Financial Services Research Articles

Regulatory Compliance in Financial Services: How Software Can Simplify Adherence to Regulations

The financial services industry's growing complexity in terms of regulatory requirements has made compliance a top priority for organizations across the globe. With the compliance requirements implemented by regulators becoming more stringent, financial institutions are continuously opting for software products to enable and support their compliance processes. This research explores the role that software plays in helping financial institutions comply with regulatory requirements, focusing on specific categories of compliance software, their operational competencies, and the benefits each category offers. It also discusses the difficulties encountered by financial institutions in implementing these tools, as well as the future of RegTech. This research clearly explains the added value of embedding technology in the evolving world of regulation by exploring the potential for streamlining efficiency, accuracy, and transparency through software solutions in fulfillment of compliance needs.

IMPLEMENTASI DAN PEMAHAMAN DOKUMEN KREDIT SALAH SATU BANK DI SURABAYA

PT Bank Negara Indonesia (Persero) Tbk or commonly abbreviated as BNI, is an Indonesian state-owned enterprise that provides various financial services. one part of finance is kredit administration, kredit administration is the process of managing and supervising the provision of kredit and monitoring payments from borrowers. in general, kredit administration includes the kredit assessment process, kredit granting decision-making, and risk management during the kredit period. The Kampus Merdeka Internship Regular Program is an activity carried out by the government from the Ministry of Education and Culture to provide space for students to gain experience in understanding the professional world and creating a professional workforce so that students are given the opportunity to help manage the Kredit administration process at.

Effect of perceived value on customer satisfaction on audit services of financial statements: Case study of auditing companies in Hanoi

This study investigates the impact of perceived value on customer satisfaction on the financial statement audit services of independent auditing firms in Hanoi.The study used quantitative research design, interpretation, and use of a survey questionnaire with a Likert-type scale to measure perceived value (including quality value, value based on price, human value, emotional value, and social value) and customer satisfaction. The survey was distributed to a random sample of 302 respondents, including CFOs; Accounting Managers; Business Owners; Audit Committee Members; and Internal Auditors of 168 selected client companies of different industries and sizes. Regression results with a standardized beta coefficient show that all five dimensions of perceived value have a positive impact on customer satisfaction, with Quality Value and Emotional Value having the strongest impact. Based on the research results, some recommendations are made for auditing companies such as prioritizing quality, improving emotional value, optimizing prices, building strong relationships with customers and leveraging social value to increase customer satisfaction. customer satisfaction on financial reporting audit services, so that auditing companies can improve competitive advantage and build long-term relationships with customers

Challenges Experienced by Women in Accessing Loan from Women Development Fund in Arusha: A Case of Arusha District Council

Various economic empowerment programs and strategies have been introduced to improve the welfare of marginalized groups, particularly women. One such initiative is the Women Development Fund (WDF) in the Arusha District Council, Tanzania, which was established to provide financial support to women in the region. However, despite its aims, women often face significant challenges when trying to access loans from the fund. This study aims to explore the specific challenges women encounter when seeking loans from the WDF in Arusha District Council. A sample of 60 women beneficiaries was selected as respondents for this study. Data collection methods included household surveys, with community development officers serving as key informants through interviews. Both qualitative and quantitative data were gathered and analyzed, with findings presented in frequency tables and percentages. The results revealed that women beneficiaries faced multiple challenges in accessing loans. Loan delays were the most frequently reported issue, followed by other obstacles such as excessive bureaucracy, low risk-bearing capacity, sexual harassment, financial bribery, and erotic bribery. These barriers hinder women’s ability to secure the financial resources needed to improve their economic standing. Based on these findings, the study recommends that local government authorities, including the Arusha City Council, implement feedback mechanisms to address loan processing issues and support women beneficiaries more effectively. Additionally, women themselves are encouraged to improve their financial literacy and understanding of financial products and services, particularly those related to WDF loans, to increase their access to and success with such programs.

