Financial Services Organization Research Articles

Optimism bias in susceptibility to phishing attacks: an empirical study

Purpose Researchers looking for ways to change the insecure behaviour that results in phishing have considered multiple possible reasons for such behaviour. Therefore, the purpose of this paper is to understand the role of optimism bias (OB – defined as a cognitive bias), which characterises overly optimistic or unrealistic individuals, to ensure secure behaviour. Research that focused on issues such as personality traits, trust, attitude and Security, Education, Training and Awareness (SETA) was considered. Design/methodology/approach This study built on a recontextualized version of the theory of planned behaviour to evaluate the influence that optimism bias has on phishing susceptibility. To model the data, an analysis was performed on 226 survey responses from a South African financial services organisation using partial least squares (PLS) path modelling. Findings This study found that overly optimistic employees were inclined to behave insecurely, while factors such as attitude and trust significantly influenced the intention to behave securely. Practical implications Our contribution to practice seeks to enhance the effectiveness of SETA by identifying and addressing the optimism bias weakness to deliver a more successful training outcome. Originality/value Our study enriches the Information Systems literature by evaluating the effect of a cognitive bias on phishing susceptibility and offers a contextual explanation of the resultant behaviour.

Autonomiaa vai kontrollia?

Autonomy or control? A case study in an organization striving to increase self-management In many organizations increasing self-management is a new way of working. The case organization of this study is a Finnish financial services organization with about 100 employees. We use qualitative interview data to explore the commonalities and contradictions in the interpretations of employees and management in an organization that is in a process of adopting a more self-managed way of working. We also examine the implementation of the basic assumptions of Self-Determination Theory in today's organizational environment. We approach the issue from both theoretical and empirical perspectives. Our analysis shows that self-management in the target organization is initiated and controlled by management, which sets strict limits but allows only a certain amount of freedom. Our case study provides both theoretical and practical insights into the discussion of the process of increasing self-management.

How informal financial service institutes facilitate the financial inclusion of low-income, unbanked consumers

PurposeThe present study aimed to provide an understanding of the roles of community-based financial service organizations (i.e. rotating savings and credit associations [ROSCAs] as institutional pillars in facilitating low-income, unbanked consumers’ access to informal financial services).Design/methodology/approachSemi-structured interviews were conducted with 39 low-income, unbanked consumers participating in ROSCAs in Pakistan, where only 21% of adults have a bank account and almost four out of five individuals live on a low income. The obtained data were analyzed using the thematic analysis technique.FindingsROSCAs’ regulatory, sociocultural and cognitive aspects facilitate low-income, unbanked consumers’ utilization of informal financial services owing to their approachability by, suitability for, and fairness to such consumers. Thus, they promote such consumers’ financial inclusion.Practical implicationsLow-income consumers are mostly unable to access formal financial services due to the existing supply- and demand-side impediments. Understanding ROSCAs’ institutional functioning can help formal financial service providers create more transformative financial services based on the positive institutional aspects of ROSCAs to enhance poor consumers’ financial inclusion and well-being.Social implicationsThe inclusion of low-income, unbanked consumers in formal banking services will help them better control their finances.Originality/valueMany low-income, unbanked consumers in developing countries utilize informal financial services to meet their basic financial needs, but service researchers have rarely investigated how informal financial institutions function. The present study showed that ROSCAs, as informal institutions, meet low-income, unbanked consumers’ personal, social and financial needs in a befitting manner, which encourages such consumers to use the financial services offered by ROSCAs.

Anti-Money Laundering by Group-Aware Deep Graph Learning

Anti-money laundering (AML) is a classical data mining problem in finance applications. As well known, money laundering (ML) is critical to the effective operation of transnational and organized crime, which affects a country's economy, government, and social wellbeings. Financial services organizations facilitate the movement of money and have been enlisted by governments to assist with the detection and prevention of money laundering, which is a key tool in the fight to reduce crime and create sustainable economic development. In the application of AML, user identity and financial behavior data are widely used to detect laundering transactions. In recent years, an increasing number of money laundering activities have been conducted by organized criminal gangs while most existing works still treat the actions of each account as independent identity behavior without considering the group-level conspired interactions. Therefore, in this paper, we propose a group-aware deep graph learning-based approach for organized money-laundering detection. In particular, we design a community-centric encoder to represent the nodes and attributes in user transaction graphs and derive the adjacent gang behaviors. Then, we devise a scheme of local enhancement to accommodate nodes with similar transaction features, which are aggregated into gangs for downstream detection. Extensive experiments on the real-world dataset from one of the largest bank card alliances worldwide show that our proposed method outperforms state-of-the-art methods in both offline and online modes, showing the effectiveness of money laundering detection with group-aware deep graph learning.

