Electronic Financial Services Research Articles

Electronic Financial Services Market in RK: Problems and Prospects of Development

Main problem: At the present stage of life, Innovations in the financial sector contribute to the optimization of financial intermediation and, in turn, stimulate economic growth. Financial innovations increase the efficiency of the allocation of savings capital to investment capital, as well as increase liquidity in the markets. As the digital economy has developed, the functionality of traditional large financial institutions has been partially replaced by financial technologies (FinTech). FinTech involves the convergence of traditional financial services with mobile services, social media services, big data aggregation and processing, and cloud technologies.\ Purpose of this article is to identify the main directions of the electronic financial services market in the Republic of Kazakhstan, identify the main problems and prospects for the development of the financial sector of the economy. Methods: The work used general scientific methods of comparative system, vertical and horizontal analysis, structural and functional method, analytical techniques, economic and statistical research methods. The results and their significance: the authors identified the main directions of digitalization of the financial sector of the modern economy, noted the role of FinTech companies and services in both theoretical and practical terms, and provided relevant approaches to the definition of this concept in the economic literature. The main reasons and factors for the development of this direction of digitalization of the financial sector are substantiated, including the concept of financial accessibility, the advantages and disadvantages of FinTech, various approaches to their classification, country and regional characteristics, and an analysis of development trends. The crowdfunding direction of FinTech is noted, approaches to its definition and classification are given, the advantages of the crowdfunding mechanism are revealed, and its role in the modern economy is analyzed. The trend of algorithmic trading development as the most important direction of digitalization of the financial sector is investigated. A detailed analysis of mobile financial services as one of the fastest-growing areas of FinTech is carried out, approaches to their classification are given, factors stimulating the growth of mobile payments, country and regional characteristics are substantiated. The main directions of digitalization of the insurance sector are analyzed, reasonable conclusions about the advantages of InsurTech are made. Keywords: digitalization of the financial sector, FinTech, financial accessibility, crowdfunding, algorithmic trading, mobile financial services, mobile money, InsurTech.

Dominant Factors Behavioral Intention of The Generation Millennials in Using E-Wallets

Technological advancements fueled by the internet revolution have transformed the financial services industry's image, resulting in modifications to electronic financial services. These service changes can be seen in almost all forms of financial services, such as banking, insurance, and stock trading, which are carried out using electronic media, such as E-wallets services. This study's primary goal is to discover how the Millennial generation uses digital wallet applications in terms of perceived ease of use, perceived usefulness, trust, social influence. This study utilized a quantitative method using exploratory surveys and online questionnaires, as well as a literature and field research design. This study employs the Smart PLS program with the PLS-SEM approach for data analysis. Data was collected using non-probability sampling using a purposive sampling approach, yielding a sample size of 146 respondents for this research. This research provides information about the behavior of using digital wallet applications, which are significantly controlled by perceived ease of use, trust, and social influence. Furthermore, the Perceived Usefulness factor does not significantly impact the behavior of using digital wallet applications. These findings highlight the importance of trust as a motivator for customers when utilizing an E-Wallet application. It is preferable to expand the number of study samples in order to appropriately generalize findings, as well as to include research factors that are believed to influence behavioral intention to use. This research will look at the effects of perceived ease of use, perceived utility, trust, and social influence on Generation Millennial behavior when it comes to using digital wallets.

Dominant Factors Behavioral Intention Of The Generation Millennials in Using E-Wallets

Technological advancements fueled by the internet revolution have transformed the financial services industry's image, resulting in modifications to electronic financial services. These service changes can be seen in almost all forms of financial services, such as banking, insurance, and stock trading, which are carried out using electronic media, such as E-wallets services. The primary purpose of this study is to determine the behavior of the Millennial class for digital wallet applications in terms of perceived ease of use, perceived usefulness, trust, social influence. This study utilized a quantitative method using exploratory surveys and online questionnaires, as well as a literature and field research design. For data analysis, this research uses the Smart PLS application with the PLS-SEM approach oriented. Data was collected using non-probability sampling using a purposive sampling approach, yielding a sample size of 146 respondents for this research. This research provides information about the behavior of using digital wallet applications, which are significantly influenced by perceived ease of use, trust, and social influence. Furthermore, the Perceived Usefulness factor does not significantly impact the behavior of using digital wallet applications. These findings highlight the importance of trust as a motivator for customers when utilizing an E-Wallet application. It is preferable to expand the number of study samples in order to appropriately generalize findings, as well as to include research factors that are believed to influence behavioral intention to use. This research will look at the effects of perceived ease of use, perceived utility, trust, and social influence on Generation Millennial behavior when it comes to using digital wallets.

