Area Of Financial Services Research Articles

Report from Brussels: overview of pending and completed legislative initiatives in the area of financial services in the EU – content and state of play

Abstract At the end of the EU’s 2019 – 2024 legislative cycle and just before the next Commission will enter office, this report aims to take stock of the main legislative initiatives at EU level in the area of financial services, in particular in the field of banking and capital markets law. It aims to provide an overview on the procedural state of play as well as the content, following in its approach the earlier report from 2022 (ZBB 2022, 312 ff.).

Technological Innovation In the Fintech Industry -An Indian Perspective

Information technology is the major force behind innovations in the financial sector thanks to fintech. Fintech is looked up as a breakthrough technological innovation disrupting the financial sector using mobile technology. Globally, no financial service is untouched by the new technologies. The mobile technology which has changed the face of the financial sector are Blockchain, artificial intelligence, and data analytics and they have had a strong impact on various areas of financial services, including deposits, lending, remittances, credits (B2B and P2P), underwriting, insurance, cryptocurrencies and so on. India is also seeing a rise in the fintech industry as the mobile penetration is increasing. The development of fintech in India can be ascribed to several important elements that have combined to foster an atmosphere that is favorable to technological innovation. The current research paper seeks to offer an in-depth understanding of the technological advancements made by the Indian Fintech industry. Further, the authors have proposed a conceptual model as an outcome of the various studies that have been reviewed.

Стратегическое развитие «зеленого» финансирования в Китае

The growing severity of global climate change increases public environmental awareness. As a result, green financing has become a prospective area of financial services that attracts attention of investors, policymakers, and other stakeholders. Green financing means using financial tools and mechanisms to provide financial support for a green and low-carbon economy, as well as to promote environmental protection, sustainable development, and resource efficiency. Green finance not only introduces social capital into the green industry and the green economy, but also optimizes the allocation of social resources and creates new points of economic growth. This article reviews the current state of green financing in China. The authors analyzed the related development processes, defined the key challenges, and proposed some policy ecommendations.

Why are international standards not set? Explaining “weak” cases in shadow banking regulation

AbstractWhy are international regulatory standards not set? While most of the literature focuses on explaining positive cases of standard-setting where international rules are agreed upon, weak or negative cases remain prevalent and yet surprisingly under-explored. To explain these cases in the area of financial services, we integrate an inter-state explanation, which focuses on competition between major jurisdictions, with a transgovernmental explanation, which relates to conflict between different regulatory bodies at the international level. We also consider how these dimensions interact with financial industry lobbying. This allows us to construct a typology differentiating between distinct types of cases concerning international standard-setting: (1) absent standards, (2) non-agreed standards, (3) symbolic standards, and (4) agreed standards. The explanatory leverage of our approach is illustrated through a systematic structured focused comparison of four post-crisis cases related to “shadow banking.” The article generates novel insights into regulatory conflicts and the scope conditions for international agreement.

Exploring users' adoption intentions of intelligent virtual assistants in financial services: An anthropomorphic perspectives and socio-psychological perspectives

With artificial intelligence entering all spheres of technology, it has also prompted financial businesses to enter into Intelligent Financial Technologies (FinTech). Chatbots and virtual assistants all are examples of how AI is used in the financial services industry. Whereas many companies are humanizing their customer service chatbots and Intelligent Virtual Assistants by giving them names and avatars, no research has been conducted on how IVAs (Intelligent Virtual Assistants) influence customer responses in the financial service setting. The present study aims to examine the role of artificial intelligence-related factors (Perceived Anthropomorphism, Perceived Intelligence and Perceived Animacy) and Socio-Psychological factors (Technological self-efficacy and Social Presence) and how these factors affect the attitude (Hedonic & Utilitarian) towards the acceptance of Intelligent Virtual Assistants in the context of financial services. The moderating role of the need for human intelligence has also been examined between the AI factors and attitude. A total of 435 fintech users responded to an online questionnaire after interacting with a chatbot. Smart PLS SEM 4 was used to analyze the data and to test the hypothesis. The results showed that all the AI factors (Perceived Intelligence, perceived anthropomorphism, Perceived animacy) of the Intelligent Virtual Assistants (IVAs) have a significant impact on the attitude of the user except the influence of perceived anthropomorphism on the hedonic attitude which was insignificant. The results also showed that the need for human interaction positively moderates the relationships between AI constructs and attitudes. This study provides empirical insight into the opportunities, prospects and challenges pertaining to the use of AI in the area of financial services and provides practical implications in the design of IVAs in financial technologies. Additionally, the results demonstrated that Intelligent Virtual Assistants have enormous potential in the area of financial services. Finally, we look into the implications of these findings for IVA design principles and prospective research directions.

