Financial Ecosystem Research Articles

Factors and conditions that determine the formation of the financial ecosystem in modern conditions

Factors and conditions that determine the formation of the financial ecosystem in modern conditions

Fair immunization and network topology of complex financial ecosystems

The aftermath of the recent financial crisis has shown how expensive and unfair the stabilization of financial ecosystems can be. The main cause is the level of complexity of financial interactions that poses a problem for regulators. We provide an analytical framework that decomposes complex ecosystems in both their overall level of instability and the contribution of institutions to instability. These ingredients are then used to study the pathways of the ecosystems towards stability by means of immunization schemes. The latter can be designed to penalize institutions proportionally to their contribution to instability, and therefore enhance fairness. We show that fair immunization schemes can also be cost-efficient when employed on ecosystems characterized by a tiered network structure of interactions concentrated among few core nodes that at the same time form many closed cycles that exacerbate instability. For less tiered network topologies we observe a trade-off between fairness and dollar-cost of immunization, allowing regulators to choose the combination that best meets their objectives. The implementation of immunization schemes on real cross-border financial networks of the Bank of International Settlement (BIS) reporting country banking systems is also provided.

СОВРЕМЕННЫЕ ФИНАНСОВЫЕ ЭКОСИСТЕМЫ: РОССИЙСКИЙ ОПЫТ (НА ПРИМЕРЕ СБЕРБАНКА), ПРОБЛЕМЫ И ВЫЗОВЫ

The article analyzes Russian and Western approaches to defining such a global phenomenon as financial ecosystems, as well as proposed typologies and classifications of such ecosystems. The similarities and differences between ecosystems and platforms are shown. The experience of Sber as one of the largest Russian financial ecosystems is considered. The risks associated with the development of ecosystems are highlighted, including the low profitability of non-financial services in the early stages of development of financial ecosystems. Possible regulatory approaches associated with mitigating the risks of ecosystem development are considered.

Anomaly detection using autoencoders with network analysis features

Fraudulent activity within a financial ecosystem often involves the coordinated efforts of several bad actors. Expressing the interactions between participants in a system as a mathematical graph allows researchers to apply social network analysis to understand the nature of these relationships better. This article proposes and extends a unified approach using an autoencoder to detect anomalies in a transactional setting. The methodology begins with a neural architecture search to determine a best autoencoder model architecture configuration. This is followed by a threshold optimisation process to find a reconstruction error that best discriminates between normal and anomalous classes. Gaussian scaling is applied to the raw anomaly scores in order to represent the output in an interpretable and universally transferable form. The unified approach is extended by selecting and including network metrics as features, for the purposes of producing a model that can detect anomalies from both standard transactional data and network data representing the relationships between users within a financial system. Applying SHAP on the model output highlighted the strongest contributing or offsetting network metric features for all anomalies detected. The PageRank and degree centrality network metrics were most significant in detecting anomalous instances within the data. Including network metrics in the feature space generated encouraging model performance results, leading to a potential low operational cost of fraud.

VENTURE FINANCING OF DEEP TECH STARTUPS

The article is devoted to researching the mechanisms of venture financing of deep tech (deep technologies) startups at each stage of the investment chain. Venture and private funds, limited partners, corporations, governments, and public institutions face the complexity of interacting with and understanding deep tech. Investments in the sector are growing, but deep tech startups often find it difficult to transition from grant funding to equity capital. Despite the increase in funding, businesses face the need for multiple rounds of grant funding to attract the attention of venture capital funds. The existing investment model limits deep tech enterprises aimed at solving significant global challenges. Problems include the difficulties of transition from the laboratory stage to commercialization, the uneven distribution of venture funding and the lack of state support for deep tech, which is a potentially important tool for solving the world's global problems. Deep tech holds significant potential for scientific discoveries and technological breakthroughs, but investing in this sector remains a challenge. Despite the increasing volume of venture investments, deep tech startups have faced a number of challenges that limit their development and affect the entire investment ecosystem. The problems of deep tech startups include the complicated transition from grant funding to venture capital and the uneven distribution of investments between different sectors and regions. This leads to the fact that many promising ideas and technologies are left out of attention and funding. Despite record levels of "dry powder" venture capital, securing funding for deep tech remains problematic. Investors should rethink their approaches, ensuring a more efficient allocation of capital to ensure the development of a wide range of deep tech. According to research, deep tech startups face rejection from general venture funds due to their high technical risks and long payback periods. In addition, limited partners and corporations may lack the skills and flexibility to successfully work with deep tech enterprises. The diversity of investments by sector and region, as well as uneven access to capital, indicates the need for a balanced and innovation-oriented resource allocation strategy. Governments and public institutions play a key role in creating favorable conditions for deep tech startups through grants, research support and infrastructure creation. It is necessary to create a favorable investment environment by enhancing collaboration between participants in the financial ecosystem and simplifying the process of attracting capital for deep tech startups. In general, investing in deep tech requires rethinking the investment strategy, in-depth understanding of the sector and creating conditions for the growth of deep tech startups as a key tool for solving modern global challenges.