Еволюційні погляди щодо сутності поняття «електронний бізнес»

Today, the development of e-business is an integral part of the digital economy around the world. The active development of digital technologies contributes to the gradual transformation of enterprises, the emergence of new spheres and sectors of the national economy. This development also changes the usual way of doing business, and thus the behavior of entrepreneurial entities and buyers of goods and services. The above actualizes carrying out new scientific research in this direction in order to specify the essence of e-business and determine the specifics of using the capabilities of digital technologies in entrepreneurial activity. With a view to a detailed study of the essence of e-business, this article examines the main periods of formation and development of this type of business in the world, identifying among them the following: formation (50-60s of the twentieth century); fragmentation (70s of the twentieth century); development (80-90s of the twentieth century); adaptation and customization (1990-1995); standardization (1996-2000); multi-attribution and convergence (2000s and up to now). The article also discusses the main direction of e-business that are actively developing over the world nowadays. These include e-commerce, electronic financial services, e-marketing, and virtual enterprises. It is found that a significant number of scientific works equate such definitions as e-commerce and e-business. However, the study has defined that e-commerce is only a separate direction of entrepreneurial activity which is currently undergoing a significant transformation as a result of the use of information technology. As a result, it is proposed to consider e-business as a new model of contemporary doing business making use of information and communication technologies and systems to generate profits and ensure stable socioeconomic development.

Fintech startups in Ukraine in the context of digital economy development

Keywords: finance, bank, virtual bank, digital economy, Fintech, startup, account,financial institution
 The article deals with the particular problems of today'sdigital economy. Particular attention is paid to the development of Fintech startupsin Ukraine. The foreign experience of creating and implementing Fintech startups isanalysed. The reasons for the failure of Fintech projects in Ukraine and other countriesare considered.
 Features of the innovative domestic mobile banking project Monobank (since2017), which was launched in partnership with the Fintech Band, are considered. Theshortcomings of Monobank are analysed, including the following: customers who donot have smartphones cannot use the product; Monobank does not have its own terminalsand ATMs to top up the card and withdraw cash. It uses iBox services and resourcesof other banks; not everyone can get a credit limit.Historical examples of the creation of «virtual» banks are studied. The first one isSecurity First Network Bank (SFNB) appeared in the United States in 1995, and inGermany in 1996, it was called Advance Bank. The emergence of virtual banks laterbecame a prerequisite for the creation of online banking (e-banking), which allows aperson to manage their bank accounts.It is proved that the era of electronic financial services requires the creation of conditionsto prevent fraud and abuse, and to this end should increase the level of financialliteracy of the population. There are prerequisites for further development of fintechin Ukraine. In this context, the USAID Financial Sector Transformation Projectof the National Bank of Ukraine (NBU) and the Independent Association of Banks ofUkraine (IABU) is analysed.The activity of innovation park in Ukraine in the field of fintech industryUNIT.City is considered.Special attention is paid to mobile applications with augmented reality.The typical problems faced by developers of fintech startups are analysed. Theseare, in particular, the following reasons for the loss of projects: the Ukrainian marketfor investment is not so big; not enough resources for successful work in this market;market regulation issues etc.

