Credit Transfers Research Articles

Impact of bank financial technology on the performance of banks in the European Union

This article examines how financial technology determines bank performance in different EU countries. The answer to that question would allow banks to choose their development policy. The paper focuses on the main and most popular bank services that are linked to financial technology. A SWOT analysis of FinTech is also presented to show the benefits and drawbacks of FinTech. FinTech-based services are very diverse and are provided by financial firms and banks alike. This paper looks at the financial technology provided by banks: internet usage (internet banking), number of ATMs, credit transfers in a country, percentage of the population in a country holding a debit or credit card and whether that population has received or made a digital payment. Using the multi-criteria assessment methods of CRITIC and EDAS, the authors analysed and compared the countries of the European Union and the financial technology used in them. As a result of the application of these methods, the EU countries under consideration were ranked in terms of the use of financial technology. Subsequently, three banks from different countries with different levels of the use of financial technology were selected for the study. For these banks, financial ratios of profitability were calculated to characterise their performance. Correlation and pairwise regression analyses between the banks’ profitability ratios and financial technology were used to assess the relationship and influence between these ratios. The main conclusion of the study focuses on the extent to which financial technology influences the performance of banks in the selected countries. It is likely that further research will try to take into account the size of the country’s population when analysing all financial technologies. Researchers also needed to find out what influence financial technologies have on the such financial indicators as operational efficiency (costs), financial stability, and capital adequacy.

Free Riding of Vehicle Companies under Dual-Credit Policy: An Agent-Based System Dynamics Model

The dual-credit policy promotes green transition in automobile companies. This paper investigates the dual-credit policy framework in the Chinese automotive industry, with a focus on the phenomenon of free riding. This occurs when traditional vehicle manufacturers within an alliance benefit from the excess credits generated by a transitioning vehicle company without fully committing to their own green transitioning. The focus of this study lies on an alliance constituted by a transitioning vehicle company in partnership with two traditional vehicle manufacturers, all interconnected via equity ties. Utilizing an agent-based system dynamics model, this study explores the strategic behaviors emerging from such credit collaborations and their consequent effects on operational efficiency and financial performance. The findings reveal that 1. free riding negatively impacts the transitioning company’s revenue but benefits the alliance by easing transition pressures and boosting collective performance; 2. stricter policies increase intra-alliance credit transfers and performance, while lower credit prices reduce transfer value and harm the transitioning company’s earnings. This study implies that transitioning vehicle companies with equity-linked partners can benefit from a nuanced understanding of how policy mechanisms interact with alliance dynamics under free riding. By adjusting credit transfer strategies in line with market conditions and policy trends, they can better navigate the dual-credit policy landscape, balancing individual profitability with the needs of the broader alliance and long-term sustainability goals.

Massive Open Online Courses in Social Sciences and Their Implementation at Universities in Delhi

Universities around the world have successfully incorporated Massive Open Online Courses (MOOCs) intotheir curricula and have facilitated credit transfers. The present study examines the integration of MOOCs inseven Indian universities. Moreover, the study focuses on the level of amalgamation of MOOCs, perceptions ofinstitutions regarding the provision of online courses, and transition of MOOCs from informal to formal education. Furthermore, the study investigates the hindrances faced by higher educational institutions in providing services to MOOC learners. Purposive sampling technique was employed to facilitate selection of institutions. The responses were collected using a structured questionnaire. The study found moderate level, low level and very low-level integration of MOOCs in all seven universities. Six out of seven institutions namely, JNU, JMI, DU, GGSIPU, DBRAUD and NLU, adopted “Explain the perceived usefulness” as a strategy to influence the affordability uptake of MOOCs. Five out of seven institutions educate users about different MOOC platforms in the information literacy events. Surprisingly, two institution libraries out of seven revealed that their library services align with MOOCs. Surprisingly, majority of libraries of the seven institutions have not formulated any noteworthy strategy to foster the uptake of MOOCs among the academic community. Therefore, LIS professionals ought to grasp the nuances of various MOOC platforms. Also, library strategies should include MOOCs so that users can benefit.

A STUDY ON THE USE OF BANKS FINANCIAL TECHNOLOGIES IN THE STATES OF THE EUROPEAN UNION

The article analysis financial technologies and their relevance and usefulness in the existing financial market. The work presents and analyzes the services (models) provided by financial technologies, they can be divided into payments, asset management, crowdfunding, lending, and the capital and insurance market. The main and most popular services provided by banks, which are related to financial technologies, are presented. A SWOT analysis of financial technologies is also presented, which shows the advantages and disadvantages of FinTech. The services provided by financial technologies are very diverse, they are provided by both ordinary companies and banks. This article focuses on financial technology that is provided by banks – internet usage: internet banking, number of ATMs, credit transfers in a state, percentage of population in a state, which shows how many people have a debit or credit card and whether those residents have received or made a digital transfer. In the third part, using multi-criteria evaluation methods: CRITIC and EDAS and performing cluster analysis, European Unions are compared and ranked.

