Financial Products Research Articles

The impact of financial literacy on SMEs lending conditions

This study investigates the influence of entrepreneurs' financial literacy on the banking-lending terms extended to small and medium-sized enterprises (SMEs). We employed structured interviews with account managers from the second-largest bank in Brazil. The findings demonstrate that financial literacy positively impacts SME bank lending terms across three dimensions: knowledge, behavior, and attitudes. Entrepreneurs with higher levels of financial knowledge are more adept at negotiating favorable credit terms, thereby reducing administrative costs. Financial attitudes serve as a signal to banks of entrepreneurs' confidence and professional management capabilities. Additionally, heightened financial behavior enables entrepreneurs to advocate for more sophisticated financial products. Results achieved are further evidence of the positive impact that financial literacy can bring to SMEs by providing a basis for making sound financial decisions. This research provides valuable insights into how assessing lending practices through the lens of financial literacy can inform policy design, aiming to transform regions with low economic development by leveraging credit as a tool for poverty alleviation. The research aimed to analyze the influence of financial literacy on the lending conditions of SMEs from the perspective of financial institution agents involved in credit provision.

The Impact of COVID-19 Pandemic on the Banking Industry and Its Customers

, including customer demand, digital transformation, risk management methods, and overall financial performance. Focusing on shifts in client demand for loans and financial products, the rise of digital banking, and banks' reactions to increased financial risks, this study examines how the pandemic affected conventional banking operations and customer interactions. The goals of the research are to look at how banks changed their services throughout the pandemic, how they dealt with risk, and how well they did financially. The research relies on secondary data analysis that scours academic journals, government documents, business reports, and bank records. Findings highlight a sharp drop in loan demand in the early phases of the epidemic, followed by a dramatic increase in demand for mortgage refinancing and corporate loans supported by the government. Online and mobile banking saw a meteoric rise in popularity as more and more clients made the switch. Lending restrictions and provisions for non-performing loans were tightened by banks in response to financial instability, which had a detrimental impact on their profitability. Better digital banking infrastructure, more robust risk management frameworks, and more adaptable financial products that can react to crises more effectively are some of the long-term consequences that the study emphasizes for the banking sector. At its end, the paper suggests ways financial institutions might be better ready for future disruptions and urges additional investigation into how fintech will play a role and how regulations will alter in the banking industry after a pandemic.

Building Islamic Economy Towards Golden Indonesia 2045

This study examines the strategic role of Islamic economics in supporting the achievement of the Golden Indonesia Vision 2045, which targets inclusive economic growth, poverty alleviation, global competitiveness, and sustainable development. Through the principles of social justice, equitable distribution of wealth, and wise management of natural resources, Islamic economics offers solutions that are in line with these goals. This study uses a mixed methods approach, combining quantitative surveys and qualitative interviews to explore the public and stakeholders' understanding of Islamic economics and the challenges and opportunities in its development. The results show that although the majority of respondents have a good understanding of Islamic economics, there are still barriers to the use of Islamic financial products, including a lack of understanding and access. In addition, interviews with entrepreneurs, academics, and policymakers reveal the importance of Islamic financial literacy as a key to expanding community participation. The study concludes that Islamic economics has great potential to drive equitable, inclusive, and sustainable growth, but supportive policies and broader education are needed to maximize its contribution to the Golden Indonesia Vision 2045.

Jurisprudential Rulings Related To Digital Currencies And Linguistic Connotations/ الأحكام الفقهية المتعلقة بالعملات الرقمية ودلالاتها اللغوية

It aims to describe of the provisions of Islamic Sharia of encrypted digital currencies and its linguistic implications. Using a scientific jurisprudential methodology. It also discusses the search for the credibility of encrypted digital currencies that comply with the provisions of Islamic Sharia. The results that production is a basis in addition to the value that financing contributes and its linguistic implications, with the most prominent costs as high. Efficiency of Islamic financial financial services, and that the engineering of financial products is based on innovations and creating new solutions for financial management or reproducing the trader in traditional financial finance, with the participation of a strong entitlement basis and participation in many of the basis of effective management of Islamic finance systems, and a statement of the trading rule in those currencies, This is to achieve economic fundamentals and legal credibility and its linguistic implications.

