Innovative Financial Products Research Articles

Exploring sustainable finance mechanisms for green energy transition: A comprehensive review and analysis

This study elucidate the role of sustainable finance in advancing the global transition towards renewable energy sources. Employing a systematic literature review and content analysis, the research scrutinizes sustainable finance mechanisms, the impact of Environmental, Social, and Governance (ESG) criteria on investment decisions, the significance of regulatory frameworks, and the strategic implications for stakeholders within the green energy ecosystem. The methodology encompasses a detailed examination of peer-reviewed articles, industry reports, and policy documents from 2013 to 2024, focusing on innovations, challenges, and opportunities in sustainable finance. The study identifies green bonds, loans, and investment funds as pivotal in mobilizing capital for green energy projects, yet highlights existing barriers such as regulatory uncertainties and the need for standardized ESG criteria. Key findings reveal that while sustainable finance is crucial for environmental sustainability and economic development, its effectiveness is contingent upon robust regulatory support and clear standards. Moreover, the research underscores the importance of stakeholder collaboration and innovative financial products in overcoming challenges and enhancing green energy adoption. The study emphasizes the critical need for advancing sustainable finance mechanisms, enhancing regulatory frameworks, and fostering stakeholder collaboration to facilitate a successful transition to green energy. It contributes valuable insights into sustainable finance's evolving landscape, offering guidance for policymakers, investors, and industry practitioners aiming to achieve long-term sustainability goals. Keywords: Sustainable Finance Mechanisms, Green Energy Transition, Environmental, Social, Governance (ESG) Criteria, Regulatory Frameworks.

Exploring sustainable finance mechanisms for green energy transition: A comprehensive review and analysis

This study elucidate the role of sustainable finance in advancing the global transition towards renewable energy sources. Employing a systematic literature review and content analysis, the research scrutinizes sustainable finance mechanisms, the impact of Environmental, Social, and Governance (ESG) criteria on investment decisions, the significance of regulatory frameworks, and the strategic implications for stakeholders within the green energy ecosystem. The methodology encompasses a detailed examination of peer-reviewed articles, industry reports, and policy documents from 2013 to 2024, focusing on innovations, challenges, and opportunities in sustainable finance. The study identifies green bonds, loans, and investment funds as pivotal in mobilizing capital for green energy projects, yet highlights existing barriers such as regulatory uncertainties and the need for standardized ESG criteria. Key findings reveal that while sustainable finance is crucial for environmental sustainability and economic development, its effectiveness is contingent upon robust regulatory support and clear standards. Moreover, the research underscores the importance of stakeholder collaboration and innovative financial products in overcoming challenges and enhancing green energy adoption. The study emphasizes the critical need for advancing sustainable finance mechanisms, enhancing regulatory frameworks, and fostering stakeholder collaboration to facilitate a successful transition to green energy. It contributes valuable insights into sustainable finance's evolving landscape, offering guidance for policymakers, investors, and industry practitioners aiming to achieve long-term sustainability goals. Keywords: Sustainable Finance Mechanisms, Green Energy Transition, Environmental, Social, Governance (ESG) Criteria, Regulatory Frameworks.

Digital Inclusive Finance Helps Green Industry in Fujian Province Development

Aims: Digital inclusive finance, as a combination of modern technology and financial services, has developed rapidly in recent years. This new financial model has not only changed the traditional way of providing financial services, but also profoundly affected all aspects of economic and social development. The report of the 18th CPC National Congress made the important decision of "vigorously promoting the construction of ecological civilization " from the strategic height of the sustainable development of the Chinese nation. China's green industry has ushered in a new phase of rapid development. As an important province on the southeast coast of China, Fujian Province, with rich natural resources and vast rural areas, is an important region to promote the development of green industry. Methodology: In this paper, the green industry index of nine prefecture-level cities in Fujian Province from 2011 to 2021 is selected as the explanatory variable, and the development level of digital inclusive finance is taken as the core explanatory variable to explore the impact of digital inclusive finance on the development of green industry in Fujian Province. Results: According to the multiple linear regression, it is found that the level of green industry development is positively correlated with the level of digital inclusive finance development at the 1% significant level, i.e., digital inclusive finance helps to promote the development of green industry in Fujian Province. Conclusion: Based on the findings of the study, the paper puts forward the following recommendations: through the provision of low-cost financing, innovative financial products, digitalized payments and settlements, popularisation of financial education, and the promotion of cooperation, digital inclusive finance can effectively support the development of the green industry. This not only helps to achieve the goal of environmentally sustainable development, but also promotes economic growth, creates employment opportunities and enhances social well-being.

