Digital Lending Research Articles

Strategies to Minimize Illegal Digital Lending Practices During The Pandemic Through Islamic Financial Literacy

AbstractPurpose – Financial technology lending or digital lending services arguably has the potentials to play an important role in the economic recovery during the pandemic time. However, a number of irresponsible people have illegally exploited the service for their selfish gain. This has resulted in many people whose rights have been jeopardized by the services. This study seeks to find out which of the three aspects, namely literacy, regulation, and implementation, serves as the root of the problem of the widespread practices of illegal digital lending among Indonesians. In addition, the study investigated whether Islamic financial literacy as a solution aspect can serve as the right strategy to minimize the practices of illegal digital lending.Methodology - The Analytical Hierarchy Proces (AHP) was used to explore the expert judgment of regulators, practitioners, and academicians on illegal digital lending. Moreover, experts’ agreement were calculated using Kendall’s Coeficient of Concordance.Findings - The study found that the most significant aspect of problem was the literacy dimension, reaching a perfect agreement. Moreover, the aspect of regulation was found to be the most significant aspect of solution, reaching a moderate agreement. Based on the respondents’ agreement, the Islamic finance literacy indicator of the literacy dimension was more recommended than the regulation dimension as an effective strategy to minimize the practices of illegal digital lending amids the pandemic. Still,the OJK as the authoritative financial service regulator needs to closely and strictly monitor the pratices of financial technology. Keywords: : Financial technology, Digital lending, Sharia financial literacy

Controlled Digital Lending of Video Resources: Ensuring the Provision of Streaming Access to Videos for Pedagogical Purposes in Academic Libraries

This article examines a current crisis within media librarianship regarding the challenges for academic libraries in providing streaming access to video resources despite the growing need for users to have streaming access. The article discusses this crisis largely within the context of COVID-19 (Coronavirus Disease of 2019) and how the pandemic has exacerbated the problem. This article also posits a possible solution to the issue through the application of controlled digital lending (CDL) to video resources for a pedagogical purpose. The article demonstrates the extent of the crisis, examines how other media librarians have addressed the problem, and shows the limitations to the solutions that have so far been offered. It then broadly discusses the concept of CDL and how this practice could be applied to video resources to address the frequent inability of libraries to provide streaming access to videos.

ЦИФРОВІЗАЦІЯ РЕГУЛЮВАННЯ ТА НАГЛЯДУ ЗА ДІЯЛЬНІСТЮ ФІНАНСОВИХ УСТАНОВ

The article examines the peculiarities of the processes of organizing regulation and supervision of the activities of institutions of the financial sector with the help of modern information, communication and digital technologies, an analysis of the practice of digital transformations in the financial sector based on the use of digital channels of financial customer service is carried out, the factors, conditions and problems preventing the introduction of new supervisory and regulatory technologies in Ukraine are identified. It is proven that the development of digital technologies in the financial sector has formed a fundamentally new approach to the interaction of financial institutions, consumers of financial services and regulators based on the creation and functioning of digital ecosystems. The factors that determine the need for the development and use of new supervisory and regulatory technologies and mechanisms are characterized, the main ones of which are the activation of the processes of digital transformation of the financial sector, the creation of digital financial institutions, the introduction of digital lending models, the transfer of certain types of activities to cloud services and the strengthening of interaction with decentralized financial markets. The conditions, advantages and disadvantages of using the complex of Suptech and Regtech digital technologies are determined, as well as the main results of their implementation for regulators and financial institutions, taking into account the prospects of further digitization of the financial sector. It has been proven that the main advantages of using Suptech and Regtech technologies are ensuring a high level of consolidation of information resources and effective digital interaction between regulators and financial institutions, simplifying the implementation of regulatory requirements, reducing administrative costs for their compliance, expanding the scope of supervision, simplifying the processes of preparation and reporting, increasing the effectiveness of risk monitoring and management. Recommendations for the introduction of new regulatory and supervisory technologies in the financial sector have been developed, a structural and logical scheme for the organization of regulation and supervision of the activities of financial institutions based on Regtech and Suptech technologies has been proposed, and the main areas of improvement of regulatory and supervisory mechanisms based on the use of such modern digital technologies have been identified as artificial intelligence, Big Data, cloud computing and machine learning in order to ensure the efficient and stable functioning and development of the financial sector of Ukraine.