Fintech and Digitalisation of Financial Services: An Overview

Fintech refers to use of finance and technology together to increase the efficiency of activities related to finance and automation of financial services. The Financial Stability Board (FSB) define fintech as “technologically enabled financial innovation that results in business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services”. With the advancement of technology, fintech ecosystem at global and national level continues to grow at fast pace. Fintech is considered as technological innovation in the area of financial services which use digital platforms to bring out changes in the existing systems. Penetration of mobile and digital banking has kept the movement of fintech services at larger pace. The purpose of this study is to understand the role of fintech in delivering financial services, to look over the major driving forces that encourage fintech services and also to understand the major challenges faced by Indian Fintech firms. The present study is purely conceptual and descriptive in nature and the secondary data pertaining to the study has been collected from published articles and reports of NASSCOM, MEDICI and KPMG etc and author has collected data from online sources. The findings of the study revealed that Vibrant investment ecosystems, digital infrastructure, demographic factors, flexi policies of government were the major triggers of fintech revolution.

Major Opportunities, Challenges, Financial Technological Implications of Fintech in Indian Context

India, which has a population of around 1.3 billion, is a growing market for fintech. India is an exciting global market for financial innovations due to the country's high percentage of unbanked and underbanked citizens. Fintech is viewed as a paradigm shifter and disruptive innovation that has the power to upend the established financial markets. In the previous five years, fintech has expanded quickly in India, and in the near future, more growth is anticipated. The essay begins by concentrating on the fundamental categories of financial technologies and their roles. It then goes on to analyze the potential and challenges these technologies present in the Indian corporate climate. This study looks at the specifics of the financial technology sector, the definition of FinTech, and possible classifications for the financial technology solutions used by businesses. FinTech, also referred to as financial technology. Typically, start-ups focused on challenging less softwaredependent businesses and financial processes are called financial technology companies. Fintech is not just for start-ups. The term "fintech" refers to a new area of financial services that has emerged in the twenty-first century. With the help of PwC's knowledge and expertise in this field, this research seeks to offer important insights into the development of the FinTech sector in India. PwC claims that Financial Services and Fintech are cooperating rather than competing as much. In its Global Fintech report, PwC examines the FinTech’s expanding impact on the financial services industry. With the help of PwC's knowledge and expertise in this field, this research intends to offer important insights into the development of the FinTech sector in India. It uses cutting-edge technologies to give customers and financial institutions a variety of contemporary tools to manage their accounts as it encompasses advancements in investment, retail banking, investment management, and even cryptocurrencies like bitcoin.

Report from Brussels: Pending legislative initiatives by the European Commission in the area of financial services in the EU – content and state of play

Abstract This report aims at giving an overview on the procedural state of play as well as the content of important pending legislative initiatives by the European Commission in the area of financial services in the EU, in particular in the area of banking and capital market law. The report continues and follows in its approach earlier reports from 2018 (ZBB 2018, 340) and 2019 (ZBB 2019, 272). This report (with a cut-off date on 4 October 2022) is timely since it takes stock of developments at ‘half time’ of the current Commission’s mandate.

Implementation of a Digital Payment Processing System Using Spring Boot Interceptor Patterns via Swift Messages

Abstract: A financial transaction is an agreement, or conversation, entered between a purchaser and a dealer for the trade of an asset for virtual processing of payments. E-cash (digital money) is the crucial fee way in digital exchange, this is seen as the same as coin in the real world. A financial transaction is one wherein there is some kind of pastime that modifies the rate of the property, liabilities, or owner's fairness of a business enterprise. The ones styles of transactions are - component transactions which includes a buyer and a seller, and that they usually include cash in some way. The aim of this work was to develop a systematic ordering, comprehensive and classification of issues in the area of financial services. Spring Boot is used for the implementation of the product and it is developed with the help of swift messaging standard for easier transitions and efficient transactions. A customer will subscribe for the service which is provided by the customer service provider. The customer will have to pay the monthly fees for that service. It will be automatically debited from the bank account. The work of this project is for the customer to review the billing amount and also request for billing date extension and request for bill cancellation if needed. The complete process is divided into two parts which are inbound and outbound. There will be a queueing process which picks the customer the query and processes it one by one. The customer will initiate a query and after all the verification and validation the response will be sent to the customer.