A COMPREHENSIVE REVIEW OF AI APPLICATIONS IN FINANCE FOR ACCELERATING CLEAN ENERGY TRANSITION

The rapid evolution of Artificial Intelligence (AI) has introduced transformative possibilities across various sectors, with green finance emerging as a significant beneficiary. This study meticulously investigated the integration and implications of AI within the realm of green finance, aiming to elucidate its potential in catalyzing the global transition to sustainable energy. The research sought to comprehend AI’s trajectory in financial ecosystems, its contemporary financial ramifications, and its pivotal role in advancing clean energy financial mechanisms. Through a comprehensive exploration employing advanced analytical models, AI-driven financial projections, and collaborative initiatives between AI and renewable firms, the findings underscored AI’s unparalleled capabilities in forecasting, risk assessment, and the design of innovative financial instruments. AI-powered tools have proven instrumental in ensuring adherence to green regulations, thereby facilitating sustainable investment bonds. The study concluded that AI’s integration into green finance signifies a paradigmatic shift, redefining the methodologies of funding, evaluating, and executing renewable energy projects. Its potential is vast, heralding a future replete with innovative solutions and profound insights. Recommendations emphasize collaborations between renewable energy stakeholders and AI experts, advocate for standardized green finance metrics, and promote AI-informed governmental policies. Continuous research and stakeholder education are paramount for AI’s widespread acceptance in green finance. The confluence of AI and green finance promises a sustainable future, contingent upon strategic foresight and persistent innovation.

Islamic social finance efficiency and eco-system: Islamic finance in action

The potential and prospects of Islamic finance are the issue that is currently generating the most discourse among professionals, governmental bodies, and financial experts. The objective of the article is to assess the efficiency of Islamic social finance and suggest potential improvements in the current financial framework. The focus is on assessing the economic and social outcomes of integrating Islamic finance principles into micro businesses, as a means to promote economic development and involve communities in solving social issues. Moreover, the authors explore how social initiatives aimed at supporting micro-businesses can lead to cost savings for public resources. The paper seeks to develop an optimal eco-system design for countries with dual financial system based on conventional and Islamic by utilizing an analysis approach based on Kazakhstani implementation case. The establishment of a social financial ecosystem offers Islamic finance an advantageous role in promoting societal benefits. This is achieved through regulations that encompass not only civil law and human frameworks but also the principles of Islamic Law. Such arrangements enable the development of a sustainable and prosperous financial system and equally nurture a society that prioritizes social welfare and philanthropy. Furthermore, based on the findings from this study, enhancing the societal functions of Islamic finance can address various social challenges present within communities with vulnerable populations, and may serve as a viable solution for reducing government expenditure on targeted social assistance programs. Additionally, this study provides recommendations for institutional support of the Islamic social finance eco-system integrated into the financial system of the country.

