Financial Sector Research Articles

An Analysis of Portfolio Management Strategies with Special Reference to Larsen and Toubro Finance, Bangalore North

This study examines L&T Finance's portfolio management strategies in Bangalore North, emphasizing the company's focus on retail finance growth, digital transformation, and sustainability. Key pillars such as enhancing customer acquisition, optimizing credit risk models, and leveraging digital technologies are analyzed to understand their impact on regional financial inclusion. With retail disbursements exceeding ₹54,000 crore in FY24 and strong growth in urban and rural finance sectors, LTF's approach reflects a robust blend of innovation and market responsiveness. This research highlights how LTF’s strategies in Bangalore North align with its broader organizational goals, contributing to consistent financial performance and sustainable stakeholder value creation.

The Revolution of Blockchain in Digital Payment Systems: Legal Implications and Regulatory Challenges

This study aims to analyze the revolution of blockchain technology in digital payment systems, as well as explore the legal implications and regulatory challenges faced in its adoption. The research method used is a qualitative approach with normative analysis, utilizing data sources from literature, applicable regulations, and case studies from various countries. The results of the study show that blockchain has changed the digital payment landscape by providing solutions to improve efficiency, security, and transparency, this technology also poses legal challenges related to privacy, data security, and consumer protection. Differences in regulatory approaches between countries, especially between developed and developing countries, result in legal uncertainty that can hinder further adoption. These findings emphasize the importance of developing a uniform and adaptive regulatory framework to support blockchain innovation while maintaining stability and protection in the financial sector. This study provides important insights for policymakers and practitioners in the financial sector in dealing with complex regulatory challenges related to the adoption of blockchain technology.

Ethno-Political Dynamism and Its Role in the Development of Indonesian Islamic Banking Law

Studies on Indonesia's political conditions during the New Order until the 1990s reveal a significant shift in political dynamics, transitioning from a stance largely closed to Islamic interests to one that increasingly accommodated Islam through specific policies. This article aims to determine the influence of the ethnopolitical dynamics of Islam formed by the New Order on the development of Islamic banking law and its impact on the financial sector in Indonesia. Through a historical and contextual literature review, supplemented by interviews, it was observed that ethnopolitical dynamics significantly influenced the evolution of Indonesian banking law during and after that period. The influence of Islamic ethnopolitics, particularly in academic circles, has increasingly emerged as a dynamic force in facilitating the development of Islamic banking in Indonesia, underscoring the numerous challenges encountered in achieving market acceptance. Although its growth has not met market expectations, ethnopolitically, Islam continues to lobby for Islamic banking regulations. Furthermore, since 2019, the role of ethnopolitics has continued to realize policy and regulatory responses aimed at encouraging the growth of Islamic finance in Indonesia.

A bibliometric study of financial innovation development trends

Object: The purpose of this article is to identify and analyse the most influential authors, publications, countries, journals on financial innovation and the key trends in their development of financial innovations using bibliometric method based on Web of Science Core Collection data using VOSviewer. Methods: This study used the quantitative and qualitative method. The PRISMA approach helped to sort out 942 articles on the financial innovation topic. The science mapping analysis as the citation analysis of documents, authors and countries, and co-occurrence analysis of all keywords was applied to show the main research trends in financial innovation field. Results: The most productive country is the USA. The most productive author is Oskooee, Mehdi Bahmani. The Journal of Banking Finance published the greater number of papers which is 29. The trends were specified using the clusters. So, business innovation, economic growth, fintech, corporate innovation and financial inclusion are popular trends in financial innovation development. Conclusions: Financial innovation influence our daily life through financial sector, specifically banking sector and fintech products and services. Popularity increases in the fintech products and services, eco and green innovation that affect the company’s performance and image. Developed countries have greater impact to promote this topic.

