Financial Services Institutions Research Articles

Financial Analysis of JPMorgan Chase in Harvard Analytical Framework

Nowadays, economic fluctuations have presented considerable obstacles for the investment banking field. With the development of AI and new industries, Investment banking faces much more challenges. The research object of this paper is JPMorgan Chase, one of the world's largest financial services institutions, as an example and used data in 2020, 2021 and 2022. The financial analysis of the company was conducted using the Harvard analytical framework from four perspectives: strategy analysis, accounting analysis, financial analysis, and prospective analysis. By constructing models at the strategic level and researching key indicators at the accounting and financial levels. It showed that the company’ solvency was stable during the three years, but its profitability ability increased in 2021 but decreased in 2022. Besides, compared with its competitors, chase still has an advantage in capital utilization. In general, JPMorgan Chase demonstrates strong financial health and operational efficiency, the company still have very good prospects for development.

Elicitation of security threats and vulnerabilities in Insurance chatbots using STRIDE

Although chatbots are used a lot for customer relationship management (CRM), there needs to be more data security and privacy control strategies in chatbots, which has become a security concern for financial services institutions. Chatbots gain access to large amounts of vital company information and clients’ personal information, which makes them a target of security attacks. The loss of data stored in chatbots can cause major harm to companies and customers. In this study, STRIDE (viz. Spoofing, Tampering, Repudiation, Information disclosure, Denial of service, Elevation of privilege) modelling was applied to identify the data security vulnerabilities and threats that pertain to chatbots used in the insurance industry. To do this, we conducted a case study of a South African insurance organisation. The adopted methodology involved data collection from stakeholders in the insurance organisation to identify chatbot use cases and understand chatbot operations. After that, we conducted a STRIDE-based analysis of the chatbot use cases to elicit security threats and vulnerabilities in the insurance chatbots in the organisation. The results reveal that security vulnerabilities associated with Spoofing, Denial of Service, and Elevation of privilege are more relevant to insurance chatbots. The most security threats stem from Tampering, Elevation of privilege, and Spoofing. The study extends the discussion on chatbot security. It fosters an understanding of security threats and vulnerabilities that pertain to insurance chatbots, which is beneficial for security researchers and practitioners working on the security of chatbots and the insurance industry.

Addressing The Importance of Financed Emissions to The Indonesian Financial Sector

Business trends, including the disclosure of financed emissions, drive more precise sustainability reporting. Financed emissions are greenhouse gas emissions from activities or projects sponsored by financial institutions, such as banks, insurance firms, pension funds, and other financial institutions. This concept emerges from an examination of the function of a financial service institution in distributing capital to companies that emit emissions or have a high carbon footprint. This study aims to examine the phenomenon of financed emissions and formulate policy recommendations to disclose financed emissions in Indonesia. Employing a systematic literature review approach, this study discovered various emission accounting standards, including the GHG Protocol, PCAF, and new standards developed by the ISSB and TCFD. The issuance of green bond instruments, sustainable loans, and the formation of carbon exchanges all contribute to Indonesia’s emission accounting reporting regime. Policy recommendations include the development of environmentally sound KYC policies for financial services institutions, the synchronization of business classification according to the Green Taxonomy or KUBL, and proposals for investment emission intensity taxation in Indonesia. However, hurdles to financed emission disclosure include data quality, complexity of the finance transaction structure's complexity, the technology's equivalency, and incomplete standard setting.

Penyuluhan Literasi Keuangan Bagi UMKM Jamu Gendong

The purpose of this community service activity (PKM) is to increase the knowledge about financial literacy for Mbak Eka's business herbal medicine (UMKM jamu gendong) so that it can be used in business development. The methods that used in this community service activity are giving a lecture and discussions. The stages start from coordinating with business owners, provide counseling and the evaluation stage. The discussion shows that business owner’s has been in the financial literacy level, namely sufficient literate, meaning that they already have knowledge and confidence of financial service institution and have existing financial products. Mbak eka as the owner of the business has known about the procedures to obtaining additional business capital from banks and also the risk. However, mbak eka doesn’t taking the advantage of these capital financial services because she doesn’t need it yet. The Business owners also have has the budgeting skills and saving habits. However, the savings only for consumption and not used for investment. The hoped that the business owner will be able to develop financial strategies through investment skills in the form of being able to allocate savings, from selling herbal medicine to business capital in order to transition from conventional marketing to online marketing in order to reach a wider market.

