Digital Lending Research Articles

Debt relief for households in developing economies

Abstract Households in developing economies have greater access to formal credit today than at any point in history, owing to the global expansion of microfinance and recent innovations in consumer finance, such as digital lending. While this has improved the ability to smooth consumption and invest in productive activities, it has also raised concerns about over-indebtedness. Against this background, this article reviews and extends the literature on debt relief for households in developing countries. We begin by laying out a simple stylized model that illustrates the costs and benefits of debt relief and use the model to guide our review of the evidence on various relief policies, such as debt forbearance, debt forgiveness, and personal bankruptcy. We additionally present survey evidence from a population of microfinance and bank borrowers with recent exposure to debt relief. The results highlight that an important channel through which discretionary debt relief policies, which are common in developing countries, affect credit market outcomes is their impact on borrower expectations. The development of legal bankruptcy institutions that offer a rules-based avenue to discharge unsustainable debts can reduce such distortions and alleviate the credit market inefficiencies that have often accompanied debt relief initiatives in developing economies.

Kinh nghiệm quốc tế về quản lý cho vay bằng phương tiện điện tử của ngân hàng thương mại

The digital transformation project in the banking sector has provided impetus for Vietnam’s commercial banks to vigorously implement digital-based business products, one of which is digital lending. Therefore, the State Bank of Vietnam issued Circular 06/2023/TT-NHNN on June 28, 2023, with the aim of establishing a legal framework for this lending activity. This study is based on the synthesis of information disclosed by central banks and monetary authorities of various countries, including China, India, and Singapore regarding the management of digital lending in commercial banks. Drawing from international experiences, the author provides recommendations for state management to effectively regulate digital lending in Vietnamese commercial banks.

Factors Influencing Behavioral Intentions to Use Digital Lending: An Extension of TAM Model

This study aims to examine the factors influencing the intention to use digital lending among users by extending the technology acceptance model (TAM) framework. Specifically, the study focuses on the perceived usefulness and perceived ease of use of the TAM model with the addition of perceived security and perceived risk as the key factors influencing the intention to use digital lending. The study uses a quantitative research design and collects data from a sample of mobile banking users who are willing to borrow through an online survey. The researcher analyzed the data with a structural equation model using Smart PLS 4.0 to test the hypotheses, including the relationships of all latent variables. The findings suggest that perceived usefulness, perceived ease of use, and perceived security influence are positively associated with the adoption of digital lending. In contrast, perceived risk was found to be an insignificant predictor in this area. The study also provides insights for bankers and policymakers to design effective strategies to boost the adoption of their services.

Delving into the intricate web of factors that shape the digital lending behavior of individuals : A profound understanding of the Indian landscape

The sheer number of Indian young adults using digital lending platforms to satisfy their expanding consumption needs has increased significantly. It undoubtedly expands consumer markets, but it has also given rise to several significant social issues. The legal supervision of digital lending and the authentication process have been thoroughly studied in the past, with a focus on the legal and economic aspects. A few scholars have also looked at the variables from the standpoint of behavioral psychology that affect people’s digital lending. This study develops a theoretical framework that explains how people construct their online consumer credit by utilizing the Triandis model and prior research on online lending. Afterwards, SmartPLS 3.00 is used to analyze the dataset, which includes 302 respondents in total. This study found that people’s perceived consequences, emotions, social variables, and enabling environments all had a significant impact on their online consumer credit. The study’s conclusions have important ramifications for both political and practical settings. They may be extremely important in promoting appropriate spending practices among India’s youth and ensuring the long-term expansion of online consumer credit. This study also helps digital lending companies improve their offerings and build better relationships with the general population.