The Relationship between Organizational Culture and Product Innovation with Employee Productivity and Financial Performance of Fintech Companies in Indonesia

This study looks into the connections between employee productivity, organizational culture, financial performance, and product innovation in Indonesian fintech companies. A quantitative study was carried out with the data that was gathered from 180 individuals. The data were analyzed using descriptive statistics, model fit evaluation, measurement model assessment, structural model estimation, and mediation analysis. The findings show that financial performance, staff productivity, product innovation, and organizational culture are all positively correlated. Product innovation is strongly influenced by organizational culture, and this has a favorable effect on worker productivity and financial performance. Furthermore, through both staff productivity and product innovation, mediation research demonstrates strong indirect benefits of organizational culture on financial performance. It was discovered that there is no substantial correlation between organizational culture and financial performance. The aforementioned results underscore the need of cultivating an accommodating organizational culture that stimulates creativity and efficiency in order to attain exceptional financial outcomes within the Fintech sector.

თანამედროვე მიდგომები საბანკო რეგულირებისადმი ციფრული ტექნოლოგიების განვითარების პირობებში

The development of digital technologies has a great impact on traditional channels for providing banking services. The speed of introduction of innovative products and services, technological changes require great flexibility from banking regulators. Also, the active participation of the government in the development of digital technologies is one of the main factors of successful digitalization. In modern conditions, in order to ensure the development of innovation in the banking sector, new mechanisms and instruments for regulating innovative financial technologies, products and services are being created. The article specifies that the effective, safe operation and development of the digital financial space requires coordinated actions from all its participants, as well as the establishment of requirements for the assessment and monitoring of potential risks caused by innovations, timely improvement and refinement of regulatory requirements. This allows to maintain the stability of the financial system and protect the rights of consumers, and to promote the development and introduction of innovative financial products and services.

Marketing, communication, banking, and Fintech: personalization in Fintech marketing, enhancing customer communication for financial inclusion

This paper explores the intersection of marketing, communication, banking, and fintech, with a focus on personalization in fintech marketing and enhancing customer communication for financial inclusion. Financial technology (fintech) has revolutionized the way financial services are delivered, offering innovative solutions that cater to diverse customer needs. One key aspect of this transformation is the emphasis on personalized marketing strategies, which enable fintech companies to engage with customers on a more individualized level, driving customer satisfaction and loyalty. Personalization in fintech marketing involves tailoring products, services, and communications to meet the specific needs and preferences of customers. This approach not only enhances the customer experience but also increases the likelihood of customer retention and acquisition. Fintech companies leverage customer data and advanced analytics to segment their audience and deliver targeted messages and offers, effectively addressing customer pain points and driving engagement. Moreover, effective customer communication is essential for promoting financial inclusion, particularly among underserved populations. Fintech companies can use various communication channels, such as mobile apps, social media, and chatbots, to reach customers who may have limited access to traditional banking services. By delivering relevant and timely information, fintech companies can empower customers to make informed financial decisions and improve their overall financial well-being. The paper also discusses the role of banking and fintech partnerships in driving financial inclusion. By collaborating with traditional banks, fintech companies can leverage existing infrastructure and customer networks to reach underserved communities. These partnerships enable fintech companies to offer innovative financial products and services to a broader audience, contributing to greater financial inclusion and economic empowerment. In conclusion, personalization in fintech marketing and effective customer communication are key drivers of financial inclusion. By adopting these strategies, fintech companies can better engage with customers, tailor their offerings to meet specific needs, and ultimately, contribute to a more inclusive financial system. Keywords: Fintech Marketing, Customer Communication, Financial Inclusion, Personalization, Banking.