Pay Premiums and Peer Spillovers: Unpacking the Value Proposition of Employing Stars as They Age

An open question among scholars and practitioners is whether and when the employment of star employees is likely to pay off. Addressing this query, we integrate insights related to star performers’ experiences of cumulative advantage and disproportionate bargaining power with insights from the careers literature to develop theory related to stars’ direct and indirect value creation and value capture as they age. Specifically, we first develop arguments that stars, as a function of their disproportionate status and bargaining power, will enjoy higher pay relative to individual performance (PRIP) in comparison to their non-star peers. Second, we argue that this difference in PRIP will be greater among older employees, as stars’ cumulative advantage is a progressive phenomenon that continues to widen the initial gaps in their PRIP relative to others over their careers. Next, countering the apparent implication that the value proposition associated with employing stars deteriorates as stars age, we find that the magnitude of stars’ indirect contributions through positive spillovers to their peers’ performance increases with age. Lastly, we account for some of the mechanisms through which older stars have a more positive impact on their peers. General support for predictions is found in a financial services organization.

Board diversity, Political Connections and Firm value: An Empirical Evidence from Financial Firms in Nigeria

This study investigates the effect of board diversity, political connections, and firm value on the listed financial services firms in Nigeria. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to its book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of 51 listed financial service firms on the Nigerian Stock Exchange as of December 31, 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012–2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least squares regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive and significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections have a positive but insignificant effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards, as suggested by the resource dependency theory.Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to leverage national spreads and improve firm value.

Board Gender Diversity, Board Ethnic Diversity and Firm Value of Listed Financial Firms in Nigeria

This study investigates the effect of board gender diversity, board ethnic diversity, and firm value on the listed financial service companies in Nigeria. Firm value, measured by Tobin's q and computed as the ratio of the firm's market value of equity to its book value of total assets, is the study's explained variable, while board gender diversity and board ethnic diversity are the study's explanatory variables. The study’s population comprises fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as of December 31, 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012–2020). Data was acquired from the sampled companies' annual reports and analyzed using the feasible generalized least squares regression (FGLS) approach. According to the study, board gender diversity and board ethnic diversity had a significant positive impact on the firm value of listed financial services firms in Nigeria. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.

Women Whistleblowers: Examining parrhesia, power and gender with Sophocles’ Antigone

How do gender and power intersect in whistleblowing situations? In this article, we deepen understandings of whistleblowing as a contemporary form of parrhesia. To explore the complex interactions of gender and power, we analyse in-depth, qualitative data from senior women managers whistleblowing in financial services organizations in France, Ireland and the United States. Sophocles’ play Antigone, read with a feminist lens, inspires a novel theoretical framing for understanding how structures of gender and power can be subverted, as women whistleblowers move between positions of masculine, feminine, subjugation and control. Our article contributes to organizational research on whistleblowing by showing how parrhesiastic risk intersects with gender in nuanced ways: violent gendered reprisals can occur in momentary interactions that are painfully internalized, prompting a search for support from outside sources. These acts of exclusion necessitate the creation of new subject positions beyond those on offer within the organization. Overall our article demonstrates how experiences of ‘outsider truth-telling’ from the margins shed light on the power dynamics in whistleblowing situations.

Mass lay-offs: study shows motivations behind turnover intentions and mobility-oriented behavior of over-qualified employees

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Researchers from the European Union studied the effect of impending mass lay-offs on employees at a financial services organization. They found that promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified for their current roles, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior. Originality The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

BOARD DIVERSITY, POLITICAL CONNECTIONS AND FIRM VALUE: AN EMPIRICAL EVIDENCE FROM FINANCIAL FIRMS IN NIGERIA

The effect of board diversity, political connections and firm value of listed financial service firms in Nigeria is investigated in this study. Firm value, proxied by Tobin's q and computed as the ratio of the firm's market value of equity to the book value of total assets, is the study's explained variable, while board gender diversity, board nationality, board ethnic diversity, and political connections are the study's explanatory variables. The study’s population consists of fifty-one (51) listed financial service firms on the Nigerian Stock Exchange as at 31st December 2020. Thirty-five (35) of these firms made up the sample size for a period of nine years (2012-2020). Data was gathered from the annual reports of the sampled companies and analyzed using the feasible generalized least square regression (FGLS) approach. According to the study, board gender diversity, board nationality, and board ethnic diversity have a positive significant effect on the firm value of listed financial service firms in Nigeria, whereas political connections had a positive but minor effect. According to the findings, the boards of directors of listed financial service organizations in Nigeria should ensure that females are considered for directorship seats on the boards in order to increase their value, as suggested by the resource dependency theory. Also, the board should be made up of foreign directors in order to lure foreign investors to the firm and enhance its value. In addition, the boards of directors of listed financial services firms in Nigeria should consist of a mix of both northerners and southerners to improve firm value.