A Review of the Literature on Fintech and Enterprise Digital Transformation

As global digital technology advances, digital transformation of businesses has emerged as a crucial step in the growth of multinational corporations. A large number of enterprises lacking strong economic strength urgently need the help of financial technology, a product of the digital economy era. This article summarizes and generalizes existing relevant literature from three aspects: The way that financial technology facilitates businesses' digital transformation, The degree to which various business types can adjust to financial technologies, and the external factors that influence the mechanism. Specifically, the article first clarifies the mechanism by which financial technology promotes Businesses' digital transformation by investigating the connection between enterprise digital transformation and financial technology, as well as the elements that influence this process. Examine further how various business models and financial technology might work together, and group businesses based on five factors: ownership, lifespan, age, size, and industry. Similarly, in the external factors section, external influencing factors are also divided into five aspects: geographical factors, degree of marketization factors, financial regulatory factors, media supervision factors, and economic policy factors. All things considered, this paper thoroughly develops a preliminary framework for fintech to support businesses' digital transformation from angles including time, location, and enterprise qualities. The financial sector's ability to support the real economy and foster its growth in the digital economy has significant practical implications.

Enhancing credit card fraud detection: highly imbalanced data case

In the contemporary landscape, fraud is a widespread challenge in today’s financial landscape, requiring innovative methods and technologies to detect and prevent losses from the sophisticated tactics used by fraudsters. This paper emphasizes the main issues in fraud detection and suggests a novel feature selection method called FID-SOM (feature selection for imbalanced data using SOM). Feature selection can significantly improve classification performance. Given the inherent imbalance in fraud detection data, feature selection must be done with an enhanced focus. To accomplish this task, we use Self-Organizing maps, which are a special type of artificial neural network. FID-SOM is designed to address the challenge of dimensionality reduction in scenarios characterized by highly imbalanced data. It has been specifically designed to efficiently process and analyze vast and complex datasets commonly encountered in the financial sector, showcasing adaptability to the dynamic nature of big data environments. The uniqueness of the proposed method is in forming a new dataset containing the Best-Matching Units of the trained SOM as vectors of attributes corresponding to the initial features. These attributes are sorted based on variance in descending order. By keeping the required number of attributes that hold the highest percentage of variability, we select features corresponding to those attributes for further analysis. The proposed FID-SOM method has demonstrated its ability to perform on par with, if not surpass, existing methodologies. It also shows innovative potential.

The Rise and Impact of Neobanks on the Financial Sector

The Rise and Impact of Neobanks on the Financial Sector

Blockchain Adoption in Ireland's Financial Sector and its Regulatory Challenges and Implementation Opportunities

This research explores the adoption of blockchain technology within Ireland’s financial sector, focusing on its implementation, challenges, and potential. The study adopts a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather data from a range of financial institutions and key stakeholders. A stratified sampling technique is used to select institutions based on size, including large multinational banks, mid-sized banks, and fintech startups. Purposive sampling targets key experts such as blockchain developers, regulatory bodies, and industry leaders for interviews. Surveys collect data on blockchain adoption levels, benefits, and challenges, while interviews provide deeper insights into the perspectives of stakeholders. The research findings reveal that blockchain adoption is still in its early stages but growing steadily, with larger multinational banks leading the way. Key benefits identified include enhanced transparency, security, and efficiency, while challenges include regulatory uncertainty, technological compatibility, and cybersecurity concerns. The study concludes that while blockchain holds transformative potential for Ireland’s financial sector, broader adoption is hindered by these barriers. Recommendations include increased collaboration between financial institutions, regulators, and blockchain developers, as well as clearer regulations to foster innovation while addressing security and compliance concerns.

Financial Sector Development and Inflation Dynamics in Tanzania: An Empirical Assessment of Macroeconomic Stability

This study empirically analyzes the impact of financial sector development on the inflation rate in Tanzania, focusing on credit to the private sector as a proxy for financial sector growth. Quarterly time series data are collected from 2003 to 2023. Autoregressive Distributed Lag (ARDL) Model estimation with a bound cointegration test establishes the short and long-term relationship. The results show that financial sector development increases the inflation rate in the long run. The findings underscore the importance of balancing financial sector expansion with measures to control inflation and ensure that credit growth supports sustainable economic development.

