Financial Services Sector Research Articles

AI-Driven Personalization in Financial Services: Enhancing Customer Experience and Operational Efficiency

This article explores how emerging technologies are influencing personalization in the financial services sector. Personalized services enhance customer experience and promote financial inclusion. By leveraging big data and AI, financial institutions can collect and analyze customer data to offer tailored services. AI-driven analytics provide real-time insights for financial modeling, risk management, and automation. The integration of machine learning structures in financial services to meet individual customer needs, ensuring product customization. Emerging technologies promise greater accuracy and personalization, driving better financial outcomes within the industry. This technological advancement is crucial for the modern financial landscape, enhancing performance and customer satisfaction.

The Co-evolution of actor engagement and value Co-creation on digital platforms

Increasingly, digital platforms connect suppliers, customers, and other ecosystem parties, facilitating the introduction of various Platform-as-a-Service (PaaS) offerings. This study examines the co-evolution of actor engagement (AE), reflecting actors’ dispositions to invest resources in interactions, and value co-creation (VCC), demonstrated through reciprocal resource integration. The focus is on PaaS initiatives in the asset management industry. Using a comparative case study approach, we analyze two fintech-generated PaaS offerings: a freemium model and a subscription-based model. Our findings reveal distinct pathways for platform development and scaling, driven by the interplay between AE and VCC. The freemium model fosters a “viral” community-building path, where early VCC serves as the engine for AE-VCC co-evolution. Conversely, the subscription model follows a “controlled” ecosystem-building path, with AE driving the process. We observe a gradual involvement of additional ecosystem partners, leading to upgraded solutions, expanded PaaS offerings, and platform upscaling. We identify key factors influencing these dynamics, including business model characteristics, actor roles, and feedback loops. Our study contributes to the literature on digital servitization and platform ecosystems by highlighting the importance of integrating AE and VCC practices to enhance platform utilization and scalability. We propose a framework and research propositions to guide future studies on PaaS development in complex, institutionalized industries. These insights also provide implications for managers aiming to implement effective PaaS strategies and foster innovation in the financial services sector.

Transformative Impact of AI and Cloud Technologies: A Comparative Analysis across Healthcare, Retail, and Mobile Financial Services

This article examines the transformative impact of artificial intelligence (AI) and cloud technologies across healthcare, retail, and mobile financial services sectors. Through a comprehensive analysis of industry-specific applications, we explore how these technologies are revolutionizing operational efficiency, customer experiences, and innovation in each domain. In healthcare, we investigate the role of CI/CD automation and scalable cloud infrastructure in improving system reliability and patient care. The retail sector analysis focuses on AI-driven customer insights and supply chain optimization. For mobile financial services, we examine AI applications in fraud detection and real-time analytics. The findings reveal significant improvements in operational efficiency, decision-making processes, and customer satisfaction across all three industries. However, we also identify unique challenges and opportunities specific to each sector. This article contributes to the growing body of literature on digital transformation and provides valuable insights for industry professionals and policymakers navigating the integration of AI and cloud technologies in their respective fields.

Application of Android-Based Applications to Make It Easier to Record Micro Business Finances (Quuena Store Case Study)

The current development of information and communication technology has many benefits for human life, not only in the social but cultural, educational and economic fields. One use in the economic sector is in the financial services sector, namely the existence of a digital financial recording system in the form of an Android-based application. Financial recording is the process of recording transactions for a period, where this recording report will be used to make decisions and monitor the business being carried out.This research was conducted on MSMEs in Singajaya Village, the object of this research is business actors engaged in products and services, namely "Queena Store" which is located at Jl. CITRA No.12 Block XX Singajaya Village, this research is based on the problem where financial recording at the Queena Store still uses a manual system because the business owner does not understand technology. The purpose of this research is to help business actors implement a new accounting bookkeeping system and analyze its use in using the Android-based financial recording application, namely Akuntansiku, so that the recording process can be easier, faster and have accurate results. Tags research method is descriptive qualitative, which aims to provide a systematic understanding based on facts as it is about how to implement financial records based on the Android-based Akuntansiku application at the Queena Store.

