Development Of Financial Products Research Articles

Trends and prospects for the development of the derivatives market in Russia under sanctions

Aim. To analyze trends on the derivatives market in Russia under sanctions and identify prospects for its development.Objectives. To study the theoretical basis and functions of the derivatives market; to analyze its current state in Russia, to assess the impact of sanctions on the dynamics and structure of the derivatives market; to identify trends and determine scenarios for its development in the Russian state under sanctions; to develop recommendations to improve the efficiency and development of the derivatives market under external pressure.Methods. The author applied the methods of analysis, synthesis, generalization, comparison, analogy, historical analysis. The analysis of publications with the subsequent interpretation has been carried out, the results of research have been summarized, on the basis of which the author’s understanding of the derivatives market development trends has been derived. Comparison of the existing opinions concerning the considered problems was carried out, statistical data were investigated.Results. Under the conditions of sanctions Russian banks, financial organizations, exporters and importers faced restricted access to international markets, there were changes in demand, there were needs for new instruments. Sanctions contribute to the development and implementation of new instruments in the derivatives market. The main scientific result of the work is to identify effective approaches to the development of the derivatives market under external pressure. The results of the study can be used in the practice of financial institutions, banks and government agencies to develop strategies and development of operations with derivatives.Conclusions. The derivatives market plays an important role in the Russian economy, performing the functions of risk hedging, price formation and contributing to the predictability of financial flows, which is especially important in the conditions of sanctions pressure. An assessment of the current state of the derivatives market in Russia has revealed significant changes in its structure and dynamics. The introduction of sanctions led to the introduction of new financial instruments, sanctions stimulated innovation and development of domestic infrastructure. The role of financial market infrastructural organizations, state institutions and the Bank of Russia is increasing. There is a growing interest in local and regional hedging instruments, increasing importance of the domestic market and markets of friendly countries. The prospects for the development of the derivatives market in the Russian state look promising if a number of steps are realized. Possible development scenarios include: further strengthening of internal infrastructure, simplification of accounting procedures, development of new financial products adapted to current conditions.

Adoption of fintech products through environmental regulations in Jordanian commercial banks

Purpose This study aims to examine the adoption of fintech products in Jordanian commercial banks, focusing on the influence of environmental regulations. Specifically, the study investigates the impact of environmental pressures (competitors pressure, customer pressure) and top management support on the adoption of fintech products. Design/methodology/approach A questionnaire survey was conducted, and data from 550 respondents familiar with the bank’s operations, once you have responses, use structure equation modeling to understand the relationships between variables. Also, applied the regression model to predict outcomes for new respondents. Ensure ethical considerations, like informed consent, are addressed throughout the process. Findings The results reveal that competitors pressure and customer pressure have a significant positive influence on the adoption of fintech products, indicating that banks are more likely to adopt fintech solutions when faced with increasing competition and customer demands. Furthermore, top management support was found to be positively associated with the adoption of fintech products, emphasizing the importance of leadership in driving successful integration. Also, regulators and policymakers can foster FinTech adoption in the banking sector by creating supportive frameworks that balance innovation and risk. The findings highlight the need for Jordanian commercial banks to recognize and respond to environmental pressures to remain competitive and meet customer expectations. Additionally, regulations might encourage the development of financial products and services within the fintech sector. This study enriches fintech adoption literature in the context of Jordanian commercial banks. Originality/value This study contributes to the existing literature by shedding light on the factors influencing fintech adoption in Jordanian commercial banks and provides practical implications for banks, regulators and policymakers seeking to promote fintech adoption within the financial sector.

თანამედროვე მიდგომები საბანკო რეგულირებისადმი ციფრული ტექნოლოგიების განვითარების პირობებში

The development of digital technologies has a great impact on traditional channels for providing banking services. The speed of introduction of innovative products and services, technological changes require great flexibility from banking regulators. Also, the active participation of the government in the development of digital technologies is one of the main factors of successful digitalization. In modern conditions, in order to ensure the development of innovation in the banking sector, new mechanisms and instruments for regulating innovative financial technologies, products and services are being created. The article specifies that the effective, safe operation and development of the digital financial space requires coordinated actions from all its participants, as well as the establishment of requirements for the assessment and monitoring of potential risks caused by innovations, timely improvement and refinement of regulatory requirements. This allows to maintain the stability of the financial system and protect the rights of consumers, and to promote the development and introduction of innovative financial products and services.

