Financial Services Market Research Articles

The Outlook of Financial Consumer Protection in China: Learning from the American Approach

In China, the range of financial derivative products has expanded considerably in recent years, with a corresponding increase in the complexity of these instruments. Financial institutions now offer a diverse array of financial products to consumers. There is a considerable disparity between financial consumers and financial institutions in a number of areas, including economic strength, social status, professional composition, negotiation ability and even judicial resources. Consequently, the topic of financial consumer protection is receiving increasing attention, and this issue is also a matter of considerable concern to countries around the world. A unified and effective system for the protection of financial consumers has yet to be established in China. In the event of a dispute regarding the consumption of financial products, it is often challenging for consumers to pursue appropriate redress, resulting in a situation where they have no recourse. The question of whether China should enact a unified Financial Consumer Protection Law, establish an independent financial consumer protection agency, and integrate the measures and regulations for protecting financial consumers in the financial services market in order to provide a convenient and fair mechanism for handling financial consumption disputes is a key area of study.

Innovative policy of WTO on trade in the global financial services market

The World Trade Organization (WTO) has been actively working to address the various challenges facing the global financial services market and is of great importance for the regulation of trade in general, including trade in financial services. This is done through the WTO’s guidance in the conclusion of trade agreements containing provisions on financial services, such as the General Agreement on Trade in Services (GATS). The main goal of the GATS is to create conditions for legalizing and regulating trade in financial services between member countries. It promotes the creation of a legal framework for trade in services, including financial services, and establishes principlesand procedures to be followed by market participants. In addition, the WTO facilitates the exchange of information and best practices between countries to promote innovative development of the financial sector (FSC), Trade Facilitation Agreement (TFA), and stimulates competition, which can foster innovation. However, specific policies on innovation in the financial sector are usually determined by national governments and regulators, and the WTO helps to create a general framework for their development. However, it should be noted that ongoing efforts are needed to address the remaining challenges and to promote a more efficient and accessible global financial services market. The article examines the key features of the regulatory framework for modern financial instruments in individual countries, as well as the mechanisms of WTO regulation of the global financial services market.

Bodies and mechanisms of state regulation of the insurance market in Ukraine in the context of European integration

The purpose of the study was to identify the main areas of optimisation of the Ukrainian system of state regulation of the insurance market, taking into account the European experience. The research methodology included three stages, namely, analysing the role and functions of government agencies in regulating the insurance market, conducting interviews, and identifying the main trends in the development of the insurance market. The results showed the importance of the National Bank of Ukraine, which performs the functions of regulating financial services, including insurance. The Law of Ukraine No. 1909-IX “On Insurance” and Law of Ukraine No. 2664-III “On Financial Services and State Regulation of Financial Services Markets” were studied. Considerable attention was paid to the implementation of the Solvency II Directive, which sets new requirements for risk management capital in the context of European integration in Ukraine. The survey results indicated that competition in the services sector drives organisations to innovate and improve their offerings. The study found that the adaptation of Ukrainian legislation to European standards contributes to the reliability of the insurance market. In particular, negative trends include problems with the implementation of new regulations and the adaptation of insurance companies to European requirements. Adjusting to new regulatory standards includes modifying internal procedures and using modern technology. However, the general direction of regulation contributes to strengthening the insurance sector in the context of European integration. The practical significance of the study is to provide specific recommendations for improving the mechanisms of insurance market regulation in Ukraine, which will help to increase the transparency and reliability of insurance companies, as well as their adaptation to European standards in the context of European integration