Controlled Digital Lending of Library Books in Canada

Controlled Digital Lending of Library Books in Canada

Цифрові трансформації: ризики клієнтоорієнтованих фінансів

The publication presents modern ideas concerning the world of digital financial services being imperceptibly, conveniently and effectively integrated into the daily existence of consumers on the basis of a customer-oriented approach; the mechanisms of its implementation and prospects for development in the business environment and consumer space are presented. It is concluded that in the context of the dominance of the digital financial industry, the service provider, having exclusive information about the consumer, also having a mobile and flexible system of combining professional analysts and smart dashboards, using a range of innovative financial solutions, becomes an indispensable, built-in part of the operational activity of the client, who will increasingly rely in decision-making on such integrated coordinators of his activities. The processes of loss of financial subjectivity by consumers of financial services due to delegation of financial decision-making to service providers (platforms) are highlighted. The socioinstitutional transformations that made possible a customer-oriented breakthrough in financial activities, namely the perception of transparency of life, confidentiality of information and its protection, which radically changed the idea of information asymmetry, its content and effects of influence, are substantiated. The peculiarities of localization of digital lending are determined, namely: operations in markets where traditional banking is not available owing to the underdevelopment of the country, region, banking infrastructure, remoteness of banking institutions from direct customers; transactions among segments of the population that do not have access to lending in traditional banks owing to the lack of credit history. The risks of activation of digital lending, consisting in an increase in the debt burden and monopolization, are pointed out. The tasks of the State policy in the financial sphere in connection with the implementation of the digital development strategy in Ukraine are characterized.

Controlled Digital Lending (CDL) at the Tipping Point

Controlled Digital Lending (CDL) at the Tipping Point

Controlled Digital Lending... On the Quick and Cheap

In Summer 2020, the Digital Theological Library implemented a Controlled Digital Lending program in order to make print theological resources available online. This “Listen-and-Learn Session” reviewed the background of this initiative, the different systems used for implementation, and the end-user’s experience of using the Controlled Digital Lending collection.

Influence of Online Apps in Fostering Agri-Enterprise Development along the Agricultural Value Chain in Kenya

Influence of Online Apps in Fostering Agri-Enterprise Development along the Agricultural Value Chain in Kenya

Controlled Digital Lending

AbstractLibraries and library consortia are adopting controlled digital lending (CDL) as a strategy, accelerated by the ongoing COVID‐19 pandemic, to facilitate equitable access to print collections. While advocates of CDL contend that digitize‐and‐lend practices reflect an incremental, technology‐assisted adjustment to traditional library circulation, lending, and resource‐sharing practices, opponents of CDL in the United States and Canada argue that the practice contravenes well‐established copyright protections. This paper discusses current controversies surrounding CDL, its potential promise and perils, and concludes that a reasonable, equitable, and forward‐looking application of copyright laws ought to insulate libraries and library consortia from exposure to liability for engaging in CDL.

Financial technology in developing economies: A note on digital lending in Turkey

We examine the differences in the loan performance of fintech and bank borrowers in Turkey. Using data of 5.5 million consumer loans by the fifth-largest private commercial bank in Turkey and its fintech subsidiary, we demonstrate that fintech borrowers are on average younger, better educated, have higher income and savings levels, pay less interest and have better credit history than traditional bank borrowers. Furthermore, fintech borrowers are less likely to default. Superior performance of fintech loans is driven by the fintech firm’s ability to identify creditworthy borrowers among individuals with low-credit scores. These results contrast with the earlier evidence for developed markets where fintech borrowers are found to be more risky.

Implementing Controlled Digital Lending with Google Drive and Apps Script

The unexpected outbreak of COVID-19 near the beginning of 2020 has significantly interrupted the daily operation of a wide range of academic institutions worldwide. As a result, libraries faced a challenge of providing their patrons access to physical collections while the campuses may remain closed. Discussions on the implementation of Controlled Digital Lending (CDL) among libraries have been trending ever since. In theory, CDL enables libraries to digitize a physical item from their collections and loan the access-restricted file to one user at a time based on the “owned to loaned” ratio in the library’s collections, for a limited time. Despite all the discussions and enthusiasm about CDL, there is, however, still a lack of technical infrastructure to support individual libraries to manage their self-hosted collections. With COVID-19 still very much a presence in our lives, many libraries are more than eager to figure out the best approach to circulating materials that only exist in print form to their users in a secure and legitimate way. This article describes the author's temporary but creative implementation of CDL amid the COVID-19 pandemic. We managed to work out a technical solution in a very short time, to lend out digital versions of library materials to users when the library is physically inaccessible to them. By collaborating with our campus IT, a Google Spreadsheet with Google Apps Scripts was developed to allow a team of Access Services Staff to do hourly loans, which is a desired function for our reserve collection. Further, when the access to a file expires, staff will be notified via email. We hope our experience can be useful for those libraries that are interested in lending their physical materials using CDL and are in urgent need for an applicable solution without a cost.