PROFITABILITY CALCULATION AND ANALYSIS FOR INTEREST RATE SWAP USING THE HULL WHITE MODEL

The London Inter-Bank Offered Rate (LIBOR) volatility had resulted in higher interest rate risks faced by many big companies and financial institutions whose assets depend on the interest rate. Eventually, there was an appearance of the new financial product development that can be used for hedging, such as interest rate swap, one of the most popular methods, utilized by most financial institutions and big companies which use LIBOR as their benchmark. In fact, it is not uncommon for numerous companies to gain negative return from this swap transaction. Therefore, in this paper, we used the Hull-White model to predict the LIBOR rate, since this model has a decent level of accuracy, calculated using Root Mean Squared Error (RMSE) method. Furthermore, the estimation of LIBOR rate was used to calculate the net value of interest rate swap transaction, in three scenarios, using, respectively, the minimum value, the average value, and the maximum value of the LIBOR’s estimation results to provide an analysis of potential P/L (Profit & Loss) exposure due to the realization of interest rate swaps.

Financial innovation intra Muslim capital markets and inter global counterparts: implications of differences

Purpose This study aims to investigate the implications for financial innovation and product development of differences between schools of jurisprudence (fiqh) pertaining across regional Muslim markets, and the consequences for global financial institutions. Design/methodology/approach The methodology is qualitative, drawing upon several sources. Firstly, differences in interpretation regarding the economic and moral responsibilities of financial institutions in Islamic and secular contexts. Secondly, contrasting tenets of schools of Islamic jurisprudence regarding the permissibility of products traded intra Muslim markets. Thirdly, characteristics of complex financial instruments traded in global secular markets prior to the credit crisis of 2007–2008. Findings Differences between Islamic and global secular interpretations regarding responsibilities of financial institutions militate against integrated markets across which products can be seamlessly traded. Global financial institutions should recognise that different Islamic schools of jurisprudence prioritise either legal form or substance of financial products, but not both simultaneously. This should be considered when designing new products for regional Muslim markets. Practical implications Global financial institutions which focus upon the legal (micro) form of new Islamic products should relate in investor prospectuses and marketing materials the extent to which these accommodate Islamic jurisprudence’s equal (macro) concern for public interest or maslahah. This may comprise the reallocation of risk from those unable to bear it to those willing to assume it for a price, reinforcing rather than compromising economic stability. Originality/value This study evaluates implications for product development and marketing for global financial institutions active in regional Muslim markets across which different Islamic schools of jurisprudence apply.

The role of big data in financial technology toward financial inclusion.

In the rapidly evolving landscape of financial technology (FinTech), big data stands as a cornerstone, driving significant transformations. This study delves into the pivotal role of big data in FinTech and its implications for financial inclusion. Employing a comprehensive literature review methodology, we analyze diverse sources including academic journals, industry reports, and online articles. Our findings illuminate how big data catalyzes the development of novel financial products and services, enhances risk management, and boosts operational efficiency, thereby fostering financial inclusion. Particularly, big data's capability to offer insightful customer behavior analytics is highlighted as a key driver for creating inclusive financial services. However, challenges such as data privacy and security, and the need for ethical algorithmic practices are also identified. This research contributes valuable insights for policymakers, regulators, and industry practitioners, suggesting a need for balanced regulatory frameworks to harness big data's potential ethically and responsibly. The outcomes of this study underscore the transformative power of big data in FinTech, indicating a pathway toward a more inclusive financial ecosystem.

Behavioral Biases and Regional Diversity: An In-Depth Analysis of Their Influence on Investment Decisions - A SEM & MICOM Approach

The Basic purpose of the study was to understand the impact of behavioral biases on Global Investors investment Decisions and whether there is any significant difference of the impact on investment Decisions of Global investors due to regional diversity. The data was collected from 467 Global investors from China and India SEM was used to test the hypothesis and Followed by Multi- group analysis. The results revealed that Behavioral biases have a significant on investment decisions of Global Investors. The impact was found more on India Global investors than that of China. The insight into how regional diversity can magnify or attenuate these biases offers valuable guidance for global investment firms seeking to tailor their services to a culturally diverse clientele. Understanding the interplay between behavioral biases and regional disparities allows for the development of region-specific financial products and advice, better aligning investment strategies with the unique needs and risk tolerance of investors from different parts of the world. The originality of this research lies in its nuanced examination of how behavioral biases, in conjunction with regional disparities, can offer valuable insights for both investors and financial practitioners, enhancing our comprehension of the intricate dynamics at play in the global investment sphere.