Equivalence Decisions in the EU and UK Financial Services Sectors Post-Brexit

Financial services are largely left out of the EU-UK Trade and Cooperation Agreement that was reached at the end of December 2020. The issue of cross-border market access for financial services firms based in the EU and in the UK could be resolved by the adoption of mutual equivalence decisions. The UK made a number of equivalence decisions pre-Brexit to allow EU-based financial services firms access to the UK market. The EU has not reciprocated. Consequently, UK-based financial services firms have moved business into the EU to maintain client access. The article discusses advantages and disadvantages of the EU and the UK’s different strategies as regards market access and whether equivalence decisions in the area of financial services can be used to build up a trustful relationship between the EU and the UK post-Brexit. Equivalence decisions, Brexit, pre-Brexit regulation, post-Brexit regulation, financial services regulation, Joint UK-EU Financial Regulatory Forum, market efficiency, market relocation, Singapore-on-Thames, systemic risks

Equivalence in the area of financial services: An effective instrument to protect EU financial stability in global capital markets?

The article investigates whether the main EU regulatory mechanism for managing cross-border trade in financial services with third countries, the EU equivalence regime, is compatible with the post-financial crisis objective of protecting financial stability. Equivalence allows third-country financial firms to operate in the internal market on the basis of their home country regulation if this is equivalent to EU law. There are three different procedural safeguards to avoid financial stability risks: a) ex ante assessment of third countries’ regulation to ensure regulatory compatibility between the EU and the third country; b) ex post withdrawal of market access if cross-border liberalization triggers a “race to the bottom”; and c) direct supervision of systemic third-country entities to prevent them from becoming vectors of cross-border systemic risk. The article argues that those safeguards are ineffective in protecting the internal market from external risks. It proposes two alternative reforms. First, the EU could replace equivalence with a system of substituted compliance, following the US model where foreign financial firms must register with local authorities and follow host country regulation. Alternatively, the EU could reinforce the assessment, withdrawal, and supervisory procedure by harmonizing the current patchwork of different

RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY

In this article, we review some recent developments in the field of Financial Technology or “FinTech.” We begin with an overview of what FinTech is and why it has become an important growth industry in the financial services area and therefore an important research topic in finance. In the next section, we review some of the academic literature in the FinTech area. In the subsequent section, we characterize the financing of FinTech startups, especially by venture capital firms. In the following section, we characterize innovation by FinTech firms as well as by incumbent financial intermediaries. In the next section, we move on to discuss potential sources of value creation by FinTech start-up firms relative to existing incumbent firms: we conjecture that one source of value creation may arise from FinTech startups being able to provide a superior customer experience relative to incumbent firms in various areas of consumer finance. In the following section, we discuss the regulatory environment facing FinTech firms, in their banking as well as in their financial market activities. In the penultimate section, we analyze the buy-versus-build decision facing firms choosing to enter the FinTech sector and discuss the trade-offs that may drive such decisions in practice. We conclude with some remarks about the future directions that may be taken by the FinTech industry.

Recent Developments in the FinTech Industry

In this article, we review some recent developments in the field of Financial Technology or “FinTech.” We begin with an overview of what FinTech is and why it has become an important growth industry in the financial services area and therefore an important research topic in finance. In the next section, we review some of the academic literature in the FinTech area. In the subsequent section, we characterize the financing of FinTech startups, especially by venture capital firms. In the following section, we characterize innovation by FinTech firms as well as by incumbent financial intermediaries. In the next section, we move on to discuss potential sources of value creation by FinTech start-up firms relative to existing incumbent firms: we conjecture that one source of value creation may arise from FinTech startups being able to provide a superior customer experience relative to incumbent firms in various areas of consumer finance. In the following section, we discuss the regulatory environment facing FinTech firms, in their banking as well as in their financial market activities. In the penultimate section, we analyze the buy-versus-build decision facing firms choosing to enter the FinTech sector, and discuss the trade-offs that may drive such decisions in practice. We conclude with some remarks about the future directions that may be taken by the FinTech industry.