Brand Image as a Strategic Lever for Mergers and Acquisitions in the Financial Services Sector in South Africa

There were a number of mergers and acquisition (M&A) and hostile take overs in South Africa over the past decade and half. Companies in a M&A are in most instances preoccupied in pursuit of increasing the shareholder value and securing the biggest market share through effective branding. The research objectives of the study were to evaluate the effectiveness of mergers and acquisitions in relation to its image as a brand and to provide recommendations in respect of future merger and acquisition deals for an organisation. The study adopted the quantitative method of research by means of a survey questionnaire and the target population for this study was 310 managers (in the financial services sector) in Kwazulu-Natal. Relevant descriptive and inferential statistics were used to analyse the data collected. The research findings uncovered that from a turnaround perspective in mergers and acquisition deals, brand image should be skilfully and appealingly crafted to generate the desired return on investment. This study contributes to the body of knowledge by revealing that institutions who merge in the financial services sector consolidate their position in the market if brand image is aligned to the institution’s strategy. A fortified brand image results in greater market share.

Data analytics as a driver of digital transformation in financial institutions

Data analytics plays a pivotal role in driving digital transformation within financial institutions, enabling organizations to leverage insights from vast amounts of data to enhance decision-making and optimize operational performance. This paper explores the multifaceted impact of data analytics on the financial services sector, highlighting how it can improve customer experience, streamline processes, and foster innovation. By implementing advanced analytics techniques, financial institutions can better understand customer behaviour, identify market trends, and personalize services to meet evolving customer needs. The study discusses effective strategies for integrating data analytics into decision-making processes and operational workflows, emphasizing the importance of creating a data-driven culture that encourages collaboration across departments. Case studies of leading financial institutions that have successfully integrated data analytics into their operations illustrate the transformative outcomes, including improved customer satisfaction and increased revenue growth. Additionally, the paper addresses challenges such as data silos, regulatory compliance, and the need for skilled personnel to analyse and interpret data effectively. To overcome these hurdles, best practices are outlined, including investment in robust data infrastructure, fostering cross-functional teams, and ensuring continuous training for employees. The findings indicate that a strategic approach to data analytics not only enhances performance but also positions financial institutions to adapt to rapidly changing market conditions. Ultimately, this paper underscores the critical role of data analytics in shaping the future of financial services and achieving sustainable growth in an increasingly competitive landscape.

Cloud Migration Analysis for Core System Infrastructure in Financial Services: Study Case PT XYZ

Currently, cloud computing adoption is being utilized in the financial sector for its flexibility and innovative technologies. This study assesses PT XYZ's readiness to migrate its core systems to a cloud environment, which is crucial for maintaining competitive agility and robustness in Indonesia's financial services sector. Focusing on the diffusion of innovations (DOI) model and the technology-organization-environment (TOE) framework, the research examines ten factors influencing PT XYZ's migration strategy. The analysis identifies challenges related to PT XYZ's aging on-premises infrastructure, including server procurement delays and maintenance issues, which impact operational efficiency. Through semi-structured interviews with key IT personnel, this study explores perceptions of the benefits and challenges of cloud computing, as well as regulatory compliance, aiming to guide PT XYZ toward a successful cloud migration that ensures continuity, compliance, and enhanced operational capabilities. The findings contribute to understanding the relative advantages, such as cost savings and security concerns, complexity, compatibility, technology readiness, top management support, firm size, competitive pressure, and regulatory factors. PT XYZ’s decision to migrate aligns with all the factors for cloud computing adoption, with the relative advantage, complexity, compatibility, technological readiness, and top management support being high impacts on the migration decision, while regulatory compliance presents a challenge for the financial services industry in Indonesia].

The Impact of (In)Civility on Selected Individual and Organisational Outcomes in Financial Services

Orientation: Despite its ubiquitous impact, the South African financial services sector lacks understanding of the constructs of civility and incivility.Research purpose: The study investigated the impact of (in)civility on work engagement, organisational citizenship behaviour (OCB), and turnover intention in a South African financial services organisation using adapted (in)civility scales.Motivation for the study: The dearth of research within the South African financial services organisation on the constructs of (in)civility and its impact as well as the testing of an adapted tool, necessitated this research.Research approach/design and method: A non-experimental research design, with purposive sampling (N = 305) was used in this study. Specifically, we used latent variable modelling methods in a confirmatory manner to establish a measurement and structural model from which to make inferences.Main findings: The study found that (in)civility is related, can co-exist and is independent. The findings accentuated the need to further explore how (in)civility is conceptualised, experienced and measured. Results showed that civility specifically, yielded positive outcomes, while incivility had a negative effect. Work engagement serves as a mediator in the relationships between civility, OCB and turnover intention only.Practical/managerial implications: The study suggests that organisations deepen their understanding of civility and incivility, and focus on promoting positive behaviours. Cultivating a civil organisational climate leads to beneficial outcomes.Contribution/value-add: The study enhances South Africa’s understanding of workplace (in)civility by testing adapted scales and promoting construct alignment between definition and measurement.