A Study of the Revolution in Digital Banking and it’s Connection with Artificial Intelligence

This paper analyzes the performance of Indian banks over the period of the last five year. The paper also conducts an empirical analysis the connection between digital banking and artificial intelligence. In addition it also finds Challenges in Adopting AI in banking industry. The study find that due to the concerted efforts of the entire government and all interested parties, the number of digital payment transactions has greatly increased, rising from 2,071 crore in FY 2017–18 to 8,840 crore in FY 2021–22. With regard to the AI Due to the numerous advantages of the technology, AI and banking go hand in hand. According to a McKinsey analysis on a global AI survey, 60% of financial services organizations have at least one AI capability in place to speed up business operations

Forging customer satisfaction through commitment-trust factors in financial insurance services: moderating role of corporate image

PurposeIt is widely evident that trust and commitment are important pillars for strengthening the relationship between financial service firms and their customers. However, it has not been explored how the service quality, perceived cost and role of agents are important for financial service firms. To overcome this gap, this study aims to investigate the role of service quality, perceived cost and the role of agents as the commitment–trust factors in the financial insurance service (Takaful) in Malaysia, enhancing customer satisfaction.Design/methodology/approachThe study follows a quantitative design in which primary data was collected using a survey instrument. The measurement instrument was adapted from the previous research, and data were collected from 264 customers of the Takaful financial service organizations in Malaysia. The data were analyzed using variance-based structural equational modeling in Smart-PLS software.FindingsThis research has revealed several useful insights that demonstrate a significant impact on service quality, perceived cost and the agents’ role in forging close relationships with their customers. Corporate image has a moderating role in relationships and has significantly impacted takaful insurance companies. The results imply that regardless of the corporate image of the financial service organizations, customers are concerned about the prices and the quality of the agents’ services.Research limitations/implicationsIn this study, only the predictors such as service quality, perceived costs and agents’ roles as trust–commitment factors were examined to determine customer satisfaction. Other investigations are highly recommended, such as value co-creation in takaful, takaful customer experience and takaful trust. This study offers insights to takaful insurance companies on how to keep up a positive corporate image, which will boost their trust–commitment factors and ultimately increase customer satisfaction.Originality/valueBy presenting commitment–trust factors and company image in an identifiable framework, the current study has expanded the discussion on takaful financial insurance services. The methodology is developed and rigorously tested to gauge customer satisfaction in takaful financial service organizations’ context.

TAX4U Pilot Trial: Addressing Material Needs in the Pediatric Hospital Setting.

Interventions to address poverty and food insecurity in pediatric hospital care have been scarce. Access to government support is based on the completion of taxes. Medical-financial partnerships are defined as novel cross-sector collaborations in which health care systems and financial service organizations work collaboratively to improve health by reducing financial stress. The objective of our pilot study was to assess the feasibility of implementing a "free tax service" within a pediatric academic hospital setting. A pilot randomized controlled trial "TAX4U" was conducted from November 2020 until April 2021 in the general inpatient setting of an academic pediatric hospital. Eligible families were randomly assigned to receive either "free tax services" according to the Canada Revenue Agency-funded Community Volunteer Income Tax Program (CVITP) or "care as usual." A total of 140 caregivers filled in the 8-question recruitment survey. We found that 101 (72%) families were not eligible to participate in the study. Reasons for ineligibility were not meeting CVITP criteria (n = 59, 58%), already filed tax (n = 25, 25%), and families did not sign the consent form (n = 17, 17%). Thirty-nine families were randomly assigned, with 20 (51.3%) families assigned to the intervention and 19 (48.7%) families receiving care as usual. Ultimately, 7 (35%) families received the tax intervention. Offering free tax services may be feasible and reached vulnerable families in a pediatric hospital setting; however, the inclusion criteria of the CVITP program did not meet the needs of caregivers. Further research should explore offering a full-scope medical-financial partnership that meets the needs of low-income families in a hospital setting.

