Account Opening Research Articles

Impact Of Demonetization On The Economic Parameters That Affect The Growth Of Nonperforming Asset Of Indian Banks

The demonetization decision by the government of India affected almost all service sectors of Indian economy, out of which the banking sectors were affected the most. Due to demonetization bulk amount of old currency notes of INR 500 and INR 1000 were deposited to banks; that not only increased the capital base of banks, but those un-used cash boosted the liability of loan disbursement. Again the reducing interest rates, providing account opening facility and issuing loan to the depositors by banks without judging their repayment ability resulted a chance of increasing number of defaulters and the value of nonperforming assets. Considering the scenario the present research work tried to focus on the impact of demonetization towards the movement of nonperforming assets of Indian banks. A multivariate regression analysis was performed by considering income, expenditure and net profit ratio as internal and the percentage change of India’s GDP, inflation and foreign exchange rate as external independent variables towards the net nonperforming assets changes of Indian public and private sector banks as dependent variable from financial year 2016-17 to 2018-19. Though the outcome of the study revealed that demonetization helped to reduce the nonperforming asset values in short run but in long run it would stimulate the growth of nonperforming assets.

An analysis of the impact of capital account opening on China's economy under the background of financial crisis

An analysis of the impact of capital account opening on China's economy under the background of financial crisis

Financial Provision and Participation as Catalysts for Women Economic Empowerment in Zimbabwe

One of the pillars aims of the liberations struggle in then Rhodesia was equal opportunities for all with restoration of the economic reigns to the native population who had been marginalized for decades. The marginalization and lack of access was between whites and Blacks and at independence everyone was celebrating independence from colonialism and embracing rights of ownership of the economic means, access to education, national identification cards and an opportunity to vote and exercise democratic rights. It was however observed that within the opened democratic space in the independent Zimbabwe there were gross inequalities between men and women perpetuated by cultural practices supported by a partriachical society where women status was lower than that of man. that needed to be addressed deliberately. Since the turning of the new millennium, the Zimbabwean government has been active in implementing affirmative action programs and gender policies aimed at empowering women economically and socially. Despite a plethora of ways to empower women, challenges still remain in so far as the holistic empowerment of women in the economic arena is concerned. Women constitute 52% of the Zimbabwean population with the majority of them living under the poverty datum line. It is generally considered that access to means of production, resources and household decision making has a direct impact on poverty reduction with participation in the financial sector as an entrympoint for individual and household economic activity. Statistics shows that despite the increase in number of Banks in Zimbabwe, there remains marginalization of the poor the majority of whom are women due to rigid account opening requirements and preconditions for one to access a loan. Access to finance offers the poor an opportunity to engage in economic activities that raise income that can offer opportunities for a better life. Mainstream Banks have been known to exclude the low income as they do not meet the minimum know your customer requirements. Microfinance is banking with the poor, an upside down way of banking. It has been embraced and deployed by many governments across the globe as a tool enhancing financial inclusion and access to finance for the poor and for economic empowerment. This study therefore examined the impact of microfinance to the socio- economic empowerment of women in Zimbabwe by selecting the Women’s Microfinance Bank in Zimbabwe as a case analysis. The Bank was set up by the Government through the Ministry of Women affairs supported by the Central Bank as a tool for financial inclusion responding to the needs of the excluded women. The deprivation of women and poverty within the context of Zimbabwe is the locus of enunciation in this study. The mixed method was adopted where questionnaire and interview guide were administered to beneficiaries of the Women’s microfinance Bank and other selected respondents. The findings from the study revealed that provision of enabling financial services with the appropriate products that respond to the cause of exclusion of certain groups encouraged participation and access to finance thereby contributing immensely to the economic empowerment of women although a lot still needs to be done. The study therefore recommends a deliberate extension of financial services to the grassroots as a deliberate game changer to expand the participation of all. It recommends a deliberate financial provision especially for the Zimbabwe Women’s Microfinance Bank, to extend more banking services and credit facilities to women who are still largely on the bottom of the heap in terms of access to resources. Finally, for more participation in the economic empowerment initiatives from the Bank and any other players, there is need to provide more training programs to women in order to improve their entrepreneurial skills and as an economic empowerment strategy.