Financial Constraints and Funding Solutions for Small Startups in Emerging Markets

This paper aims to analyse the challenges that small startups experience in emerging markets when accessing finance, the feasibility of non-traditional sources of funding, and the relevant policies that can help enhance funding. Intensified poverty and a lack of physical infrastructure that factors traditional banking solutions derive their effectiveness from means small startups in these areas have low access to credit, high interest rates, and underdeveloped venture capital markets. These constraints limit their advancement, expansion, and capacity to operate and maintain their businesses and thus are characterised by high failure rates. Others are; crowdfunding, microfinancing, and digital lending which can be considered as crucial methods used in bridging the gap in funding. Crowdfunding equalises capital access since Startups can issue funds directly from the public while microfinance offers small and flexible credit to nonmainstream business people. Digital lending comes with the assistance of technology which enables fast and convenient access to the loans and, therefore, supplements the funding challenge that startups with no credit pasts face. However, each of these solutions has restrictions in terms of fees, the maximum loan amount, and problems with regulation. This paper emphasises the need for appropriate policies to support the improvement of access to finance among startups. Other measures proposed are the development of credit guarantee schemes, reduction of bureaucratic rules and regulations, encouragement of FDI through tax incentives, and the use of technology in the provision of financial services. Besides, enlarging the financial literacy of intending and existing businessmen and enhancing the credit information infrastructure can very much enhance financing. From the study, it becomes clear that it will need to employ diversified strategies that put into practice various non-conventional funding paradigms alongside positive policies to facilitate a vibrant and progressive entrepreneurial culture within emerging markets.

Digital Lending in India: The Loan Trap

Digital Lending in India: The Loan Trap

STUDY EXAMINES THE PUBLIC BANKING SECTOR WITH A FOCUS ON THE PRACTICES OF DIGITAL LENDING AND THE ROLE OF MANAGERS WITHIN THIS CONTEXT

The study of the lending sector, particularly in the context of digital lending, highlights the online credit top-up feature available through various applications. Lending refers to the process of distributing or borrowing funds, wherein customers engage in borrowing activities. Financial institutions, acting as lenders, typically earn profits through interest rates charged on these loans. This manuscript seeks to examine the public banking sector's relationship with digital lending, employing methods grounded in literature reviews and analyses conducted using the NVivo software. The researcher aims to identify key themes and sub-themes, along with their antecedent variables, to evaluate the effectiveness of digital lending practices. Furthermore, it is essential for managers to recognize the numerous factors that influence the enhancement of digital lending within the financial ecosystem.

An Empirical Study of Digital Lending in India and the Variables Associated with its Adoption

An Empirical Study of Digital Lending in India and the Variables Associated with its Adoption

A Case for Libraries’ Survival in the Internet Age: Mass Digitization of Literary Works and the Legality of Controlled Digital Lending

A Case for Libraries’ Survival in the Internet Age: Mass Digitization of Literary Works and the Legality of Controlled Digital Lending

Dynamics of bank lending in ukraine: influence of the development of digital innovations and technologies

The article examines the relevance of the development digital innovations and technologies and their impact on the growth of the fintech direction of digital lending, which is represented by the landscape of fintech companies that use the disruptive power of digital technologies and the advantages of innovations of service institutions to offer consumers a wide range of digital credit products and services. The purpose of the article is to define the essence of digital lending and identify the role of digital technologies and innovations in the development of fintech, using the example of calculating the dynamics of bank lending in Ukraine. The article characterises the essence, types and significance of digital technologies in the context of the general development of the financial sphere and the credit market. The role and types of financial innovations are highlighted as the ability of fintech companies to combine digital technologies through product and service transformations. The unique role in terms of scale and impact on other areas of financial innovation of digital lending as a direction of fintech focused on digital forms of providing and administering loans through digital channels using a range of digital technologies to collect and process digital customer data is emphasised. A description of the directions of digital lending and the critical component of its development is presented. The bank is proposed to be characterised as the primary mediator in the credit market using digital innovations and technologies. A set of more than 30 indicators has been formed within three groups of components for evaluating the effectiveness of digital lending by banks, characterising the state and dynamics of non-cash transactions, the use of payment cards, payment and credit banking infrastructure, and credit and deposit activities of banks. A methodology for calculating the Harrington desirability function is proposed to calculate a comprehensive assessment of the “quality” of the functioning of the electronic payment segment of the banking sector of Ukraine in the context of the potential for developing digital banking lending.