DO INDONESIAN INVESTORS VALUE SUSTAINABILITY: THE RELATIONSHIP BETWEEN SUSTAINABILITY PERFORMANCE AND FIRM VALUE RELATED TO NATURAL ENVIRONMENT ISSUES

The Indonesian government regulates the activities of local companies related to sustainability as regulated in OJK Regulation (POJK) Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies. Sustainable finance is the government’s goal to preserve the environment. The sustainability report prepared by the company shows concern for environmental sustainability and does not carry out excessive exploration of nature. This research examines the effects of sustainability performance on company value after the implications of POJK51. The sustainability performance variable is a variable that describes the company’s commitment to encouraging business sustainability through healthy practices, accountability, information transparency, contribution to economic development, and improving the quality of social life. The three main pillars of corporate sustainability are economic, social and environmental. The research was conducted on companies listed on the LQ45 Index of the Indonesian Stock Exchange. The research results show that sustainability performance does not affect company value. Investors don’t value sustainability. Improving sustainability performance does not benefit company values. Therefore, companies need to understand which sustainability performance best suits the interests of their stakeholders and make extra efforts to inform them so that investors can understand and appreciate sustainability.

Influence of Service Quality and Company Image on Customer Satisfaction

Banking, as a financial organization primarily engaged in the collection and redistribution of public funds, must establish a robust banking system. Consequently, it is necessary to regulate and supervise banking operations to ensure the adoption of sound banking practices. Since the implementation of the OJK Law on 22 November 2011, the oversight of financial services institutions in Indonesia has shifted from multiple institutions to a single institution, the OJK. Previously, banking supervision was conducted by Bank Indonesia, while Bapepam handled the supervision of capital markets and other financial institutions. The objective of this study is to ascertain customer happiness, which is influenced by the quality of service and the organization's image. This research employs the descriptive and verification analytic approach, focusing on the 92 respondents who are customers of Bank Negara Indonesia. The processing and research are categorized into two distinct types: secondary data from the company and primary data from the questionnaire responses; in-depth analysis is also done, which seeks to provide a comprehensive understanding of how service quality and corporate image impact customer happiness. According to the research findings, Service Quality is pretty good, with an average rating of 3.23. Company Image is also considered quite good, with an average rating of 3.18. Similarly, Customer Satisfaction falls into the pretty good area. Its mean value is 3.10. Service Quality (X1) significantly influences Customer Satisfaction (Y) with a total influence of 0.334. Similarly, Company Image (X2) also significantly influences Customer Satisfaction (Y) with a total influence of 0.484. When both Service Quality (X1) and Company Image (X2) are considered together, they have a combined influence on Customer Satisfaction (Y) with a determination (R2) of 0.818 or 81.8%. The remaining 18.2% of the influence on Customer Satisfaction (Y) is attributed to other variables that were not examined. The research findings confirm a strong correlation between Service Quality and Company Image Customer Satisfaction in a banking company in Garut.

Role of Artificial Intelligence in Global Finance

Artificial Intelligence (AI) has become an integral part of every financial sector. It is found to be the key player in the banking and other financial service institutions. More than 80 percent of banks have understood the potential benefits of application of AI in the industry. The use of AI in financial institutions helps to resolve the practical issues in taking financial decisions. The aim of this paper is to understand the applicability of Artificial Intelligence in financial sector and to study the uses of AI in financial credit decisions and risk management.