The Detection of Aedes Aegypti Mosquito Resistance With Biochemical Test Based on Non-specific Esterase Enzyme Activity and Monooksigenase Enzyme in Ternate City

Broadly speaking, the aim of this research is to examine and analyze the effect of Efficiency, Fulfilment, Reliability, Privacy Variables on Customers’ Satisfaction on account opening services via the online system “Jenius BTPN”. Determination of a sample of 100 respondents through a stratified random sampling approach with research locations at BTPN Bank. The research approach uses quantitative while the data analysis method uses multiple linear regression. Analysis test equipment using SPSS, version 22. The results of the study indicate that the Efficiency does not affect customer satisfaction (Sig 0.475> 0.05); Fulfillment affects customer satisfaction (sig 0.003 <0.01); Reliability does not affect satisfaction (sig 0.700> 0.05); Privacy has a significant effect on customer satisfaction (sig 0.000 <0.05); Privacy is the most dominant variable influential. R2 test is 65.9%

Choosing digital lending partners for banks and making partnerships work

More banks are now considering partnering with FinTechs in lending areas, both for business and for consumer loans. Potentially, these partnerships offer multiple benefits to banks, allowing banks to improve their end customer experience by leveraging outside expertise, reduce the cost of lending and open a new source of revenue and deposit generation relatively quickly. The selection and due diligence process conducted by banks, however, can extend beyond a year. It often involves a dozen or more bank departments, some with conflicting agendas and without a limited time frame for decision-making. Internal bureaucracies and a complex decision-making process can result in a bank focusing on near-term pain points rather than its more encompassing needs. It can also lead to the selection of vendors that may excel in one area (for example, digital account opening) but lack the broader digital capabilities a bank ultimately requires as it continues its transition to digital. This paper aims to identify critical issues that banks need to address as they select a lending partner, implement the partnership agreement and alter it as their requirements change. It focuses on the following: • Options banks should consider in working with FinTechs and other vendors • Internal strategic decisions banks need to make before doing so • Internal decision team that is required • Due diligence checklist for vetting lending partners Readers will benefit from practical recommendations concerning how a bank should organise its approach to increase the likelihood of a targeted and successful due diligence process.

Pradhan Mantri Jan Dhan Yojana: An Initiative under Financial Inclusion

Indian Government consistently makes its efforts towards inclusion of vulnerable section in organized financial system. This system might not only provide huge amount of cash flow to boost Indian economy but it could also help the government to facilitate inclusive growth through offering different services scheme like MNAREGA payment, pension, various subsidies etc. For the inclusive growth of the Indian economy, the GOI started Pradhan Mantri Jan Dhan Yojanain 2014. Financial inclusion is an innovative idea in India, which empowers the alternative new techniques to encourage the banking traditions and acts for reducing the poverty. Household coverage of this scheme is better in the district wise account opening report of Uttarakhnad state. We can say that PMJDY is playing a significant role in creating a universal platform for inclusive growth in India.

Practice on Activities of General Banking and Bills Section

General Banking section is starting point of all the banking process. Various kinds of activities are performed by this section like account opening, fund transfer and maintenance etc. Local and foreign remittance is maintained by this section. To accomplish the activities of this section, various kinds of bills and vouchers are used. It is very important department of a bank. Every day it receives deposits from the customers and meets their demand for cash by honouring cheques. General banking section contributes a lot in satisfying customers by using modern scientific techniques.