DYNAMIC PRICING IN FINANCIAL TECHNOLOGY: EVALUATING MACHINE LEARNING SOLUTIONS FOR MARKET ADAPTABILITY

The rapid advancement of technology has transformed the financial services sector, leading to the rise of fintech companies that leverage cutting-edge tools such as artificial intelligence (AI) and machine learning (ML) to offer innovative solutions. One area where fintech is particularly impactful is dynamic pricing, which involves adjusting prices in real-time based on market conditions, user behavior, and external factors. The ability to optimize pricing in response to fluctuating conditions is critical for maximizing profitability, improving customer satisfaction, and maintaining competitiveness. In this context, machine learning algorithms provide a powerful framework for making data-driven pricing decisions by learning from historical data and predicting future trends.

Optimizing Business Processes: Harnessing Robotic Process Automation in Chinese Enterprises

Abstract: With the continuous development of science and technology, the study of digital technology in China has become increasingly in-depth. As an effective means for enterprises to achieve automated management and standardized operations, Robotic Process Automation (RPA) has attracted widespread attention. RPA process automation technology can improve the efficiency of financial management and ensure the quality of work while meeting enterprise development needs. This study explores the multifaceted applications and impact of RPA in the financial shared services sector. By utilizing RPA, companies can streamline processes, reduce costs and increase overall operational flexibility. The study delves into the theoretical underpinnings of RPA adoption, drawing on concepts such as economies of scale, process reengineering and information processing theory. In addition, the paper illuminates the transformative impact of RPA on business operations through field case studies, including the pioneering efforts of Sinochem International. By providing a comprehensive analysis of the pros and cons of RPA implementation, this paper provides valuable insights for Chinese companies seeking to optimize their business processes and embrace the era of intelligent automation.

The Urgency of Banks in Implementing the Precautionary Principle as Consumer Protection in the Standard Clauses of Credit Agreements

The importance of the bank in applying the precautionary principle contributes to ensuring a sound banking system and protecting the country’s economy. In lending, the precautionary principle was manifested in a standard agreement between the bank as the creditor and the customer as the debtor. Credit agreements can lead to disputes, where the debtor sues the bank for violating the principle of consumer protection because it applies standard clauses in the credit agreement. The research method used is legal research with a statute approach and a conceptual approach). The results state that the application of the precautionary principle in making standard agreements manifests itself in the prohibition of financial service business actors including exoneration clauses to the detriment of financial service consumers as stipulated in Article 18 paragraph (1) of the Consumer Protection Act and OJK Regulation No. 6/POJK.07/Tahun 2022 concerning Consumer and Community Protection in the Financial Services Sector.

The impact of audit on IT governance: A study of the financial services sector in Ghana

AbstractIn recent years, IT governance has been a subject of discussion among academics and practitioners. The concern has been on the need to implement governance mechanisms and ensure the right balance of these mechanisms. However, the audit of IT governance mechanisms has received very little attention. This paper aims to analyse the overall impact of IT governance audits on the maturity and coherence of governance mechanisms. Guided by the configurational theory, the researchers argue that when governance mechanisms operate coherently and are regularly audited, there will be improvement in IT governance and the performance of financial institutions. In this study, seven financial services companies in Ghana were reviewed, and their IT governance maturity was assessed after seven months of auditing with a COBIT 5‐driven IT audit framework. Two surveys were conducted, one before and one after the auditing. The findings of the study confirm the claim that regular auditing improves IT governance maturity and coherence. Several governance mechanisms within the case organizations improved to one higher level of maturity on the Capability Maturity Model. This improvement was after seven months of auditing. Regular auditing also improved IT roles and responsibilities, empowered IT personnel and improved the IT budgetary control and architecture of the entities. This study has implications for practice. It emphasizes the importance of independent regular IT auditing and the need to ensure coherence among IT governance mechanisms if effective IT governance is to be achieved in financial institutions.