Shylocks or Legitimate Lenders? An Inquiry into the Regulation of Digital Lending in Kenya

The lending market in Kenya has seen a proliferation of digital lenders that are largely unregulated. The lenders provide seemingly cheap loans whose interest is huge when the Annual Percentage Rate (APR) is calculated. The lenders operate through apps that are uploaded to App Stores and pulled down at will. They require their customers to ‘accept’ terms and conditions before accessing the loans, and these terms sometimes allow the lenders unfettered access to customer data which they use and abuse in equal measure. The lenders use such customer data to threaten, to contact those on the contact lists of the customers’ phonebook, and to report them on Credit Reference Bureaus (CRBs). This paper seeks to examine the law on regulation of the digital lending environment in Kenya and to recommend the enactment of the Financial Markets Conduct Bill of 2018 which introduces elements of the Twin Peaks model of financial regulation. Key Words: Shylocks; digital lenders; data privacy; Annual Pricing Rate (APR); digital regulation; Twin-Peaks Model

Rider University: Keeping Resources Available through the Pandemic & Construction

During 2020, the COVID-19 pandemic, Rider University Libraries’ collections were unavailable to the entire Rider Community due to an executive order, but also because of Phase 1 library construction. Rider University Libraries’ interlibrary loan staff used open resources, controlled digital lending, and purchase on request to overcome the barriers to only being able to deliver digital resources. This paper documents both Rider University Libraries’ successes and failures in delivering materials digitally during the COVID-19 pandemic and Phase 1 construction, challenges that have been shared by many libraries in the past and that could face any library in the future.

Privacy and Data Protection Practices of Digital Lending Apps in Kenya

The Centre for Intellectual Property and Information Technology Law (CIPIT) has been studying the impact of digital identities on society. This has included policy research on the legal and technical aspects of the national digital ID system Huduma Namba under which the Government is integrating all its identification documents. This research shows that the national digital identity system also integrates with privately issued digital identities such as mobile phone numbers and social media accounts. We anticipate that as national digital ID uses increase, so will the linkage with private systems. This is already evident from e-government services, where payments for Government services, such as passport applications, drivers’ licences, national health insurance and hospital bills in public hospitals are made using mobile money platforms. We also appreciate that private digital ID is more developed and has more uses than national digital ID. For example, a 2019 survey, undertaken by the Central Bank of Kenya (CBK), estimates that access to financial products had risen from 26.7% in 2006 to 89% of the population in 2019. This is attributed partly to the availability of digital products such as “mobile banking, agency banking, digital finance and mobile apps”. These products make use of personal data, which broadly falls under digital identities. This study seeks to understand the privacy implications of digital ID by looking at digital lending apps.