ТРАНСФОРМАЦІЯ ЕКОНОМІЧНОЇ ПРИРОДИ БАНКУ В УМОВАХ ЦИФРОВІЗАЦІЇ: ПРАВОВИЙ АСПЕКТ

Розглянуто роль банків у системі фінансового підприємництва з тих позицій, що вони є провідними фінансовими посередниками. Виділено сегменти фінансових послуг. Надано правову характеристику фінансового підприємництва. Такий стан речей зумовлений переважанням їхнього фінансового потенціалу над потенціалами інших суб’єктів системи фінансового посередництва. У ході поступального розвитку економічних систем роль і місце банків у системі фінансового посередництва змінюється, що потребує додаткового дослідження. Наголошено, що розвиток банківського посередництва повинен відповідати стану економіки і ринку позичкового капіталу. Розкрито еволюцію організаційних форм і форм власності банківського підприємництва. Систематизовано науково-методичні підходи до з’ясування суті банку. З’ясовано, що, здебільшого, в основу поняття «банк» покладено перелік фундаментальних банківських операцій, відмінність полягає тільки в їхній кількості — від двох до п’яти. Подібний підхід узяло за основу й українське банківське законодавство. На основі аналізу чинного законодавства зазначено, що в українському законодавстві немає розмежування банків відповідно до їхньої спеціалізації, тобто всі банки вважаються універсальними, хоча назви деяких з них містять слова, що вказують на їхню спеціалізацію.

Financial Inclusion of the Poor in Developing Economies in the Twenty-first Century: Qualitative Evidence from Rural Uganda

ABSTRACT The main purpose of this study is to examine financial inclusion of the poor by formal financial services’ providers in developing economies with data obtained from rural Uganda. Exploratory research design was used in this study and 50 poor households’ heads were interviewed to get their responses on being financially included by microfinance deposit-taking institutions (MDIs) in Uganda. The qualitative data collected from the interviews were analyzed using NVivo software and verbatim text were used to explain emergent themes and sub-themes from this study. The findings revealed that suitable initial account opening fees, minimum deposit requirement, limited eligibility requirements, permanence of use, depth of financial services and products, relevance of financial services/products in terms of convenience, flexibility, reliability, continuity, safety, dignity of treatment (clients’ protection), and welfare improvement are important determinants of financial inclusion of the poor in developing economies, especially in rural Uganda.

Driving Digital Financial Transformation in Support of the SDGs - A Strategy to Leverage Fin Tech for Financial Inclusion, Development, Stability and Integrity

We argue that sustainable balanced development is preconditioned on financial inclusion, and that FinTech is the key driver for financial inclusion. In turn, the full potential of FinTech to support the Sustainable Development Goals will only be realized with a progressive approach to developing infrastructure to support digital financial transformation. Our research suggests the best way to think about such a strategy is to focus on four primary pillars. The first pillar requires the building of digital identity and simplified account opening and e-KYC systems. This is supported by the second pillar of open interoperable electronic payments systems.The third pillar involves using the infrastructure of the first and second to underpin electronic provision of government services and payments. The fourth pillar – digital financial markets and systems – supports broader access to finance and investment. Implementing the four pillars is a major journey, but one with tremendous potential to transform financial inclusion and sustainable growth.

China and Special Drawing Rights—Towards a Better International Monetary System

China and the international monetary system need each other. The international monetary system is strained, with crisis just around the corner, yet reform is not on anyone’s agenda. Meanwhile China, deeply invested in the current system, faces narrowing options as trading partners question its moves abroad, debt levels rise at home, and its current account moves from surplus to deficit. RMB internationalization might appear to provide a way out, but the policy has its limits and tends to exacerbate rather than relieve tensions. We argue that a tension-reducing solution is at hand to the problems of both the international monetary system and China—IMF-style Special Drawing Rights (SDRs). If in a unilateral initiative China were to make the SDR central to its next phase of capital account opening, China’s institutions, corporates and individuals—presently restricted in their access to international currency—would likely embrace it. Begun by China, with support from the international community and Hong Kong, promulgation of the SDR would usher in an era of lower tensions, providing space for development and avoidance of conflict within a reordered monetary system in which China would have a more prominent role.