Customers on the Move: Predicting Customer Satisfaction among Mobile Banking Users in Malaysia

In recent decades, the financial industry has seen rapid modernization of information technology and increased competition. Nevertheless, numerous past studies have shown that technological adoption in mobile banking is relatively low in certain Southeast Asian countries. Customers' opposition to mobile banking services is mostly attributed to a lack of knowledge, security worries, and technological difficulties. Therefore, financial service providers need to comprehend and meet customer expectations to enhance the mobile banking experience. This, the present research seeks to examine the determinants of customer satisfaction with mobile banking among Malaysian consumers. The findings demonstrate that perceived ease of use, efficiency, and responsiveness were significant in influencing customer satisfaction. However, interoperability, privacy and security, and reliability were not significant in affecting mobile banking satisfaction. The findings have implications for both theoretical and practical perspectives, highlighting the need for efficient mobile banking services, enhancing financial inclusion, and empowering individuals.

From Imbalance to Synergy: The Coupling Coordination of Digital Inclusive Finance and Urban Ecological Resilience in the Yangtze River Economic Belt

In the context of rapid urbanization and digitalization, scientifically assessing the spatio-temporal interaction between digital inclusive finance (DIF) and urban ecological resilience (UER) is crucial for promoting the coordinated development of the regional ecology and economy. This study investigates the spatiotemporal evolution of the coupled coordination degree (CCD), the decoupling phenomenon, and its hindering factors in the Yangtze River Economic Belt (YREB) by utilizing the kernel density analysis, standard deviation ellipse, decoupling model, and obstacle degree analysis. Through systematic analyses, this paper aims to elucidate the development disparities among regions within the YREB, identify problematic areas, and propose targeted improvement measures. The results show that (1) The CCD between DIF and UER in the YREB has increased annually from 2011 to 2020. However, there are persistent imbalances, with an overall low level of coordination and uneven spatial development, and a trend of “higher coordination in the east and lower coordination in the west”. (2) The overall CCD of the YREB has reached at least the primary coordination level, with the coupling enhancement speed ranked as “downstream > midstream > upstream”, and regional differences decreasing. (3) The decoupling analysis reveals a predominant decoupling trend between DIF and UER, indicating that the digitization of financial services has not concurrently increased ecological pressures. (4) The obstacle degree analysis identifies resilience and digitalization as major barriers hindering CCD. This study provides a scientific basis and analytical framework for understanding the current spatiotemporal interaction between DIF and UER in the YREB, offering an important reference for formulating more effective policies.

Individual accountability: holy grail or poisoned chalice?

ABSTRACT New legal regimes in various jurisdictions have increased the accountability of senior individuals in financial services to attempt to prevent wrongdoing. This article critically evaluates these efforts using insights from the behavioural sciences research on accountability, the regulatory theory on enforcement, and the criminological literature on compliance. This inquiry is pursued through an analysis of the Senior Managers and Certification Regime (SMCR) and the Banking Executive Accountability Regime (BEAR) in the UK and Australia respectively. These individual accountability regimes (IARs) are designed to make it easier to identify which senior individual is responsible for failing to address wrongdoing within their area of activity. Though often championed for ratcheting up accountability to tackle perceived impunity for wrongdoing, this article explores the limits of IARs. While acknowledging their strengths and merits, it troubles the expectations that such regimes are necessarily effective ways of priming certain anticipated behaviours and increasing cognitive load to slow decision-making processes. It considers the extent to which these regimes may be ineffective given what is known about the miserly nature of human cognition, the tendency to circumvent efforts to encourage ‘right’ decisions, and the inability of individual accountability regimes to address broader structural issues in financial markets.