Провідні тенденції процесу віртуалізації світового фондового ринку

The article is aimed at studying the current state and trends in the process of virtualization of the world stock market. The modern stage of virtualization of the world stock market is analyzed, which is marked by the development of existing and the emergence of new electronic financial services and electronic money; increasing the scale of use of electronic payment systems, cashless payment systems and the spread of virtual currencies (cryptocurrencies). Among the main consequences of the process of virtualization of the world stock market, the article determines the consolidation of exchanges, the rapid pace of development of over-the-counter trade; increase in the volume of trade in virtual derivatives in order to obtain speculative profits; broadening of the sphere of application of cryptocurrencies. It is noted that there is a phenomenon of speculative virtualization, the essence of which is to orient financial market participants to profit from price fluctuations in the value of financial assets (stocks, bonds and derivatives). It is also specified that contemporary exchange technologies allow to create exclusive financial instruments, which are essentially virtual capital, which without material grounds forms a tendency to self-growth. Attention is paid to the process of increasing fictitious-speculative capital, which is unmanageable, while existing in the form of stock instruments that in turn exist independently of their own material basis, in a state of independent self-growth. It is concluded that the modern stage of virtualization of the world stock market contains two main aspects: first, the dominance of virtual (digital) infrastructure (trading platforms, fundamentally new consolidated clearing systems); secondly, the growth of virtual speculative derivatives of financial instruments, which is facilitated by the use of IT and innovative software. Among the consequences of virtualization of financial markets, a change in the structure of investors is also considered: if earlier institutional investors were the main participants in the stock markets, then in recent years, thanks to information technology, the number of individuals who now also risk significant financial losses has been growing.

СУЧАСНІ ТЕНДЕНЦІЇ РИНКУ БАНКІВСЬКИХ ПОСЛУГ ІЗ ЗАСТОСУВАННЯМ ІНФОРМАЦІЙНИХ ТЕХНОЛОГІЙ

In the current conditions of globalization and development of international relations, the banking sector and the banking system are going through a number of transformations. These changes are caused by the constant need to maintain stability, competitiveness and sustainable economic growth of banks. Today, the digital economy occupies a special place in all spheres of public life, and also undoubtedly affects the financial sector. Thanks to modern digital technologies, we can see not only the emergence of new electronic financial services and products, but also the modernization of the forms in which they are provided. At the same time, the most significant transformations are taking place in the field of consumer banking and payments. In the article the authors analyzed the key stages of the development of banking products, in particular the search for new technological solutions and market segments such as insurance business, financial leasing, asset management and real estate investment. The authors described the key development trends such as customer focus, controlling and innovation management. It has also been proved that all the latest trends that have emerged in the banking sector over the last period of time are determined by a common prerequisite – the development of information technology. In particular, the impact of information technologies on individual banking institutions with the aim of introducing innovative banking products and services, such as mobile and online payments, deposit and trading account management programs, is investigated. Attention is focused on such modern technologies as blockchain and cryptocurrency, as well as the impact of remote services. It is proved that the remote mode of operation has become a corporate standard for many Ukrainian banks, because today with the help of a phone or tablet it is possible to control the financial results of banking operations, analyze financial indicators and receive automatic notifications about events that require special attention. The authors also gave the most striking examples of innovations in the banking sector – such companies were «Capgemini» and Ukrainian Monobank. The authors conclude that the prospects for further research lie in an in-depth consideration of the process of diffusion of banking innovations depending on various macroeconomic and microeconomic factors, as well as the nature and key properties of innovations in the banking industry according to their classification.

Distance Personal Identification in the On-line Environment: Problems of Financial Institutions in the EU

Electronic financial services are of key importance in the EU. However, the actual policies adopted in the field by individual member states differ from country to country. A great deal of legal acts have been adopted by the EU to encourage FinTech development, to prevent money laundering and in particular to lay down secure procedures of personal identification. However, measures applied by individual member states frequently differ. The purpose of this article is to focuses on actual legal instruments used by EU financial institutions and FinTech agencies in the digital environment for client identification and on major problems faced by FinTech companies rendering modern financial services. Financial institutions and FinTech agencies often face the problem of client identification which is of key importance in the field. The complex legal regulation of the field has been extended to include such concepts as customer due diligence, simplified customer due diligence, enhanced customer due diligence and customer identification in physical absence. Each of the ways of identification differs in the scope of collected personal data, methods of data collection, legal regulation and the use of technological instruments.