The Effect of Financial Education on the FinancialLiteracy of the Millennial Generation

This study aims to analyze the influence of financial education on the financial literacy of the millennial generation. Millennials face increasingly complex financial challenges as access to digital financial products and consumptive lifestyles increases. Good financial literacy is needed so that they are able to make wise financial decisions, save, and invest for the future. This study uses a quantitative approach by collecting data through a survey involving 121 millennial respondents who have participated in financial education programs. Data analysis was carried out using SPSS version 25 software and linear regression methods to test the relationship between financial education and financial literacy levels. The results of the study show that financial education has a significant positive influence on millennial financial literacy. These findings underscore the importance of financial education programs in improving the financial understanding of millennials so that they are better prepared to face complex financial decisions. This research is expected to be a reference for policymakers and educational institutions in designing more effective financial literacy programs to support the financial well-being of the millennial generation.

The Impact of Financial Crises on Financial Markets: Case Studies of Three Historical Crises

Abstract: The recurring occurrences of financial crises have profound impacts on the global economic system. Insights gained from in-depth discussions on financial crises can effectively respond to future shocks, thereby ensuring the steady development of the world economy. This paper uses comparative analysis to examine the similar and different impacts of three financial crises on financial markets: the Dutch Tulip Mania of 1637, the Asian Financial Crisis of 1997, and the Subprime Mortgage Crisis of 2008. The research findings indicate that all three financial crises caused significant volatility in financial product trading markets. At the same time, these crises provided different lessons for the development of financial markets: the 1637 Dutch Tulip Mania underscored the importance of regulating exchanges, the 1997 Asian Financial Crisis highlighted the importance of foreign exchange reserves, and the 2008 Subprime Mortgage Crisis emphasized the necessity of controlling the banking industry, especially lending.

Perceptions And Interests Of Young Entrepreneurs In Sharia-Based Business Finance

This study analyses the perception and interest of young entrepreneurs in Sharia-based business financing at BSI in Sungai Penuh City, Jambi. This study uses a qualitative approach with primary data from interviews. Interviews were conducted directly with six informants. The data analysis technique uses the Miles and Huberman approach with the following stages: data reduction, data presentation, verification, and conclusion. The results of the study indicate that the perception of young entrepreneurs towards Sharia-based loans is generally very positive; they understand the basic principles of Sharia in financing without interest and the application of profit sharing. Young entrepreneurs also recognize the benefits of sharia financing, such as easy access and simple procedures. On the other hand, the interest of young entrepreneurs in Sharia financing is still relatively low. This is due to the need for more socialization and support from Sharia financial institutions and limited financing options. Theoretically, this study can be used as a reference for relevant research in the future. Practically, this study can be a reference for Sharia financial institutions in designing marketing strategies and developing financing products that meet prospective customers' needs so that they can have a positive impact and increase interest and awareness of the importance of Sharia financing among young entrepreneurs.

AI-Powered customer experience optimization: Enhancing financial inclusion in underserved communities