Long Short Term Memory For Comparison Between Bank Syariah Indonesia And PT Bank Artos Indonesia Shares

The growth of the capital market in Indonesia has increased from year to year. Based on data from the Indonesia Central Securities Corporation (KSEI), there has been an increase in investor growth in the capital market by 2.34%, mutual funds by 2.44%, and shares by 1.34% until August 2024. The demographic of individual investors in the capital market is dominated by Generation Z who are younger than from 30 years as much as 55.07% in August 2024 (KSEI, 2024). Shares are a form of investment that has the potential for large profits but with small risks. One sector that Gen Z is interested in investing in is the financial sector. The aim of this research is to compare the share prices of Bank Syariah Indonesia and Bank PT Ban Artos Indonesia Tbk using a Neural Network with the Long Short Term Memory (LTSM) algorithm. The data used in this research is secondary data on BSI and PT Bank Artos Indonesia Tbk share prices taken from the investing.com website. The data period used is from 01 September 2021 – 01 September 2024. Based on the results of stock price forecasting using a Neural Network with the LTSM algorithm, RMSE value for both models is for BSI 75.0757 and 91.795 for PT. Bank Artos Indonesia Tbk. A comparison of the predicted share prices of PT Bank Arto Indonesia Tbk and BSI shows that BSI's share price performance is superior to that of PT Bank Arto Indonesia Tbk.

BLOCKCHAIN AND DIGITALIZATION OF CIVIL LAW: AN ANALYSIS IN POLAND AND KAZAKHSTAN

This article analyzes the adoption of blockchain technology in Kazakhstan, focusing on its application in public administration, real estate registration, and the financial sector. The primary objective is to compare Kazakhstan’s progress with Poland's more developed blockchain landscape, identifying key challenges and opportunities. The research employs general scientific methods, including analysis, synthesis, and comparison, to evaluate the current regulatory framework in Kazakhstan. The study identifies several obstacles, such as the underdeveloped legal infrastructure, lack of technical expertise, and significant implementation costs. Despite these challenges, blockchain presents substantial potential to improve transparency and reduce fraud. The research highlights the need for legal reforms and international cooperation to support blockchain integration. The findings emphasize that Kazakhstan's digital transformation efforts can benefit significantly from Poland's adoption of best practices, particularly in establishing a supportive regulatory environment. The article concludes that while progress has been made, Kazakhstan must invest strategically in legal reforms and professional training to leverage blockchain’s potential in the coming years fully.

Factors Affecting Consumers’ Adoption of Virtual Banks in Thailand

To keep pace with dynamic changes in the global financial sector, the Bank of Thailand has provided the opportunity for bank operators and investors to submit for approval to set up a virtual banking business in Thailand in 2025. As this type of bank will begin operating in Thailand for the first time in 2025 consumer adoption is likely to be very challenging. In this study, the TAM model was adopted to examine the factors influencing behavioral intentions to use virtual banking services, collecting data through a self-administered questionnaire from 600 bank customers aged between 20 and 60, and residing in Bangkok. Descriptive statistics such as frequency, percentage, mean, and standard deviation, were employed to describe the sample characteristics and the level of each factor in the model. Structural equation modelling (SEM), including confirmatory factor analysis (CFA), was used to determine the construct validity of the variables. Path analysis was used to test the model’s goodness of fit and the research hypotheses. The results showed that all hypotheses were supported and that factors such as corporate reputation, perceived safety of technology, personal innovativeness, and the perceived cost of technology indirectly influence behavioral intentions to use virtual banking services.