Research on the Impact of Technological Innovation on the Financial Services Industry

This study provides an in-depth examination of the profound impact technological innovation has on the financial services industry, focusing on recent advancements in blockchain, artificial intelligence (AI), machine learning (ML), big data analytics, and fintech solutions. It delves into the nuanced ways these technologies revolutionize operational efficiency, enhance customer experience, facilitate the development of innovative financial products, and navigate the complex landscape of regulatory compliance. Through a combination of qualitative case studies and quantitative analysis of industry performance metrics, this research uncovers the nuanced dynamics between technological adoption and its effects on market competitiveness, security, and the democratization of financial services. Key findings highlight a dual-edged influence: while technological innovation drives unprecedented efficiencies and customer value creation, it also introduces challenges such as increased cybersecurity threats, privacy concerns, and a growing digital divide among consumers. Additionally, the study sheds light on the evolving role of human capital in an increasingly automated industry and the critical importance of strategic digital literacy and adaptive regulatory frameworks to foster sustainable growth.

The impact of government microfinance program on poverty alleviation and job creation in a developing economy

Government initiatives to eradicate poverty in developing countries have included establishing microfinance programs to provide microloans and credit to the less privileged living in peri-urban and rural areas where commercial financial institutions are underrepresented. The study aims to investigate the effect of the South African Microfinance Apex Fund (SAMAF) on poverty alleviation and job creation. This case study targeted 103 beneficiary firms and self-employed individuals to send them questionnaires. The data analysis was primarily exploratory and descriptive. The findings show that the majority, 87%, agreed that the loans they accessed were sufficient for their business plans and needs. In addition, they were able to create at least one additional job after receiving the loan and improve their total business income on average compared to before the SAMAF loan. However, due to the risk of non-repayment of loans by recipients living in informal settlements, most microfinance intermediary institutions were unwilling to expand their operations into such settlements. SAMAF, on the other hand, has flaws, one of which is the slow delivery of funds to microfinance intermediary institutions, which needs to be addressed. The study concludes that to address the credit needs of semi-rural and rural residents, microfinance intermediary institutions must do more to expand into these areas and adopt a more aggressive and creative approach to the development of financial products and expand their access to include more of the poorest and most vulnerable households.

FINANCIAL INCLUSION THROUGH TECHNOLOGY: A REVIEW OF TRENDS IN EMERGING MARKETS

Financial inclusion, the universal access to affordable financial services, has emerged as a critical component for fostering economic development, especially in emerging markets. This study presents a comprehensive review of trends in financial inclusion through technology, focusing on its transformative impact in emerging markets. In recent years, technological advancements have paved the way for innovative financial solutions, breaking down traditional barriers to access and bridging gaps in financial services. Mobile banking, digital wallets, and blockchain technologies have become instrumental tools in extending financial services to previously underserved populations. This review delves into the key trends shaping the landscape of financial inclusion in emerging markets, highlighting the role of technology as an enabler. The rise of mobile banking has been a game-changer, allowing individuals with limited access to traditional banking infrastructure to conduct financial transactions seamlessly. Digital wallets have gained prominence, offering a secure and convenient means for users to store, transfer, and receive money. Blockchain technology, with its decentralized and transparent nature, has facilitated the development of innovative financial products like cryptocurrencies, providing alternative avenues for financial inclusion. However, challenges persist, including concerns related to data security, regulatory frameworks, and the digital literacy of users. The review critically examines these challenges and explores potential solutions to ensure the sustainable growth of financial inclusion initiatives in emerging markets. Moreover, the COVID-19 pandemic has underscored the importance of resilient and accessible financial systems. The review assesses the pandemic's impact on financial inclusion trends, highlighting both the vulnerabilities exposed and the opportunities for further integration of technology in addressing economic shocks. This review contributes to the evolving discourse on financial inclusion through technology in emerging markets. By identifying trends, challenges, and opportunities, it offers valuable insights for policymakers, financial institutions, and technology innovators seeking to drive inclusive economic growth through technological interventions.
 Keywords: Finance, Technology, Emerging Markets, Financial Inclusion, Review.