ФОРМУВАННЯ НА СУЧАСНОМУ ЕТАПІ РИНКУ ФІНАНСОВИХ ТЕХНОЛОГІЙ В СВІТОВІЙ ЕКОНОМІЦІ

The current stage of development of the world economy is characterized by the process of increasing the role of the financial sector, as well as the transition to a new phase of development - innovation. Globalization in financial innovations is critical in international innovative development in today's conditions. The rapid spread of financial innovations under the conditions of financial globalization has become the main driver of the formation of the world economic system, contributing to the deepening of financial globalization. The formation of the financial services market is uneven because various factors influence it, including the level of development of information and communication technologies, the stability of the financial sector, and others. These factors have been studied by researchers, but the development of specific segments of the fintech market has its peculiarities. Fintech is a complex system that unites the sectors of new technologies and financial services, startups, and the relevant infrastructure. The financial services sector is increasingly actively using new technologies and tools to perform its functions and implement fundamentally new solutions in which consumers of services are interested. New technologies inherently changed not only the historically formed landscape of providing financial services, giving it freshness and dynamics, but also changed the attitude to such a concept as "money", realizing the transition from cash to virtual money in a reasonably short period. The industry provides subjects of financial relations with a wide range of innovative technologies, among which robotics, biometrics, remote banking, P2P lending, and many others have become vital. The fintech industry is expected to grow due to increased market penetration rates for existing services and their international expansion. The transition from the traditional financial services system to a digital one provides excellent opportunities for large financial companies and FinTech startups to work with banks or financial organizations. As more critical financial infrastructure projects come into production, more players will be interested in implementing digital financial technologies.

Implication of Financial Services Marketing: A Study with reference to Behavioral Economics

Abstract Purpose – It has been argued that the insights provided by behavioral economics have profound Implications for the study and practice of marketing. The purpose of this paper is to provide a detailed analysis of how such insights help enhance understanding of aspects of marketing and consumer behavior in financial services markets. Design/methodology/approach – This paper looks at various facets of behavioral economics Which it is felt provide particularly important and salient insights in the context of financial services. In particular, it studies loss aversion and prospect theory, status quo bias and defaults, framing and anchoring effects, hyperbolic discounting, availability effect and salience and over-confidence. In doing so, it provides a number of examples from the financial services context which provide insightful and informative insights for both commercial practitioners and policymakers. In each case, relevant phenomena are introduced and explained before providing a number of applications and examples from the financial services domain. Findings – The authors find that the insights afforded by behavioral economics are useful in helping to explain various aspects of consumer behavior in financial services markets. It is shown that an understanding of the implications of behavioral economics may help in fashioning a choice architecture that is more likely to bring the desired consumer response, from either a commercial or policymaking perspective. Practical implications – This analysis provides important insights for those responsible for the Marketing of financial services, policymakers in the financial services domain, third sector agencies seeking to foster greater engagement with financial services and other interested parties. Originality/value – The paper adds value by drawing together various aspects of behavioral Economics, providing an analysis of their relevance to financial services marketing and offering Numerous examples and applications. Keywords-: Financial services, Behavioral economics, Consumer behavior in financial services, Marketing Paper type-: Conceptual paper

Institutional model of the financial services market and its development

In the paper, the institutional model of the financial services market in Ukraine is defined as a complex system that ensures the interaction of its various subjects, regulates their activities and contributes to the stable and effective functioning of the financial sector based on taking into account the role and relationships of public and private organizations, legal and regulatory frameworks, as well as socio-economic factors that affect the functioning of the financial services market. Three stages of the development of the financial services market in Ukraine are highlighted, their characteristics, achievements and challenges are given. The main components of the institutional model of the financial services market are defined. It is shown that high-quality infrastructure and effective debt settlement institutions are critical for maintaining the financial stability of credit institutions. The purpose of the reform of state regulation based on the model of a single regulator is determined, which consists in increasing the efficiency, transparency and stability of the financial market. The advantages of a single regulator based on the NBU are: consolidation of functions, improvement of efficiency, reduction of administrative costs, improvement of coordination, increase of transparency, reduction of duplication. The challenges are: the difficulties of the transition period, the need to maintain specialization and the implementation of management changes. It is shown that the financial ombudsman plays an important role in the system of institutions for professional regulation of financial services markets. At the initial stage of implementation of the said institute, its role as a mediator is critically important for creating an effective mechanism for resolving conflicts and ensuring trust in the financial market. It has been established that the financial ombudsman performs the functions of: an independent mediator based on the principles of neutrality and confidentiality; supports the resolution of conflicts based on the analysis of the situation and the proposal of solutions, improves communication by organizing meetings and ensuring a clear exchange of information; ensures transparency and fairness by clarifying rights and obligations, creating standards for mediation; increases confidence in the financial market on the basis of reducing conflicts and improving the reputation of the financial market.