Enhancing consumer trust in financial services: the role of technological security innovations

The financial services industry increasingly relies on technological advancements to maintain and enhance consumer trust. Consumer trust is a critical component influencing customer loyalty, financial inclusion, and overall economic stability. This paper explores the impact of technological security innovations on consumer trust in financial services. Fundamental innovations such as blockchain, advanced encryption, biometric authentication, artificial intelligence, and cloud security play significant roles in addressing security challenges. Blockchain technology provides a decentralized, tamper-proof method for recording transactions, enhancing transparency and reducing fraud risks. Advanced encryption techniques ensure the confidentiality and integrity of financial data, which is critical for protecting sensitive information. Biometric authentication methods offer secure and user-friendly solutions for identity verification, reducing reliance on traditional passwords and enhancing security. Artificial intelligence and machine learning improve fraud detection capabilities by providing real-time monitoring and response. Cloud security solutions offer scalable protection for financial data, ensuring compliance with regulatory standards. Through empirical analysis and case studies, this study demonstrates that these technologies significantly enhance consumer confidence by providing greater transparency, security, and reliability in financial transactions. The findings offer valuable insights for policymakers, financial institutions, and technology developers aiming to foster a more resilient and trust-based financial ecosystem. This research contributes to the existing literature by providing evidence of the direct impact of technological security innovations on consumer trust. Keywords: Consumer Trust, Financial Services, Technological Innovations, Blockchain, Encryption, Biometric Authentication, Artificial Intelligence, Cloud Security.

Robo-advisory financial services and the dynamics of new innovation in Saudi Arabia

Many individuals seek guidance from experts to obtain financial services. Robo-Advisors (RAs) have recently replaced human financial advisors due to concerns about high professional fees, behavioural bias, conflicts of interest, etc. From this study, we wanted to know the adoption intentions and various determinants impacting RAs in the Kingdom of Saudi Arabia (KSA). Partial Least Squares Structural Equation Modelling (PLS-SEM) is employed to examine the data with a sample size of 1361 respondents from the KSA to determine the adoption factors for RAs. The study revealed that usefulness, perceived benefits, and policy interventions positively affect the adoption of RAs in KSA. The current research provides a comprehensive behavioural framework to understand RA's adoption by Saudi Arabian investors while also including the dimension of policy initiative by the governing authority.

When young muslims meets online lending: Examining legal awareness and assessment of lending platforms

This study aims to fill the gap in the literature by investigating the perspectives of young Muslims on online lending platforms. The article explores young Muslims' understanding of online lending based on Sharia principles and their perceptions of the ethical and legal dilemmas associated with online lending, which are closely linked to their religious and social knowledge. This study starts from the assumption that online lending involves various issues intricately connected to recent legal and financial advancements. Online lending encompasses not only economic and financial matters but also ethical, moral, and legal issues. The research findings indicate that the understanding of Muslim youth regarding the legal aspects of online lending in the study area is quite high. Data shows that 62% of the Muslim youth (student) respondents are knowledgeable about both Sharia compliance and national legal issues concerning online lending. However, the data also reveals that only approximately 60% of the respondents know how to handle legal issues involving online lending platforms. This implies that respondents need further education and information on these matters. Following data collection, we provided socialization and information on legal awareness and the evaluation of online lending platforms, which improved their understanding. The findings of this study highlight several potential directions for future research, such as assessing the effectiveness of legal awareness programs for digital financial services and P2P lending, and creating more effective methods for legal education. Additionally, future studies should expand to include different cities and regions and a broader range of respondents to achieve a deeper understanding of online lending and legal awareness.

A Group of Banking Services in Islamic Banks: A Sharia and Economic Study

The banking sector is one of the most important economic sectors in all countries. It represents the backbone of economic life, as it acts as a mediator between savers and investors and provides them with many banking services to meet the requirements of the economic process. This study aimed to define the concept of financial services provided by Islamic banks, their characteristics, and their most key features, while addressing the level of quality of banking services and the extent to which they meet the desires of customers. This study was divided into two sections: Section One: The concept, characteristics, and features of banking services. Section Two: Banking services provided by Islamic banks.

