Changes In Financial Services Research Articles

ПЕРСПЕКТИВИ РОЗВИТКУ FINTECH В УКРАЇНІ ТА СВІТІ У 2024 РОЦІ

The main trends in the development of FinTech in Ukraine and the in world in 2024 are analyzed in the article. Three areas in the FinTech development are currently identified as the most relevant: use of artificial intelligence, the latest technologies, and changes in financial services. Each area is analyzed and characterized in terms of content and development prospects. The impact of the regulator, the National Bank of Ukraine, on the activity of FinTech companies is considered separately. Plans to attract investments by Ukrainian FinTech companies in 2024 are analyzed: 45% of companies plan to develop by their own expense, and 39% plan to attract private investors’ resources. Plans for Ukrainian FinTech companies to enter the international market this year were analyzed: almost half of Ukrainian FinTech companies (47%) are already operating in international markets, and 38% plan to enter in the future. The analysis of the dynamics of the global artificial intelligence market in 2021-2023 and its forecast until 2030 shows that in 2023 the global artificial intelligence market was evaluated at about USD 200 billion. According to the Statistics Portal, this market is expected to grow significantly to almost $2 trillion by 2030. Based on the analysis of literature sources, it has been determined that new technologies that become popular in the FinTech sector will be: open banking, e-wallets, digital currencies, etc. To support their systemic development, it is necessary to use digital technologies. Thus, the article identifies promising areas of artificial intelligance use in the process of FinTech development in banking institutions: automated trading and investments (in the short term, investors will be able to focus on the development and implementation of specific strategies by outsourcing trading technologies to artificial intelligence), customer support system (text, voice, and video chatbots will be improved through integration with ChatGPT), fraud protection (automatic analysis of large amounts of data to identify potentially dangerous transactions will take much less time than manual analysis).

Where are the customers’ bots? The AI paradigm shift in retail banking

Financial institutions are already using artificial intelligence (AI) to cut costs and deliver new services. Robo-advisers, chatbots and ‘copbots’ auto-detecting fraudulent transactions are increasingly common. These uses are undoubtedly valuable, but the business model is still the consumers being sold a financial product by a bank, whether by a call centre agent or a robot that impersonates a mortgage vendor. The big change in financial services will come when customers use AI to assess offers from financial institutions for themselves. They will have access to AI as powerful as the banks have, because Google, Facebook, Apple and Amazon (and companies like them) will be giving it to them. And this will mean individuals will not be the customers: their bots will be. Since most retail financial services offer products that just service a need at a point in time (eg paying for parking) rather than create an extraordinary user experience or are too complicated for normal people to make informed decisions about (eg pensions), we might expect most consumers to abdicate in favour of intelligent agents operating under the new duty of care umbrella. This has been a subject of futurist speculation for some time, but the rapid growth of ChatGPT and its ilk means that banks now have an urgent need to develop strategies to take advantage of this significant change in the nature of the financial services in the mass market. This paper looks at the imminent confluence of open finance and AI to consider the consequences of giving bots access to consumers’ cash (through open banking, for example). This will mean a world of smart wallets, capable of making decisions on behalf of consumers. They will be capable of deciding what services to use, who to get them from and how to maximise their financial well-being, leaving their users to spend more time on human activities.

The dark side of FinTech in financial services: a qualitative enquiry into FinTech developers’ perspective

Purpose FinTech offers numerous prospects for significant enhancements and fundamental changes in financial services. However, along with the myriad of benefits, it also has the potential to induce risks to individuals, organisations and society. This study focuses on understanding FinTech developers’ perspective of the dark side of FinTech.Design/methodology/approach This study conducted semi-structured interviews with 23 Nigerian FinTech developers using an exploratory, inductive methodology The data were transcribed and then thematically analysed using NVivo.Findings Three themes – customer vulnerability, technical inability and regulatory irresponsibility – arose from the thematic analysis. The poor existing technological infrastructure, data management challenges, limited access to data and smartphone adoption pose challenges to a speedy integration of FinTech in the country, making customers vulnerable. The lack of privacy control leads to ethical issues. The lack of skilled developers and the brain drain of good developers present additional obstacles to the development of FinTech in Nigeria.Research limitations/implications FinTech operation in a developing country differs from that in developed countries with better technological infrastructure and institutional acceptance. This study recognises that basic banking operations through FinTech are still not well adopted, necessitating the need to be more open-minded about the global practicalities of FinTech.Practical implications FinTech managers, banks and policymakers can ethically collect consumer data that can help influence customer credit decisions, product development and recommendations using the mobile app and transaction history. There should be strict penalties on FinTech for selling customers’ data, sending unsolicited messages or gaining unnecessary access to the customer’s contact list. FinTech can offer to educate consumers about their financial management skills.Originality/valueWhereas other studies have focused on the positive aspects of FinTech to understand client perceptions, this study offers new insights into the dark side of FinTech by analysing the viewpoints of FinTech developers. Furthermore, the study is based in Nigeria, an emerging economy adopting FinTech, adding a new dimension to the body of knowledge.