Purpose and principles of state regulation of non-bank financial services markets

The need for stable development and effective use of non-banking financial services market tools, as well as the imperfection of the current legislation in this area characterize the unconditional relevance of the topic of this article. The purpose of the article is to determine the purpose of state regulation of non-bank financial services markets, to define the concept of the principles of state regulation of professional financial activity, and to highlight and analyze the main principles of such regulation. It is noted that one of the main elements of state regulation of non-bank financial services markets is the purpose of such regulation. In view of the analyzed scientific positions and legislative provisions, it is concluded that the main goal of state regulation of non-banking financial services markets is: 1) ensuring transparency, reliability and openness in the markets of non-banking financial services; 2) coordination of activities of state authorities on the functioning of non-bank financial services markets; 3) protection of rights, legitimate interests and satisfaction of socio-economic needs of consumers of non-banking financial services; 4) prevention of abuses and violations in the markets of non-banking financial services. It is proposed to define the principles of state regulation of professional financial activity as the main ideas, basic principles, and general provisions of the implementation by the Regulators of a set of measures to regulate, control and supervise the activities of non-banking organizations and other participants in the markets of non-banking financial services in order to create favorable conditions for their functioning. , preventing and countering abuses and violations in the markets of non-banking financial services and ensuring the protection of the legitimate interests of clients. The main principles of state regulation of professional financial activity are highlighted: the principle of legality; principle of commensurability (proportionality); the principle of guaranteeing the rights and legitimate interests of participants in the financial services market (in particular, the rights of consumers); the principle of assessment by the Regulators of transactions, operations, circumstances and events taking into account their economic and factual content; the principle of mandatory licensing of professional financial activity; the principle of exclusivity of professional financial activity.

ENSURING CRIMINOLOGICAL SECURITY OF THE FINANCIAL MARKET IN RUSSIA

With the introduction of the digital economy and new financial products in Russia, changes have taken place in the financial services market. Against this background, illegal financial activities have sharply increased. This was facilitated by the expansion of information and telecommunication technologies, their use in all spheres of activity, including the development of domestic digital platforms, which increased the implementation of financial transactions in the stock markets, securities market, insurance sector, etc. At the same time, the risks of negative manifestations in the economic sphere have increased, which has influenced the growth of economic crime, which has become more organized, professional and, given the development of digital transformation, transnational. We should not fail to note its corrupt nature. The process launched by the state to stabilize and increase the rate of development of the state economy causes only positive reactions from society, but when the rate of development increases, problems arise, which destructive forces use in their own interests, for personal enrichment, where, breaking the law, they do not consider public opinion, do not pay attention to the state structures responsible for the security of this sector of the economy. It is crimes in the financial market that distinguish criminals of a new format from the old mastodons of criminal activity, and such qualities as high cohesion, organization, and competence allow them to establish control over various systems of life of society and the state, entering not only the sector of business and commerce, but also the budget sector, where continuing to establish monopoly control, lobbying their interests in various spheres of economic activity. One of such spheres at the current stage of formation of the digital economy is the financial market of Russia, which is subject to protection from criminal threats and criminogenic risks. In the current situation we cannot do without mechanisms to ensure the criminological security of the financial market, which requires the definition of the conceptual apparatus, the system of ensuring such security, the creation and construction of its structure and the definition of measures aimed at improving the level of such security. In conclusion of the article the author comes to the conclusion that the financial market of the Russian state does not fully use preventive measures, there are gaps both at the legislative level and in the organization of the financial market, which contributes to the growth of crimes in this area.

Enabling Professional Services: A Catalyst for Growth of GIFT-IFSC

The purpose of this article is to highlight one of the most profound financial sector reforms undertaken by the Government of India in the recent past with establishment of GIFT-IFSC recognizing the imperative of integrating with the global financial system while acknowledging the challenges of immediate full capital account convertibility, and adopted a strategic "enclave approach". Subsequently, recognizing the need for a cohesive regulatory framework to nurture the IFSC ecosystem, the Government of India in the Ministry of Finance took a decisive step in December 2019 with the passage of the International Financial Services Centres Authority (IFSCA) Act for establishment of IFSCA. The IFSCA empowers GIFT-IFSC to realize its full potential as a dynamic hub for global finance, driving India's aspirations of becoming a leading player in the global financial arena. The article also talks about the importance of Professional Services providers including Cost and Management Accountants in the growth and success of an International Financial Services Centres by showcasing their contributions in the development of the financial services market in an international finance ecosystem.