Nigeria’s Financial Sector Liberalization: An Implicit Cultural Policy for Art Market Development

This study adopted historical research and in-depth interviews with artists, dealers, art writers, and collectors in addressing two overarching questions, which are (1) How have state actions manifested as the impetus and impediments to art market development in Nigeria and (2) To what extent is Bourdieu’s artistic field model applicable to the Nigerian art world? As the boost in artistic production and consumption in Renaissance Italy was attributed to the wealth generated from banking by the Medici, the research also shows that the art market in Nigeria emerged as an upshot of the economic policy of financial deregulation, which manifested as an “implicit” cultural policy. The financial sector liberalization policy was aimed at addressing the economic depression that stemmed from the drastic global fall in crude oil prices in the 1980s. It stimulated the proliferation of banking and other financial services institutions in Nigeria, which engendered intense competition that lured operators into harnessing esthetics for competitive advantages. This bolstered art collection and patronage, underpinning the emergence of the contemporary art market in Nigeria with an auction segment that grew from about $250,000 in 1999 to over $5.5 million in 2017. Paradoxically, the research also revealed that inadequacies resulting from the lack of “explicit” state plans for the cultural sector constitute impediments to the optimization of the market’s potential. As a mark of power, high art and advanced taste have always been associated with elitism. Thus, the research also establishes a high degree of applicability of Bourdieu’s artistic field model in exploring the dynamics of power structures in the Nigerian art world.

Unravelling the Path to Green Banking: A Case Study of Karnataka Bank

Purpose: Banks are adopting the concept of green banking to minimize both external and internal carbon emissions, which is an emerging trend. This paper aims to study the emerging trends of Green banking in India. The major purpose of the research article is to investigate the concept of green banking initiatives by Karnataka Bank and to examine the problems faced by Karnataka Bank to reach its green banking goals. Karnataka Bank Ltd.’ is the leading top ‘A’ c1ass schedu1ed Indian Commercial Bank. As a premier bank, a diverse array of products and services has been created and tailored to fulfill the varying business or personal requirements of customers. It is one of the leading emerging financial service institutions in India which has several branches all over India Methodology: In pursuit of the paper’s goals, secondary data sources such as books, journals, articles, newspapers, and websites have been employed. Findings: Private and public sector banks have taken necessary steps to reduce carbon emissions. All customers of the bank are offered green products and services and also more concern is shown towards environmental issues. The initiatives taken by most Indian Banks and the offering of green products and services by banks have proved to help preserve environmental balance and achieve sustainable development. Originality/Value: Based on the data available from secondary sources, the paper attempts to examine green banking practices in India and the initiatives of Karnataka Bank. Paper Type: Case Study

Enhancing Sustainable Banking Practices: Implementing the Besgi Framework to Indonesian Bank

Climate change, a global issue largely caused by human activities, is now beginning to be addressed by the G20, including financial institutions. Indonesia, as part of the G20, is implementing a sustainable finance program to improve the financing, durability, and competitiveness of financial services institutions. This study evaluates the adoption of sustainable banking practices in Indonesia within the context of global climate change initiatives. Using the Banks’ Environmental, Social, Governance, and Indirect Impact (BESGI) framework, which provides a comprehensive assessment of banks’ ESG performance using the Multidimensional Synthesis of Indicators (MSI) aggregation method. The BESGI performance of 14 Indonesian banks from 2020-2022 was assessed, revealing varying results of fluctuating data with Mandiri scoring the highest in year 2021 and BTN the lowest in year 2020. The findings indicate a growing emphasis on sustainable finance within the Indonesian banking sector in terms of financing and investment. The BESGI Score has insignificant results on banks’ performance and stability. However, further research is essential to comprehend the implications of these practices on the performance and stability of banks.

Peran Efektivitas Literasi Keuangan dan Pembiayaan Syariah Terhadap Stabilitas Keuangan UMKM

MSMEs have great potential in driving macroeconomic development in Indonesia, but are faced with various internal and external challenges. This article aims to analyze the factors that affect the financial stability of MSMEs, with a focus on financial literacy and Islamic financing. The research method used is Literature Review Study (SLR), by collecting secondary data from various articles. The data analysis technique involves synthesizing and interpreting information from relevant literature. The results showed that financial literacy has a positive and significant influence on the financial performance of MSMEs. SNLIK results In 2022, the financial literacy of Indonesians reached an improved level to 49.68%, while financial inclusion increased to 85.10%. This comparison shows an increase from the 2019 National Survey on Financial Literacy and Inclusion (SNLIK) results, where financial literacy was 38.03% and financial inclusion was 76.19%. Financial literacy, which includes an understanding of financial management, financial services institutions, financial products and services, plays a crucial role in helping MSMEs make informed financial decisions. Data from the National Financial Literacy Index shows a positive increase, but further efforts are still needed to improve the financial literacy of MSMEs. In addition to financial literacy, Islamic financing from Islamic banks also contributes to improving the financial performance of MSMEs. The growth of Islamic financing over the past few years shows that Islamic banks have an important role in supporting MSMEs. However, there are still challenges such as the lack of public knowledge about Islamic banking and the lack of human resources (HR) to reach more networks. In conclusion, improving financial literacy and utilization of Islamic financing can be an effective strategy to improve the financial stability of MSMEs in Indonesia. Efforts to improve financial literacy and public understanding of Islamic finance are expected to be the focus of policies that support the growth and stability of MSMEs.