The Role of AI: Transforming the Landscape of Indian Financial Services

The Role of AI: Transforming the Landscape of Indian Financial Services

Analisis Fatwa DSN MUI No. 140 Tahun 2021 Terhadap Regulasi Dewan Pengawas Syariah pada Produk Securities crowdfunding

The purpose of this study is to determine and analyze the extent of the regulation of the Sharia Supervisory Board on securities crowdfunding products based on the DSN MUI fatwa No. 140 of 2021. The research method used is descriptive qualitative method which is focused on problems based on facts carried out by observation. This research focuses on analyzing data on the Shafiq.id website on the offering of Islamic securities in the form of sukuk through crowdfunding services reviewed through the provisions contained in the DSN MUI fatwa NO. 140 of 2021 concerning Islamic securities offerings through information technology-based crowdfunding services based on sharia principles. The results of this study indicate that the Sharia Supervisory Board (DPS) is tasked with ensuring that all activities in sharia fintech always comply with sharia principles, including in sharia crowdfunding activities. Islamic crowdfunding activities must be based on the spirit of helping in goodness (ta'awun) and must be based on Islamic rules and guided by the Qur'an and As-Sunnah. DPS oversees the information technology-based financing service model to ensure that the form of crowdfunding implementation does not conflict with sharia principles. In addition, DPS adjusts the contract according to the form of sharia crowdfunding that will be used by the parties. DPS is also tasked with providing advice to the parties and, in the event of a dispute, resolving it by consensus or through a sharia dispute resolution institution in accordance with the Fatwa of DSN-MUI.

AMENDMENTS TO THE LAW ON FINANCIAL COMPANIES IN THE SPIRIT OF PROTECTING CITIZENS’ INTERESTS

Nonbank financial companies, also known as financial companies, are financial institutions that offer various financial services, such as: approving loans to individuals and legal entities, issuing and administering credit cards, factoring and issuing guarantees, as well as advising on various financial and leasing activities. Unlike banks, for the establishment of a financial company, a simpler procedure is foreseen, even a license from the National Bank is not required, but only permission from the Ministry of Finance. The establishment, operation and supervision of financial companies in the country is governed by the Law on Financial Companies. As institutions that are in their infancy in the country and given the still insignificant impact on the financial sector, it is expected that the legislator will often make changes and additions to the legal regulations for financial companies. The purpose of these changes in the legislation of financial companies is to provide an operating environment for them between the protection of the users of services from financial companies and the increase of reliability towards these companies. In this paper, the author, in addition to analyzing the legislative platform and the recent changes in this platform, but through the statistical method provides an overview of the activity of financial companies in the Republic of North Macedonia.

Improved decision-making through life event prediction: A case study in the financial services industry

Life event prediction is an important tool for customer relationship management (CRM), because life events shift customers’ preferences towards different products and services. Existing life event research mainly uses cross-sectional data, whereas in the CRM field, incorporating longitudinal data is increasingly common. Because longitudinal data can capture the dynamics of customer behavior, opportunities arise to benchmark the power of longitudinal customer data for predictions of cross-sectional versus longitudinal life events. Therefore, this study compares statistical and machine learning (SaML) classifiers, such as logistic regression, random forest, and XGBoost, with long- and short-term memory networks (LSTM), using data represented in both cross-sectional and longitudinal setups for life event prediction. Through a real-life longitudinal customer data set from a European bank, the authors represent the longitudinal data in a cross-sectional data format, using featurization in the form of aggregation. The available data cover 42 end-of-month snapshots for 760,438 unique customers. For marketing decision-making literature, this article (1) introduces three novel life events (i.e., primary, secondary, and rental residence purchases) to life event predictions; (2) offers guidance for how to leverage longitudinal customer data, according to the comparison of various featurization approaches and benchmarking SaML classifiers against LSTM; and (3) clarifies the importance of features and timing for improving marketing decision-making dynamically. The results show that aggregating features over time is preferable as a featurization approach for cross-sectional modeling using SaML classifiers. Furthermore, LSTM can capture behavioral changes over time, unlike SaML classifiers. It also performs significantly better than SaML classifiers on the area under curve and F1 metrics. Insights into the uses of integrated gradients reveal that feature importance changes over time. An integrated gradients method can assist decision-makers in their efforts to plan effective communication with customers in advance, such as by allocating more resources to customers who exhibit high probabilities of a particular life event occurrence.