The Diffusion of the Sandbox Approach to Disruptive Innovation and Its Limitations

Faced with the challenges posed by the rise and evolution of disruptive technologies and innovations, many countries have adopted differing regulatory approaches and adapted institutional structures and norms to maximize benefits while mitigating risks. Among such regulatory endeavors, the regulatory sandbox, first adopted by the UK for the financial sector, stands out as a prominent mechanism to strike a balance between promoting technological innovations and ensuring market order. Given the promises of the regulatory sandbox, there has been a gradual embrace of this approach by governments across continents, which arguably indicates a global norm diffusion is on the rise. There is also a trans-governmental endeavor to facilitate cooperation among regulators and convergence in regulation through bilateral arrangements, as well as under the multilateral “global sandbox” club. Beyond the financial sector, given the cross-border nature and implications of many disruptive technologies and innovations, some countries have moved forward and applied similar governance approaches to non-financial areas, and this paper has discussed examples of them in Canada, Japan, Singapore, and Taiwan in areas such as energy, the environment, health care, and transportation. All these developments evidence the rise of the sandbox approach to regulating disruptive technologies and innovations in different sectors at the national, trans-governmental, and global levels, which has crucial theoretical and practical implications. By way of an in-depth and thorough analysis on Taiwan’s aggressive use of sandbox regulation in the areas of financial services, unmanned vehicles, and more recently, artificial intelligence, this paper argues that while the sandbox approach has emerged as a handy tool for governments to manage the ramifications across different sectors and despite its global diffusion over the past few years, there are limitations that may affect how countries implement these regulatory approaches on the ground. As argued in the case of Taiwan, the legal system, regulatory culture, domestic political economy in the post-GFC era all play a crucial role in shaping path dependence and institutional inertia nested within regulatory agencies. One must not take the face value of the sandbox approach; it is those complicated local contexts, seen or embedded, that will define the ultimate contour of the global sandbox approach in the long run.

Singapore

Singapore is a small and very open economy and a major financial center. The financial system is highly integrated into international financial markets and serves as an important regional financial hub. After a period of subdued economic activity, growth accelerated in 2017–18, but is expected to moderate in 2019. To strengthen long-term growth prospects, amid population aging, the government is pursuing a strategy to transform the economy by harnessing emerging digital technologies. In the financial services area, this strategy has put Singapore at the forefront in fintech.

Trends in the development of artificial intelligence technologies: the economic and legal aspect

The economic-legal analysis of the state and trends of the development of technologies of artificial intelligence (AI) has been carried out. The influence of AI on the development of society, economic effect, meth­ods and the field of application, the state of developments in the world and Ukraine are analyzed. In the next decade, AI will become the main market trend and the best business tool. The contribution of intellectual technologies to global GDP is estimated at 15.7 trillion. dollars In the next 5-10 years, China will be the leader in the success­ful operation and adaptation of AI technologies. According to analysts, the most bene­fit from AI technologies will be in the areas of financial services, retail and medicine.The scientific and inventive activity in the sphere of AI, the role of protection of in­tellectual property (patent and copyright), and the maintenance of the balance of com­peting interests are researched. Recently, the number of inventions based on AI has sharply increased. The leaders in the number of such inventions are American compa­nies IBM and Microsoft. This growth is due to the fact that in recent years AI has evolved from the theoretical concept into a real product that gains the world market. Since the advent of AI in the 50’s of the last century, inventors and researchers have applied for almost 340 thousand inventions based on AI (as of the end of 2016) and published more than 1.6 million scientific articles. The transport sector, including au­tonomous vehicles, is one of the sectors with the highest rates of growth in the appli­cation of AI. China has become a global leader in increasing the number of patents in the AI sphere over the past five years.By the number of companies working in the sphere of AI, Ukraine is among the three leaders among the countries of Eastern Europe. There are 57 AI companies in Ukraine and it has 11 investorsGeneralized practice of state regulation of activity in the sphere of AI in industri­alized countries and EU countries. More and more countries are developing national AI strategies. Thus, 17 countries, including Canada, China, Denmark, France, India, South Korea and Taiwan, have already announced their AI strategies. Some of them invest billions of dollars in this area. China, for example, has invested more than $ 10 billion in this technological trend, followed by South Korea — $ 2 billion and France — $ 1.5 billion. Governmental structures from different countries are con­cerned about the need to develop relevant national strategies, programs and regula­tion of AI legislative level. Identified existing problems and suggested ways to solve them. Problems constraining the development of AI in Ukraine: the absence of a strategy for the development of AI, the domestic infrastructure for its work and the weakness of the business about existing fundamental scientific developments in the field of AI, insufficient for the implementation of AI level of digitalization of compa­nies, the lack of a high level of data work, and is also a misunderstanding of the im­plementation guidance in the AI company.