Who wants to leave when facing mass lay-off: a regulatory focus perspective on turnover intentions and mobility-oriented behavior

PurposeMass lay-offs tremendously impact employees and companies. Helping people toward new employment could help organizations manage costs and reputation. The authors sought to test a model, based on regulatory focus theory, predicting which employees are more likely to consider leaving the company during this uncertain time (turnover intentions) and indirectly to engage in behavior to strengthen their external labor market position (mobility-oriented behavior).Design/methodology/approachWith a mass lay-off impending, the authors studied employees (N = 326) in a financial services organization. The authors reasoned that employees' perception that they have higher (vs lower) qualifications than their job requires, may be able to spur turnover intentions for some because it enhances perception that movement to another job is desirable and feasible. The authors proposed perceptions of being overqualified vs perceptions of being underqualified only affect the turnover intentions and mobility-oriented behavior of promotion-focused employees.FindingsSupporting the expectations, promotion-focused employees (but not prevention-focused employees) who perceived themselves to be overqualified, compared with promotion-focused employees who perceived themselves to be underqualified, showed higher turnover intentions and, indirectly, mobility-oriented behavior.Originality/valueThis research is one of few studies that have examined intentions and behavior of employees who are facing impending mass lay-off, as most lay-off research has studied survivors or victims post lay-off. To the best of the authors’ knowledge, this is the first study to apply a regulatory focus perspective on overqualification/underqualification, as well as to turnover intention and mobility behavior.

АНАЛИЗ МИРОВОЙ И ОТЕЧЕСТВЕННОЙ ПРАКТИК ПРИМЕНЕНИЯ ESG-КРИТЕРИЕВ В ОЦЕНКЕ КОМПАНИЙ

Over the last 30 years, it is possible to observe how traditional economic structures are giving way to a consumer-oriented economy, where opportunities are organised around basic human needs and desires. In contrast to the traditional industrial value chain, where the consumer is the last link in the B2B relationship, in the new market mechanisms the consumer is at the centre. The development of human needs also opens up enormous opportunities for stakeholders to come forward with proposals to fulfil them, thus becoming another element contributing to the sustainable development of the economy and society. In recent years, the focus on sustainable development has shifted towards the business community and the implementation of ESG principles by companies in their operations. By understanding this trend, financial services organisations can begin to measure and disclose their efforts to support all stakeholders, providing a solid foundation on which to build a broader perspective. They focus on answering two questions: what are the key challenges that ESG needs to address, and what tools does the financial services industry have to fulfil these challenges.

Global overview of modern financing typologies to mitigate financial risks in developed countries

In this study, we reviewed the laws and legal regulations that mandate banks and financial services organizations to implement anti-money laundering efforts which are responsible to detect and mitigate the risks of money laundering and modern financing. We examined the topics of money laundering and modern financing in greater depth to understand the risk factors related to each financial crime. Understanding the aspects of each financial crime is necessary to comprehend predicate offense typologies. We continued with a review and synthesis of the literature on money laundering and modern financing typologies. We concluded the review with an analysis of Gary Becker’s economic theory of criminal behavior and the neoclassical approach to criminal behavior. As suggested by the key concepts reviewed in this literature review, predicate offenses are evolving as prevailing conditions of society change. A major global challenge in recent times is the Covid-19 pandemic crisis which has increased financial risks worldwide (Klimczak et al., 2021). Understanding the different types of predicate offenses and typologies portrays a holistic process of how criminals launder money or finance modern acts. A review of the existing literature demonstrated intensive research on the topic of financial crime but there is a gap in the current legislative and financial risk management framework. The legislative and financial risk management framework detects economic uncertainties and risk factors requiring a reevaluation of financial risk measurement methodologies to mitigate the risk consequences of money laundering and modern financing activities. A best practice to provide a sound framework to manage financial risks is for U.S. banking and financial service company compliance managers to identify predicate offense typologies. American society could benefit from the results of the study (Klimczak et al., 2021). The banking and financial industries ought to be prepared for the future and continue to adapt to new emerging threats, varying consumer classification, and changing environment. It is essential for compliance leaders to implement public education initiatives and help their customers recognize their role in combating money laundering and modern financing activities. Overall, the study has contributed to positive social change by identifying predicate offense typologies that can help U.S. banking and financial services company compliance managers reduce the risks of money laundering and modern financing activities (Klimczak et al., 2021).

Psychological fortitude model for digitally mindset working adults.