Credit Lending Models and Loan Performance of Deposit-Taking Savings and Credit Cooperative Societies in Kenya

The study sought to determine the effect of credit lending models on loan performance of deposit-taking savings and credit cooperative societies in Kenya. Specifically, the study focused on group lending model, individual lending model, digital credit model and cooperative lending model on loan performance of deposit-taking savings and credit cooperative societies in Kenya. The study adopted a descriptive cross-sectional design. The targeted population was all DT-SACCOs as per their registration with SACCO Societies Regulatory Authority. The study population was 176. The study found out that group lending models, individual lending models, digital credit lending and cooperative lending were adopted by the DT-SACCOs to a moderate extent. The study established that the size of the DT-SACCOs and the lending models used accounted for 97.9% of changes in loan performance. The consequence is that other factors not considered in the model were responsible for only 2.1% of variances in loan performance. Further, credit lending models had a significant effect on the loan performance of DT-SACCOs in Kenya. This implied that effective implementation of the credit lending models led to improved loan performance of DT-SACCOs. The study concluded that credit lending models significantly affect the loan performance of DT-SACCOs in Kenya. Further, the DT-SACCOs adopted, on an average basis, the credit lending models. Lastly, individual lending models and total assets significantly affected loan performance. Group lending models, digital lending models, and cooperative lending models, however, do not have a significant effect on loan performance. The study recommended that the managers of the DT-SACCOs should establish mechanisms for improving individual loan processing and the development of competitive individual loan products.

Hachette v. Internet Archive

In June 2020, some major publishers - Hachette Book Group, HarperCollins, John Wiley & Sons, Penguin Random House - sued the Internet Archive for copyright infringement. The case is about the activity of the Open Library and of the National Emergency Library managed by Internet Archive. These offered digitisation and lend of printed books owned by the libraries, some of which were protected by copyright. This activity was carried out on the basis of Controlled Digital Lending, a theory not provided by US copyright law. In its March 2023 ruling, the Court agreed with the plaintiffs. In the first part of the article, the activities of the Open Library and the National Emergency Library are briefly reconstructed and the development of the litigation is put into context. The second part is dedicated to Controlled Digital Lending: the implementation process is defined, the position of its theorists is explored and the legal framework on which it is based, is reconstructed. The third part presents the main reasons for the prosecution and the Court's decision. Finally, some reflections are proposed.

OPPORTUNITIES AND CHALLENGES IN E-BANKING SERVICE IN DIGITAL ERA

Another word often used interchangeably with electronic banking is “digital banking”. Both words are used equally often. However, strictly speaking, banks rarely or do not use paper money. However, the use of paper money is still widespread. Today's ATMs are an important part of the banking system because they allow consumers to withdraw money when needed. In the digital economy, there are almost no monetary transactions. Cash is often thought of as something that is free. But using cash is expensive. Foreign exchange spending is discussed in a Harward Business Review research article titled “Countries that would benefit most from a cashless society.” Consumer expenses (like ATM fees, foreign exchange commissions, etc.) are included in cash costs. Because, To analyze the impact of CBDC concerns on the global environment, Dong (2021) studied statistical models. If CBDCs are the only method of capturing value, then higher interest rates cannot lead to financial disintermediation. Due to the complementarity of these deposits and the deposits offered by CBDCs, banks and companies will lend more money and invest more in them. The central bank has asked banks and non-banking financial companies (NBFCs) to ensure that digital lending applications (DLA) do not automatically increase credit limits and access to resources their mobile. borrower. RBI said borrowers must be given time to review or seek exit from the digital loan by paying the principal and corresponding Annual Percentage Rate (APR) within this period without incurring penalties in 'Guide to digital lending' for regulated institutions or RESs (banks). and NBFC). However, it is still unclear how CBDC will actually affect the banking industry and the economy. Ten of the eleven countries that have introduced official digital currencies are small nations in the Eastern Caribbean, including Jamaica and the Bahamas. In October 2021, Nigeria became the only major country to introduce CBDC for retail. Therefore, the RBI will have to introduce CBDC and conduct pilot testing very carefully. Banks' operating costs have been significantly reduced thanks to digital banking. With this, banks can now offer better deposit interest rates while charging lower service fees. Bank profits increased due to reduced operating costs. Conclusion: Indian banks still have a long way to go before adopting technology at par with banks around the world. Keywords: Digital Banking, Digital Currency, Blockchain Technology, Digital Retail Lending