The integration of Artificial Intelligence (AI) into customer experience optimization holds transformative potential for advancing financial inclusion in underserved communities. This review explores how AI-driven tools can enhance personalized banking services, streamline customer engagement, and improve access to financial products for individuals who are often marginalized by traditional banking systems. By leveraging AI algorithms, financial institutions can analyze vast amounts of customer data to identify unique needs, preferences, and behaviors, enabling the delivery of tailored financial solutions. These AI-powered systems can also automate routine tasks, such as account management and customer support, ensuring that banking services are more accessible, efficient, and cost-effective. A key benefit of AI in this context is its ability to overcome barriers such as geographic isolation and lack of financial literacy, which often hinder financial inclusion. AI-driven chatbots, for instance, can provide 24/7 support in local languages, guiding users through complex financial processes. Moreover, AI enables the creation of personalized financial literacy programs, tailored to the specific needs of underserved populations, fostering a deeper understanding of financial products and encouraging greater participation in the financial system. Additionally, AI-powered fraud detection systems enhance trust and security in financial transactions, a critical factor in encouraging participation from communities traditionally skeptical of formal banking systems. The use of predictive analytics further supports the development of micro-loans and credit products suited to the financial realities of low-income individuals, reducing default rates and improving access to capital. In conclusion, AI-powered customer experience optimization offers a powerful strategy for financial institutions seeking to expand their reach into underserved communities. By providing personalized, efficient, and secure banking experiences, AI can significantly contribute to financial inclusion efforts, driving economic empowerment and reducing inequalities. This study highlights the critical role of AI in reshaping financial services and creating inclusive opportunities for underserved populations. Keywords: Artificial Intelligence, Financial Inclusion, Customer Experience Optimization, Underserved Communities, Personalized Banking, AI-Powered Tools, Financial Literacy, Fraud Detection, Predictive Analytics, Economic Empowerment.

PEMBIAYAAN DAN AKAD-AKAD PADA PERBANKAN SYARIAH (STUDI KASUS PADA BCA SYARIAH TAHUN 2017)

This study aims to analyze the types of contracts and Sharia-compliant financing products applied at BCA Syariah, focusing on the implementation of Sharia principles in its financing mechanisms. The research uses a qualitative descriptive method with a case study approach to describe the application of mudharabah, musyarakah, ijarah, and murabahah contracts in productive and consumptive financing at BCA Syariah in 2017. Data were collected from annual reports, scientific journals, and relevant literature. The results indicate that BCA Syariah has successfully implemented principles of fairness and transparency through Sharia-compliant contracts tailored to customers' needs. Additionally, the flexibility in terms and payment structures in Sharia-compliant financing products offers financial benefits to customers without imposing a financial burden while supporting community welfare. In conclusion, BCA Syariah plays an essential role in facilitating the growth of Sharia economics in Indonesia by providing access to fair and Sharia-compliant banking services.

Effects of Table Banking on Socio-Economic Empowerment of Households in Turkana County, Kenya.

Table banking is a concept that has gained popularity in the recent past in Kenya. The aim of this type of informal banking is to enhance the socio-economic status of citizens, particularly those from poor areas of the country. However, measuring and tracking changes in the levels of socio-economic empowerment of households through table banking is not well documented, although it is becoming popular, especially among women groups in Kenya. The main objective of this study was to investigate the effects of table banking on the socio-economic empowerment of households in Turkana County, Kenya. The specific objectives were: to establish the effect of table banking financial accessibility, table banking awareness, table banking group participation, table banking group credit risks management strategies on socio-economic empowerment in Turkana County. The study is guided by the theory of change by Loiseau and Walsh 2015, vulnerable group theory of financial inclusion and public good theory of financial inclusion. The study adopted descriptive survey design where questionnaires were used to get primary data. Secondary data was used to validate the primary data collection. The study involved a sample of 398 members drawn using simple random sampling method from a population of 60,500 Table banking members from Kalobeyei ward, Kakuma ward in Turkana West Subcounty in Turkana County. A total of 398 questionnaires were administered with a return rate of 97.0%. The data collected was analysed using descriptive statistics. The study relied on Pearson’s correlation, linear regression and factor analysis to draw inferences from the responses. Statistical analysis was done with the aid of statistical package of social sciences (SPSS) software version 24. The findings of the study revealed a strong, positive and statistically significant relationship between access to finance and socio-economic empowerment of households. The findings of the study also showed a fairly, strong, positive and statistically significant relationship between table banking awareness on socio-economic of households. Besides, the findings revealed a very strong, positive and statistically significant relationship between Table banking and active group participation on socio-economic empowerment of women. The results of the study also revealed a very strong, positive and statistically significant relationship between table banking credit risk management strategies and socio-economic empowerment of women. According to the findings, this study recommends continuous, operative and thorough training of all groups involved in table banking to enhance their capacity in leading the groups and enhancing financial management capability and performance. Additionally, the study recommends creating a functional system for financial access through the use of several financial products at affordable prices, this focuses on government considering increasing the avenues and mechanisms for socioeconomic empowerment of women and special interest groups, especially in the rural areas. As shown in this study, findings provide evidence of active participating of women in the table banking compared to men involvement, based on this it will also be pivotal to further research the basis of men’s involvement in table banking and how affects their contribution to socio -economic empowerment at the household level.