The inception of Industry 4.0 (which includes smart digital technologies and intelligence), as well as the rapidly enforced adoption of the technological revolution due to the lockdown regulations during the COVID-19 pandemic, brought new situational demands, challenges and opportunities for both employees and organizations across the globe. Individuals are required to develop personal enablers (both intrapersonal and intradigital attributes) to optimize their psychological fortitude. Research on the intrapersonal resources needed by employees to have the fortitude to adapt to remote working conditions as a result of the digital era, is currently lacking. The igital era brought about the question of how individuals' career adaptability and career wellbeing (as a set of agile adaptable attributes) relate to their perceptions of the value-oriented psychological contract, and whether these intrapersonal resources can contribute to a psychological fortitude model for remote working employees. This study utilized a survey method to investigate the correlations between agile adaptable attributes and the valueoriented psychological contract of global digital-mindset human resource and financial service organizations. Based on further canonical correlations, structural equation modeling was conducted to develop and recommend a psychological fortitude model for remote working adults in the digital age. Close theoretical and empirical associations were found between career adaptability and career wellbeing (as agile adaptable variables) and the perceived value-orientated psychological contract. This study proposed a psychological fortitude model (consisting of intrapersonal resources) that organizations and career practitioners can use as a basis to enhance employees' psychological fortitude in the digital age, as well as for further career research.

Adoption of artificial intelligence in financial services: a policy framework

PurposeA crucial contemporary policy question for financial service organizations of being resilient across the globe calls for rethinking and renovating by adopting and adapting to the technologies of artificial intelligence (AI). The purpose of this study is to propose a policy framework for adoption of AI in the finance sector by exploring the driving factors through systems approach.Design/methodology/approachBased on literature review and discussions with experts from both industry and academia, nine enablers were shortlisted, which were used in the questionnaire survey to determine ranks of enablers. Further, the study developed the interpretive structural model (ISM) with the help of experts.FindingsThe ISM digraph developed with the help of the experts, resulted in the enablers like anticipated profitability, contactless solutions, credit risk management and software vendor support as dependent factors and stood at the top of the ISM. On the other hand, factors like availability of the data, technical infrastructure and funds are the most driving factors, which lie on the bottom of the ISM.Research limitations/implicationsThe study provides implications and policy recommendations for the practicing managers and government agencies approaching the digital transformation towards the adoption of AI in the finance ecosystem.Originality/valueThe paper uses the systems approach for the development of the ISM of the enabling factors for the adoption of AI technology. On the basis of the results, the study proposes a policy framework to accelerate the functioning of the finance ecosystem with AI technology.

DEEP LEARNING-BASED CUSTOMER COMPLAINT MANAGEMENT

ABSTRACT In recent years, managing customer complaints poses a problem for companies due to the increasing market and customer base. One of the most effective ways to speed up the handling of complaints is to categorize customer issues and automatically forward complaints to relevant officers or departments. This reduces the response time to complaints and ensures that specific complaints are being handled by the people with the right expertise. Also, the companies can create a strategy exclusively for certain types of problems, which will hasten the problem resolution. In this article, we propose an intelligent customer complaint management system (CCMS) for financial services organizations. We described a pre-processing technique for Turkish agglutinative language using deep learning algorithms and it was not previously considered in the literature. Furthermore, the performance of the algorithm has been significantly increased by choosing the appropriate combinations of pre-processing tasks. The proposed method not only greatly increases text classification’s utility for a broader range of customer complaints, but it also yields improved overall performance, recorded with a 96% accuracy score. The findings of the experiments show that the proposed approach is more effective than the other state-of-the-art strategies.

An exploration of factors influencing the retention of senior female employees in a financial services organisation

Orientation: High turnover rates have negative repercussions for organisations, such as increases in costs related to the orientation, hiring and training of new employees. Insight into the factors that contribute to employees’ retention therefore remains a critical concern for organisations.Research purpose: The objective of this study was to gain in-depth insights into senior female employees’ views of the factors that either enable or impede their retention.Motivation for the study: Presently, there seems to be a dearth of retention studies among women in the financial services sector.Research approach/design and method: A qualitative approach was utilised to obtain semi-structured interview data from a purposive sample of senior female employees in a South African financial services organisation. The Atlas.tiTM Version 8 data analysis programme assisted in inductively eliciting the higher-order themes that emerged from the interviews.Main findings: The qualitative thematic data analysis revealed rich insight into (1) senior female employees’ employment experiences in the organisation; (2) the objective and subjective factors that enable their retention and (3) the objective and subjective factors that impede their retention.Practical/managerial implications: The findings highlighted formalised consistency in the application of human resource policies and procedures, fair, competitive compensation and benefits, training and development, managerial support, opportunities for career development, as well as work–life balance in workload and deadlines as core factors to address in a retention strategy.Contribution/value-add: The insights gained regarding female staff members’ parameters for their retention may inform retention practices and prevent staff turnover among valuable talents.