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.

Unveiling asymmetric return spillovers with portfolio implications among Indian stock sectors during Covid-19 pandemic

This paper aims to provide a systematic inquiry into the return spillover dynamics between a network of Indian sectoral indices during the pre- and post-pandemic periods. To analyze the same, this paper uses the asymmetric time-varying parameter vector autoregressions (TVP-VAR) framework. Furthermore, in the spirit of Broadstock et al. (2020), we perform dynamic portfolio exercises based on common hedging techniques and the minimum connectedness portfolio approach to determine what better captures asymmetry. Our daily dataset includes 12 sectoral stocks spanning from January 01, 2017, to May 5, 2023. The findings reveal that negative connectedness dominates throughout the sample period, demonstrating that profit-maximizing agents and risk-averse investors are more likely to react negatively to news. We also show that in the network, the average net transmitters are the banking and other financial service sectors, whereas the net receivers are the information technology, pharmaceutical, and fast-moving consumer goods sectors throughout the period under consideration. Our results show that the minimum connectedness portfolio (MCoP) approach is a very useful method based on Sharpe ratios, as it is either the first or second most profitable among these three competing methods. These results, therefore, yield valuable insights for policymakers and investors

The effect of service concept on customer acquisition: the moderating role of manager’s experience on Savings and Credit Cooperative Societies in Tanzania

PurposeThis study aims to investigate the influence of the service concept on customer acquisition and when the relationship is moderated with manager’s experience in Savings and Credit Cooperative Societies (SACCOS) within Dar es Salaam City, Tanzania.Design/methodology/approachThe study adopts a cross-sectional research design and utilizes simple random sampling to select 226 respondents, all of whom are managers of SACCOS in Tanzania. Data were collected through a questionnaire and analyzed using a partial least square structural equation modeling (PLS-SEM).FindingsThe findings indicate that service concept have a highly statistically significant impact on customer acquisition, with a p-value of less than 0.05. Conversely, managers’ experience also influences customer acquisition by the p-value of less than 0.05. The result also confirms the significance influence of positive moderating effect of manager’s experience on the relationship between service concept and customer acquisition, with a p-value of less than 0.05, therefore it shows that manager’s experience facilitate the influence of service concept to customer acquisition.Practical implicationsThe findings of this study provide valuable insights for SACCOS aiming to thrive and attract more customers. By understanding the nuances of service concepts, these institutions can refine their strategies for customer acquisition effectively.Originality/valueThe study’s insights into the composite effect of service concepts hold significance for SACCOS seeking to enhance their customer acquisition strategies enhanced by manager’s experience. These findings contribute new perspectives to the SACCOS and other related financial services sector, offering fresh insights into innovation and customer-centric approaches.

Digital Transformation in Financial Services and FinTech: Trends, Innovations and Emerging Technologies

Purpose: This research investigates the transformative impact of digital innovations within the financial services sector, particularly focusing on the evolution of digital banking and FinTech. The study aims to explore how digital banking products are being developed to enhance financial literacy and promote financial inclusion across diverse populations. Methodology: The research employs a comprehensive analysis of current trends and technologies, utilizing case studies and data-driven insights to assess the role of blockchain, artificial intelligence (AI), and machine learning in reshaping banking and financial services. The study examines the implications of these technologies on small business loans and wealth distribution. Findings: The findings reveal significant advancements in digital banking products, highlighting the increased accessibility and efficiency provided by these innovations. Emerging technologies have facilitated improved financial literacy and inclusion, particularly by enabling more accurate credit assessments and democratizing access to financial resources. The study underscores the pivotal role of AI in enhancing customer service through personalized experiences and predictive analytics. Unique Contribution to Theory, Policy, and Practice: This research makes a substantial contribution to academic theory by expanding the understanding of digital transformation in financial services. It provides critical insights for policymakers, emphasizing the importance of integrating technological advancements to foster financial inclusion and economic growth. Practically, the study offers strategic guidance for financial institutions seeking to implement innovative solutions, thereby improving service delivery and competitiveness in the evolving financial landscape. The research underscores the necessity for ongoing adaptation and investment in emerging technologies to meet the dynamic needs of consumers and businesses.

