Financial Products Research Articles

Adoption of financial literacy: Systematic literature review and proposal of a theoretical model

The term “financial literacy” is used to describe an individual’s capacity to comprehend and utilise financial concepts in their everyday lives. These include, but are not limited to, the management of personal finances, financial planning, saving, investing, and the analysis of financial products. Notwithstanding the considerable attention it has received in the academic literature, there remain significant research gaps. The objective is to examine the research trends in the adoption of financial literacy. The methodology employed was a systematic literature review, utilising Scopus and Web of Science as the data sources, in the 2018–2024-time window. The most frequently employed instruments were identified as surveys and questionnaires. The majority of studies are situated within the geographical contexts of Asia and Europe, with a particular focus on countries such as India, China, and Ukraine. Furthermore, the most pertinent target populations are adults who have undergone business training and cancer patients. The most frequently employed models were the self-model, the technology acceptance model (TAM), and the theory of planned behavior (TPB). The key variables identified were behavioral intention, perceived usefulness, and subjective norm. This study identified that the main research gap is the lack of geographic diversity in existing studies, which hinders a comprehensive understanding of the factors influencing the adoption of financial literacy globally. The practical and theoretical implications highlight the necessity for the development of educational policies and programmes that address cultural and socioeconomic differences. Furthermore, this study puts forth an integrative model that synthesizes these theoretical frameworks and variables to inform future research and practice in the domain of financial literacy.

Islamic Financing Policy Scenario in the Agricultural Sector: Interpretative Structural Model Approach

Access to capital for farmers requires the intermediation function of Islamic financing amidst high business risks. The research aims to identify the appropriate construction of Islamic financing products in the agricultural sector to increase access to capital in the agricultural sector in Indonesia. The research method uses the Interpretative Structural Modeling (ISM) Analysis model. The study of Islamic agricultural financing was carried out with 3 structural elements namely purposes, constraints and policy recommendations. The findings of the research results establish 3 policy clusters. First, the construction of a parallel greeting contract model between Islamic Banking, Rice Mills, and Agents in the Warehouse Receipt System scheme. Second, strengthening farmers' access to Islamic financial institutions and adjusting Sharia financial contracts in farming capital at the central and regional levels. Third, Islamic Cooperative microfinance institutions and financial arrangements for Islamic financing in the agricultural sector. This research recommendation provides valuable insights and practical solutions for implementing Islamic financial products with an agribusiness system approach based on feasibility studies of financial arrangements and risk mitigation for agricultural financing.

Microcredit as a catalyst for microbusiness growth: a myth or reality; a case of Asante-Akim Central Municipality, Ghana

This study investigates the effect of microcredit on the growth of microenterprises in the Asante-Akim Central Municipal Area of Ghana. The analysis reveals that while larger loan amounts positively influence business growth, high interest rates and rigid repayment terms impede these benefits. Entrepreneurs with higher education levels report better growth outcomes, emphasizing the significance of financial literacy and management skills. However, the evidence indicates that microcredit alone is insufficient to consistently drive sustainable growth for microenterprises, as structural challenges persist. Practical implications suggest that microfinance institutions (MFIs) should revise loan structures to include lower interest rates, extended grace periods, and flexible repayment options. Additionally, integrating financial literacy programs into microfinance services could enhance loan utilization and business outcomes. These findings challenge the universal applicability of microcredit as a growth catalyst, advocating for tailored approaches to better align financial products with the needs of microenterprises in emerging markets.

Unlocking financial inclusion: Indian banks' efficiency in Pradhan Mantri Jan-Dhan Yojana explored through DEA

PurposeFinancial inclusion is a prerequisite for inclusive development. In 2014, the Indian Government introduced the Pradhan Mantri Jan-Dhan Yojana (PMJDY) with a similar objective. The study aims to analyse the effectiveness of banks in the implementation of financial inclusion policy, i.e. PMJDY.Design/methodology/approachTo evaluate the effectiveness of Indian banks, the study used the data over a seven-year period, from 2014–2015 to 2020–2021. Data are analysed by using the data envelopment analysis technique.FindingsThe study discovered that public sector banks performed better than private sector banks (PVBs) in terms of boosting financial inclusion under the PMJDY scheme. In terms of implementing the PMJDY programme, the State Bank of India rated first.Practical implicationsResults recommended that policymakers set goals for banks. In order to encourage consumers to utilise their accounts, banks ought to introduce supplementary financial products and implement incentive programs.Originality/valueThe study is the first of its kind to measure the performance of Indian banks in the implementation of the PMJDY scheme.