Why, in Light of COVID-19, Congress Should Legislate E-book Solutions

Five months into the 2019 novel coronavirus (COVID-19) pandemic, the American Library Association found forty-seven percent of the United States libraries were closed, and did not plan to reopen soon. COVID-19 has diminished or temporarily ended access to over 650 million physical books in communities across the United States. In response, libraries have offered electronic books (e-books) to the public through different models called pretend it is print (PIP), cost per circulation (CPC), and controlled digital lending (CDL). At the beginning of the pandemic, an organization called Internet Archive decided to offer 1.4 million free, unrestricted e-books to the public. As a result, four of the biggest publishers sued Internet Archive in the Southern District of New York. The publishers argue Internet Archive specifically engaged in copyright infringement, but have also launched an attack on the legality of the CDL model. This note argues that the publishers’ lawsuit against Internet Archive ought to make the CDL model illegal, but Congress also ought to intervene to make e-books more similar to physical books in the PIP and CRC model, by reducing publishers’ pricing and reforming e-books’ current restrictions to make them more similar to physical books.Part II provides a brief overview of United States copyright law, culminating in a discussion of topics that relate specifically to e-books: the first sale doctrine, a potential digital first sale doctrine, the rights and limitations copyright holders have today, and the fair use doctrine. While discussing these concepts, Part II will examine how copyright law applies differently to physical books than e-books. Also included in this section will be important case law like Capitol Records, Ltd. Liab. Co. v. ReDigi Inc., since it has implications on the Hachette Book Group, Inc. v. Internet Archive case.Part III will discuss the ongoing battle between libraries and publishers and how the e-book system is currently constructed. This section will discuss the different types of e-book lending models that libraries and publishers engage in, including the costs and restrictions associated with each model, and why publishers believe e-book lending by libraries unfairly takes away some of publishers’ profits. This section will also address how COVID-19 has impacted libraries and publishers. Part III ends by inspecting the facts around the Internet Archive case, including the controversial model Internet Archive operates in, known as CDL.Part IV will apply copyright law to the facts of Internet Archive. Part IV will conclude Internet Archive engaged in copyright infringement, and its use is not protected by the fair use doctrine. After discussing Internet Archive specifically, Part IV will turn its focus to the model Internet Archive operates in, known as CDL. This part will conclude the model as a whole constitutes copyright infringement, and its use is also not protected by the fair use doctrine. Thus, I will argue the publishers should, and will, prevail on their copyright infringement claim.After predicting the publishers will prevail in their lawsuit against Internet Archive, Part V will discuss solutions to make the remaining models, PIP and CPC, better. I will argue Congress should intervene to regulate the structure of e-book licenses to imitate physical books. However, these solutions are not meant to supplant the technology restrictions already in place by publishers and libraries to prevent piracy, in particular digital rights management (DRM) technology, and the one book, one user limitation. Congress should set e-book licenses to expire based on what type of book the physical version is, mandate the use of advanced technology to limit e-books’ accessibility, and provide that the first sale doctrine does not to apply to digital copyrighted works. By having Congress intervene to make e-books more like physical books, the hope is that publishers will recognize how e-books are similar to physical books, and lower the prices publishers charge libraries for e-books. This would create a more equitable e-book lending market where libraries are able to circulate more e-books through a lower cost, and publishers can to continue to profit off of their works.

The Economic Foundation of Library Copyright Strategies in Europe

The author critically examines the evolution of open access libraries from the TULIP project (1991) to more recent developments. At the same time, he emphasises the role of libraries as key agents of national book policies through Public Lending Rights. After having shown the difference between the scholarly communication and the book chains, both in printed and digital form, the author points to the position that libraries hold on the distribution segment of the chains and how they are unable to turn power relations among actors to their own advantage.
 If content if king, organisations distributing content are normally king-makers, as the example of STM publishers clearly shows. Nevertheless, fragmentation and the assumption that what is good for libraries is also good for users do not allow libraries to understand the needs of the different stakeholders present in the value chain and provide appropriate services to them. This aspect is emphasised further in the book trade, where libraries have been hesitant in realising the economic foundation of copyright regulations which consists of trading off “the costs of limiting access to a work against the benefits of providing incentives to create the work in the first place” (Landes & Posner).
 After having examined library copyright strategies both in the book trade and in scholarly communication with a thorough discussion on (e-)lending and controlled digital lending, the author claims that copyright regulations are not written in the sky but on a solid foundation of economic forces which shape the book and information chains. Libraries’ strategies should aim to reinforce their relevance in the distribution segment and demonstrate their ability to provide services to all actors in the value chain. This role should also impact on the normalisation of library-publisher relations.

Implication of Credit Risk Management Practices on Financial Sustainability: A Case Study of Digital Lending Firms in Kenya

Technological revolution such emergence of mobile phone has triggered unprecedented changes in various. Among the sectors that whose operational landscape has greatly altered through such invention is the financial sector. The financial sector for instance has seen introduction of digital lending undertaken by various companies, an activity that was initially a preserve of commercial Banks. However, the lending activity of most digital lending firms operate in unregulated environment with the lending where each firm had its own rules of operation, such as risk assessment. The purpose of this study was to assess the implication of risk assessment on financial sustainability of selected digital lending firms in Kenya. The study adopted a descriptive survey research design. Data was captured though the use of questionnaires and document analysis. The study established that there was no significant difference between risk management practices and financial sustainability of digital lending firms and the organizations employs several financial risk management measures to mitigate against financial. However, most of the organizations charged relatively higher levels of interest and also lacked proper mechanism of evaluating creditworthiness of their customers leading to high default rates. The study recommends for establishment of proper mechanism of evaluating customers’ loan ability as well as reducing rates of interest charged as a way of containing default rates among borrowers.

