Financial Services Sector Research Articles

Effects of compensation, informal organization, and commitment on employee retention and productivity in selected banks Ashanti Region, Ghana: The moderating role of job satisfaction

In the new global economy, employee productivity has become a central issue of study. The financial services sector in Ghana has garnered significant attention in recent years. Given the growing inefficiencies in the Ghanaian banking industry, which has resulted in the revocation of operational licenses for some banks, this study aims to examine the impact of compensation, informal organization, and commitment on employee retention and productivity. Additionally, the study seeks to explore the moderating role of job satisfaction in selected private and public banks in the Ashanti region. The study utilized a quantitative research approach, sampling 270 respondents from the selected public and private banks in the Ashanti Region using a simple random sampling technique. For data analysis, the study employed multiple linear regression and utilized the PROCESS MACRO for SPSS version 25. The findings indicate that compensation, commitment, and informal organization exert a positive influence on employee retention, thereby affecting productivity. Furthermore, the study revealed that job satisfaction significantly moderates the relationship between compensation and employee retention, but it does not significantly moderate the relationship between informal organization and employee retention. Similarly, job satisfaction does not significantly moderate the relationship between commitment and employee retention.

OPTIMIZING SQL DATABASES FORBIG DATA WORKLOADS: TECHNIQUES AND BEST PRACTICES

In the era of big data, SQL databases face significant challenges in handling vast volumes of data efficiently. This article explores optimization techniques and best practices for enhancing the performance and scalability of SQL databases in handling big data workloads. The study addresses the significant challenges faced by traditional SQL databases, including scalability issues, performance bottlenecks, resource constraints, and data integration complexities. Through a comprehensive methodology involving literature review, case studies, expert interviews, and performance testing, the research identifies effective strategies such as indexing, partitioning, sharding, and caching. Findings from case studies in e-commerce and financial services sectors demonstrate substantial improvements in query performance and resource utilization, validating the practical benefits of these optimization techniques. The study underscores the importance of a multifaceted approach to database optimization, integrating both theoretical and practical insights to address the complexities of big data environments. By staying informed and adopting the latest optimization strategies, database administrators and IT professionals can ensure their SQL databases remain efficient, scalable, and capable of managing the increasing demands of large-scale data processing, ultimately enabling organizations to derive valuable insights from their data.

Integrating artificial intelligence in financial services: Enhancements, applications, and future directions

The incorporation of Artificial Intelligence (AI) into the financial services sector has catalyzed profound transformations, significantly enhancing the accuracy, efficiency, and capabilities of financial operations. This paper meticulously examines the pivotal role of AI in revolutionizing risk assessment processes through advanced deep learning and machine learning techniques. These methodologies harness extensive and diverse datasets, which include both traditional financial indicators and non-traditional sources like social media activities, to provide a more nuanced and comprehensive analysis of risk. Additionally, the paper emphasizes the critical role of AI in personalizing customer experiences and elevating fraud detection mechanisms to levels of unprecedented precision. Through detailed quantitative analyses and illustrative case studies, this study assesses the impact of AI on operational efficiency and decision-making accuracy within financial institutions. It explores advanced AI techniquesdeep learning, reinforcement learning, and natural language processingand their significant implications for financial forecasting, algorithmic trading, and regulatory compliance. By integrating empirical evidence with theoretical insights, this paper offers a thorough understanding of AI's transformative influence on the financial sector, highlighting potential future innovations that may redefine industry standards and enhance operational methodologies. This comprehensive examination not only illuminates the current benefits and applications of AI in financial services but also projects its future trajectories in reshaping the financial landscape.

An abundance of caution for a ‘stagnation nation’? Financial services policy development in post-growth Britain

This commentary discusses the relationship between the UK Labour Party and the financial services sector in the context of an approach to economic policy and growth. It highlights the historical scepticism of the Labour Party towards financial services, rooted in ideology and practical experience alongside a recognition of the need to engage with the sector to promote economic growth and investment. The Labour Party’s evolving stance towards financial services is outlined, which has oscillated between support in the 1990s and early 2000s, to a more critical view in the 2010s, with a more recent return to advocacy. The commentary draws attention to a tension in the party’s encouragement of an industry that can provide economic growth at home, while at the same time being wary of developing policies designed to provide necessary growth in other areas, such as in green technologies, but that might incur the disapproval of global financial investors. Labour’s dilemmas are illustrative of the contemporary problems of policy formation in a relatively small but open economy, where options to promote growth and green investment are constrained in the face of the disciplinary power of global financial capital.