A multi-level perspective on financial technology transitions

This paper addresses the question of how financial technology transitions unfold. Innovations in financial business models driven by technology do not only involve changes in financial services delivering, but also changes in market, regulation, industrial networks, dominant players, and culture. The work adopts a multi-level perspective on financial technology transitions. Based on a literature review, the socio-technical landscape, regime, and niche levels are elaborated. The paper contributes with a new framework on financial technology transitions that may be used as an analytical tool to elaborate on future transformations in the sector and to customize for national-level studies.

Antecedent of Organizational Change and Its' Consequnce towards Organizational Performance

Even very successful organizations need to constantly change (evolve) due to very dynamic business environment conditions (Pangarkar, 2015). An organization needs to adapt to any changes in technology, economy, demographics, regulations, competition, and consumer preferences that change rapidly (Anyieni, 2016). Dynamic changes also constantly occur in the banking industry in Indonesia. As the central institution in driving economic growth, the bank needs to be more adaptive to changes in the business environment driven by customer expectations, technological capabilities, policies, demographics, and macroeconomic conditions. Over the last ten years, competitive pressures in the industry have put pressure on the level of banking profitability and efficiency issues (Source: SPI 2019, www.ojk.go.id). Barquin et al. (2018) also mentioned that technology development had brought a new competitive landscape in the banking industry. Technology has provided more convenience in terms of access to the financial services that also raise concern on the relevance of old-style banking services with high reliance on the conventional branch as access. As an impact of technology development change in financial services, increasing financial technology (fintech) services have emerged another competition platform in the banking industries in recent years. Digital technology will change the competition platform in the financial services industry. If banks are not ready to adapt to the change will be exposed to the shrinking market share (www. Economy.okezone.com, 2019). Fintech is expected to put more pressure on banking lending products, particularly within the retail banking segment, potentially will exist in 2025, as explained by McKinsey (www.keuangan.kontan.co.id, 2018). The commercial lending segment will expose to the competition due to technical support in terms of ease of access. Strong investor support to develop their market in Indonesia is expected to accelerate the change of competition landscape in the small-medium enterprise business (www.money.kompas.com, 2019). Keywords: Change, Leader, Organizational Commitment, Organizational Change, Organizational Learning, Organizational Performance.

Household financial services, financial literacy, and COVID-19 pandemic

ABSTRACT This paper analyzes the relationship between the spread of the COVID-19 infection and the changes in financial services for households in Japan. Respondents who chose to increase demand for non-face-to-face financial services and cashless payments tended to have more financial assets and to be more financially literate. This result suggests that financial literacy is important in helping households embrace financial services to comply with the demands of social distancing under the spread of COVID-19.

Research of globalization influence to paradigm change in financial services

Research background: Study of paradigm about financial services and how it changes under influence of globalization and introduction of a new player as a financial technology company or shortly Fintech. Literature and other informative sources regarding issues of innovation in financial services, impact of globalization and formation of new perspective to financial services was reviewed during the study. Purpose of the article: The main purpose of this work is to detect and highlight the change of the concept about financial services in favor of Fintech companies supported by tendencies which are characteristic for globalization process, and how it can be beneficial for consumers and overall financial services industry. Methods: For this research was used content analysis approach, which has advantage over other methods since it allows to extract specific data from text and other forms of information without intervention by researchers. Obtained data was encoded and applied to a model created by authors to see certain change pattern during the study of the phenomenon of financial services paradigm change. Finding & Value added: The findings of this research proved that globalization led to change of the paradigm about financial services. The value of this research is to provide theoretical fundamentals for application of paradigm change concept in the sphere of management science.