Impact of Technological Progress on Consumer Trust and Adoption of E-Banking

Abstract: In this research paper, I have thoroughly described the topic “Impact of Technological Progress on Consumer Trust and Adoption of E-Banking”. The financial services sector has seen a transformation due to the advent of technology improvements, especially with the increasing use of electronic banking, or e-banking. Traditional banking methods have been transformed by the advancement of digital technology, which has made it easier to create complex financial systems and services that are available via a variety of electronic devices. But even as these developments provide potential, a serious worry emerges about the complex relationship that exists between e-banking adoption, customer trust, and technical improvement. Building effective banking relationships requires a lot of trust, particularly in the digital sphere where fraud, privacy, and data security are major problems. The increasing dependence of customers on e-banking for financial operations necessitates a high degree of trust between the technology and the organizations providing these services. However, customer opinions of security, dependability, usability, and overall value are just as important in determining whether or not e-banking is adopted as a banking option as technical developments. To create an environment that is favorable for digital financial services, financial institutions and regulators need to understand the subtleties of customer trust and how it affects the adoption of e-banking in the context of technical improvements. In order to shed light on the opportunities, problems, and consequences in the rapidly changing field of digital finance, this paper will examine the complex relationship that exists between technological advancement, consumer confidence, and acceptance of e-banking. The abstract emphasizes the symbiotic link between trust and adoption, indicating that as trust in e-banking services grows, so does the adoption rate, underscoring the importance of technology innovation in reshaping the banking landscape.

Developing a robust security framework for inter-bank data transfer systems in the financial service sector

This paper explores the critical need for a robust security framework in inter-bank data transfer systems within the financial services sector. It reviews current security measures, identifies key vulnerabilities, and examines existing standards and protocols such as SWIFT and ISO 20022. Major security threats, including cyber-attacks and insider risks, are analyzed alongside technological, operational, and regulatory challenges. The impact of emerging technologies like blockchain and AI on security is discussed. Recommendations are provided for financial institutions to enhance security practices and for regulators to strengthen policy frameworks. The paper also highlights future research directions to address evolving security challenges in the financial sector.

Unravelling the CSR-financial distress link: The mediating role of capital structure in Jordan’s financial sector

This study investigates the relationship between corporate social responsibility (CSR), capital structure, and financial distress in Jordan’s financial services sector. It tests the mediating effect of capital structure on the CSR-distress linkage. Utilizing a panel data regression approach, the analysis examines a sample of 35 Jordanian banks and insurance firms from 2015–2020. CSR is evaluated through content analysis of sustainability disclosures. Financial distress is measured using Altman’s Z-score model. The findings reveal an insignificant association between aggregated CSR engagement and bankruptcy risk. However, capital structure significantly mediates the impact of CSR on financial distress. Specifically, enhanced CSR enables higher leverage capacity, subsequently escalating distress risk. The results advance academic literature on the nuanced pathways linking CSR to financial vulnerability. For practitioners, optimally balancing CSR and financial sustainability is recommended to strengthen resilience. This study provides novel empirical evidence on the contingent nature of CSR financial impacts within Jordan’s understudied financial services sector. The conclusions offer timely insights to inform policies aimed at achieving sustainable and stable financial sector development.

Cluster-based Systematic Literature Review: Understanding FinTech Adoption and Challenges

The FinTech market globally is emerging as an alternative to the traditional cash-driven economy. Although most of the population has adapted to the innovation that has taken place in the financial services sector, a substantial proportion of the population remains unbanked. It has a shallow awareness of the financial products and services available. Banks, financial service providers, investment advisers and business houses are attempting to adopt new technologies in collaboration with FinTech companies. Understanding consumer adoption and their experience of new technologies can help FinTech service providers integrate ideas and deliver seamless offerings. This article employs a systematic literature review of a total of 111 publications from 2016 to 2023 on the consumer adoption/acceptance of FinTech products and services. It identifies seven research clusters from the extant literature to note the trends in adoption and enlist the challenges faced by the usage of FinTech along with emerging trends in attention. The study used VOSviewer to provide the results of keyword analysis, world distribution and linkages of selected publications. The article explored the acceptance and reception of financial innovation in the past eight years as per the identified clusters which was shown by the increase in the number of publication’s chart. It also contributes to the field by mentioning the benefits that have been reaped across industries and sectors with the adoption of FinTech by discussing the participation of authors in various clusters in detail.