Application of Big Data in Bank Loan Risk Early Warning and Prediction

Big data has revolutionized bank loan risk management by transforming how financial institutions assess and mitigate risks. The integration of big data analytics enables the development of predictive models, fraud detection systems, and comprehensive risk monitoring tools, significantly enhancing both efficiency and decision-making. By processing vast volumes of structured and unstructured data in real time, banks can identify potential risks early, such as loan defaults or fraudulent applications, and take preemptive actions to mitigate them. Additionally, big data allows banks to personalize financial products, tailoring them to individual customer needs and behaviors, thereby improving customer satisfaction and fostering long-term relationships. It also streamlines operations by providing insights that optimize resource allocation and credit assessment processes. Despite its transformative potential, the application of big data in banking is not without challenges. Privacy concerns are a primary issue, as financial institutions handle sensitive customer information, including personal identification and transaction histories. Without stringent governance and security measures, the risk of data breaches or misuse can compromise customer trust and expose banks to legal and reputational risks. Furthermore, the sheer volume, velocity, and variety of data generated often exceed the capabilities of traditional IT systems, creating technical scalability challenges that necessitate significant investments in modern infrastructure like cloud computing and distributed storage systems.

From side effects to work attitudes influencing customer service quality: moderating impacts of work experience in banking industry

PurposeTo help banks maintain competitive advantages, bank workers must develop superior financial products and services that meet customers’ needs and expectations, and developing customer service quality also merits closer attention. Research emphasizes that developing customer service quality has direct associations with not only individual career growth and development but also customer satisfaction, loyalty, retention. Thus, this research aims to explore how bank workers develop their customer service quality by investigating side effects (stress and satisfaction) on work attitudes (organizational commitment and employee performance) along with work experience acting as moderators (1) between organizational commitment and customer service quality and (2) between employee performance and customer service quality.Design/methodology/approachResearchers collected data from 650 Cambodian bank workers via a survey questionnaire. A path analysis technique was used to analyze the data.FindingsResults revealed that bank commitment was significantly influenced by stress and satisfaction. Next, employee performance was significantly influenced by bank commitment, stress and satisfaction. Meanwhile, customer service quality was significantly influenced by bank commitment and employee performance. Finally, work experience moderated both relationships (1) between bank commitment and customer service quality and (2) between employee performance and customer service quality.Originality/valueAlthough significant side effects of stress and satisfaction on worker behavior in various industries, not my researchers have investigated how side effects of stress and satisfaction influence work attitudes (commitment and performance) which develop customer service quality in banking industry, along with work experience as a moderator.

Analysis of financial inclusion and financial stability on economic development in APEC member countries

Financial inclusion and financial system stability are important instruments in a country's economic development. Both financial systems are critical for developing countries to improve people's welfare, promote inclusive economic growth, and protect the financial system from shocks and crises. Financial inclusion is a measure of people's accessibility to financial products and services. Meanwhile, a stable financial system will accelerate the country's economy. Therefore, this research aims to determine the effect of financial inclusion and financial system stability on economic development in APEC member countries. The data used is in panel form using the Fixed Effect Model method. This paper takes 20 member countries of the Asia Pacific Economic Cooperation (APEC) as the research object, collect the data from 2008 to 2021. The research results show that financial inclusion has a significant effect on the economy on the penetration and usability y proxies, while the availability proxy is not significant. Furthermore, the Bank Z-score as an indicator of financial system stability also has a significant influence on the economy, followed by two additional variables, namely inflation and the Financial Development Index. The conclusion is that financial inclusion and financial system stability have a positive influence on a country's economic development. Implications of this study suggest that the bank has to expand the network in the financial sector that the community can reach, then make people believe and be confident to create accounts so that people can conduct financial transactions easily and efficiently that help to improve the economy.

Creating Shared Value: Alternative Business Model Innovation for Financial Products and Services Sector

This final project focuses on the phenomenon of business lending as a provider and SMEs as customers/ beneficaries. Businesses are too profit-oriented and often overlook shared value in contributing to the profitability of business activities. The final project objectives are to answer the question of how to implement and measure the Creating Shared Value (CSV) programs and to propose a business model canvas to solve the phenomenon of business lending and SMEs for growing together and also give positive impact. With a qualitative approach, the researcher incorporates information from literature analysis on related topics, in-depth interviews with four interviewees, and reports from related companies. Data analysis guided by the triangulation process as a logic of inquiry has been conceptualised by the researcher within this final project, which differs in its goals, purposes, and literature review through the case study research process. Some providers have not yet implemented CSV, and some providers have implemented CSV but not with measurements that relate to business objectives. Besides that, the proposed business model canvas will help providers to implement the CSV concept.