Economic and Legal Policy of the State in the Field of Digital Economy

Digitalisation of the economic sphere of Ukraine is one of the priority areas of social development, which should be reflected in the economic and legal policy of the state. Therewith, a considerable gap exists in the statutory consolidation of the fundamental principles of such a policy, in particular the lack of relevant provisions on the digital transformation of the economy in the Commercial Code of Ukraine. Despite the fact that the state has adopted some acts on the development of the digital economy, there are significant gaps in the legislation, especially with regard to the role of digitalisation in the economic and legal policy of the state. The purpose of the study is a theoretical analysis of the general principles of such a policy in the modern period. As a result, the impact on the economic and legal policy of the state of the process of digitalisation of the economic sphere of the country is determined. The necessity of co-regulation is substantiated, which constitutes a combination of state regulation with self-regulation by participants of digitally-targeted markets. The role of digital resources (on the example of public registers) and electronic financial services is analysed. It is established that the modern legal support of the digital economy needs to be reformed, first of all, by supplementing the Commercial Code of Ukraine with provisions on digitalisation, including the relevant direction of economic and legal policy of the state. The results of the study have a scientific novelty, as they fill the gap in the coverage of the role of the state in the process of digitalisation of the economy.

Competences in the Field of Finance – Results of a Population Survey

During the global pandemic, the frequency of digital financial services has increased, one of the reasons for which may be the fear of infection, which is not necessarily based on prudent orientation. Nowadays, to navigate in the increasingly digital financial market, it is essential to have the right tools and competencies that help in the use of services. During the population survey conducted in the summer of 2019 – before the outbreak of the coronavirus epidemic –, I examined the level of digital competencies in managing finances and its correlations with the level of financial knowledge and the use of electronic financial services. I researched possible gender differences regarding digital competencies, and whether the use of digital tools is dependent of demographic characteristics. I found out that the competencies of women and men led to similar results. However, the development level of one’s place of residence is related to the frequency of use of electronic devices.

K-FFRaaS: A Generic Model for Financial Forensic Readiness as a Service in Korea

While Korean financial companies are currently providing electronic financial services by establishing the high-level information technology and security system in accordance with the Electronic Financial Supervision Regulations (EFSR), they are rarely equipped with digital forensic readiness (DFR) to maximize the capability to collect critical digital evidence (DE). So, there is a limit to identifying the root cause of financial incidents and securing admissible DE. In this paper, we present Financial Forensic Readiness as a Service in Korea (K-FFRaaS), as DFR of financial companies to acquire an admissible DE. Based on ISO/IEC 27043:2015 international standard, K-FFRaaS consists of 3 main processes groups, namely: Planning processes group, Implementation processes group, and Assessment processes group. The purpose of planning processes group is to prepare the organization to be forensically ready before potential incidents happen. The main task of implementation processes group is to carry out the processes defined in the planning processes group. The goal of assessment processes group is to evaluate whether the result of the implementation processes group is consistent with the objective of K-FFRaaS. The contribution of this research is to present that financial companies can adopt the systematic management procedure for identifying causes of incidents, storing potential DE, and presenting scientific evidence to a court of law through K-FFRaaS.

FINTECH SERVICES MARKET IN UKRAINE: CURRENT SITUATION, PROBLEMS AND PROSPECTS

In a globalized world there are radical changes in the construction of national financial systems, their organization and functioning under the influence of technological and financial innovations. Today, Fintech is the biggest driver of essentially revolutionary changes in financial systems at both the national and global levels. Ukraine does not stand aside from these processes, the state has some achievements, but according to experts, it lags behind developed markets, and therefore it is necessary to make up for lost. Most Fintech startups in Ukraine depend on equity in the absence of a functioning capital market. The infrastructure of electronic financial services remains imperfect. It is essential to change outdated legislation to promote a favorable business environment. The Ukrainian regulator should also promote the development of regulatory ‘sandboxes’ so that Fintech companies can use this tool. The classical banking system in ‘connections’ with the Fintech industry should be more active in digital multichannel banking, use artificial intelligence in its operations, do big data analytics based on artificial intelligence, use ‘cloud’ infrastructure. As for Ukrainian Fintech companies, their unique collective image looks like they are focused on the European market, have no investment from banks, focused on the B2B service model, are self-financed, top management has experience in traditional financial services, operates more than 3 years and still in development. Services are dominated by card payments and other types of payments. Competition in the market is insignificant due to the small number of Fintech companies. Ukrainian banks, in turn, do not have shares in the capital of third-party Fintech companies, have limited experience and understanding of the Fintech industry at the board level, but have specialists responsible for working with third-party software developers. There is no full-fledged interaction between banks and Fintech companies in Ukraine, although it is necessary for the further development of the financial services market, as currently market growth is less dependent on competition and more on raising awareness of the problems and technologies that can solve these problems.