Research on the Impact of Technological Innovation on the Financial Services Industry

This study provides an in-depth examination of the profound impact technological innovation has on the financial services industry, focusing on recent advancements in blockchain, artificial intelligence (AI), machine learning (ML), big data analytics, and fintech solutions. It delves into the nuanced ways these technologies revolutionize operational efficiency, enhance customer experience, facilitate the development of innovative financial products, and navigate the complex landscape of regulatory compliance. Through a combination of qualitative case studies and quantitative analysis of industry performance metrics, this research uncovers the nuanced dynamics between technological adoption and its effects on market competitiveness, security, and the democratization of financial services. Key findings highlight a dual-edged influence: while technological innovation drives unprecedented efficiencies and customer value creation, it also introduces challenges such as increased cybersecurity threats, privacy concerns, and a growing digital divide among consumers. Additionally, the study sheds light on the evolving role of human capital in an increasingly automated industry and the critical importance of strategic digital literacy and adaptive regulatory frameworks to foster sustainable growth.

Exploring rationality of peer-to-peer lending investors: A conceptual approach and multicriteria-based methodology

Research background: The shift towards globalization, technological innovations, and digitalization has led to the emergence of various innovative financial products, such as peer-to-peer (P2P) lending. Characterised by digital solutions and easier access, P2P lending allows investors to make quick and more frequent investment decisions. However, this can increase investors’ vulnerability to behavioural biases, and therefore leave them open to potential losses. There is a research gap in understanding P2P lending investors’ rationality, including research methods tailored to the specifics of this innovative product. Purpose of the article: Objectives of our study is to propose a conceptual approach and multicriteria-based methodology to measure the degree and type of investor rationality; to apply it in Lithuanian P2P lending context, and to explore the differences in rationality based on the investors’ sociodemographic characteristics. Methods: The data set represented answers to an online survey collected from 390 Lithuanian P2P lending investors. Three groups of criteria were employed to assess rationality degree and type: risk and return (reflecting utility maximization), use of available information, and behavioural biases criteria. The rationality index was developed to measure the rationality degree of individual P2P lending investors; descriptive and cluster analysis were performed to assess the rationality type; t-test, ANOVA test and regression analysis were used to investigate its influencing factors. Findings & value added: The results indicated a moderate overall degree of P2P lending investors’ rationality, with bounded rationality representing 96,67% of the sample. Further clustering analysis proved that bounded rationality behaviour is not homogenous; therefore, measures taken to increase individual’s rationality should be tailored to their specific rationality type primarily focusing on low-scoring rationality criterion. Regarding sociodemographic factors, investors’ financial literacy was identified as the only significant and positive determinant of P2P lending investors’ rationality, reinforcing the importance of financial literacy in society.

Blockchain Use Case in Islamic Social Finance

Purpose: This research explains and reviews two innovative solutions based on blockchain that were used for Islamic social finance projects by two separate companies namely Finterra and Blossom Finance. Policy implications are suggested for the future use of blockchain in innovative financial products for the Islamic financial industry. Design/methodology/approach: This is qualitative research conducted through library research and semi-structured interviews with experts and founders of Finterra and Blossom Finance. Data obtained from published literature and the interviews were accordingly examined and interpreted through content analysis and the results are presented in this research. Findings: There is rising interest in Islamic social finance for economic revival post COVID-19 pandemic. Innovation through technology seems to be the future of Islamic social finance. Innovation through blockchain technology would see a renaissance in Islamic social finance, hence the need for relevant stakeholders to understand the technology. However, there is a regulatory gap in terms of proper legal framework to support blockchain related innovations in Islamic social finance and a policy gap to manage Shariah and legal risks involved in Islamic social finance transactions. Originality: This research is original because it explains unique case studies from the source of innovation itself, and analyses the hurdles that were present and offers recommendations for future use of innovative technology in the Islamic financial sector. Keywords: Blockchain technology, Blossom Finance, Finterra, Islamic Social Finance, Regulatory and Policy Issues

The Effect of Financial Management Quality, Product Innovation, and Digital Marketing on Micro Business Growth in the Jakarta Culinary Sector

This research investigates the dynamics of micro-business growth in the Jakarta Culinary Sector, focusing on the impact of Financial Management Quality (FMQ), Product Innovation (PI), and Digital Marketing (DM). A quantitative analysis involving a sample of 150 micro businesses reveals compelling insights. Results indicate significant positive relationships between FMQ, PI, and DM with Micro Business Growth (MBG). The study emphasizes the pivotal role of sound financial practices, innovation, and digital marketing in fostering growth within the competitive culinary landscape of Jakarta. Findings contribute to the understanding of success factors in micro-businesses, offering practical implications for entrepreneurs and policymakers.