FINANCIAL INCLUSION AND CRIME REDUCTION IN GWER WEST LOCAL GOVERNMENT AREA OF BENUE STATE - NIGERIA

Financial inclusion (FI) entails access to and use of financial services by all members of society. It is an essential component for sustainable development and social stability. FI strengthens household economies and reduces economic vulnerabilities, providing viable opportunities for empowerment and security. However, financial exclusion remains a nagging problem in developing economies like Nigeria where about 68% of adults lack access to financial services, opportunities and products. The situation is perceived to have worsened the multi-dimensional social, economic, and political challenges confronting the Nigerian state. The study therefore centered on financial inclusion and crime reduction in Gwer West Local Government Area of Benue State, Nigeria. It specifically evaluated the impacts of elements of FI such as bank account ownership and internet banking on crime reduction in the study area. Mixed-method research design was adopted for the study. The study had 386 participants selected through multiple-stage sampling techniques. Well-structured questionnaire and in-depth interview instruments were used to collect data which were analyzed using descriptive statistics and manual content analysis. Hypotheses were tested using the Pearson Moment Product of Correlation Coefficient (Pearson’s r). The study found that there is poor awareness of initiatives to open free bank accounts in the study area. Findings indicated that secure storage of money and reduction in forceful collection of cash by criminal gangs is associated with bank account ownership. The study recommends improved awareness of initiatives to open free bank accounts and increased use of internet banking services in the study area.

Time series data analysis and association rule mining in financial recommendation systems using Hadoop and Spark

Increasing amounts of financial data demand sophisticated analytics to develop sound recommendation models. This article discusses combining time series analysis and association rule mining for big data in Hadoop and Spark to enrich financial product recommendation engines. The paper is an integrated analysis of two types of prediction algorithms: AutoRegressive Integrated Moving Average (ARIMA) and Long Short-Term Memory (LSTM) networks to forecast user behavior and demand for financial services in the future from transactional history. The ARIMA model is used as the default while the LSTM model is used to represent non-linear dependencies and give a more dynamic forecast. association rule mining in particular the Apriori algorithm is used to find latent patterns and relationships between user transactions and financial products. This article illustrates how time series forecasting and association rule mining can be merged to bring a more useful financial recommendation. The hybrid approach, which combines both approaches, proves to increase user interaction and recommendation accuracy by 20% compared to the previous systems, according to experiments. The paper emphasises the possibilities of using big data in the construction of scalable, individualized financial recommendation systems.

Determinants of Tanzanian Youth Entrepreneurs' Financial Inclusion: Empirical Evidence from a Baseline Survey in Selected Regions in Tanzania

Financial inclusion is crucial for both developed and developing countries, sparking a worldwide debate on the key factors for success. This study investigates the determinants of financial inclusion among youth entrepreneurs in Tanzania. The study is guided by financial inclusion theory, which emphasizes access, usage and quality of financial services which focuses on enhancing economic outcomes. Understanding these determinants and the factors influencing youths’ decisions to engage with the financial system will aid in developing appropriate policies. This study adopted a cross-sectional design. Due to the unavailability of a comprehensive sampling framework, the study relied on the database of entrepreneurs registered with the Small Industries Development Organization (SIDO). Convenience sampling was used to select youth entrepreneurs aged 15–35 years across five regions in Tanzania. The study aimed to collect data from 2,300 youth entrepreneurs, with 1,949 contacted and 1,906 providing reliable data for analysis. The questionnaire data includes key information such as youth demographic characteristics, firm-specific characteristics, access to financial services, barriers to financial inclusion, and levels of crowdfunding awareness. A logistic regression model was developed to analyze the determinants of financial inclusion among youth entrepreneurs. The results revealed that financial inclusion among youth entrepreneurs is influenced by gender, age, financial knowledge, education level, awareness of financial institutions, and entrepreneurial loan advancement intention. The study further found that low business revenue hinders the decision to open a bank account. Other barriers include unawareness of available services, disinterest, and fear of bank charges. This study recommends the implementation of policies aimed at enhancing financial literacy, increasing awareness of financial services, and developing tailored financial products to address the unique needs of youth entrepreneurs.