ЗАБЕЗПЕЧЕННЯ ТРАНСФОРМАЦІЇ СФЕРИ ФІНАНСОВИХ ПОСЛУГ В УМОВАХ СТАЛОГО РОЗВИТКУ НАЦІОНАЛЬНОЇ ЕКОНОМІКИ

The article examines the theoretical aspects of the transformation of the financial services sphere in the context of national economy sustainable development. It has been substantiated the importance of the development of the financial services market on the basis of digitalization as a priority tool for promoting sustainable development. It has been noted that modern globalization trends create difficult forecasting conditions for the national economies of the countries of the world, which creates constant challenges for ensuring sustainable development. A comparative description of the paradigms of tradi-tional finance and sustainablefinance has been given. It has been noted that the digital transformation of the financial services market involves a focus on the use of business models and business processes as basic forms of service provision, which makes it possible to intensify the introduction of innovative financial products. The transformation of banking institutions into high-tech organizations requires their compliance with the following requirements: the ability to provide consumers with a comprehensive product within the fintech ecosystem; transparency of information; improvement of digital technologies and their spread in all spheres of the bank's management activity. It has been determined that the current state of functioning of the financial market is characterized by the transformation of the traditional model of financial and economic relations based on digital platforms and ecosystem economics. The features of the digital transformation of the financial services market have been analyzed. The main directions of the digital strategy of the banking institution have been considered. The basis of the devel-opment of the bank's digital strategy is the definition of the key elements of sustainable development, namely the development of a digital product, including a personalized banking service, ensuring con-stant interaction with consumers, governing bodies and partners, and the development of a financial ecosystem of partners. The internal and external environment of the financial system, as well as the level of digitalization offinancial relationships, have a significant impact on the compliance of the financial services market with the criteria of sustainable development.

Generalization of digital innovation for financial inclusion by means of market creation through regulation and governance

Achieving financial inclusion in shorter timeframes is a grand societal challenge that can be addressed by digital technology. Nonetheless, how an innovative digital technology gets generalized is understudied in the literature. We present the generalization of a cloud-based core banking system to drive financial inclusion in the Philippines. We draw our material from the case of cloud-based core banking system adoption in the Philippines. Our results show that market formation is essential to the generalization, and this can be accomplished through a mix of laissez-faire and dirigisme mechanisms. Pure laissez-faire mechanisms alone, with minimal intervention from the central bank, may drive the generalization of digital innovations. Nonetheless, for the generalization of cloud digital technology to happen at an accelerated pace, the central bank must intervene more proactively, especially in establishing an industry-wide digital financial ecosystem. Furthermore, for the generalization of cloud digital technology to truly contribute to the societal mission of financial inclusion, the central bank ought to take the lead as a meta-governor directing the various elements of the digital finance ecosystem. Our study provides a nuanced understanding of the interplay between laissez-faire and dirigisme in the genesis of markets for digital innovations in pursuit of financial inclusion.

Faktor Teknologi, Organisasi, dan Lingkungan pada Penerapan Akuntansi Digital serta Dampaknya Terhadap Kinerja UMKM

Technological advances and intense business competition require MSME actors to be able to take advantage of technology in managing their business, one of which is by applying digital accounting. The factors that will be analyzed in this study use the Technology-Organization-Environment (TOE) Framework. The study was conducted on MSME actors in Tegal City with a sampling technique in the form of purposive sampling. The research was obtained in the form of primary data with a collection technique through a questionnaire with a total of 96 MSME actors as respondents. The data that has been collected was analyzed using WarpPLS 7.0. The results show that relative advantage, compatibility, owner commitment, competitive pressure, and government support have a significant effect on the application of digital accounting, and the application of digital accounting has a significant effect on the performance of MSMEs. Meanwhile, organizational readiness has no significant effect on the application of digital accounting. The results of this study are expected to be used by the government as consideration for policy-making related to the development of a digital financial ecosystem for MSMEs in the City and Regency of Tegal.