Effect of E-Financial Documentation and Statements on Operating Costs in Universities in Kenya.

Institutions globally have embraced electronic systems of managing documents and generation of financial statements ranging from maintenance of ledgers, extraction of the trail balance and automated income statement and statement of financial position. This study sought to analyze the effect of e-financial documentation and statements on operating costs in universities in Kenya. The study was guided by theory of reasoned action and technology acceptance model. The target population was 80 employees drawn from 8 universities, four public universities and four private universities operating in Mount Kenya region. Census was used to collect the data from target population. A self-administered semi-structured questionnaire was distributed to the target population. A total of 71 questionnaires were returned giving a response rate of 88.75%. Statistical package was used to undertake descriptive and inferential statistical analysis. Descriptive analysis was done using both means and standard deviations. Bivariate linear regressions were used to assess the effect of e-financial documentation and statements on operating costs. Model R2, ANOVA Statistics (F Statistic and associated p-value) and regression coefficients (Beta and associated p-value) were generated and interpreted. The Bivariate results indicated that online financial documentation have a significant effect on the operating cost of universities. Electronic financial statements had an insignificant effect on operating costs of universities. This study concludes that online financial documentation affects organization costs in the universities. The study recommends the need to sensitize management of universities and other organizations on the importance of electronic financial services because they could reduce operating costs.

Motivations for Electronic Banking Adoption in Rural Areas of India: A Quantitative Study

The main purpose of this paper is to have a look and discover the type of motivations that provoked rural peoples of India to accept and use electronic banking services. E-banking or electronic performs a vital role in the present situation of banking functionality. It will also let us know how the Government of India considers it as a main vision from the past few decades to achieve such sustainable development as well as an inclusive growth. We will also realize how increase in number of smart phone users and its utilization among every corner of rural India made it possible and an awesome ability towards adoption of electronic financial services to the un-banked and under-banked in rural areas. This paper basically covers a systematic literature overview on its evolution and their motivating factors on its adoption throughout rural India. Major conclusions drawn from various research works stated that cellular banking has a huge potential to alternate the manner of people in such areas transact and store cash. With the help of electronic banking, the banking sector all across the world is gaining a huge customer base with satisfaction and loyalty. The research has considered people from rural areas. This study was conducted to know the Motivation for adoption of electronic banking in rural areas in India, and it is found in the study that respondent says that through electronic banking customers would enjoy many benefits such as mini statement, cheque related functions, balance enquiry, etc., Through electronic banking paying and receiving amount can be done from anywhere and at any time, Electronic banking removes geographical barriers

Analysis of the Consumer Behavior of the Members of the Savings and Credit Cooperatives for the Integration of Electronic Financial Services in the City of Guayaquil

Currently, the use of services that can be marketed online is almost a mandatory strategy that companies must incorporate to generate customer loyalty with the institution. The research deals with the study of the behavior of the members of the Savings and Credit Cooperatives regarding the integration of electronic financial services. Cooperatives are autonomous societies that help their members face their economic, social and cultural needs. Specifically, savings and credit cooperatives have the function of delivering financial intermediation for thebenefit of their customers (Mella & Bravo, 2014). The investigation is exploratory scope and descriptive type whose approach is mixed. There were applied techniques such as: (a) the observation to the cooperatives to evaluate the technological progress of the financial services that currently have; (b) interviews with managers of certain entities of the sector; (c) a focus group to certain actors involved; and (d) a questionnaire of closed questions to members of different savings and credit unions in the city of Guayaquil. Among the most important results, the following stand out: (a) 43% use the smartphone to access the internet; and (b) 82% have ever used an electronic financial platform.