The Geoeconomics of the Single Market for Financial Services

AbstractWe discuss the geoeconomics of the Single Market in financial services in the European Union (EU). We examine three case studies that concern the EU and other major jurisdictions and that range from incipient geoeconomic use to outward weaponisation of the Single Market in finance. These cases are (1) the post‐2008 crisis transatlantic tug of war, whereby the EU leveraged its Single Market vis‐à‐vis the United States, seeking to set the rules for global finance; (2) the Brexit negotiations, when the EU acted as a bloc against the United Kingdom and successfully safeguarded the integrity of the Single Market; and (3) the fulsome war in Ukraine, during which the EU ‘weaponised’ its Single Market through the adoption of financial sanctions against Russia. We argue that a combination of external and internal factors accounts for this pattern: the evolution of the international economic and political system, in particular, the increasing challenges to the liberal international order, and intra‐EU developments, namely, the EU's ability to deploy its Single Market geoeconomically.

The Role of European Supervisory Authorities in Consumer Protection Standard Setting on the Financial Services Market – Based on the Example of the European Banking Authority

The purpose of the article is to present the genesis of the emergence and the scope of powers of the European Supervisory Authorities (ESAs) (the EBA, ESMA, and EIOPA), with particular reference to the EBA as regards the building of its supervisory normative standard and the protection of the consumer of financial services. The authors will propose de lege ferenda postulates which, in their view, would allow for an improvement in the quality of the financial services offered to consumers and ensure a higher level of protection of their interests and, at the same time, legal certainty for their providers. Increasingly sophisticated and complex financial products cause interpretation difficulties for both the courts and consumer protection authorities, but above all for consumers themselves, which consequently poses a challenge for both sides of the market (supply and demand). It is also a challenge for the post-crisis ESAs as the EU bodies not only designated to monitor and manage both the stability and security of the financial market, along with the actual level of consumer protection within it. In the preparation of the article, the legal-dogmatic and legal-theoretical method, which is standard for such studies, was applied, which allows for an analysis of the provisions of EU law and the identification of the norms stemming from them using interpretation and the assessment of the content of the provisions through the prism of the principle of consumer protection from Articles 12 and 169 TFEU and the EBAs’ competence provisions. Due to the fact that, in principle, the powers and competences of all three ESAs are analogous and only differ in terms of the scope of their application (i.e., financial institutions operating in the relevant financial market sectors – banking, insurance, and pension and investment), the authors will present their considerations with reference to the European Banking Authority (EBA), which is an exemplification of the powers of the other supervisory authorities. Thus, the secondary piece of EU legislation to be considered in this article will be the Council and European Parliament Regulation, hereinafter known as “EBA Regulation” and the actions taken by the EBA on that basis.

Creation and Legal Status of a Specially Authorized Body of Non-Banking Financial Services

The article is devoted to the peculiarities of state regulation in the market of non-banking financial services. At the same time, attention was paid to the creation of a specially authorized state body in the form of the National Commission for Control of the Market of Non-Banking Financial Services. The purpose of the article is to reveal the legal status, the order of formation, and clarify the main principles of the National Commission's activity. Achieving the outlined goal became possible thanks to the use of a complex of methods of scientific knowledge, in particular, the dialectical method (for comprehensive knowledge of the nature of the National Commission for Control over the Market of Non-Banking Financial Services), the formal-legal method (for establishing the content of legal norms), the formal-logical method (for identification of shortcomings in national legal regulation), comparative legal method (for studying the experience of other countries and determining the prospects for implementing their principles of activity in the national legal field). It has been studied that the special status of the commission is that it ensures the stability of the entire non-banking financial system of Ukraine, establishing the requirements that such institutions must meet, namely requirements for: liquidity, solvency, capital, asset quality, risk level of operations, profitability. The work examines the relationship between the commission and the National Bank of Ukraine, their cooperation in the market, which consists in the development of regulatory and legal acts and their approval. The need for the National Bank of Ukraine to delegate its powers to the National Commission for Control of Non-Banking Financial Services in relation to: registration of market participants, licensing of non-bank financial institutions, determining the procedure for issuing and canceling a license, approving the terms of operation of such institutions. In view of this, a new model of state regulation on the market of non-banking financial services was proposed in the form of concentration of all control functions on the market in a single operationally independent regulator - the National Commission for Control of Non-Banking Financial Services, which is in close cooperation with the National Bank of Ukraine and by the National Securities and Stock Market Commission. Also, the article emphasizes that regulation by the National Commission for Control of the Market of Non-Banking Financial Services should be complemented by a system of self-regulating participants in the market, which are an additional tool to state regulation.