THE ROLE OF FINANCIAL TECHNOLOGY IN PROMOTING GROWTH IN ISLAMIC FINANCE IN THE DIGITAL ERA

Financial technology (fintech) has increased and can potentially drive Sharia finance's growth. This study aims to analyze fintech's role in promoting Islamic finance's growth in the digital era. The research method uses a literature study. A descriptive analysis approach involves breaking secondary data in journals, articles, and statistical reports related to the research topic. The results of this study indicate that the adoption of fintech in Sharia finance is predicted to continue to increase, driven by the millennial Muslim population. Fintech provides opportunities for Sharia financial product innovation. However, the challenges of developing Sharia fintech are significant and related to regulations, compliance risk, and human resources. Some examples of Sharia fintech platforms, such as P2P lending and equity crowdfunding, have been quite successful. The prospects for sharia fintech in Indonesia are positive with the support of digital infrastructure and the millennial Muslim population. Regulatory support is needed so that Sharia fintech is truly compliant and can drive the growth of Islamic finance. Sharia fintech has the potential to be a game changer for the development of Islamic finance in Indonesia. Comprehensive support from regulators and stakeholders can realize the optimal implementation of Sharia fintech for inclusive and sustainable Sharia finance expansion.

UNCONVENTIONAL APPROACHES TO ENHANCING COMMERCIAL BANKS' REVENUE STREAMS

Commercial banks are constantly seeking innovative strategies to bolster their revenue in an ever-evolving financial landscape. While traditional methods such as loan interest and fees remain crucial, exploring unconventional avenues can provide additional streams of income and ensure sustainability amidst competitive pressures. This article investigates various unconventional methods for increasing commercial banks' income, including digital transformation, strategic partnerships, fee-based services, and innovative financial products. By adopting these unconventional approaches, banks can diversify revenue sources, enhance customer satisfaction, and strengthen theirposition in the market.

Identification of Research Trends in Islamic Financial Product Innovation

This bibliometric analysis delves into the burgeoning discourse surrounding sustainable entrepreneurship's role in addressing challenges within the circular economy framework. By synthesizing a vast array of scholarly literature spanning from 2006 to 2024, the study provides comprehensive insights into the intersection of these two pivotal areas. Through quantitative techniques such as co-citation analysis and keyword co-occurrence analysis, the analysis uncovers prominent themes, research clusters, and intellectual structures within the field. The results reveal a robust body of research exploring various dimensions of sustainable entrepreneurship and the circular economy, ranging from theoretical underpinnings to practical implications. Furthermore, the study identifies influential works and emerging trends, offering valuable guidance for future research directions. This research not only enriches our understanding of how sustainable entrepreneurship can contribute to a circular economy but also holds significant implications for academia, industry, and policymaking by informing strategic decision-making and inspiring innovative practices aimed at fostering sustainability and resilience in a rapidly changing world.

Psychological needs and financial well-being: the role of consumer spending self-control

AbstractFinancial service providers continually strive to develop innovative financial products and services that address customer needs and aim to improve customers’ financial well-being. Previous studies discovered that psychological need satisfaction is positively associated with psychological well-being and growth, while psychological need frustration is associated with problematic behaviour and ill-being. However, uncertainty still exists as to whether psychological needs are associated with financial well-being. Furthermore, whereas psychological need satisfaction is associated with positive day-to-day behaviours such as exhibiting self-control, psychological need frustration has been associated with irresponsible spending. Spending can be a psychological coping mechanism, and as such, the regulation of spending behaviour may aid financial well-being. Therefore, the main purpose of this article is to explore the relationship between psychological needs and financial well-being, and to assess whether consumer spending self-control can act as a regulating mechanism in this relationship. Data were collected by means of a self-administered questionnaire distributed via an online paid-for consumer panel to credit-active South African consumers. The results revealed that CSSC had a mediating effect on the relationships between psychological needs and financial well-being. This highlights the importance of developing and promoting consumer spending self-control as a strategy for financial well-being.