Legal Protection Against Home Ownership Credit Debtors with the Flexibility of Banking Policies in Credit Agreements without the Creditor's Permission

Introduction: The Job Creation Law's implementation in 2023 will significantly alter corporate rivalry and investment, particularly in the housing industry. This modification attempts to take into account the changing circumstances that both customers of housing and creditors or housing providers must deal with. Law Number 1 of 2011 further stipulates that all Indonesians in middle-class and lower-class economic categories must have access to livable housing. Objective: This article's goals are to clarify the legal ramifications of moving credit with collateral as a home ownership credit object without the creditor's consent and to outline the legal safeguards available to new home ownership credit (KPR) debtors in Medan who are still obligated to their banks by collateral. Methods: The laws and rules governing the distribution and financing of house ownership credit (KPR) in Indonesia are examined using a comparative legal analysis in this article. The efficacy of these regulatory actions is assessed by the author from a formal legal standpoint. The qualitative parameters of agreement laws in house ownership credit (KPR) are included in this study, along with the degree of legislative and banking policy development in Indonesia with regard to KPR financing. Results: Based on the analysis of the Court Decision, the research results demonstrate that credit transfers without the creditor's consent, which are frequently done in society, can be said to be legally valid as long as there are no parties who are disadvantaged and the new debtor has good faith intentions to uphold the rights and obligations of a determined contract. When a credit transfer is done without the consent of the creditor or notary, it is considered legally void and loses legal protection in the event that the new debtor breaches the terms of the agreement between the old and new debtors. Additionally, the new debtor's failure to fulfill their obligations demonstrates their lack of good faith. Conclusion: A policy regarding the validity of transferring home ownership credit (KPR) without the creditor's permission with provisions that do not cause losses to either the creditor or the new debtor should be developed in order to address the issue of legal protection for debtors of KPR who transfer without the creditor's consent.

Do non-cash payments affect economic growth? Empirical evidence from EU countries

Purpose: to assess the impact of traditional forms of non-cash payments on economic growth measured by real GDP per capita in Central and Eastern Europe (CEE) and Western Europe. Design/methodology/approach: the following research hypothesis was formulated: the impact of non-cash payments on economic growth is stronger in Central and Eastern European countries than in Western European countries. The research hypothesis was verified based on empirical analysis of panel data for the years 2005-2018 for the CEE and Western European countries. The following 10 CEECs participated in the research: Slovakia, Bulgaria, Poland, Czech Republic, Hungary, Romania, Lithuania, Latvia, Estonia, Slovenia and eight countries from Western Europe: France, Austria, Belgium, Germany, Netherlands, Luxembourg, Ireland, the United Kingdom. Findings: in CEECs the value of transactions with payment cards had the largest impact on economic growth – an increase in the value of transactions using this payment instrument by one percentage point causes real GDP per capita increase by 0,23 percentage point. On the other hand, an increase in the value of transactions using credit transfers by one percentage point increased real GDP per capita by 0,10 percentage point. the direct debit transactions had a positive impact on the explained variable in the CEE countries – real GDP growth by 0,06 percentage point. Research limitations/implications: The results of the empirical study, likewise in literature, indicated a significant, positive impact of non-cash payments on real GDP per capita growth. The impact on real GDP per capita is only effective for the CEE countries. In Western European countries the level of non-cash transactions reached a certain level of saturation. That was a proved by ineffective iterations performed on various functional forms of the econometric model on panel data. In the group of CEE countries, the value of transactions with payment cards has the greatest impact on real GDP per capita. Originality/value: analysis of current literature on the impact of non-cash payments on economic growth and an empirical analysis. Keywords: household financial management, non-cash turnover, economic growth, real GDP per capita, public management. Category of the paper: Research paper.