The nexus between digital financial knowledge and financial inclusion: digital financial attitudes and behaviour as mediators enhancing financial inclusion

Purpose The purpose of this study is to measure financial inclusion (FI) and to examine the role of digital financial literacy (DFL) and its components, and various socio-demographics in relation to FI. In addition, the mediating effect of digital financial attitudes (DFA) on the relationship between digital financial knowledge (DFK) and digital financial behaviour (DFB), as well mediating effect of DFA and DFB on the relationship between DFK and FI, is being explored.Design/methodology/approach Using a cross-sectional research design, we utilize a dataset from the survey of adults’ financial literacy in Bosnia and Herzegovina, collected from the representative sample of 1,096 adults in 2022. The main methodology relies on logistic and ordinal logistic regression analyses and PROCESS for mediation analyses.Findings The findings suggest that the effect of DFK on DFB is partially mediated by DFA. In addition, the effect of DFK on FI is fully mediated through three pathways: DFA, DFB, and DFA and DFB in serial mediation. Age, education, employment status and residence are significantly related to FI. Internet access is significant only for FI scores but not for adults’ banking status. Although women are almost twice as unbanked as men, we find no gender-based differences in financial product holdings, FI or adults’ banking status.Practical implications There is a need to enhance DFK and DFA to enable adults to use financial products. Financial institutions could use our results in designing and promoting their services.Social implications Policy implications are seen in the need for developing national strategies for financial education, with an emphasis on strengthening DFL, especially DFK and DFA, which will enhance the formal FI of adults. Also, governments should work on expanding Internet access.Originality/value The results make a contribution to the theory of planned behaviour. They contribute to the limited empirical evidence of the mediating role of DFA in relationship to DFB, as well as the mediating role of DFA and DFB in relationship to FI.

Impact of Digital Inclusive Finance and Environmental Regulation on Eco‐Efficiency of Farmland Utilization in China

ABSTRACTThe farmland pollution has threatened the lifeblood of people's livelihoods through the soil‐to‐crop system, and the resulting food safety risks are becoming more and more pronounced. Digital inclusive finance (DIF) can provide convenient financial services for the eco‐transformation of farmland utilization. This study analyzed the spatial evolution pattern of eco‐efficiency of farmland utilization (EEFU) and DIF, empirically tested the impact of DIF on EEFU, and discussed the impact of DIF on EEFU with changes in the level of environmental regulatory intensity based on panel data from 2011 to 2022 in China. The results found that the development of EEFU and DIF is increasing, and the polarization phenomenon is constantly easing, but the absolute differences between different provinces in China have an expanding trend. DIF can improve the EEFU, and this promotion effect is more pronounced in eastern and central China, non‐grain‐producing areas, and areas with low levels of financial development. DIF will not be able to improve EEFU until environmental regulation has reached a certain level. China should fully leverage the positive role of DIF and environmental regulations in promoting the EEFU, provide more differentiated financial products, financial tools, and financial models for the eco‐transformation of farmland utilization, and explore a path for eco‐transformation of farmland utilization that complements environmental regulations and development of market‐inclusive finance.