Green Finance and Low-carbon Sustainable Development -- from the Perspective of Commercial Bank Management

Low-carbon and green development is an significant part of sustainable development. In the context of sustainable development, commercial banks, as a major social body, have derived a variety of financial products by strengthening green management. According to the Organization for Economic Cooperation and Development (OECD), green finance is a service that reduces pollution and greenhouse gas emissions in environmental protection, improves the efficiency of natural resource utilization and reduces resource waste while achieving economic growth. Green finance is a business activity corresponding to commercial banks and a concrete manifestation of green development in the financial field. Faced with the challenge of reducing carbon emissions, commercial banks have accelerated the transformation and upgrading of business concepts and developed into green industries. The basic nature of a bank is to provide reliable services and obtain corresponding profits by providing financial products and services to responsible entities. At this stage, banks have accelerated development of green financial products, forming different forms of green credit, green bonds and other content. Meanwhile, commercial banks are also facing many challenges and problems in this context.

Growth and Collaboration in Sustainable Finance Literature: Bibliometric Analysis

Objective: Research in the field of sustainable finance aims to understand the development and trends of sustainable finance over time and the relationship of keywords related to sustainable finance and research developments with authors who are very influential in further research. This research helps identify projects or sectors that contribute positively to sustainability and identify environmental and social risks that may result from investment activities. Additionally, to encourage innovation and development of financial products that support sustainability goals. Theoritical framework: Sustainable finance promotes sustainable business practices, including transparency, prevention of human rights violations, diversity, and positive societal contributions. The greenwashing phenomenon occurs a lot nowadays, where companies or products claim to have a positive or sustainable environmental impact, but the reality is inconsistent with these claims. Enhancing supervision, transparency, and strict sanctions are crucial to address these issues. Efforts are necessary to increase understanding and education about sustainable finance so that more parties can take relevant actions. Methods: Bibliometric analysis, there are dozens of tools to collect and analyze data. In this research, the tool to measure sustainable finance trends is Scopus, one of the popular academic databases for bibliometric analysis. This tool ensures access to scholarly journals, conferences, and other academic literature. Scopus offers rich information on publications, citations, citation index, and other metrics for bibliometric analysis. VOS viewer is a visualization tool to visualize collaboration networks, keyword clustering, and citation patterns in bibliometric analysis. Result & Conclusion: English is the most widely used language, with 644 total publications or 96.55% of Russian, French, German, Italian, Spanish and Ukrainian. In 2020, the publication trends related to sustainable finance were the most researched at 77 publications. It is identified that in 2022 the emergence of climate risks and opportunities associated with climate change will continue to be the research focus. There is a yellow cluster signifying the novelty associated with sustainable finance, i.e., Nigeria, New Zealand, Greece, and Finland. The second cluster is marked in light green. In 2021, sustainable finance research will be carried out in Italy, Germany, Spain, China, Bahrain, Malaysia and Indonesia. Furthermore, the third cluster marked in solid green in 2020, the United Kingdom dominates research, and the last cluster in purple in 2019 includes Switzerland, Denmark, Brazil, Canada, the United States, and South Africa. Implications: Implications of this study is Sustainable finance entails managing risks and uncertainties associated with environmental and social factors. Measuring and managing these risks involve assumptions and predictions that may have uncertainties. Contribution / Originality: Originality in this research is understanding the development, trends of sustainable finance over time, and understanding the relationship of keywords related to sustainable finance, and the advancement of research with authors who are prominent in further study.

Non-linear dynamics in finance–inequality nexus: time series evidence from the Indian economy

PurposeThe principal aim of this study is to examine the relationship between financial development and income inequality in India using the financial Kuznets curve (FKC) hypothesis.Design/methodology/approachThis study uses the autoregressive distributed lag (ARDL) model and the Toda–-Yamamoto causality test to investigate the long-run and short-run relationship and causality between financial development and income inequality. In addition, this study employs a principal component analysis (PCA) to construct a comprehensive financial development index.FindingsThe study found a long-run relationship between financial development and income inequality in India for the period under consideration. Trade is found to improve the income distribution, while inflation worsens income distribution. Moreover, the empirical results revealed a feedback causality between financial development and income inequality. The study results confirm an inverted U-shaped relationship between financial sector development indicators and income inequality, thus validating the FKC hypothesis for the Indian economy.Research limitations/implicationsThe study draws attention of the government and policymakers, urging them to focus on building a strong financial sector by improving its efficiency. This, in turn, will lead to enhanced financial stability and a reduction in income inequality. They should prioritise the development of high-quality and sustainable financial products and services to ensure the robust growth of the financial sector.Originality/valueTo the best of our knowledge, this study is the latest of its kind to empirically test the financial development on income inequality and the FKC hypothesis simultaneously for the Indian economy using financial proxy variables from financial institutions (FIs) and financial markets (FMs) for the measurement of financial depth.