ANALISIS RESILIENSI FINANSIAL: PERAN MODAL SOSIAL, SUMBER DAYA EKONOMI, DAN PERILAKU KEUANGAN DALAM MENGHADAPI KERENTANAN

This study aims to map the level of individual financial resilience in the Kedu area based on the Financial Resilience Spectrum category, which includes four levels: severe financial vulnerability, high financial vulnerability, low financial vulnerability, and financially resilient. This study uses a survey method with a purposive sampling approach, involving 47 respondents domiciled in the Kedu area. The research instrument is based on four components of financial resilience: economic resources, financial products and services, financial knowledge and behavior, and social capital. The results show that the average financial resilience of respondents is at low vulnerability with a value of 2.53, with the social capital component contributing the highest to the overall value, while the financial knowledge and behavior component is in the lowest position. Complementing the analysis, a comparison between respondents with various income levels was also carried out. The results of this study are relevant for policy makers, financial institutions, and community organizations to design interventions that support increased financial resilience, especially for vulnerable groups.

The FINRA Foundation’s National Financial Capability Study: Unpacking 12 years of data on U.S. financial capability

Abstract The National Financial Capability Study (NFCS) is a large-scale, ongoing research project of the FINRA Foundation that provides a broad range of stakeholders the ability to examine and better understand the financial capability of U.S. adults. First introduced in 2009, the NFCS has dozens of publicly available reports and data sets that are free to download. Data from the NFCS contain information on people’s ability to make ends meet, their management of financial products and services, the extent to which they plan ahead, their financial knowledge and decision-making, and numerous other topics. This paper provides an overview of the history, methodology, and some insights gained from the NFCS over the years. In addition, given the NFCS’ unique role as the birthplace of the Big 5 financial literacy questions that are present in all waves of the NFCS, we discuss the role of the NFCS in aiding our understanding of financial knowledge in the United States. The paper concludes with a look toward the future of the NFCS.

Unveiling the Power of Race and Education in Shaping Entrepreneurial Dreams: An Empirical Study in Florida

This study investigates the main effects and the interaction effects of race and education on entrepreneurial intentions in the pre-startup phase, using logistic regression analysis on a sample of 967 respondents from Florida. Blacks and Other Nonwhites are compared to Whites in the logistic regression analysis. As the largest empirical study of its kind at the state level in the U.S., it addresses a gap in the literature by focusing on a narrowly defined geographic area. The findings reveal significant differences in entrepreneurial intentions among racial groups, with education playing a crucial role. Policy implications include the need for tailored support programs and inclusive financial products to foster a more equitable entrepreneurial ecosystem. This study underscores the importance of entrepreneurial education and highlights the necessity for ongoing research to understand the unique challenges faced by Nonwhite entrepreneurs, ultimately contributing to a more inclusive and dynamic economy.

Historical Simulation Systematically Underestimates the Expected Shortfall

Expected Shortfall (ES) is a risk measure that is acquiring an increasingly relevant role in financial risk management. In contrast to Value-at-Risk (VaR), ES considers the severity of the potential losses and reflects the benefits of diversification. ES is often calculated using Historical Simulation (HS), i.e., using observed data without further processing into the formula for its calculation. This has advantages like being parameter-free and has been favored by some regulators. However, the usage of HS for calculating ES presents a potentially serious drawback: It strongly depends on the size of the sample of historical data, being typically reasonable sizes similar to the number of trading days in one year. Moreover, this relationship leads to systematic underestimation: the lower the sample size, the lower the ES tends to be. In this letter, we present examples of this phenomenon for representative stocks and bonds, illustrating how the values of the ES and their averages are affected by the number of chosen data points. In addition, we present a method to mitigate the errors in the ES due to a low sample size, which is suitable for both liquid and illiquid financial products. Our analysis is expected to provide financial practitioners with useful insights about the errors made using Historical Simulation in the calculation of the Expected Shortfall. This, together with the method that we propose to reduce the errors due to finite sample size, is expected to help avoid miscalculations of the actual risk of portfolios.

Firm Performance on Artificial Intelligence Implementation

ABSTRACTIn recent years, artificial intelligence (AI) has become a focal point in academic and business research. With breakthroughs in learning algorithms, AI applications in business operations are increasingly practical and impactful. AI offers tools for market analysis, decision‐making support, and innovations in business models and processes, presenting a significant turning point for firms. Despite this, questions remain about whether AI implementation yields measurable business value or is merely a trend, challenging enterprises and managers. This study provides a significant contribution by empirically examining AI impact on firm‐level performance through three key indicators: financial performance, productivity, and market value. Drawing on internal financial perspectives, this research reveals that while AI adoption enhances financial performance and market value, the advantages for AI first movers and better performers are not uniformly positive across all indicators. This nuanced analysis offers managers and stakeholders a deeper understanding of the tangible value of AI, guiding more informed implementation strategies.