Secure banking and international trade digitization using blockchain

Traditional trade processes suffer from a great number of issues about intermediaries, information latency and trust, which, in turn, hinder overall process efficiency. The emerging blockchain technology may have potentials to mitigate those issues by revolutionizing business processes across enterprise borders in various industries. The security of smart contract technology and anti-money-laundering is utilized in tandem to combat the flaws of traditional banking. By decentralizing we can circumvent some of its defects, and achieve autonomous, fast and safe foreign goods trade. The purpose of this paper is to examine the current obstacles in letter of credit and bank transfers related to the imported foreign goods, and suggest a solution using the blockchain technology. Comparative analysis and feasibility study were conducted to identify and validate the prospects, in terms of facilitating process flow and enhancing overall trade performance, of the proposed blockchain-based international trade process model. This study contributes to the conceptual design of a blockchain- and smart-contract based process along with a provision of practical case in business process re-engineering. Further endeavors devoted to blockchain research and application across different sectors are suggested to reach better performance of business process operations.

Cross-border retail payments in the Tripartite Area in support of the African Continental Free Trade Agreement

Cross-border payments initiatives are rapidly proliferating on the African continent. Both banks and non-bank financial institutions are working to extend digital financial services to support the growing demand for the transfer of funds across borders, including remittances, which provide a lifeline for vulnerable households such as those supported by working migrants. This article provides insight on the concept of a cross-border retail payments scheme for credit transfers within a geographical area of the African continent known as the Tripartite Free Trade Area. The paper elaborates on how such a scheme can be utilised to guide the delivery of payments in a manner that is cost-effective, rapid and transparent. This proposed scheme is in line with the G20 Roadmap for Interoperable Payments and would also support the vision of the African Continental Free Trade Area to enhance intra-African trade.

Offline contexts of online jobs: Platform drivers, decent work, and informality in Lagos, Nigeria

SummaryMotivationThe Sustainable Development Goals targets include decent work for all by 2030 but progress in sub‐Saharan Africa has been slow. Over the past five years, the platform work sector (e‐hailing platforms in particular) has expanded considerably on the continent, providing work opportunities to the growing urban populations. The quality of this work, however, is heavily contested.PurposeWe deepen and extend our understanding of the gig economy in sub‐Saharan Africa and assess its potential for creating decent work. Our unique contribution lies in looking at the gig economy in comparison to the local threshold (the informal economy) as opposed to wage employment.Methods and approachWe first review the literature on the gig economy, the informal sector, and decent work in low‐ and lower‐middle‐income countries. We then draw on a case study of e‐hailing in Lagos, Nigeria, to assess the sector’s potential to create decent work. We discuss our findings against the four pillars of the International Labour Organization’s Decent Work Agenda: productive employment, labour standards, social protection, and social dialogue.FindingsWe find that e‐hailing platforms may offer certain gains compared to regular taxiing in the informal sector but these are context‐ and platform‐specific. Examples include access to insurance, credit, and cash transfers. Gig work remains embedded in the informal economy: it is unregulated and does not abide by labour standards nor offer social protections. We also find evidence of well‐organized labour movements.Policy implicationsE‐hailing may be productive work, as platform intermediation facilitates outreach and matching, translating into increased wages. This happens with the added cost of longer working hours in the absence of labour standards. We propose exploring the role of digital records kept by platforms (e.g. income volume and regularity, or customer ratings data) to facilitate the progressive transition of transport workers towards formality. We also recommend fostering industry standards (such as fair work certification) to protect workers’ rights.

Time is Money: A Survey of the Social Cost of Payment Instruments

The number of payment transactions in Hungary has increased by almost one and a half times over ten years. The use of electronic payment instruments has grown dynamically, while only a moderate increase in cash use was observed. The analysis shows the evolution of the payments market and quantifies the social costs attached to the use of payment instruments. The value of the latter was HUF 832 billion in 2019, representing real growth of 20 per cent over 10 years, mainly due to the costs of developing the acquiring infrastructure and the significant increase in the number of transactions. The real cost per transaction has fallen by 10 per cent for cash, by one half for cards and by one sixth for credit transfers, reflecting the improved efficiency. As electronic payment is now available in most retail payment situations, the cost per transaction is expected to decrease further in the coming years as volume increases.

Experiences from the Dutch instant payment project: From 0 to 289 million in one year

In May 2015 the leading Dutch banks announced their ambition to offer instant payments (IP) to the Dutch market in four years. The complex and innovative programme, led by the Dutch Payments Association, delivered, in mid-2019, a new IP infrastructure that has now become one of the fastest growing IP environments, with over 289 million interbank IP transactions processed in its first year (April 2019–March 2020). This paper looks back on that period and focuses on the elements that, in our view, were important to the successful introduction of this new payments infrastructure. The challenges, dilemmas and the rationale for the decision of the Dutch banking community to organise the IP project are described. The journey towards achieving all the set goals by means of a clear joint effort from the Dutch payments community was intense and rewarding. IP is expected to become the new normal for SEPA payments in the years to come, provided that some hurdles to full interoperability and reachability in SEPA will be overcome. This paper aims to share insights that may be useful to other parties that are considering introducing IP or that want to push a similar transition from conventional credit transfers towards a 24/7 available, interbank IP backbone (See figure 1 for actual transaction volumes on this new IP backbone).