Digital Libraries, Copyright and the COVID-19 Pandemic: A Comparative Study of India and The United States

The paper aims to bring to the fore copyright issues related with digital libraries and aim to provide prescriptive solutions for such issues. In this regard, I analyse the situation in two jurisdictions- India and the United States to understand if and how the situation changed for digital libraries during the COVID-19 pandemic. I look at some key concepts such as publication, distribution, reproduction, controlled digital lending, fair use, fair dealing, public interest, and copyright infringement. I analyse the role and impact of each of these concepts in the universe of digital libraries, specifically in times of the pandemic, and further aid our understanding by looking at it from the perspectives of law librarians in India and the United States. To understand the practice of digital lending in India and the United States I interviewed a few librarians from both countries and learnt about the challenges faced by librarians to facilitate digital lending. I also learnt that while librarians in the United States practice controlled digital lending, librarians in India do not; they practice only digital lending. Testimonies of librarians and analysis of the present law and precedents in India and the United States led me to understand that there is no concrete law on digital lending or digital libraries at present in the two jurisdictions. Accordingly, this paper discusses the utility and necessity of digital libraries in the present times and make recommendations to facilitate digital lending. I make three recommendations in this regard which are as follows: 1. Amendment to the copyright law of India and the United States to introduce law on digital libraries; 2. Opt-out policy; 3. Compulsory licensing.

Role of Artificial Intelligence in Inclusive and Digital Lending in India

A vast majority of the population, especially the rural and low-income strata of the society, lacks access to credit from financial institutions. Lack of documented income, issues in ascertaining the customer identity and creditworthiness, relatively high distribution, and service cost are barriers to financial inclusion. In the post-COVID era, these customers may further be isolated and deprived of formal credit. Artificial intelligence (AI) offers novel ways of assessing creditworthiness, repayment capability while offering customized financial solutions to those lying at the bottom of the pyramid. AI can help develop a cost-efficient and paper-less channel for acquiring, serving, and engaging the customers. Although the initial investment in setting up the digital interface is high, the platform also enables these institutions to process large volumes of low-value transactions in the long run, thereby turning the otherwise cost-ineffective relationships into profitable ones. The application of data analytics can also assist in designing algorithm-based credit scoring models for financial inclusion. The government initiatives like Jan-Dhan Yojana, direct benefit transfer (DBT), Etc. have improved access to basic banking facilities, timely benefits, and access to money, especially during the pandemic. Such initiatives should be scaled up to extend formal credit to the poor, farmers, and selfemployed to scale up agricultural production and businesses, thereby fostering economic growth and employment opportunities.

ROLE OF FINTECH IN FINANCIAL INCLUSION OF SMALL & MEDIUM ENTERPRISES (SME) IN INDIA

Fintech is the application of technology in financial services, combining techniques such as hardware, software, and cloud with a financial platform like Banks, NBFCs, wealth management firms etc. The traditional banking system is going through a digital transformation with the help of these Fintech companies. These companies are acting as game changer by designing innovative digital platforms, with the common end goal of enhancing financial inclusion of SMEs. Small & Medium Enterprises (SMEs) are the engine that drives the economy and contributes to the GDP in India. These entities do not have access to easy finance due to issues like lack of collateral and credit history. Traditional financial institutions adopt a cautious process when make small-unsecured loans and moreover they prefer loans only against collateral. So there is a greater need for adequate financial support for small and medium enterprises. However, Banks are partnering with FinTech firms and are taking the entire process online to reduce the transaction cost and turnaround time. They are looking for alternative sources of data to measure the creditworthiness of SMEs. This has led to the emergence of a new sector known as alternative lending, which is essentially an online platform for lenders (retail or institutional) to lend directly to borrowers (individual or corporate). While traditional organizations evaluate balance sheets, P&L statements and other documents of the business, Fintech platforms use AI and advanced machine learning algorithms to rate the SME’s creditworthiness. Fintech platforms lay specific importance to digital data available in an ecosystem like bank transactions, cash flow, and importance is given to company ratings from credit reporting agencies. This research paper talks about how the fintech firms are contributing towards the financial inclusion of SMEs by introducing them with various financial products and a digital lending platform. It looks at the opportunities available to the Fintech sector as well as the challenges faced by them. It is a qualitative study based on an open questionnaire format. The study further looks at the specific needs of the SME sector regarding financing and how Fintech companies are bridging the gap of financing for these SMEs.