Research on the Measurement and Convergence Characteristics of High-Quality Development of the Financial Industry in Anhui Province

This paper studies the development status of the financial industry in Anhui Province by constructing a high-quality development index for the financial sector and examining its changing characteristics and convergence properties. Using the Entropy Weight TOPSIS method for data measurement and convergence model analysis, the study finds that the overall development of the financial industry in Anhui Province is on an upward trend, but there are significant disparities in development among regions. Only the financial development of Anhui Province as a whole supports the hypothesis of absolute β-convergence, while central Anhui supports the hypothesis of conditional β-convergence. Analyzing the reasons for the regional differences in financial development in Anhui Province provides a theoretical basis for promoting the quality of financial development in the province and offers new ideas for narrowing the regional disparities in financial industry development.

Transformation of Consumer Protection Against Loss of Customer Funds in Digital Banking

Digital banking has become a major trend in the global financial sector, offering ease of access and efficiency for customers. However, this development also brings new risks, particularly related to the loss of funds due to cyber attacks. This research analyzes the legal vacuum in the regulations protecting customers of digital banking in Indonesia, particularly as regulated by POJK No. 12/POJK.03/2021 and POJK No. 13/POJK.03/2021. Despite the existing legal framework, this study identifies the weak legal protection for customers regarding the risk of losing funds due to cyber attacks, as well as the lack of clarity regarding the bank's responsibility in such situations. By examining national and international case studies and providing recommendations for regulatory enhancement and security standards, this study aims to contribute to the ongoing efforts to protect consumers in the increasingly complex context of digital banking.

Problems and Solutions in US Stock Market

This research explores critical challenges facing the U.S. stock market, specifically focusing on the impacts of algorithmic trading-induced market volatility and cybersecurity threats. Algorithmic trading, which utilizes high-speed computer systems to make trades, has increased market efficiency but also introduced risks of extreme price fluctuations and flash crashes. In parallel, the digitalization of financial markets has heightened exposure to cybersecurity threats, posing risks to trading integrity and data security. To address these issues, this study proposes two targeted solutions. For the issue of market volatility driven by algorithmic trading, the research recommends implementing circuit breakers and trading halts. These mechanisms can prevent severe market disruptions by temporarily pausing trading during extreme price movements, allowing the market to stabilize and preventing panic-driven selloffs. For the cybersecurity challenges, the study suggests enhancing information sharing and fostering collaborative defense strategies among financial institutions and regulatory bodies. By encouraging greater collaboration, the financial sector can more effectively identify and counteract cybersecurity threats, reducing vulnerabilities across the market.

The Mediating Role of Psychological Empowerment on the Relationship Between Digital Transformation, Innovative Work Behavior, and Organizational Financial Performance.

With the use of digital technologies in today's innovation era, the financial sector has transformed how they facilitate customer business and generate a high level of revenue. This study aims to explore the relationship between innovative work behavior (IWB), digital transformation (DT), and organizational financial performance (OFP) to analyze the mediating role of workers' psychological empowerment (PE) between independent and dependent variables. Further, we examined the moderating role of smart technologies (ST) between PE and OFP. This study collected data from Saudi banking sector employees using a well-structured questionnaire adopted from previous literature. Next, Smart-PLS was used to analyze the data using the structural equation modeling-partial least squares (SEM-PLS) approach. The results reveal that IW positively relates to OFP, with PE mediating this relationship. Furthermore, DT positively affects OFP. ST acts as a positive moderator that enhances workers' PE and OFP. Meanwhile, PE, as a mediator, positively relates DT and IWB to OFP. Overall, this study makes valuable theoretical, empirical, and practical contributions, which can benefit bank management, policymakers, and future academic research.