Intellectual Property Commercialization Policy to Expand Financing Options for Indonesian Creative Economy Businesses

This study aims to develop alternate strategies for completing the creative economy Intellectual Property collateral financing policy so that it may be implemented in Indonesia. The methods used descriptive qualitative research with SWOT analysis to analyze the implementation of Intellectual Property-based financing schemes' supporting and inhibiting factors. The preparation of alternative strategies based on the SWOT matrix produces nine strategies. The nine alternative strategies produced were evaluated and tested using four practical policy analysis criteria: Effectiveness, Efficiency, Legality, and Administrative Robustness. Three primary recommendations emerged from testing alternative approaches: first, a plan to fortify industry regulations related to financial services, which will serve as a model for financial institutions implementing credit provisions based on Intellectual Property collateral and expediting the realization of financing products backed by Intellectual Property Rights. Second, a plan to standard Intellectual Property valuation formula or economic value of Intellectual Property and establish an ecosystem for the Intellectual Property market to promote more consistent Intellectual Property valuations and third, managing credit risk through joint ventures with insurance companies, the debtor will pay the insurance costs that allow the Bank or Financial Institutions to transfer risks to third parties if the Intellectual Property value declines.

Community-Based Participatory Action Research Methodology To Improve Financial Literacy And Financial Inclusion Of Women Entrepreuner

Financial literacy and financial inclusion are indispensable for business actors, especially women entrepreneurs. Financial literacy is financial knowledge related to the ability to manage finances, such as making budgets, interest rate knowledge, investments, savings, and so on. Meanwhile, financial inclusion is the availability of access to financial institutions, financial products and services. Until now, there is still a gap in knowledge and financial inclusion among business actors, especially women entrepreneurs, towards financial technology. If business actors have good financial literacy and financial inclusion, they can take advantage of financial technology services for the sustainability of their business. The target group for this community service is a women's business group that is a member of the Banyumas micro small and small entrepreneurs association (ASPIKMAS) in Cilongok District. There were 30 counseling participants. Counseling is carried out face-to-face. The result of this activity is that women entrepreneurs are more familiar with financial technology services and can choose the right services needed to ensure the sustainability of their business.

Interdisciplinary Approach to Consumer Financial Behavior: Developing a Conceptual Framework

ABSTRACTThe purpose of this article is to develop a conceptual framework of consumer financial behavior with a multidisciplinary approach. Consumer financial behavior is the subject of research in many scientific disciplines, although it is of greatest interest to economists, sociologists, psychologists, and philosophers. The frailty and still insufficient functionality, as well as the lack of application of the models may result from constantly changing macro and microeconomic factors, changing trends, the impact of generational affiliation, and conceptual‐theoretical inconsistencies. Taking into consideration current attitudes toward understanding consumer financial behavior, a contribution to literature is an attempt to diagnose the components of a functional model for financial behaviors, in particular, the diagnosis of input and output factors in the decision‐making process. The proposed model of consumer financial behavior consists of five elements: type of consumer, type of financial product, motivation, abilities, and opportunities, and the factors determining them may be both economic and noneconomic.

Global Green Finance: Roadmap for India

Climate change, and especially, ‘climate deterioration’ is an alarming situation for the global scenario, and thus, the need for developing financial services and products that aim to reduce the effects of these changes is the need of the hour. This long-felt need has given birth to a new form of investing, known as green finance or broadly, sustainable finance. So, it can be said that green finance is a subset under the larger umbrella of the concept of sustainable finance. This article tries to bring to the knowledge of the readers the basic understanding of the concept of green finance, its various instruments available globally and its developments at the global and Indian level, highlighting the three stages of green finance’s evolution and its major theories. Further, it reveals the global presence of major green finance instruments like green bonds and its types, green mutual funds (MFs) and green stock exchanges. The article also deals with the concepts of emissions trading system and European Union’s Carbon Border Tax. The discussion becomes more specific in the subsequent sections, drawing the present picture of green finance concerning the Indian scenario—its green bank, green bonds, green MF and green stock exchange. Reserve Bank of India’s recent guidelines regarding green finance and India’s presidency at the last held G20 summit are also discussed, finally concluding with mapping the road ahead for India.