From Closed Banking to Open Banking: Risks and Opportunities

Rapid digitalization and technological advances in the banking sector have moved away from the traditional closed banking model and brought open banking, which is a more open and innovative structure, to the agenda. This article examines the evolution of open banking in the financial sector and the risks and opportunities presented by this transformation. In the introduction part of the article, the purpose and importance of the research is emphasized by focusing on the transformation process in the banking sector and the definition of open banking. Within the scope of the research method, the current situation and future potential of open banking are evaluated by analyzing the data obtained through methods such as current literature review, source selection, surveys and interviews. One of the main sections of the article focuses on the key differences between closed banking and open banking models. The basic principles of closed banking operation and open banking are discussed in detail. This chapter sheds light on the fundamental changes in the industry by focusing on changes in technological infrastructure. Another important part of the research addresses the risks posed by open banking. Security and data privacy concerns, legal challenges, and competition and innovation risks are evaluated in detail in this section. On the other hand, the opportunities provided by open banking are also examined in a separate section. Issues such as improvements in customer experience, increase in financial product diversity and innovation opportunities highlight the positive changes in the sector. In the results and discussion section, the comparison of closed and open banking models, the future of open banking and expectations are evaluated. Additionally, suggestions are offered to reduce risks and evaluate opportunities. The solution section of the article addresses practical solutions such as security strategies in open banking applications, development of regulatory frameworks and training of bank employees. In the References section, basic sources on open banking, literature on transformation in the banking sector and current research on risk-opportunity analysis are presented as resources.

Delivering double wins: How can Africa's finance deliver economic growth and renewable energy transition?

As economies grow, they tend to prioritize industrializing with fossil fuels over protecting the environment, impeding efforts to combat climate change. Therefore, there is an urgent need to address the critical policy concern of financing a clean energy transition to ensure sustainable economic growth for current and future generations. We examine the effect of financial development on clean energy transition in 20 low-income and middle-income countries in sub-Saharan Africa. The study employs fixed-effects and instrumental variable two-stage Least squares (IV-2SLS) models to examine the effect of financial development on the transition to renewable energy. Overall, the results show a positive effect of financial development on renewable energy transition. However, the financial development effect is only significant for financial institutions instead of financial markets – a signal of weak financial markets in the region. More importantly, the results show that this financial development effect on renewable energy transition is significant only in low-income countries, contrary to middle-income economies. We recommend that governments in the region further develop and promote innovative financial market products such as green bonds and digital finance that support private sector investments in renewable energy. Regarding trade, it is critical to subsidize environmentally friendly green energy imports while taxing non-renewable products that promote the use of fossil fuels.

FINANCIAL INCLUSION THROUGH TECHNOLOGY: A REVIEW OF TRENDS IN EMERGING MARKETS

Financial inclusion, the universal access to affordable financial services, has emerged as a critical component for fostering economic development, especially in emerging markets. This study presents a comprehensive review of trends in financial inclusion through technology, focusing on its transformative impact in emerging markets. In recent years, technological advancements have paved the way for innovative financial solutions, breaking down traditional barriers to access and bridging gaps in financial services. Mobile banking, digital wallets, and blockchain technologies have become instrumental tools in extending financial services to previously underserved populations. This review delves into the key trends shaping the landscape of financial inclusion in emerging markets, highlighting the role of technology as an enabler. The rise of mobile banking has been a game-changer, allowing individuals with limited access to traditional banking infrastructure to conduct financial transactions seamlessly. Digital wallets have gained prominence, offering a secure and convenient means for users to store, transfer, and receive money. Blockchain technology, with its decentralized and transparent nature, has facilitated the development of innovative financial products like cryptocurrencies, providing alternative avenues for financial inclusion. However, challenges persist, including concerns related to data security, regulatory frameworks, and the digital literacy of users. The review critically examines these challenges and explores potential solutions to ensure the sustainable growth of financial inclusion initiatives in emerging markets. Moreover, the COVID-19 pandemic has underscored the importance of resilient and accessible financial systems. The review assesses the pandemic's impact on financial inclusion trends, highlighting both the vulnerabilities exposed and the opportunities for further integration of technology in addressing economic shocks. This review contributes to the evolving discourse on financial inclusion through technology in emerging markets. By identifying trends, challenges, and opportunities, it offers valuable insights for policymakers, financial institutions, and technology innovators seeking to drive inclusive economic growth through technological interventions.
 Keywords: Finance, Technology, Emerging Markets, Financial Inclusion, Review.