E-books in Spanish university libraries: An analysis of online social sciences degrees

This paper analyzes the availability, via both library lending licenses and open access, of digital versions of the monographs that professors recommend in online bachelor's degrees courses in social sciences at Spanish public universities. Monographs are the type of document most recommended by professors when it comes to teaching and learning in higher education. Digital format is most suitable for online degrees, considering the added effort entailed for libraries to get these documents owing to the geographic dispersion of the students.For this purpose, all the resources in the recommended reading section of the syllabi from a sample of online degree programs in social sciences for the 2022–2023 academic year were extracted. Then, the catalogs of the corresponding university libraries were consulted to check the availability of the monographs on the reading lists. In addition, the catalogs of the usual suppliers to Spanish university libraries were consulted to check the availability of lending licenses for libraries. Finally, types of digital lending platforms are analyzed.Monographs account for 85.6 % of the documents referenced in courses' recommended reading lists. Only 21.0 % of monographs are available in digital format, either through library lending (17.4 %) or open access (4.9 %). On the contrary, practically the entirety of reading lists is available for lending through university libraries in printed format. University libraries could make the effort to acquire even more digital lending licenses for a portion of the books recommended by professors, but in this way they could only obtain 40.9 % of the monographs in digital format.Therefore, the publishing industry is not currently meeting the needs of online university education in the social sciences, owing to a large part of its catalog – especially older works – not being offered in digital format as well as the lack of library lending licenses.

Effect of Mobile Network Operator Facilitated Digital Credit on the Financial Health of Youth Borrowers in Kibera, Nairobi County, Kenya

Purpose: The increased advancements in technological integration within the financial sector has led to development of new credit platforms which improve access to borrowing among the youth. Further, with proliferation of digital lending platforms which provide unsecured loans has led to a debt chokehold among the youth. This has resulted in poor financial health among the youth. The general objective of the study was to analyze the effect of mobile network operator facilitated digital credit on the financial health of youth borrowers in Kibera, Nairobi County, Kenya.
 Methodology: The study employed a correlational research design. The population of interest for this study was youth borrowers who live and work in Kibera, Nairobi County. The sampling frame for this study was active users of digital credit who are between 18 and 35 years, residing in Kibera. The list was obtained from the Independent Electoral and Boundaries Commission’s (IEBC) voter register for Kibera Ward. A stratified sampling technique was used to select the respondents. The sample size was 399 respondents. Data was collected using structured questionnaires. SPSS was used to aid in the data analysis. A descriptive statistical technique of analysis was used and shall entail the determination of the mean and frequency distribution of the datasets. Further inferential analysis was conducted using both correlation and regression analysis. The data was presented in tables and figures.
 Findings: The study was able to obtain an 88 percent response rate, signifying high degree of accessibility of the youth in the area. Of these, most were male, while only 107 of the responses were from female respondents. The study established that mobile-facilitated digital credit on youth borrower’s financial health has a positive and significant effect on youth’s financial health. The study concludes that mobile network operator facilitated digital credit has a significant and positive effect on the borrower’s financial health. The study concludes that mobile operator facilitated loans are fast and easily accessible which increases their effectiveness to the user.
 Unique Contribution to Theory, Policy and Practice: The study recommends that mobile money operators that provide digital loans reduce their operation rates considering they have high interest rates for the small loans they offer. The study also calls for the development of progressive peer to peer regulations that would improve the penetration of these loan devices that have been identified as key to young entrepreneurs.