Indian Banking Scenario – Dynamism and Optimism

This article is on Indian Banking Scenario - Dynamism and Optimism and covers the following areas:Banking sectors influence in our personal lives right from account opening, funds transfer, payments, deposits etc., Rupay cards an alternative to existing Master / Visa Cards. Demonetization and less cash - how it is difficult to change Indian mindset. Changing Indian mindsets with respect to Asset acquisition and huge influence of EMI culture. Digitization and importance of cyber security. Relevancy of customer centricity in digitial age. Challenges in the current era of social media + banking. Implications and need to take care of Senior Citizens, Pensioners in the digital world.

Impediments affecting the curbing of illicit financial flows of organised crime in developing economies

PurposeThe purpose of this paper is to examine the treats hindering war against illicit financial flows of organised crime in developing economies and Nigeria in particular. The examination shows that the impediments facing the fight against money laundering and organised crime financial flows vary from one country to another. It may be lesser in developed economies where most instruments, treaties and best practice recommendations to curb serious crime originated from. However, the impediments against the proceeds of organised crime in developing economies are overwhelming.Design/methodology/approachThe research methodology adopted was qualitative analysis. This was applied through the use and analysis of documents and expert interviews.FindingsThe impediments jeopardising the success against organised crime and other related serious crime financial flows in developing economies are devastating. Consequently, the study offered some policy implications to help mitigate these impediments in developing countries. The dynamics and the phenomena of organised crime business model are operated with ingenious strategies within the global states. Therefore, staying in control of the menace and the threats originated from the organised criminal activities would require periodic review of the global initiatives, standards and strategies deployed by the standard setters to combat organised crime and its financial flows in developing and evolving economies. Additionally, the implementing countries should be carried along and allow to make inputs when such initiatives and standards are being developed.Social implicationsIn Nigeria, there is a clear evidence of “collateral damage” in terms of social justice as result of financial exclusion of many bankable adults of the country that do not possess unique identities for account opening documentation and customer due diligence of the Financial Action Task Force recommendation 10.Originality/valueThere have been quite a number of studies on organised crime and still fewer have recognised the need to explore the success or failure of combating the proceeds of crime in developing economies. This study provides answer to these gaps by screening associated risks of fighting the proceeds of organised crime in developing countries and Nigeria in particular.

4차 산업시대의 도래에 따른 은행 서비스의 변화 : 한국카카오은행을 중심으로

The objective of this research is to compare the service process between traditional bank and Kakao Bank of Korea in the fourth industrial revolution. The Kakao Bank is selected as a case study company because it is a leading mobile bank in South Korea. And it has a mobile pay technology named as Kakaopay and block chain platform named as Klaytn.BR This research founded two differences between traditional bank and Kakao Bank. The first, the Kakao Bank employed mobile banking only, whereas, traditional banks employed various banking channels such as offline branch, internet banking and mobile banking etc. The second, the Kakao Bank does not necessary customer’s visit for opening account, whereas, traditional banks require customer’s visit at bank branch for it.BR Those two differences affect on the transformation of service process such as following. The first transformation of service process was found in the account opening phase. The key difference is the certification of other bank’s account at the end of opening phase. Customer should identify who send 1 Korean won in Kakao Bank account. And then the customer has to input the sender name of 4 Korean characters that is set at random.BR The second is found in the loan account opening phase. For Kakao Bank, submit a certified certificate file as a loan related document in web homepage, whereas for traditional banks, submit paper documents such as a certificate of employment and income etc.BR The findings of this paper is that the bank will transform from paper and offline branch based financial service to no-paper and mobile based service in the fourth industrial revolution.