Testing technological Kuznets curve implications on achieving sustainable development goal 10 in seven Asian countries

This study investigates the relationship between technological innovations, financial development, and income inequality implications on achieving Sustainable Development Goal 10 (SDG10) in seven Asian economies via testing the inverted U-shaped hypothesis of technological innovation on income inequality in the concept of technological Kuznets curve hypothesis. The significant contribution of this study is introducing the Technological Kuznets Curve (TKC) as an extension to the Kuznets curve (KC) framework to capture the impact of technological innovation on income inequality. The PMG/ARDL was applied to estimate the coefficients to accomplish the study's objective. The panel cointegration tests confirm that all variables are cointegrated with income inequality. The empirical findings validate the KC hypothesis and demonstrate that technological innovations contribute to reducing income inequality within the Kuznets curve framework in the long run. Financial development (money supply) was negatively correlated with income inequality. The study further validates the TKC hypothesis, revealing an inverted U-shaped relationship between technological innovations and income inequality. Financial development, measured by domestic credit to the private sector, also shows a negative correlation with income inequality within the TKC framework. However, the money supply demonstrates a positive link with income inequality. The study recommended the necessity to prioritize policies that support technological innovation through subsidies, encouragement for research and development, and collaborations between the public and private sectors will greatly lower income inequality and support achieving Sustainable Development Goal 10 (SDG10). Financial development significantly facilitates access to financial services and contributes to diminishing income inequality by building an effective and inclusive banking system (mobile banking services for poor communities), easing access to credit for emerging and small and midsize enterprises (SMEs), and money circulation. Governments should strategically allocate resources toward programs and initiatives that directly address income inequality and promote inclusive growth.

Innovative Financial Products And Services For Underserved Communities

This paper provides an in-depth exploration of innovative financial products designed to meet the unique needs of underserved populations in the United States. It systematically examines how Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) are important in the delivery of these specialized financial services. By focusing on microloans, credit-building loans, and affordable housing financing, the paper elucidates the transformative potential of these financial products in enhancing financial inclusion and increasing economic empowerment within marginalized communities. The analysis shows how microloans facilitate entrepreneurship and poverty alleviation while credit-building loans serve as a tool for establishing and improving credit histories. It addresses innovative financing models for affordable housing by illustrating their impact on community stability and development. The role of CDFIs and MDIs is examined to reveal their unique contributions and challenges in providing accessible financial services to underserved groups. The paper explores implementation strategies and policy recommendations, emphasizing the need for a comprehensive approach that leverages technology, ensures strong partnerships with government and nonprofit entities, and addresses regulatory barriers. It entails the importance of measuring the impact of financial inclusion initiatives to ensure their effectiveness and sustainability. The paper calls for concerted action from policymakers, financial institutions, and community organizations to collaborate in advancing financial inclusion efforts. By harnessing the insights and strategies outlined, stakeholders can enhance the reach and effectiveness of financial products, ultimately driving economic growth and opportunity for all

Development of a tool to assess financial advocacy service delivery.