The Role of the Financial Services Authority (OJK) in Overcoming Illegal Investment Cases According to the Capital Market Law

Illegal investment is an investment that does not have legal permission from the state for the investment you want to make. Illegal investment often occurs in developing countries, one of which is Indonesia. This illegal investment tends to occur more frequently in developing countries compared to developed countries. In Indonesia, the institution responsible for illegal investments is the Financial Services Authority (OJK). As a result of the rise in illegal investment, it can lead to fraudulent or fictitious investment. If this happens, it is certain that the victim will not get their money back because the investment service provider has been aiming to deceive people from the start. The OJK's authority to deal with illegal investments in Indonesia is contained in Law number 21 of 2011 concerning the Financial Services Authority, where the OJK has the authority and duties of the OJK in supervising financial services institutions in the capital markets sector.

THE URGENCY OF ISLAMIC BANKS FOR HAJJ FUND SERVICES

The high level of public interest in the products and services of financial institutions, especially banks, is followed by the increasing selectiveness of the public in choosing financial institutions. This is done by the community to guarantee a protected and quality product. Only financial institutions that have a high commitment and are trusted will be chosen by the public. The success of a financial institution is marked by the number of consumers who are loyal to it. When consumers are loyal to companies or financial institutions, consumers will tend to buy and use, even make repeat purchases of the company's products or services. Consumers have a high level of loyalty which can be seen from the continuous use of a product or service.
 Management of Hajj fund services carried out by Islamic Banks for prospective hajj pilgrims is fully said to be optimal in providing services, it has almost been fulfilled only in terms of promoting Hajj savings products, Islamic Banks are still lacking because they have not been able to convince the public, for this reason people do not know related information regarding Hajj savings products at Islamic Banks.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Penguatan Bank Perekonomian Rakyat Berbasis Asas Demokrasi Ekonomi: Paradigma Keadilan Sosial

The increasingly complex and numerous fundamental problems in the financial sector are driving financial sector have encouraged reform of the financial industry through the omnibus law, Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UUP2SK). The main aim of the presence of UUP2SK is to improve and direct the financial sector to be able to face global dynamics, be fair, sustainable, stable and inclusive as an embodiment of economic democracy which ultimately leads to the creation of social justice. One way of strengthening the financial services sector is through expanding the business activities of People’s Economic Banks (BPR) in Article 13 paragraph (1) letter g UUP2SK which opens up opportunities for BPR’s to collaborate with other financial service institutions, one of which is fintech lending so that they can expand accessibility all levels of society regarding funding. Based on this, the aim of this writing is to find out the implications of the UUP2SK omnibus law on expanding BPR businesses and strengthening BPR based on economic democracy after UUP2SK in realizing social justice for society. This research is normative legal research using a statutory regulatory approach and a conseptual approach. The data used is secondary data through literature study of primary, secondary and tertiary legal materials. The results of this research show that expanding BPR cooperation with other financial service institutions, namely fintech lending, can be a solution for equalizing BPR in Indonesia, as a concretization of the principles of economic democracy in realizing social justice for all society. However, it is necessary to strengthen and improve the level of substance, structure, and legal culture by prioritizing the spirit of economic democracy to realize social justice for the entire community.