SP500 Forecast Based on ARIMA and ETS Models

Prediction of stock price, as a core issue in the financial sector, is deeply affected by the Federal Reserve's interest rate decision. As an important engine of the world economy, the United States' economic policies and decisions undoubtedly play a pivotal role on the global economic stage. The Fed's rate cut had a profound impact on global capital markets. Under the current macro background of the US interest rate cut, it is particularly critical to study and build an effective stock price forecasting model. In this paper, ARIMA and ETS models are used to predict SP500, and the results show that the RMSE value of ETS model fitting is lower than that of ARIMA model fitting. The ETS model can provide better prediction results in predicting SP500. This paper combines ARIMA and ETS models to provide a new perspective for stock price forecasting and a new idea for stock price forecasting under the background of US interest rate reduction.

Gold Price Forecast Based on ARIMA and ETS Models

The prediction of gold prices is of paramount importance in the financial sector due to gold's role as a safe-haven asset during periods of global economic uncertainty and market volatility. Accurately forecasting gold prices can help investors, policymakers, and businesses make informed decisions regarding investments, risk management, and hedging strategies. This paper utilizes ARIMA (Auto Regressive Integrated Moving Average) and ETS (Error-Trend-Seasonality) time series models to forecast future gold prices. Both models have been applied extensively in financial forecasting, each with unique strengths in handling different time series characteristics. This study aims to compare the prediction accuracy of these two models using Root Mean Square Error (RMSE) as the evaluation metric. The results show that while both models are effective in capturing the underlying trends in gold prices, the ARIMA model outperforms the ETS model with a lower RMSE of 56.80 compared to 61.51 for the ETS model. This comparative analysis contributes to the field of gold price forecasting by identifying the strengths and limitations of each model and providing insights into their applications in the context of financial time series forecasting.

Japans Lost Decades: The Impact of Deflation and Reflections on the Post-Covid Era

This paper examines three pivotal events that shaped Japans economic development trajectory: the Asian financial crisis in 1997, the global financial crisis of GFC in 2008, and the health pandemic in 2020. These global crises revealed potential shortcomings in Japans financial structure, demography, and dependence on exports. The economic crisis that hit Japan in 1997 exposed the inadequacies of the nations banking system since non-performing loans and poor reforms crippled recovery. The 2008 GFC, which began in the United States, adversely affected the Japanese economy since many of its export products, such as automobiles and electronics, were affected. Nonetheless, attempts to revert the worst trends of Japans economic recession through stimulus plans and the manipulation of monetary policies were thwarted by the countrys shrinking working-age population, rapidly ageing population, and high public debt. This paper also expands on Japans post-COVID economic plans, where COVID-19 not only magnified pre-existing problems but facilitated a more digital shift in healthcare, education, and online shopping. However, Japan has long-term problems, including a decreasing population and a lack of financing sources for this problem. The factors that informed Japan's growth and development clearly show that reform of the financial sector, innovation, and economic diversification are key and should be done at the right time. The paper examines the approach to evaluating Japans responses to these crises, its lessons on crisis management, and structural changes for its continued economic stability.

Complementarity effects of financial development and remittance on agricultural production in Africa

PurposeEmpirical evidence abounds on the individual effect of financial development and remittances on agricultural production, but little is known about their complementary role, especially in the context of African countries. This study fills this knowledge gap by examining the moderating role of financial development in the agricultural production–remittance nexus in Africa.Design/methodology/approachDifferent measures of financial development were employed, and the panel quantile regression model was adopted to analyse panel data of 33 African countries covering the period 2005–2020.FindingsThe results indicate that the effects of financial development on agricultural production vary across quantiles, and the dynamics of agricultural production are sensitive to the choice of financial development indicator. Nevertheless, financial development and remittances are highly indispensable for improved agricultural production in Africa, as financial development complements the positive effect of remittances on agricultural production.Practical implicationsAfrican countries need to strengthen their financial sector to facilitate the effective mobilization of remittances and other financial resources for investment in the agricultural sector and the improvement of the sector’s productivity.Originality/valueTo the best of our knowledge, this is the first study that documents empirical evidence on the complementary role of financial development and remittances on agricultural production in Africa.