Changes in Banking Credit Assessment of Individualsin the Local Financial Services Market

Changes in Banking Credit Assessment of Individualsin the Local Financial Services Market

The Role of FSO in Financial Services

Abstract: This paper explores the critical role of Full Stack Observability (FSO) in the financial services industry, discussing its significance in addressing key challenges such as security, fraud detection, real-time transaction monitoring, compliance, and customer experience. The adoption of FSO tools has been increasing steadily, with industry reports projecting the FSO market in financial services to grow at a CAGR of 18.3% from 2021 to 2026. The paper presents real-world success stories of financial institutions that have implemented FSO solutions, showcasing the tangible benefits such as enhanced cybersecurity, optimized transaction processing, and improved customer satisfaction. The paper also highlights the importance of FSO in enabling financial institutions to navigate the complex regulatory landscape, streamline operations, and drive innovation in an increasingly digital world. As the financial services industry continues to evolve and embrace new technologies, the adoption of FSO is becoming a strategic imperative for organizations looking to stay competitive and deliver exceptional customer experiences.

Генезис правовых основ коллекторской деятельности в контексте судебной реформы: этапы эволюции и современное состояние

The article traces the main stages of the formation and development of the legal foundations of collection activities in the Russian Federation. It is noted that at the first stage – until 2016 – the collectors, who began their activities in the Russian financial services market in the early 2000s, carried out their work within the frame-work of general civil legislation, based on their own ideas about legality. The adoption on July 3, 2016 of two Federal Laws No. 230-FZ «On the Protection of the Rights and Legitimate Interests of Individuals in the Implementation of Activities for the Repay-ment of Overdue Debts and on Amendments to the Federal Law «On Microfinance Activities and Microfinance Organizations» and No. 231-FZ «On Amendments to Certain Legislative Acts of the Russian Federation in in connection with the adoption of the Federal Law «On the Protection of the Rights and Legitimate Interests of Individuals in the Implementation of Activities for the Re-payment of Overdue Debts and on Amendments to the Federal Law «On microfinance activities and microfinance organizations», marked the beginning of the second stage of the development of legal regulation of this segment of Russian legislation. The current (third) stage in the evolution of the legal foundations of collection activities is associated with the entry into force of Federal Law No. 467-FZ dated August 4, 2023 «On Amendments to the Federal Law «On the Protection of the Rights and Legitimate Interests of In-dividuals in the Implementation of Activities for the Repayment of Overdue Debts and on Amendments to the Federal Law «On Microfinance Activities and microfinance organizations». It is stated that at this stage, the improvement of the legal regulation of this segment of Rus-sian legislation is carried out simultaneously in several directions with the priority of developing a digital model of interaction between the state, business and the debtor.

Trading war: Evolving landscape of discount brokerage in India

The case study chronicles the evolution of Trading Tech sector in India, focusing on the emergence of the digital discount brokerage model. The case delves into the brokerage industry disruption in India, comprising primarily of Industry 4.0-based technological advancements, regulatory policies, and consumer demand shifts. India, a developing economy that was largely characterized by traditional modes of financial transactions, brokerage, and wealth management, shifting to predominantly digital modes with the advent of technology, makes an interesting context. This case sheds light on Zerodha and Groww, India’s biggest online discount brokerage companies, their background, and business model evolution. We intend to make the readers aware of the industry dynamics, the specific business model of the two leading brokerage firms in India, and their challenges. The readers can use various strategy and innovation frameworks to evaluate the strategic choices and business models adopted by the firms and the strategic challenges that need to be addressed to achieve sustained advantage in the financial services market.