Financial participation, productivity and conflict in French firms

ABSTRACT Many studies show that financial participation – such as profit sharing and employee share ownership – have positive effects on productivity and social performance (reducing absence and labour turnover). A recent study shows that profit sharing and employee share ownership also reduce conflicts. The question then arises whether the profit sharing and employee share ownership continue to affect productivity directly, or whether their effects result entirely from reduced conflict? To answer this question, we use a sample of 2747 French firms in 2015 and 2016, to estimate a Cobb–Douglas production function. Profit sharing had a highly statistically significant, positive effect on productivity, but employee share ownership (alone) was not significant. These results are not sensitive to the inclusion of conflicts. To allow for selection of firms into profit sharing and/or employee share ownership, we use treatment effects models where our treatment uses combinations of the two. Our results show first that profit sharing alone, employee share ownership alone, and the two combined significantly raise productivity. These effects are even larger with treatment models, and they are also not sensitive to the inclusion of the conflict variables. The paper thus documents further evidence for the positive impact of financial participation on firm productivity independently of conflicts.

The Role of Technology in Promoting Green Finance: A Systematic Literature Survey and the Development of a Framework

Green finance, defined as channeling money into sustainable development activities, is still far lower than needed to achieve net-zero emissions objectives. In this paper, we discuss the role of technologies in developing green finance. We identify that green finance faces three major challenges, including the risk management of green projects, the scarcity of innovative green financing products, and compliance with the regulations. Then, in the context of the existing literature, we explore recent technologies, including blockchain, artificial intelligence (AI), machine learning (ML), data analytics, Internet of Things (IoT), and robotics that are helping to deal with the challenges in green finance. We show that data-driven approaches utilizing AI and ML help in the risk assessment of green projects; FinTech-based crowdfunding platforms provide innovative green financial products and regulatory technologies (RegTech) support in compliance with regulations. We also identify that the environmental footprint of cryptocurrencies is an emerging area in the technologies and green finance domain. Our framework could be helpful to further extend the debate on the role of technology in green finance.

Innovative Service Model of Science and Technology Finance in China

This investigation analyses the financial dependence of the transformation of scientific and technological achievements, the effective connection between scientific and technological resources and financial resources, the development of emerging industries, the upgrade of technological levels and the optimization of industrial structures, and the financial support required for technological innovation and R&D of high-tech enterprises as well as small and medium-sized technological enterprises. It is pointed out that the improvement of financial products, the innovation of capital markets and the application of internet finance are the operational basis of the innovation service mode of science and technology finance. Correspondingly, the upper level design at the policy level provides the basis for the development of the appropriate service model of technological and financial innovation.

Systemic Risks in the Derivatives Market: Origins, Impacts, and Mitigation Strategies

Derivative markets play an indispensable role in the contemporary financial system. The global financial markets have been repeatedly riddled with turbulence instigated by derivative trading in recent years, underscoring the urgency and necessity for in-depth study in this field. The subject matter of this paper is to delve into systemic risk in the derivative markets, including its genesis, impact, and mitigation strategies. This paper aims to proffer valuable insights and recommendations to policymakers and financial practitioners through comprehensive analysis. To achieve this objective, this study utilizes research methodologies such as literature review, analysis of historical cases, and empirical analysis. The findings suggest that the systemic risk in the derivative markets primarily stems from high leverage operations, market information asymmetry, and complex financial product structures. These risks became particularly prominent during the financial crisis, leading to an upsurge in market volatility, liquidity crises, and a domino collapse of financial institutions. Based on these findings, the paper proposes a gamut of strategies to mitigate systemic risk, including enhancing market transparency, optimizing risk models, augmenting capital requirements, and fostering international regulatory cooperation. Additionally, technological innovations such as blockchain and big data analysis are considered to hold significant potential in enhancing market transparency and improving the accuracy of risk prediction.