ЦИФРОВЕ ЗАЛУЧЕННЯ КАПІТАЛУ: МОЖЛИВОСТІ, ВИКЛИКИ ТА ГЛОБАЛЬНІ ТЕНДЕНЦІЇ

The article examines the formation and development of the global digital capital raising market, elucidating the historical emergence and evolution of the market. It identifies that the transition from traditional financial intermediation to digital forms was bolstered by rapid technological progress, notably the widespread adoption of the Internet and the proliferation of digital technologies. These advances collectively facilitated the creation of a new ecosystem for capital mobilization. The essence and structure of the digital capital raising market are defined, encompassing crowdfunding, crowd investing, crowd lending, and marketplace lending. Digital capital raising encompasses digital financial services for business clients and private borrowers. The development of the digital capital raising market globally is analyzed, revealing significant growth in recent years. A substantial regional development disparity is observed, with the highest transaction volumes in the USA and the lowest in African countries. There are also notable differences in the average amounts of funding per campaign in digital capital raising, with the highest in America and the lowest in Asian countries. Differences in the regulatory policies of countries regarding digital capital raising are examined. Challenges that need to be overcome for effective digital capital attraction are identified. Regulatory uncertainty remains a significant barrier as policymakers grapple with the need to protect investors while fostering innovation. Volatility and security issues associated with digital assets, such as cryptocurrencies, also pose risks to investors and could hinder their broader application. The article outlines prospective development vectors for the digital capital raising market. The interaction between technological innovations, regulatory adaptation, and market dynamics will determine the growth trajectory in this sector. The global and decentralized nature of digital capital markets requires international cooperation and the harmonization of regulatory standards to mitigate risks and promote a stable and inclusive financial ecosystem. Keywords: digital capital raising, innovation, financial technologies, digitalization, global financial market, online platforms, crowdfunding, blockchain, cybersecurity.

A Comparative Study of Gender Inequality in Financial Literacy among the Lucknow Millennial

With the growth of the economy and finance, the requirement of financial literacy has increased, technology has made the financial ecosystem so fast that in order to keep up with the changes a person needs to passively enhance his knowledge in matters of finance. Financial literacy enables a person to manage their finances with greater efficiency. The motive of this research project was to assess the financial literacy level of the millennial generation of the population of Lucknow. The study aims to identify whether there prevails any difference in the levels of financial literacy among the male and female population of millennials in the city. This comparative study is based upon primary data which was collected through a questionnaire developed by the Organization for Economic Co-operation and Development - International Network on Financial Education (OECD-INFE).The criterion for measuring financial literacy is based upon three variables for determining it, namely, financial knowledge, financial behavior and financial attitude. These variables have been suggested by the OECDin their methodology for measuring financial literacy. Half of the respondents have low financial knowledge, females have comparatively lower financial knowledge than males, majority of respondents showed positive financial behaviour, male showed higher positive financial behaviour in comparison to females, The financial attitude of the millennials is not very significant, This research can be used for formulation of financial inclusion programmes, the findings of this research can be helpful in determining techniques to improve the financial literacy as well as to identify the causes or factors contributing towards low financial literacy.

РАЗВИТИЕ ФИНАНСОВЫХ ИНСТИТУТОВ КАК ФАКТОР ОБЕСПЕЧЕНИЯ ИНКЛЮЗИВНОГО РОСТА В РЕСПУБЛИКЕ КОТ-Д’ИВУАР

There are important limitations and shortcomings in the financial sector of African countries that hinder economic growth and development. Consequently, further improvements in the financial sector at the national and regional levels are needed to unlock the potential for inclusive growth and sustainable development of the Republic of Côte d’Ivoire. The results of the study showed that the banking structure of the country excludes significant segments of the population from households and enterprises, since it provides only a narrow set of formal financial markets, institutions and instruments. In particular, the need for long-term financing and sectoral investment in industry, agriculture and infrastructure development is not being adequately met. As promising areas for the development of financial institutions of the Republic of Côte d’Ivoire, it should be highlighted: the expansion of the financial ecosystem by strengthening development banks, non-bank financial intermediaries, capital markets and Islamic financial institutions; the development of microfinance and its integration into the official financial system; strengthening the banking sector through the capitalization of local banks.

Behavioural Intention to Adoption of Digital Wallets in Nepal: An Application Using the UTAUT Model

Digital wallets in Nepal have expanded beyond just basic financial transactions. They are utilized for online purchases, utility bill payments, tax payments, renewal services, and many more. With the rapid growth of technology and the digital economy, digital wallet users are also growing (27.86%) within a year. Digital wallet users are self-assured to become a vital instrument in enhancing the quality of life for Nepali citizens and promoting financial inclusion. They are fast becoming an indispensable component of the country's financial ecosystem. The purpose of this research was to examine the elements that influence behavioral intention to adopt digital wallets. Data was gathered from a group of 150 individuals from various regions of Nepal. The study relied on five independent variables (Performance expectancy, effort expectancy, social influence, facilitating condition, and trust) derived from the UTAUT model. Convenience sampling was used to gather the information. The result shows that the facilitating condition was not relevant in the adoption of digital wallets in Nepal. Similarly, the age factor of the users was more associated than the gender of the respondents with performance expectancy in the Nepalese context.