EVALUATING THE FINANCIAL PROBLEMS AND PROSPECTS OF MICRO AND SMALL-SCALE ENTERPRISES OF AHMEDABAD CITY

Micro, Small, and Medium Enterprises (MSMEs) are pivotal to economic growth, contributing significantly to employment and industrial development. Despite their importance, these enterprises frequently encounter financial challenges that hinder their growth and stability. This study explores the financial issues faced by MSMEs through a sample of 120 respondents from Ahmedabad city, using a detailed questionnaire to collect data. The research reveals that MSMEs, especially those in urban areas and engaged in manufacturing, face varied financial difficulties influenced by their business nature and ownership structure. Key findings highlight a predominant reliance on personal savings and informal financial sources, indicating gaps in formal financial support. The study's originality lies in its targeted analysis of different enterprise profiles and financial solutions, offering insights into improving financial assistance tailored to MSME needs. The results underscore the need for policy interventions and innovative financial products to better support these vital enterprises.

Pengaruh Pendapatan Margin Murabahah dan Pendapatan Bagi Hasil Musyarakah terhadap Laba Bersih

This murabahah financing product is also a product that is quite profitable for banks in developing working capital. Net profit is profit that has been reduced by costs that are a burden on the company in a certain period including taxes. With the increase in murabahah margin income and musyarakah profit sharing income, it will be able to increase the company's net profit. Net profit greatly influences the increase and decrease in profit which will indicate the company's performance. In this study, the author is interested in analyzing the factors that support net profit growth, as well as identifying strategies to increase efficiency and effectiveness to increase murabahah margin income and murabahah profit sharing income. The purpose of this study is to determine how much influence murabahah margin income and musyarakah profit sharing income have on the net profit of PT. BPRS Al-Ma'soem. This study uses a quantitative method with an explanatory approach to analyze the effect of murabahah margin income and musyarakah profit sharing income on the net profit of PT. BPRS Al-Ma'soem. Based on the results of the study, the variables of murabahah margin income and musyarakah profit sharing income have a positive and significant effect on net profit of 87%. Based on the calculation of SPSS 25.0 For Windows, the results in the data show Fcount> Ftable, namely, 29.799> 4.459, then Ha is accepted and H0 is rejected, which means that simultaneously there is a significant effect between murabahah margin income and musyarakah profit sharing income on net profit.

Diversification of Islamic financial products as a strategy to improve Algeria's financial inclusion

This study aims at elucidating how diversifying Islamic financial products can support financial inclusion in Algeria. It includes analysing key indicators of Islamic financial inclusion, assessing the significance and uses of Islamic financial products in extending access to financing, and determining the difficulties Algerian banks encounter when creating, implementing, and designing these products. The study uses an analytical approach, looking at financial inclusion indicators and evaluating how diversifying Islamic products affects increasing financial access. It also looks at the limitations and difficulties banks face when trying to meet market and customer demands while ensuring that these products comply with Sharia law. The results indicate that diversifying and developing Sharia-compliant financial products can enhance financial inclusion by attracting new segments financially excluded by the conventional financial system. Furthermore, achieving financial inclusion requires Islamic banks to prioritise economic efficiency and Sharia credibility in product development, adopt modern digital technologies, and enhance customer engagement. This approach not only strengthens competitive advantage but also boosts operational efficiency, effectiveness, and cost reduction, ultimately supporting broader financial.

Intellectual Property and Islamic Finance: Opportunities and Challenges for a New Islamic Intellectual Property Finance Framework

ABSTRACTThis paper explores the intersection of Intellectual Property (IP) and Islamic finance, proposing a policy framework to integrate IP valuation into Sharia‐compliant financing. Focusing on the UK, it also extends to global markets, including ASEAN, GCC, and MENA regions. The paper identifies gaps in current practices, particularly in incorporating IP assets into Islamic financial products, highlighting untapped market potential. It emphasizes the need for regulatory compliance, Sharia board approvals, and robust audit mechanisms to ensure ethical integration. Key recommendations include developing a comprehensive IP framework, fostering international collaboration, and capacity building through education. The framework aims to align economic growth with ethical financing, enhancing transparency and the robustness of Islamic IP financing globally.