The adoption of banking technology and electronic financial services: evidence from selected bank customers in Ethiopia

This study was aimed to investigate factors that determine bank customers' intention to adopt electronic banking technologies and electronic financial services in Ethiopia. The TAM model was used that constructed with perceived financial trust, perceived financial risk, subjective norm, and awareness as exogenous factors that predict bank customers' intention to adopt digital technologies. Self-administered questionnaire was used for data collected from 412 bank customers and the exploratory factor analysis (EFA) of data confirmed it was internally consistent enough to measure each factor. Similarly, the confirmatory factor analysis (CFA) of data was revealed that there was no concern of convergent and discriminant validity. According to SEM analysis using AMOS, the finding of the study shows perceived ease of use, perceived usefulness, perceived financial trust, subjective norm and awareness about new electronic banking technology positively predict bank customers' intention to adopt it. However, perceived financial risk negatively influences customers' intention to adopt banking technology and researchers' suggestions were forwarded in the paper.

The adoption of banking technology and electronic financial services: evidence from selected bank customers in Ethiopia

This study was aimed to investigate factors that determine bank customers' intention to adopt electronic banking technologies and electronic financial services in Ethiopia. The TAM model was used that constructed with perceived financial trust, perceived financial risk, subjective norm, and awareness as exogenous factors that predict bank customers' intention to adopt digital technologies. Self-administered questionnaire was used for data collected from 412 bank customers and the exploratory factor analysis (EFA) of data confirmed it was internally consistent enough to measure each factor. Similarly, the confirmatory factor analysis (CFA) of data was revealed that there was no concern of convergent and discriminant validity. According to SEM analysis using AMOS, the finding of the study shows perceived ease of use, perceived usefulness, perceived financial trust, subjective norm and awareness about new electronic banking technology positively predict bank customers' intention to adopt it. However, perceived financial risk negatively influences customers' intention to adopt banking technology and researchers' suggestions were forwarded in the paper.

ELEKTRONSKE FINANSIJSKE USLUGE U POŠTI

U ovom radu su definisani standardi kvaliteta, tendencije i pravci budućeg razvoja elektronskih finansijskih usluga. Takođe, napravljen je presjek stanja ovih usluga i analizirane su alternative kao prijedlozi za unapređenje istih.

Trend and Development of E-Banking: A Study on Bangladesh

Information technology is becoming an important factor in the future development of financial services industry, especially the banking industry. The banking sector is based on sharing of information, which itself heavily relies on information and communication technology (ICT) in order to acquire, analyze and deliver data to all relevant users. The ICT is crucial not only for information analysis, but also enables the banking sector to differentiate its offer from competitors and thereby make it a market leader. In this context, banking sector are obliged to continuously innovate and update their marketing strategies in order to closely meet the demands and the requirements of the individual customers. It also provides safe and confidential services which best suit customers’ needs. The customer wants more flexibility without paying more, and his demands are clear: Make transactions wherever, whenever, and however he wants. Hence ,the development of the concept of electronic financial services, more commonly known as E-banking. At present, private & public banks of Bangladesh have taken various steps in E-banking. This work has been conducted from the secondary data maximally. This article has drawn present trend & development of E-banking in Bangladesh and included conclusion & recommendation.

Study and Design on Electronic Cash System Security Architecture

The rapid development of electronic financial services, attendant come an increasingly serious network security problem, especially electronic cash exchange network security issues facing the urgent need to resolve. In this paper, electronic cash scheme detailed research and analysis, and then design a secure electronic cash system based on an improved theory of electronic cash scheme, it includes detailed electronic payment requirements analysis, system design, e-commerce payment system design, server design and client design. Finance and electronics industry combining electronic financial system, if they can effectively solve the security issues, I believe it can be quickly developed.