Leveraging Data Analytics to Improve User Satisfaction for Key Personas: The Impact of Feedback Loops

A well-known method in human-computer interaction is the use of personas. Nevertheless, robust empirical study comparing persons to alternative approaches is lacking. Agile techniques' theoretical underpinnings are based on a number of important frameworks of theory. According to complexity theory, emergent features are present in complex systems, such as digital financial ecosystems. These are difficult for conventional linear algorithms to forecast. Agile recognises this complexity and supports continuous improvement cycles and flexibility to changing requirements. Lean thinking, which is drawn from manufacturing, places a higher priority on maximising customer value and removing waste. A promising market for IT-driven products, or Smart, Connected Products (SCPs), is made possible in this day and age by the rapid growth of Information and Communication Technology (ICT) (such as wireless sensor networks and cyber-physical systems). This also modifies the way that manufacturers and users interact during the product's process of development. Big data analysis allows businesses to base judgements on facts instead of gut feeling or internal knowledge that may be disguised. Business organisations gain from better informed choices and consistent results than ever before when knowledge workers and those making decisions have access to reliable sources of information that are constantly updated and accurate, as well as the analytical tools needed to make sense of it. The manner in which knowledge workers carry out their duties and the company's overall operations may be impacted by this method of decision support. Large data sets provided insights for analytical tools. They contribute to the expansion of the context and backgrounds that are available for rational, precise, and coherent decision-making. This study illustrates how Adaptive Case Management (ACM) systems' DSS component can be expanded through Big Data analysis. The article's authors explore the idea that businesses might use big data to enhance their operations by combining analytical tools, adaptable process management, and easy access to all the necessary data into a single application.

Faktor Penentu Penerapan Akuntansi Digital pada UMKM: Intervensi Pemerintah sebagai Variabel Pemoderasi

Technological advance and intense business competition require MSME actors to be able to take advantage of technology in managing their business, one of which is by applying digital accounting. The purpose of this study is to analyze the factors that determine MSME actors in implementing digital accounting with government intervention as a moderating variable. The factors that will be analyzed in this study use the Technology-Organization-Environment (TOE) Framework. The study was conducted on MSME actors in the City and Regency of Tegal with a sampling technique in the form of accidental sampling. The research obtained is in the form of primary data with the technique of collecting it through a questionnaire. The data that has been collected was analyzed using SmartPLS 3.0. The result showed that compatibility, owner commitment, and competitive pressure had a significant effect on the application of digital accounting, while relative advantage had no significant effect on the application of digital accounting. Government intervention is not able to moderate in this research model. The result of this study is expected to be used by the government as consideration for policy making related to the development of a digital financial ecosystem fo MSMEs in the City and Regency of Tegal.

PENGARUH FINANCIAL TECHNOLOGY TERHADAP KINERJA KEUANGAN PERBANKAN KONVENSIONAL YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) TAHUN 2017-2021

Abstract— The application of financial technology (fintech) in the banking industry aims to enable banks to support innovation in the provision of digital services to encourage financial inclusion and public access to financial services. Banking fintech services in this study were measured using mobile banking, internet banking, and SMS banking. Meanwhile, banking financial performance is measured using return on assets (ROA), return on equity (ROE), and net interest margin (NIM). In this study used the control variable, namely the capital adequacy ratio (CAR). However, there are several issues related to the use of fintech services, firstly the increase in users of this service tends to increase bank operational costs (promotion, education, and technology investment), secondly related to security, and thirdly, there is a change in the financial ecosystem due to digitalization. This study uses a sample of all conventional banks that have implemented fintech services and are listed on the Indonesia Stock Exchange (IDX) in 2017-2021. The sample method used is purposive sampling with the analytical method, namely multiple linear regression. Based on the existing sample method, a sample of 20 banks was obtained so that a total sample of 100 observations over a five-year period. The results of multiple linear regression analysis on ROA show that only mobile banking has a positive effect, while internet banking, SMS banking, and CAR do not have a positive effect on the ROA variable. The results of multiple linear regression analysis on ROE show that mobile banking, internet banking, SMS banking, and CAR have no positive effect on the ROE variable. And the results of multiple linear regression analysis on NIM show that mobile banking, SMS banking, and CAR has a positive effect, while internet banking has no positive effect on the NIM variable.
 