Advocacy banking is at the heart of emerging tech: Incorporating emerging technology into the credit union space

This paper discusses the digital transformation that credit unions of various sizes, strategies and markets have embarked on. It considers this a business transformation journey, not just a journey of ‘digital technology’. While application programming interfaces (APIs), multichannel ecosystems and cybersecurity investments are several critical components arousing senior management’s attention, it is the blending of physical and digital that allows the credit union industry to retain the human touch. The paper proposes that in the light of the constant advance of emerging technology, it is imperative not only that an organisation’s strategy and culture support rapid technological change, but, even more importantly, that the technology is leveraged to better advocate for its members. Lower loan rates and higher dividend rates are staples for credit unions, but now those must be incorporated with ‘ease of use’, frictionless account opening and personalised digital banking experiences. The credit union industry was founded on the principle of ‘people helping people’; therefore, the biggest disruptor to the industry is not necessarily FinTech players, but rather a lack of vision to incorporate seemingly ‘radical’ technology into business plans and the requisite culture to allow it to thrive for the right reasons — member and employee centricity. The paper considers the three main challenges credit unions face in today’s environment, namely how to incorporate emerging technology into the businesses where diligent research and digital acumen are needed; how to create, sustain and thrive with a culture accepting continuous change; and how to tie the technology and people aspects of the business into a singular focus towards the goal of members’ financial success. This paper discusses how vital it is for a credit union to have a guiding vision, and to be grounded in essential principles to support technological change. It is incumbent upon credit unions to advance the digital relationship they have with their members, and to integrate the digital environment with the larger ecosystem that includes face-to-face interactions.

Fintech for Financial Inclusion: A Framework for Digital Financial Transformation

Access to finance, financial inclusion and financial sector development have long been major policy objectives. A series of initiatives have aimed to increase access to finance and financial inclusion, but these have accelerated in the last decade as technological developments combined with strategic policy support show potential for progress beyond anything that has been achieved. The World Bank’s 2017 Global Findex shows that in the last three years, 515 million adults acquired a financial account, and between 2010 and 2017, 1.2 billion people opened an account with a formal financial institution or mobile financial services provider (including mobile money) for the first time. This is impressive progress by any measure, but much remains to be done: as of 2017, 1.7 billion people 16 years or older still did not have access to an account, some 31 percent of the world’s adult population. We argue that to reap the greatest benefits for financial inclusion and maximize the potential of FinTech, a framework that supports infrastructure and an enabling policy and regulatory environment, built on a strong foundation of digital identification and electronic payment systems, will support much broader digital financial transformation. The full potential of FinTech for financial inclusion may be realized with a strategic framework of underlying infrastructure and an enabling policy and regulatory environment to support digital financial transformation. Drawing from experiences in a range of developing, emerging and developed countries, our research suggests that the best approach is staged and progressive, and is focused on four main pillars. 1) The first pillar requires building digital identification and e-KYC systems to simplify access to the financial system. Once these are established for individuals and businesses, they provide a solid foundation not only for finance, but also for the development of the digital economy more broadly. 2) The second pillar requires digital payment infrastructure and open electronic payments systems, as these are the primary way to facilitate digital financial flows in an economy. 3) The third pillar combines the promotion of account opening and access with the electronic provision of government services, particularly for public transfers and payments, so as to scale up the use of digital finance and related services. By supporting access, payments and savings, together these three pillars provide a foundation for digital financial transformation and financial inclusion. 4) The fourth pillar – design of digital financial markets and systems – builds on the first three to support broader access to finance and investment, by underpinning use cases including securities trading, clearing and settlement, and other more sophisticated financial functions. There is a need for regulatory approaches that support and adapt to these four pillars. These regulatory changes are a major journey for any economy, but one that experience increasingly suggests has tremendous potential to transform financial inclusion and support digital economic development.