Trust Matters in the Single Market, but How? Analysing Trust Amongst European Financial Supervisors

AbstractEuropean regulatory co‐operation has become essential for the smooth operation of the single market, and this in turn requires trust. In the case of the European Union (EU) ‘Undertakings for Collective Investment in Transferable Securities’ (UCITS) Directive, for example, the member states' financial supervisory authorities rely on each other to provide a harmonised regime for the sale of investment funds across the EU. Funds authorised in one member state can be sold freely in another member state without further authorisation. The national authorities need to trust each other to ensure a consistent application of EU law. Yet we know very little about how trust matters from the perspective of member state regulators. In this article, we provide a better understanding of the relevant components of trust in the single market in financial services through an in‐depth case study of an EU network of national financial market supervisory authorities.

Electronic Financial Services Market in RK: Problems and Prospects of Development

Main problem: At the present stage of life, Innovations in the financial sector contribute to the optimization of financial intermediation and, in turn, stimulate economic growth. Financial innovations increase the efficiency of the allocation of savings capital to investment capital, as well as increase liquidity in the markets. As the digital economy has developed, the functionality of traditional large financial institutions has been partially replaced by financial technologies (FinTech). FinTech involves the convergence of traditional financial services with mobile services, social media services, big data aggregation and processing, and cloud technologies.\ Purpose of this article is to identify the main directions of the electronic financial services market in the Republic of Kazakhstan, identify the main problems and prospects for the development of the financial sector of the economy. Methods: The work used general scientific methods of comparative system, vertical and horizontal analysis, structural and functional method, analytical techniques, economic and statistical research methods. The results and their significance: the authors identified the main directions of digitalization of the financial sector of the modern economy, noted the role of FinTech companies and services in both theoretical and practical terms, and provided relevant approaches to the definition of this concept in the economic literature. The main reasons and factors for the development of this direction of digitalization of the financial sector are substantiated, including the concept of financial accessibility, the advantages and disadvantages of FinTech, various approaches to their classification, country and regional characteristics, and an analysis of development trends. The crowdfunding direction of FinTech is noted, approaches to its definition and classification are given, the advantages of the crowdfunding mechanism are revealed, and its role in the modern economy is analyzed. The trend of algorithmic trading development as the most important direction of digitalization of the financial sector is investigated. A detailed analysis of mobile financial services as one of the fastest-growing areas of FinTech is carried out, approaches to their classification are given, factors stimulating the growth of mobile payments, country and regional characteristics are substantiated. The main directions of digitalization of the insurance sector are analyzed, reasonable conclusions about the advantages of InsurTech are made. Keywords: digitalization of the financial sector, FinTech, financial accessibility, crowdfunding, algorithmic trading, mobile financial services, mobile money, InsurTech.

Editorial

"Blockchain has gained significant importance due to its ability to make digitals transactions flow secure, transparent, and cost-efficient. By using blockchain technology in digital payments, transactions can be executed without the need for intermediaries such as banks, clearinghouses, or financial services providers. Earlier, before blockchain technology, the financial industry faced several challenges. One of the major issues was the lack of transparency and trust in transactions. Traditional banking systems rely on intermediaries such as banks or clearinghouses to facilitate and validate transactions. This often led to delays, high costs, and the potential for fraud. Additionally, the centralized nature of these systems makes them vulnerable to cyberattacks and data breaches. The global blockchain in financial services market size is expected to reach $23.6 billion by 2024. 65% of financial institutions are planning to implement blockchain technology by 2023. 54% of financial institutions believe that blockchain will have a significant impact on their bottom line. Blockchain technology has steadily evolved to become a disruptive force in the financial services industry,"

Does Brand Image Matters in Developing Long-Term Relationship in Mobile Financial Service Industry?

In the current highly competitive mobile financial service market, all organizations must establish long-term relationships with their clients and achieve the highest level of loyalty. Despite many studies, maintaining long-term relationships remains a formidable challenge. This study investigates how brand image moderates the association between relationship quality and brand loyalty. A theoretical framework was established, and structural equation modeling was utilized to examine the relationships. Data was collected from 257 respondents from 6 upazilas using systematic random sampling. The data was analyzed using SmartPLS-based structural equation modeling. The findings indicated a notable connection among trust, commitment, and brand loyalty. The results indicated that brand image moderates the impact of satisfaction and communication on brand loyalty. Lastly, brand image has a positive but insignificant moderating impact on security to brand loyalty association. These outcomes have both theoretical and practical consequences.