Razorpay: Providing Payment Convenience to Disruptors

Razorpay is a four-year-old Indian B2B fintech startup in digital payments which is venturing into digital lending. It aims to simplify digital payment flows involved in acceptance, processing, and disbursement of payments through superior technology and automation. This case details how Razorpay creates value for businesses by offering service convenience in B2B space. Razorpay started as a payment solutions provider, primarily known for their payment gateway. Over time the market for digital payment in India has matured, with multiple providers offering similar products making it difficult for Razorpay to sustain its growth by using technological leadership and service differentiation. To maintain its growth trajectory, Razorpay has launched multiple new products in the digital payment space as well as announced a foray into creating a marketplace for digital lending through launch of Razorpay Capital. The case provides details of the growth of Razorpay and its move from its core strength of payment gateway

Hachette and controlled digital lending: the end of the line, or merely the story thus far?

Abstract On 24 March 2023, the United States District Court for the Southern District of New York issued its decision in Hachette Book Group, Inc. v Internet Archive. The Court held that the Internet Archive’s practice of scanning print copyrighted titles and lending digital copies to patrons online was not ‘fair use’ under section 107 of the US Copyright Act 1976. The present analysis addresses whether the case forecloses other kinds of libraries from engaging in controlled digital lending. The academic law library is used to illustrate that Hachette is not the end of the line.

Role of Fintech in Rising Food Outlets in India

Abstract: As we all know that today’s world is moving fast and it is very necessary to use financial technology to keep pace with the today’s world as today’s time is fully based on technology and due to change in taste and preference and life style of the people the food industry is also growing rapidly so the aim of this study is to know the role of financial technology in increasing the number of food outlets in India. To fulfil the purpose of this paper secondary data is collected from different sources for the variables i.e., Gross Domestic Product (GDP) as growth driver, Foreign Direct Investment (FDI), Financial and technological innovation and ease of doing business in India. To analyse the data regression analysis is applied. The findings of the study shows that GDP and FDI positively effects the number of food outlets in India whereas digital lending and information technology does not lead to the increase in number of food outlets in India

A study on copyright issues of different controlled digital lending (CDL) modes

In the recent years, CDL has been heatedly talked about, CDL should be treated objectively and rationally. Getting knowledge of CDL modes and their copyright issues is critical for sustainable development of CDL. Rather than CDL becomes a transient phenomenon as a result of many copyright hurdles. The paper will explore CDL modes by combing CDL practices and programs from research papers and official website documents of different library organizations. Then, based on legal frameworks of CDL in the US, Canada and the UK which are summarized, copyright issues of CDL modes are analyzed from perspectives of implementing institution, service resources, and usage mode. Finally, some copyright recommendations for sustainable development of CDL are proposed. We believe that library institutions can use CDL to advance their crucial mission for the public’s interest through making sense of different CDL modes and their copyright issues and implementing some proposals about copyright processing.

Digital libraries in crisis: The case of the national emergency library

This paper explores the National Emergency Library (NEL) created by the Internet Archive (IA) in response to the COVID-19 pandemic. The NEL allowed unrestricted access to the IA’s collection of digitized books, suspending the waitlist imposed by the Controlled Digital Lending system. The study uses Carol Bacchi’s What’s the Problem Represented to be (WPR) approach to analyze problem representations in media narratives and understand the response to the NEL. The study covers articles written between March 2020 and 2 years after, using a threepronged reading consisting of a distant, middle, and close reading. The analysis reveals that the IA and NEL are not necessarily consistent with piracy or shadow libraries, but that they differ in complexity and compliance with copyright law. The paper contributes to a critical understanding of how problem representations are constructed and shaped in media narratives, and how this affects digital libraries in times of crisis, and subsequently, policy discourse for all libraries. Overall, the paper highlights the complexities and nuances surrounding the NEL and its response to the COVID-19 pandemic, as well as the implications of this response for digital libraries and copyright law.