21 Background: In 2023, the Association of Cancer Care Centers (ACCC) Financial Advocacy Network published Financial Advocacy Services Guidelines developed through an expert-led, consensus-driven process (1). The Guidelines provide a framework for equitable delivery of financial advocacy (FA) services to address patients’ financial concerns. The Guidelines cover 3 domains: financial advocacy services and functions, program management functions, and partner engagement functions. ACCC adapted the Guidelines into a Financial Advocacy Services Assessment Tool to help cancer care organizations assess and improve service delivery and to advance research of organization-level FA practices across the U.S. Methods: ACCC convened an expert task force to guide this work. ACCC conducted a scan of implementation science literature and health care organizational assessments to inform the development of a rating system for each of the 43 guidelines. Four service delivery levels were identified, and a score was assigned to each level (Table). The tool was programmed in Qualtrics to provide a total score and average score per guideline for each FA domain and sub-domain. The task force added unscored questions about organizational demographics, barriers, and readiness to enable aggregate research and sub-group analysis. ACCC invited members of the Financial Advocacy Network to participate in a pilot via email invitation and provided opportunities for open-ended feedback. Results: 20 cancer centers participated in the pilot between March-May 2024. 15% were academic institutions and 85% were community-based programs (18% of which are directly affiliated with an academic institution). Respondents reported the tool was easy to use and informative for quality improvement efforts. See Table 1 for total scores for initial pilot. Conclusions: Pilot results reflect that all participating cancer centers are already engaged in some level of FA services. Broader dissemination and analysis is ongoing. The assessment provides centers with a practical resource to assess alignment to guidelines and identify opportunities for quality improvement. Regular review of aggregate results will help ACCC provide benchmarks for areas of service delivery, identify barriers to implementation, and monitor trends in FA staffing. 1. Kajdic Hodzic R, Liang MI, et al. Developing consensus-based oncology financial advocacy services guidelines. JCO Oncol Pract. 2023;19(suppl 11):38. Levels of FA service delivery and pilot total scores. Level Description % of pilot cancer centers Level 1 Not performing financial advocacy services. 0% Level 2 Making progress with financial advocacy services, but it is done informally or inconsistently. 35% Level 3 Performing financial advocacy services consistently in at least one key area of the organization. 60% Level 4 Reliably performing financial advocacy services across all key areas of the organization. 5%

Exploring Ethical and Emotional Dimensions of Customer Value in Financial Services through Employee-Customer Dynamics

This study focuses on exploring the ethical and emotional dimensions of customer perceived value (CPV) in financial services. This area is crucial to understanding customer dynamics within the finances sector, yet it remains underexplored in existing literature. Utilizing a quantitative analysis of 652 customer surveys from Canadian financial institutions, this research employs SmartPLS3 for structural equation modeling to ascertain the impacts of frontline employee job satisfaction on customer's ethical and emotional perceptions as well as their overall CPV. The data analysis reveals that customer-perceived employee job satisfaction positively affects CPV by significantly influencing ethical and emotional benefits. Although ethical benefits alone do not directly impact loyalty or word-of-mouth (WOM) recommendations, their influence is significant when mediated through CPV, with emotional benefits directly amplifying WOM and indirectly boosting loyalty. Correspondingly, the results highlight the importance of employee-centric policies and their direct correlation to customer loyalty and satisfaction. As such, this study contributes to the body of knowledge by linking employee satisfaction with ethical and emotional customer benefits, suggesting a reevaluation of business practices to integrate these dimensions for enhanced customer value creation. Future research is encouraged to explore these dynamics across varied contexts to expound upon these relationships' applicability and robustness. Our inquiry into the subject concludes by highlighting the strategic importance of fostering employee satisfaction when seeking to elevate CPV and achieve enduring customer loyalty. Keywords: Customer Perceived Value, Customer Loyalty, Employee-Customer Interactions, Employee Satisfaction, Financial Services

Leveraging Fintech mobile money to expand banks’ financial services in developing countries

Mobile money consists of payments through mobile devices using Fintech platforms. Despite the accelerated mobile money adoption in developing countries, financial inclusion levels lag those in the developed world. We unveil how disruptive Fintech can foster financial inclusion, by examining a sample of nearly 70,000 observations from 70 emerging countries in 2021. Our results indicate that mobile money and its associated epidemic effects enhance the transition to deposit and credit-based financial services if institutional conditions and banks’ financial technologies are well aligned. This suggests that non-banks’ Fintechs can facilitate the uptake of financial services provided by conventional banks.