Pattern recognition of financial innovation life cycle for renewable energy investments with integer code series and multiple technology S-curves based on Q-ROF DEMATEL

The current study evaluates the financial innovation life cycle for renewable energy investments. A novel model is proposed that has two stages. First, the financial innovation life cycle is weighted by the two-generation technology S-curve (TTSC) for renewable energy investments. Second, the TTSC is ranked with integer patterns for renewable energy investments. For this purpose, the decision-making trial and evaluation laboratory (DEMATEL) is considered with q-rung orthopair fuzzy sets (q-ROFSs). A comparative examination is then performed using intuitionistic and Pythagorean fuzzy sets, and we find similar results for all fuzzy sets. Hence, the suggested model is reliable and coherent. Maturity phase 1 is the most significant phase of the financial innovation life cycle for these projects. Aging is the most important period for financial innovation in renewable energy investment projects—renewable energy companies should make strategic decisions after that point. In this situation, decisions should relate to either radical or incremental innovation. If companies do not make decisions during these phases, innovative financial products cannot be improved. As a result, renewable energy companies will not prefer financing products.

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

PurposeThe purpose of this paper is to examine the adoption of Islamic finance products (murabaha, musharakah, mudarabah, salam, ijara, istisna and Qard Hassan) by small and medium-sized enterprises (SMEs) in Cameroon, a non-Islamic Sub-Saharan African country.Design/methodology/approachIt used primary data collected from a cross-section of 1,358 SMEs in eight regions of Cameroon using self-administered structured questionnaires. To facilitate the analyses and interpretation, these products are grouped into four groups based on certain characteristics. A multivariate probit model is estimated to take into account the interaction between these different Islamic finance products.FindingsThis study revealed that the desire to comply with Sharia law, awareness, attitude and intention were critical determinants of the decision to adopt Islamic finance products by Cameroonian SMEs. The least influential factors were perceived behavioral control, subjective norms, enterprise characteristics (size, age and location) and socio-demographic characteristics of the entrepreneur (gender, age and marital status). The extension of the multivariate approach permitted us to compute for predicted probabilities which revealed that there exists a synergy effect between the different Islamic finance products. That is, Cameroonian SMEs combine different Islamic finance products at the same time based on their needs. This is especially the case between the partnership-based products (musharakah and mudarabah) and manufacture/rent products (istisna and ijara).Practical implicationsPolicymakers are encouraged to develop stakeholder-oriented strategies to promote effective consumer education in Islamic finance products which will boost awareness. Also, Islamic finance institutions should endeavor to develop innovative financial products that are Sharia-compliant and economically beneficial to the individual and business needs of SMEs. Moreover, policymakers and management of Islamic finance institutions should ensure the putting in place of effective governance structures to guide Islamic finance operations. Finally, policymakers should endeavor to take into account the possible synergy between the different Islamic finance products in their quest to develop this activity.Originality/valueTo the best of the authors’ knowledge, this is the first study that analyses the adoption of different Islamic finance products while taking into account the possible synergy that exists between these products.

Study on Economic Strategy of Green Finance Promoting the Development of New Energy Industry in Shandong Province

With global climate change and energy security issues becoming increasingly prominent, new energy industry(NEI) has become an important field to promote sustainable development. The purpose of this study is to explore the economic strategy of green finance(GF) in promoting the development of NEI in Shandong Province. Through in-depth research on the policy framework and practical operation of GF, we find that Shandong Province has made remarkable achievements in this field. Green financial policy covers many aspects, such as financial incentives, financial product innovation and policy guidance, which provides strong support for the NEI. On the practical level, the Shandong provincial government has established a close cooperative relationship with financial institutions, and strengthened financial institutions' support for new energy projects through joint loans and risk sharing. Shandong province has made a series of remarkable achievements in the economic strategy of GF promoting the development of NEI, which has laid a solid foundation for future sustainable development. However, it is still necessary to further strengthen supervision and innovate financial products in order to better lead the NEI to the road of high-quality development.