenomenon. "Risk is defined as a systematic way of dealing with dangers and uncertainties
created by the modernization. Risks, as such, cause systematic and irreversible damage,

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they are based on casual interpretations and thus initially only exist in the domain of
(scientific or non-scientific) knowledge. This means that the risks are subject to change,
growth or minimization, particular social definition and construction" (1).
Since the social production of goods is systematically followed by the social production of
risks, consumers demand goods which "reduce" these risks. Such goods can be marketed
in the form of products or different types of services. In most of the times an average user
cannot see the whole picture. Set of easily accessible, carefully selected and practical
information could help the process of maintaining confidence in the public institutions. Rules
of professional ethics, reinforced by legal sanctions and their enforcement additionally
reinforce the existing system. In order to make a choice surrounded by potential risks,
consumers must be well informed on the characteristics of the financial service of their
interest.
2. FINANCIAL SECTOR AND FINANCIAL INSTITUTIONS IN THE REPUBLIC OF SERBIA
Sustainable development of economy heavily relies on the development of the financial
sector. Increased use of financial services supports the economic growth by improving the
overall performance of the financial sector. These deterministic relationships are improving
the quality of life of consumers which act as catalyst for development. In its very essence,
the banking business is business of serving the public, and loss of reputation means loss of
clients. Today we are witnessing a rising level of customer dissatisfaction with financial
services (banks, leasing companies, insurance companies, exchange offices, pension funds).
Frequent examples include unresolved dilemmas and problems associated with the cost of
financial services or unexpected changes in terms and conditions. Such complaints and
objections most commonly result from lack of information valid knowledge about the terms
of financial institutions. With the aim of preventing the problem related to the complaints,
it is of great importance for clients to acquire information regarding their rights and duties
on good business practices of financial institutions. This is precisely where the problem
coincides with the passive attitude of consumers towards numerous alternatives and their
uncritical trust in institutions and system experts on the other hand.
2.1 THE REFORM OF THE FINANCIAL SECTOR
National Bank of Serbia, in accordance with its authorization and obligations, acts as a
supervisor in the operations of financial institutions and protection of clients in the process.
The National Bank completed the reform of the banking sector by the end of 2000. and
insurance sector in the 2004. This showed its determination to regain the confidence of
financial institution clients by following successful examples of other countries which didn't
rely on solving consequences but rather on preventive actions in all segments of financial
sector. National Bank of Serbia provided citizens with the equal position regarding the
commercial banks, it contributed to the establishment of Centre for Financial Services
Consumer Protection. Also, some market control measures were undertaken in the financial
service sector as a separate organizational unit.
2.2 VIOLATION OF RIGHTS AND PROTECTION OF FINANCIAL SERVICES USER RIGHTS IN
THE SERBIAN FINANCIAL MARKET

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