An Analysis of the Reasons for the Absence of Short-term Wealth Management Products in Hong Kong

This paper aims to analyze the factors contributing to the limited availability of short-term financial products in Hong Kong. Firstly, it examines the characteristics of the Hong Kong market, including its level of financial industry development and the operating models of financial institutions. This examination serves as a foundation for further analysis. Secondly, the study explores the demand and supply dynamics of short-term financial products in the Hong Kong market. Investigating the preferences and demands of Hong Kong residents and analyzing the product offerings of financial institutions it reveals the insufficient supply of short-term financial products at present. Lastly, the paper analyzes the underlying reasons for this phenomenon. From the perspective of financial institutions, the scarcity of short-term financial products in Hong Kong is primarily attributed to the prevalent traditional long-term investment mentality and model deeply embedded in the market. Additionally, regulatory policies impose certain constraints on the innovation and development of short-term financial products. Consequently, the paper proposes recommendations, including the need for financial institutions to give attention to residents' demand for short-term financial products and for the government and regulatory bodies to implement measures that encourage innovation and development in this area. Through a comprehensive analysis, this paper provides insights into the factors contributing to the limited availability of short-term financial products in Hong Kong and offers recommendations to stimulate market growth.

The drivers of environmental sustainability in BRICS economies: Do green finance and fintech matter?

The BRICS nations have made environmental sustainability a top priority in their policies due to concerns about the negative impact of fossil fuel reliance on the environment. Their dependence on fossil fuels, both for energy production and imports, has led to a steady increase in greenhouse gas emissions over time. However, the BRICS nations also have significant potential for renewable energy sources that can be harnessed without harming the environment. In this study, we examine how green finance (GFN) and financial technology (fintech) can contribute to the BRICS nations' goal of achieving carbon neutrality from 2000 to 2018. We also consider the influence of energy innovation, economic growth, and natural resources rent. The results support the Environmental Kuznets Curve hypothesis and indicate that GFN, fintech, and energy innovation promote environmental sustainability. On the other hand, natural resources rent, and economic growth have a negative impact on environmental quality. We also find that there is a bidirectional causality between CO2 emissions and GFN, fintech, and natural resources rent, while GDP and energy innovation exhibit a unidirectional causality with CO2 emissions. Based on these findings, we recommend that the BRICS countries prioritize the development of green financial products and expand the capacity of banks and financial institutions to offer green credit facilities. Furthermore, more resources should be dedicated to research on how to effectively use green finance solutions while managing associated risks.

Analysis of FinTech Enablers and Role of Future Internet of Things (IoT) in the New-Age Business World

Financial institutions work very hard to make finance smarter in the present global trend to reap the rewards of digitization. Financial technology (Fintech) uses various modern disruptive technologies, including AI, 5G/6G, Blockchain, Metaverse, IoT, and others, in the financial sector to improve client services. Many critical financial services and procedures, including lending, verification, fraud detection, quality maintenance, credit scoring, and many more, will be streamlined and improved by the advent of technology. However, there is a need for the development of innovative financial products and a supporting technological environment. To introduce ICT solutions, various tech giants have emphasized Fintech. In this book, we first imagine the emerging trends and key Fintech applications in 2030. For some use cases, we also try to present a high-level framework of the Fintech enablers, such as IoT, 5G, Digital Twins, and Metaverse. We also outline future directions for Fintech research while looking ahead to potential difficulties.

Striving for the United Nations (UN) sustainable development goals (SDGs) in BRICS economies: The role of green finance, fintech, and natural resource rent