The European Payments Initiative: The next big thing in European payments?

Proposals for a European Card Payment Scheme (ECPS) to supplement the existing European Scheme for Credit Transfers and the SEPA Direct Debit Scheme have been under discussion since before the turn of the century. Since 2020, however, progress has entered a new phase, with banks from five European countries announcing the implementation of the European Payments Initiative (EPI). This paper describes what happened to the ECPS prior to the turn of the millennium and how things have developed since then. It then goes on to analyse the challenges the EPI must overcome to become an ECPS, the success of which would bring a degree of European sovereignty over payments.

Trade Credit and Stock Return Predictability: Evidence from Pakistan

Trade credit transfers private information about borrower�s creditworthiness and future performance to other lenders and this information can also be translated into the stock market. The purpose of this study is to analyze the informational role of trade credit in predicting future stock returns of the firms in the context of Pakistan. After controlling for market and firm-specific characteristics in our proposed five-factor model, it is found that firms depending more on trade credit as compared to bank loans have higher future stock returns. These findings suggest that trade credit supply signals the information that the supplier has about the borrower and this information is gradually and positively translated in the market Keywords: Trade Credit, Stock return Predictability, Fama & French Three-Factor Model

Сучасний стан і перспективи розвитку банківських інновацій у контексті підвищення якості обслуговування клієнтів

In the context of globalization of the unstable situation in the financial market, the coronavirus pandemic, strengthened interbank competition, lack of financial resources and increasing their value, raising standards by the National Bank of Ukraine, it is imperative to improve the banking business management system by introducing innovations in the form of the use of new technologies that are adequate in view of development strategies and new banking products. That is why innovative development becomes the driving force of the efficiency of the banking sector’s activity. The article is aimed at evaluating the current state of innovative banking technologies and prospects for their development in Ukraine in the context of improving the quality of customer service. Priority directions of innovations for effective development of banking institutions and ways of their solution are defined. When analyzing trends in innovative activities of domestic banks, the major ones are identified. The most popular innovative products in the domestic banking market are listed and their characterizations are provided. A detailed analysis of normative and legislative acts is carried out, determining the prospects for the development of innovations in the banking sector in the near future and by 2025, such as: FinTech development strategy 2025; electronic payment system at the National Bank (EFT) in the 23/7 regime; service of sharing of digital documents; procedure for using a digital handwritten signature; creation and use of QR codes for credit transfers and when paying for goods and services; change of remote identification and verification of bank customers, etc.

Gli strumenti di pagamento e la ‘fiducia’: dal cambio traiettizio alla blockchain

This paper covers the means of payment other than money, such as negotiable instruments, credit transfers, direct debits, as well as virtual currencies, with a view to analysing the Italian framework through the lenses of the legal literature.

SEPA Instant Credit Transfer: Where are we now and where are we heading?

Launched by the European Payments Council in November 2017, the Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) is an instant payments scheme enabling euro credit transfers within the SEPA area to be made in under 10 seconds. SCT Inst was designed for everyone: consumers, businesses, large companies and administrations. It works like a regular SEPA credit transfer but much, much faster; it is also open and accessible to users and service providers 24 hours a day, seven days a week. This paper reviews the progress of SCT Inst since its launch, its critical success factors, challenges and what the future holds for it.

The mechanism of credit transfers via the Blockchain

Subject. Money transfers via Blockchain-based banking and payment systems employ a procedure combining the traditional mechanism of gross settlements and P2P network, which is also run with the Blockchain. Therefore, the relationship between payment peers is mixed too. Objectives. The study aims to set up a legal mechanism of credit transfers which synergistically combines two payment procedures, i.e. traditional gross settlements via the national banking system and P2P payments based on the Blockchain. Methods. The study relies upon systemic-structural, dialectical, logic methods, induction, deduction, legal forecast, legal modeling and comparative method (legal comparison). Results. I examine how advantages of Blockchain-based payment systems and banking payment systems can be combined. This will streamline and smooth settlements, allowing to use the fiat currency in the beginning and at the end of credit transfers. The article highlights four phases of a mixed money transfer, i.e. the preliminary creation of a Blockchain-based node, accession to the protocol, opening of cryptocurrency accounts and e-wallets; the commencement of a money transfer under traditional rules of payment laws; interbanking settlements via the Blockchain and crediting of money under ordinary rules of the payment laws. Conclusions and Relevance. When credit transfers migrate from conventional bank accounts to the Blockchain, the fiat currency converts into the cryptocurrency and vice versa. I analyzed types of social relations emerging through the above phases and sources of legal regulations. The findings can be used in the theory of civil and banking laws, law making processes for the preparation of regulatory documents on cashless payments, and IT regulations.