 Keywords: Financial Technology (fintech); Mobile Banking; Internet Banking; SMS Banking; Return on Asset (ROA); Return on Equity (ROE); Net Interest Margin (NIM); Kinerja Keuangan

Optimizing systems integration for enhanced transaction volumes in Fintech

In the rapidly evolving landscape of financial technology (FinTech), the seamless integration of various systems has emerged as a critical factor in optimizing transaction volumes and enhancing overall operational efficiency. This review explores the key strategies and technological innovations that drive successful systems integration within FinTech platforms, focusing on the implications for transaction scalability, security, and user experience. With the increasing complexity of financial ecosystems, FinTech companies face the challenge of integrating disparate systems, including payment gateways, data analytics platforms, customer relationship management (CRM) tools, and regulatory compliance modules. Effective integration not only ensures the smooth flow of information across these systems but also enhances transaction processing capabilities, enabling FinTech companies to handle larger transaction volumes with minimal latency and errors. This study highlights the role of advanced integration technologies, such as Application Programming Interfaces (APIs), microservices architecture, and cloud computing, in facilitating real-time data exchange and processing across platforms. Additionally, the integration of machine learning algorithms and artificial intelligence (AI) enhances predictive analytics and decision-making processes, further boosting transaction efficiency and scalability. The review also discusses the importance of maintaining robust security protocols during systems integration to protect against cyber threats and ensure compliance with financial regulations. By adopting a holistic approach to systems integration, FinTech companies can achieve a higher level of operational agility, thereby meeting the growing demands of digital consumers and capitalizing on the expanding digital economy. Keywords: FinTech, Systems Integration, Transaction Volumes, APIS, Microservices Architecture, Cloud Computing, Machine Learning, Artificial Intelligence, Cybersecurity, Operational Efficiency.

Bigtech-Companies Ecosystems Prospects in the Payment Sector

The relevance of the article is determined by solving the problems of expansion of BigTech-companies’ activities in the field of payments, which take place at present. The aim of the article to identify perspective directions of interaction of ecosystems with credit institutions in the payment sector. The authors used the following methods: system-functional, system-structural, statistical analysis and synthesis. The research analyzed current approaches to the definition of ecosystems and digital platforms and proposed the authorial interpretation; identified the main advantages associated with the participation of ecosystems in financial and payment intermediation; reviewed the models of provision of financial and payment services by ecosystems and identified the regulatory framework of their activities in foreign countries; proposed criteria for assigning a company to an ecosystem in Russia and marked out prospects of ecosystem activities in the payment sector. It is concluded that an ecosystem is a new institutional unit that has advantages in comparison with traditional financial institutions: the presence of a global customer base, the possibility of rapid implementation of network effects, the lack of excessive regulatory burden. Objective criteria that allow to assign a company to an ecosystem are: general and specific criteria that take into account the country characteristics of doing business, the level of development of the financial market, information technology, etc. Regulation of activities of ecosystems of the BigTech-companies allows to minimize basic, global and country risks by improving financial regulation and antimonopoly legislation, developing of unified standards and requirements for cross-border activities of ecosystems of BigTech-companies. The main scenarios of interaction between traditional financial institutions and ecosystems in the Russian financial and payment markets are: preservation of the dominance of traditional financial institutions; cooperation between banks and ecosystems; competition between banks and ecosystems; transition to a financial ecosystem dominance scenario.

Financial inclusion, economic growth and the role of digital technology

This paper examines the relationship between financial inclusion, digital technology and economic growth. A dynamic panel data analysis examines 84 countries since the GFC period. The results show that there is a positive and significant effect of financial inclusion and digital technology on country economic growth. In addition, digital technology plays a role in complementing the effects of financial inclusion on economic growth, implying that consolidation efforts should take place in improving financial ecosystems via digital technology infrastructure.