AbstractIn terms of policy, the BRICS region has prioritized achieving environmental sustainability. Environmental problems are mostly caused by the area's continuous reliance on fossil fuels to meet its energy requirements. It is also challenging to significantly reduce the region's reliance on fossil fuels because historically, the region has been a big importer of fossil fuels. As a result, the greenhouse gas (GHG) emission rates of the BRICS countries have been rising over time. Furthermore, the area has enormous untapped reserves of renewable energy sources that can be exploited to produce electricity without negatively impacting the ecosystem. In light of this, this research analyses, while controlling for energy innovation, economic growth, and natural resource rent, the combined effects of green finance (GFN) and financial technology (fintech) in reaching the region's carbon neutrality goals from 1990 to 2020. The findings for the BRICS economies, which are consistent with the EKC theory, imply that environmental sustainability is promoted by GFN, fintech, and energy innovation (ENI). NRR (natural resource rent) and GDP (economic growth) compromise environmental quality, nevertheless. It has also been demonstrated that there is a two‐way causal relationship between CO2 emissions and GFN, fintech, and NRR. However, it has been demonstrated that GDP and ENI have a one‐way causal relationship with CO2 emissions. It is recommended that the BRICS nations speed up the development of green financial products and increase the capacity of banks and financial institutions to offer green credit facilities based on the empirical findings. The basic study of how green finance solutions might be used while lowering the related risks should receive more funding.

노후 위기를 맞이하는 개인의 연금 가입 현황과 시사점

This study investigates the factors that affect the retirement preparation strategy of the elderly in the current situation where retirement preparation strategies can be established with various financial products. Using the data from Korean Retirement and Income Study (KReIS), we analyze the current status and determinants of the appropriate cost of living for old age, the level of preparation for old age, and subscription to pension products judged by individuals. We found that individual characteristics, income characteristics, household characteristics, and occupational characteristics were influenced to individual retirement preparation strategies. In particular, the higher the level of education and income, the higher the possibility that an individual's reasonable cost of living in old age is higher, the possibility of preparing for old age, and the possibility of joining an annuity product. What is noteworthy is that the capital market environment has been created so that individuals can establish optimal retirement preparation strategies through the development of various financial products, but only a small number of people use them.

A Study on the Association of Entrepreneurship Ecosystem with Financial Inclusion

Purpose: The purpose of this study is to examine the association of entrepreneurship ecosystem with financial inclusion, and to explore the potential ways in which the ecosystem can be leveraged to improve access to financial services for marginalized communities. Theoretical framework: The study utilizes the ecosystem approach to entrepreneurship, which emphasizes the interdependence and interplay of various stakeholders in the entrepreneurial process. The study also draws on the concept of financial inclusion, which refers to the provision of affordable and accessible financial services to all individuals and businesses. Design/methodology/approach: The study employs a mixed-methods approach, including a literature review, case studies, and surveys, to collect data from a variety of stakeholders in the entrepreneurship ecosystem. Findings: The findings suggest that the entrepreneurship ecosystem plays a critical role in promoting financial inclusion. The ecosystem can be leveraged to increase access to financial services for marginalized communities through the development of innovative financial products and services, the creation of mentorship and networking opportunities, and the promotion of policies that encourage financial inclusion. Research, practical and social implications: The study contributes to the understanding of the relationship between entrepreneurship and financial inclusion, and has implications for policymakers and practitioners seeking to promote financial inclusion through entrepreneurship. The findings can also inform the design and implementation of programs and policies aimed at promoting entrepreneurship and financial inclusion in marginalized communities. Originality/value: The study is among the first to examine the association of entrepreneurship ecosystem with financial inclusion and to explore the potential ways in which the ecosystem can be leveraged to improve access to financial services for marginalized communities.

The impact of digitalization on the banking sector: Evidence from fintech countries

Banking services are now branded and are provided in distinct ways. It has been proven that the development of new financial services and products substantially impacts bank performance. This paper investigates the effect of e-banking services on the performance of banks before the pandemic. The study looks at a sample of 24 nations, including leading fintech nations. Data from 2012 to 2019 was gathered from the World Development Indicators and the Bank for International Settlements (BIS) databases. The findings show a significant positive correlation between cashless payments and banks' ROA. The performance of a bank is significantly impacted by mobile subscribers. In fact, customers are willing to use mobile transactions in place of traditional bank accounts. Banks' ability to generate revenue from assets (in the form of credits) is consequently restricted, which has an impact on their ability to earn a profit. The research suggests a range of policy implications and policy interconnections between digital financial services, banking stability, and efficiency. The banking sector has become more digitalized after the recent pandemic. To date, there is very little literature that has focused on the effect of digitalization on the banking sector before the Covid-19 crisis. The current study contributes to the literature by providing an overview of the relationship between the banking industry and digitalization before the latest pandemic for some leading fintech countries. This research will contribute to later comparisons between the different situations of the banking sector pre- and post-pandemic.