A systematic literature review ofLean Six Sigma in financial services: Key finding and analysis

The paper intends to analyse the impact of LSS in financial services through systematic literature review and identify current research gaps. It focuses more on exploring the different concepts in the area of financial services by performing a systematic literature review along with data visualisation techniques. The literature review of articles that are published in peer-reviewed scholarly journals from 1993 to 2017 was collected for performing the content analysis. Based, on the descriptive analysis performed on the collected materials, many results about the articles trend in the selected areas were found. Further, the content analysis revealed many research inferences like the role of e-banking, success factors, barriers in the context of LSS. Further, proposed work for future researchers in this field. The paper presents a systematic and unique application to detect the various opportunities for LSS in the financial domain.

The Brexit Negotiations and Financial Services: A Two‐Level Game Analysis

AbstractThis paper examines the state of the art of the Brexit negotiations in the area of financial services. It uses a two‐level game model to first explain the positions of UK and EU negotiators on the basis of the domestic constraints they face, and second, to consider the scope for final agreement based on the ‘win‐set’ of both sides. The paper analyses the preferences and power of three main groups of players within the UK and EU: the political authorities, financial regulators, and the financial industry. We argue that the scope for agreement on financial services has been severely hampered by political and regulatory constraints which forced UK and EU negotiators to adopt early hawkish negotiating positions, and by the absence of a unified position from the financial industry. After the 2017 general election, the position of the UK government and UK financial industry briefly converged, thereby narrowing the domestic win‐set, but also increasing the scope for agreement. However, the July 2018 ‘Chequers’ deal represents a hardening of the UK government's position on financial services. We argue that this reflects the fact that the twin pressures facing UK negotiators—acute political constraints at home and bargaining weakness in Brussels—has become more, not less, acute over time.

Corporate Image of Banks from the Generation Y Perspective

The paper deals with corporate image of banks perceived by Czech Millennials (generation Y) with emphasis on financial services area. First, paper presents the theoretical framework of corporate image and identity, subsequently strategies of positioning are described in the first chapter. The major part of paper is devoted to primary marketing research. For purpose of collecting data, the method of questioning was chosen. The questionnaire was given to 236 respondents living in the Czech Republic. Because the survey was focused on Millennials, respondents had to be 23 – 40 years old. The survey was distributed in the spring 2017. The primary research dealt with the factors which are supposed to be important in building the image of the bank from the Generation Y perspective. The aim of the paper is to investigate the relations between educational attainment and perceptions of Czech Millennials (Generation Y) in chosen factors, which can create the image of the banks. Results mainly showed that educational attainment is not the significant element for determining the perceptions of these factors.

On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services

The financial services industry has been experiencing the recent emergence of new technology innovations and process disruptions. The industry overall, and many fintech start-ups are looking for new pathways to successful business models, the creation of enhanced customer experience, and approaches that result in services transformation. Industry and academic observers believe this to be more of a revolution than a set of less influential changes, with financial services as a whole due for major improvements in efficiency, customer centricity, and informedness. The long-standing dominance of leading firms that are not able to figure out how to effectively hook up with the “Fintech Revolution” is at stake. We present a new fintech innovation mapping approach that enables the assessment of the extent to which there are changes and transformations in four areas of financial services. We discuss: operations management in financial services and the changes occurring; technology innovations that have begun to leverage the execution and stakeholder value associated with payments, cryptocurrencies, blockchain, and cross-border payments; multiple innovations that have affected lending and deposit services, peer-to-peer (P2P) lending, and social media use; issues with respect to investments, financial markets, trading, risk management, robo-advisory and services influenced by blockchain and fintech innovations.