Politique d’Ouverture du Compte Capital et Developpement des Marches Boursiers : Analyse Empirique Avec un Modele de Panel

This paper provides an empirical analysis of the relationship between capital account opening degree and the development of 48 stock market over the period 2000-2015. The aim is to test the hypothesis of migration and spillovers truthfulness. That hypothesis stipulate that financial liberalization that consist to opening of capital account for free international movements leads to the flight of capital from smaller market to bigger markets. This lead to lower trading and weak liquidity of the smaller markets.This analysis based upon the panel static method that combine successively linear model and quadratic model shows that capital account opening affect positively the size but negatively the transactions rhythm and the liquidity of stock markets. Moreover, the effect of capital account opening on stock market development is non-linear. Higher is the initial number of listed firms, more profitable is that effect. Those results confirm the hypothesis migration and spillovers and suggest that capital account opening policy must be completed by measures that can maintain the local capital and securities.

Balancing anti-money laundering measures and financial inclusion

Purpose The purpose of this paper is to critically examine the anti-money laundering measures of the UK and Nigeria, to determine what the best approach is. The best approach is likely the one that strikes a fair balance between protecting the financial system against money laundering and promoting financial inclusion. Design/methodology/approach This paper relies mainly on primary and secondary data drawn from the public domain. It also relies on documentary research. Findings This paper critically analysed the anti-money laundering measures of the UK and Nigeria to determine that the anti-money laundering measures of Nigeria does not strike a fair balance between protecting the financial system against money laundering and promoting financial inclusion because it does not expressly provide for verification of a customer’s identity at the account opening stage for low risk accounts. The paper, however, determined that the anti-money laundering measures of the UK does strike a fair balance between protecting the financial system against money laundering and promoting financial inclusion because it requires customer identification and verification before the establishment of a business relationship for customers who want to open a basic bank account. Research limitations/implications This paper focuses on the anti-money laundering and financial inclusion measures in the UK’s Payment Accounts Regulations 2015 and the Central Bank of Nigeria’s (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013. Originality/value This paper offers a critical analysis of the anti-money laundering and financial inclusion measures of the UK and Nigeria as provided in the UK’s Payment Accounts Regulations 2015 and the Central Bank of Nigeria’s (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013. The paper will provide recommendations on how the measures could be strengthened. This is the only article to adopt this kind of approach.

Detecting, investigating and preventing fraud: Can it truly be prevented?

Employee fraud and conduct failures have caused some of the largest losses suffered by financial institutions, and led to the departure of several very well-respected CEOs and other senior management at those institutions. That includes the rogue trading incidents at UBS, Société Générale and Kidder Peabody, and the more recent conduct issues arising from the so-called rates manipulation cases and the account opening issues at Wells Fargo. Building an effective programme for the detection, identification and investigation of those risks is a crucial priority for all financial institutions. This paper reviews some of the most prominent incidents of employee fraud and conduct failures, and the important lessons learned from those incidents. Based on those events, this paper outlines the essential foundational elements for building an effective enterprise-wide monitoring and detection programme, including the type of organisation, skill sets, governance, tools, processes and culture one must have in place. The paper also focuses on some of the new technology tools available, including AI, natural language processing and data analytics, which will greatly enhance the ability of control departments such as Compliance, Risk and Internal Audit to detect and identify this activity.

Pradhan Mantri Jan Dhan Yojana (PMJDY): The Biggest Financial Inclusion Initiative in the World

The present study seeks to review the current status of the Pradhan Mantri Jan Dhan Yojana (PMJDY) and financial inclusion in India. For the sustainable development of the Indian economy, the Government of India launches Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014. Financial inclusion is an innovative idea which empowers the alternative techniques to encourage the banking traditions and acts as an enabler in reducing the poverty. A total of 18.28 crores accounts have been opened in rural areas by public sector bank, Regional Rural Bank (RRB) and private sector bank by 7th Feb 2018. Thus, 31.07 crores accounts have been opened in rural and urban areas. An amount of 74534.79 crores was in accounts which were opened under PMJDY. Household coverage was 100% in the district wise account opening report of Haryana state, while household coverage found 100 per cent in North Zone of India except J&K (99.71%). We can say that PMJDY scheme is playing a significant role in creating a universal platform for financial services for every citizen of India.