IMPACT OF FINANCIAL INCLUSION IN LOW‐ AND MIDDLE‐INCOME COUNTRIES: A SYSTEMATIC REVIEW OF REVIEWS

AbstractFinancial inclusion programmes seek to increase access to financial services such as credit, savings, insurance and money transfers. Despite a wealth of systematic review evidence, the impacts of financial inclusion are inconclusive. Hence, the first systematic review of systematic reviews was undertaken to synthesize the impacts of financial inclusion interventions on economic, social, gender and behavioural outcomes. Thirty‐two systematic reviews were identified. The headline finding is that impacts are more likely to be positive than negative, but the effects vary, and appear not to be transformative in scope or scale, as they largely occur in the early stages of the causal chain. The effects of financial services on core economic and social poverty indicators are small and inconsistent. There is no evidence for meaningful behaviour‐change outcomes. The effects on women's empowerment appear generally positive, but they depend upon programme features that are often peripheral to the financial service, and cultural and geographical context. Accessing savings opportunities has small but more consistently positive effects for poor people, and bears fewer downside risks for clients than credit. The inconsistent quality of the primary evidence base that formed the basis of their syntheses raises concerns about the reliability of the overall findings.

‘ICT Supported Financial Inclusion for Inclusive Growth – for New Age Private Banks in India’

“Financial Inclusion is a delivery of Banking Services at an affordable cost to the vast sections of the disadvantaged and low income groups.” In this research work, an attempt has been made to have an insight into the different activities undertaken by the Government for the Financial Inclusion in India during the last few years. The programmes launched by some selected New Generation Private Sector Banks in India are also studied to know the present status of Financial Inclusion in India. It is a descriptive type of research work based on secondary data which has been collected from the web sites of the R.B.I., Ministry of Finance and the Banks selected for the study. The data related to the Financial Inclusion in India over the last 10 years has been considered for the research work. Financial Inclusion inculcates the savings habits among the people, saves the poor people from the vicious circle of debt from the informal sector.The New Age (Generation) Private Sector Banks are those which are established after 1993 under the new rules and regulations of R.B.I. These Banks have proved themselves as the most efficient Banks providing technology enabled Banking and Financial Services. ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc. are some of the examples of out of total 9 Banks of this type. The private Banks have been intentionally selected to know how much they are serious about the problem of financial exclusion and what efforts they are taking for the improvement of the deprived class of the society. Financial Inclusion is the key factor for the inclusive growth of the society. So as per the recommendations of the Khan Committee (2005). RBI issued guidelines to the Banks to extend their services to the unbanked areas through Business Correspondents with the help of ICT support. Pradhan Mantri Jan Dhan Yojana is playing an important role in the Financial Inclusion in the country. The National Digital Mission (NDLM) is working for the digital literacy among the people for improving their communication and accessibility to financial and other services. Attempts through various schemes like Zero Balance Account, Relaxation on KYC Norms, General Purpose Credit Cards, Easy Credit and Free Money Transfers, Financial Literacy Camps, Business Correspondents, Use of Technology, Branches in Unbanked and Rural Areas, etc. will definitely improve the financial condition of the people and it will boost the economic development of the nation. However, there is need to include more number of beneficiaries for the improved status of Financial Inclusion in the country.

Household Consumption Volatility and Poverty Risk: Case Studies from South Africa and Tanzania

Economic volatility remains a fact of life in Sub Saharan Africa (SSA). Household-level shocks create large consumption fluctuations, raising the incidence of poverty. Drawing on micro-level data from South Africa and Tanzania, we examine the vulnerability to shocks across household types (e.g. by education, ethnic group, and economic activity) and we quantify the impact that reducing consumption volatility would have on aggregate poverty. We then discuss coverage of consumption insurance mechanisms, including financial access and transfers. Country characteristics crucially determine which household-level shocks are most prevalent and which consumption-smoothing mechanisms are available. In Tanzania, agricultural shocks are an important source of consumption risk as two thirds of households are involved in some level of agricultural production. For South Africa, we focus on labor market risk proxied by transitions from formal employment to informal work or unemployment. We find that access to credit, when available, and government transfers can effectively mitigate labor market shocks.