Pendampingan Pengembangan Wirausaha dalam Pemanfaatan Digital Marketing: Pelatihan Pembuatan Flyer produk dengan Menggunakan Canva

Micro, Small and Medium Enterprises (MSMEs) are the backbone of the Indonesian economy. The Government has a National Economic Recovery program to help MSME with financial service institutions, the community, non-governmental organizations, and educational institutions. The role of educational institutions is very important to provide assistance and training so that MSMEs can survive and develop. Educational Institute of Human Resources Bina Amanah Entrepreneurship responded to this situation by collaborating with the Faculty of Economics and Business Trisakti University to organize Digital Marketing training for MSMEs. They gave training how to use the Canva application to create digital marketing promotional materials such as posters, flyers, or brochures for MSMEs of stalls, tailors, culinary sellers, and others. Entrepreneurs are retirees, young people who have dropped out of college or out of work, and housewives. The training is carried out in the classroom with several instructors. Participants were very enthusiastic and actively asked questions and shared experiences. The Community Service Activities of FEB Trisakti University are in accordance with the material that has been programmed, namely: 'Training on Making Product Flyers Using Canva' and was carried out well on March 4, 2023. The training is expected to increase enthusiasm for building a business and utilizing digital marketing by using the Canva application, add experience, and strengthen friendship between members of Bina Amanah. In the long term, it is hoped that MSME people can increase cooperation, excel in overcoming competition and be able to build strong collaborations to improve their business performance.

PERAN OJK DALAM PERLINDUNGAN KONSUMEN PERBANKAN SYARIAH PERSPEKTIF EKONOMI ISLAM

The Financial Services Authority is an independent institution and free from interference from other parties that have functions, duties, authorities as regulation, supervision, and protection. The consumer protection function of the Financial Services Authority is contained in the Financial Services Authority Regulation Number 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector, Financial Services Authority Regulation Number 1 / POJK.07 / 2014 concerning Alternative Dispute Resolution Institutions, as well as Consumer Service and Complaint Resolution to Financial Service Institutions contained in the Financial Services Authority Circular Letter Number 2 / SEOJK.07 / 2014. The purpose of this study is to describe the form of implementation of consumer protection based on an Islamic economic perspective carried out by the Financial Services Authority of the Special Region of Yogyakarta (DIY) in handling consumer complaints in the Islamic banking sector. Research methods are qualitative methods through interviews, observation, and documentation. From the research, it is known that the Implementation of the Financial Services Authority in Consumer Protection in the Sharia Banking Sector has been well implemented in accordance with applicable laws and regulations and the application of principles in accordance with consumer protection in an Islamic economic perspective according to Alimin's theory.

Analysis of The Commercial Court’s Decision on The Postponement of Debt Payment Obligations to Life Insurance Companies Without The Approval of The Financial Service Authority

The Financial Services Authority (hereinafter referred to as "OJK") is an institution that has the authority to attribution has been established and appointed by the government to carry out regulatory and supervisory functions for Financial Service Institutions, one of which is in the case of requests for Suspension of Debt Payment Obligations (hereinafter referred to as "PKPU") at life insurance companies. This research was motivated by the issuance of a PKPU ruling against PT. Kresna Life Insurance (hereinafter referred to as "PT. AJK) by the Commercial Court based on the application of Lukman Wibowo as one of PT AJK's customers and creditors. The problem that arises is that OJK as an institution that has the authority does not respond to the application submitted by the customer in question within the period prescribed by law. This study examines and analyzes the Commercial Court Decision against PKPU at PT. AJK (Case Study Number 389/Pdt.Sus PKPU/2020/PN Niaga Jkt.Pst). The research method used in this study is normative or doctrinal legal research. The results of the study found that the PKPU was not in accordance with applicable laws in Indonesia, because legally the authority to apply for PKPU is absolutely in the hands of the OJK.

Position of Regional Development Banks as Regional Owned Enterprises

Regional-owned enterprise is a business entity established by a local government with the purpose of increasing local own-source revenue, where one of the commonly found regional-owned enterprises is a regional-owned enterprise engaged in financial service institutions. The problem that arises for regional owned enterprises engaged in financial service institutions is the overlapping provisions of the laws and regulations that govern them, so this causes legal uncertainty over the position of the Bank. So, to find out the legal certainty of the position of regional development banks, normative legal research methods are used, namely research that uses a statutory approach where the research is carried out on the provisions of the legal aspects of regional-owned enterprises, and aspects of banking law, including the legal aspects regarding limited liability companies.