The Future of Finance: Why Regulation Matters

FinTech and financial inclusion have become widely discussed topics in recent years. How can we promote technology-driven entrepreneurship and support micro-businesses in the various fields of financial services? How can we encourage more diversity and inclusion in the world of finance? There are numerous examples of how a combination of smartphones, computer code, and global networks have empowered weaker parties, created more equality and helped solve some of the biggest challenges in the financial services sector. Emerging technologies, in fields such as blockchain and artificial intelligence, mean that such a trend has become a permanent feature of the landscape, disrupting incumbent service providers, regulators, and other policymakers. It seems clear, that the exponential growth of technology has created a divide between the digital world that we are now inhabiting, and the world as it is generally perceived by government. The result? Governments are, quickly, becoming less and less relevant to the development and deployment of digital technologies. Politicians and public officials are increasingly out of touch with the digital transformation and struggle to find an appropriate response to the evolution of technology and its economic, social, and cultural effects. This paper explores the various challenges of regulating technology-driven change in financial services. As technology “eats the world,” it creates a plethora of new opportunities, but it also creates tremendous challenges that require some form of government intervention. In a world where agility is essential, governments are sluggish and disconnected. This creates potential risks, most obviously for the consumers of financial services. In developing answers to these regulatory dilemmas, we argue that traditional approaches to regulating financial services are obsolete and that new thinking is required. State actors are at an enormous informational disadvantage and lack the capacities and resources to keep up with the fast-moving actors that dominate the sector. New and more innovative approaches need to be found. The paper describes several such approaches, including regulatory “co-creation”, policy experimentation, and technology-driven regulation (so-called RegTech). It is only by embracing these new approaches that a regulatory environment be developed that fosters the responsible and safe development and deployment of financial innovation.

A FinTech-jelenség hagyományos kereskedelmi bankokra gyakorolt hatásának vizsgálata

Az innovativ penzugyi technologiak radikalis valtozasokat eredmenyeznek a penzugyi szolgaltatasok teruleten. A fogyasztoi elvarasok, a digitalis csatornak iranti novekvő kereslet es a penzugyi szektor uj tipusu szereplői a hagyomanyos kereskedelmi bankokat is cselekvesre kesztetik. Jelen cikkben 13 melyinterjun keresztul mutatja be a szerző, hogy a penzugyi szektor szereplői hogyan ertelmezik a FinTech fogalmat es azt, hogy a jelenseg varhatoan milyen hatassal lesz a hagyomanyos kereskedelmi bankok műkodesere es uzleti modelljere. Mindezek mellett, nehany szabalyozoi kihivast is azonosit, amelyek az innovativ fejlesztesek soran akadalyt jelenthetnek mind a bankok, mind pedig a FinTech vallalatok szamara.

Reinventing regulation

The traditional tools of regulation have failed to effect change in financial services, necessitating a more coherent and substantive response to crisis. It is sobering to witness how quickly policy pure arguments for flexible, efficient regulation lose momentum in the face of crisis. With the death knell of principles-based regulation ringing out, it would only be reasonable to assume that its less government interventionist cousin of “self-regulation” is officially now a regulatory dead end. What has been missing from the debate about corporate failure and inadequate regulatory systems is a serious consideration of the individual ethical and professional obligations of those in positions of influence, expertise and authority inside corporations.

Corporate social responsibility and structural change in financial services

This paper argues that when corporate social responsibility (CSR) is conceptualised pragmatically as a response by businesses to society's concerns it acts as an element of structural change with implications for the strategies of firms and ultimately for industry structure. Furthermore, industry specific aspects of CSR are important and governmental influences and financial regulation provide an added dimension to the impact of CSR on the financial services industry. As an element of structural change, CSR acts as an environmental discontinuity and forces firms to realign their positions within their operating environment. A structural change paradigm is developed to examine trends which are emerging within retail banking as a result of CSR. In the UK retail banking sector, the impact of CSR is increasingly manifest in the efforts to create a competitive advantage out of CSR strategies, the growing prominence of mutual financial institutions in government policy and collaborative efforts between a range of financial institutions.

Financial Management Issues in International Life Insurance Operations

The dismantling of foreign trade barriers, 24-hour worldwide capital markets, regulatory reforms within countries recognizing the importance of private financial markets, technologies such as the Internet, and the access of large segments of urban populations throughout the world to television and computers mark significant changes in financial services. As part of these structural changes, many governmental, economic, and competitive trends are affecting life insurance markets throughout the world in similar ways. This paper discusses these trends and the factors required for effective international life insurance operations.