Footloose and fancy-free in FinTech? Internationalization strategies of born regional and born global firms in the European financial service sector

AbstractDue to economic globalization and technological advancements, businesses are increasingly required to navigate complex international markets. One type of firm that has emerged in response to these trends is the born global, which initiates foreign activities almost from the very start. While these startups expand their reach by pursuing pro-active internationalization strategies, it is unclear whether startups creating the FinTech revolution also belong to this category. This study investigates five key components of the internationalization strategies of European FinTech startups: the speed and scope of internationalization, the drivers of internationalization, international market selection, the mode of market entry, and the challenges involved in internationalization. While born globals use a systematic approach to international market selection and entry, European FinTechs use a quasi-systematic and opportunistic approach to searching and seizing their geographical markets. Their common approach includes quickly going beyond their home base to adjacent markets, followed by gradual experimentation and substantive growth in their home region, and becoming born-regional firms (with some evolving into born-global firms later).

Considerations of Religion and Situational Factors, Internal Control on the Occurrency of Fraud Trends: An Experimental Study of the Financial Services Sector in Indonesia

Financial statement fraud does not only occur in the private sector but can also occur in the government sector in the form of material misrepresentation of financial statements to cover up the actual financial condition by carrying out financial engineering. This study aims to examine religious considerations and situational factors, namely pressure or directives from superiors and internal controls against committing fraud tendencies. Literature reveals that religion plays a dominant role in shaping employees' values in their work. This study used an experimental method on 33 financial institution employees divided into two sessions to see the impact of scenarios. The analysis technique using Analysis of Variances (ANOVA) is used to perform multivariable comparative analysis. The results of empirical testing show that internal control factors have a negative influence on fraudulent behavior, and pressure factors or superior directions have a positive effect on the tendency to commit fraud. Meanwhile, religious considerations have less influence on fraud tendencies.

Perlindungan Hukum Jasa Keuangan Fintech Dalam Perkembangan Ekonomi Di Indonesia Pada Era Indusri 4.0

The Fintech-based financial services sector in Indonesia shows developments that are in line with regional and global sector dynamics. This development plays an important role in accelerating national economic growth, where the financial services sector functions optimally to maintain the smooth running of the financial system. This system is the foundation for sustainable development, supports community financial independence, and improves the distribution of development. This study uses a normative juridical approach with descriptive analysis. The data was analyzed qualitatively and juridically. The research results show that regulations in the financial services sector are developing rapidly due to demands from regional and global changes. One of the main challenges faced is the ASEAN Banking Integration Framework (ABIF). Legal developments in this sector can be seen in regulatory changes in institutions, services, products, and dispute resolution. Legal reform is still needed to provide a strong legal basis for the financial services sector, especially in civil and banking law. This reform aims to adapt regulations to the latest developments and ensure the stability and reliability of the financial services sector in the future.

Do institutional environment and corporate governance structures determine Islamic Banks’ sustainability performance? Evidence across key jurisdictions in Islamic finance industry

This study examines the impact of the institutional environment and corporate governance structures on Islamic banks' sustainability performance (SP). It applies a two-step System Generalized Method of Moments (GMM) estimator to analyze data gathered on a panel of 32 Islamic banks drawn from nine key Islamic finance jurisdictions from 2016 to 2021. To consistently code and quantify the Islamic banks' SP, we use the Specific Standard Disclosures for the Financial Services Sector introduced by the GRI as a framework of reference. Then, we employ the weighted content analysis method on the sustainability and annual reports of the subjected sample. Our findings indicate that the institutional factors specifically, regulatory guidelines (regulatory isomorphism) and the adherence of Islamic banks to the sustainable finance networks' specifications (normative isomorphism) are not currently determinants of their SP. Contrarily, we observe that the establishment of a sustainability committee and a better experience of sustainability disclosure improve Islamic banks' SP. In contrast to agency theory, board activity is identified to have a significantly negative relationship with SP. An important policy implication of our results is that policymakers should closely monitor Islamic banks' regulatory dependency and enhance their SF ecosystem to positively influence their SP. Finally, future research may leverage on more conducive regulatory frameworks to sustainability transition in these key jurisdictions, more effective normative structures, further disclosure of sustainability committee characteristics, the development of appropriate measures of Islamic banks' digitalization levels, and the availability of more material sustainability data to provide further insights and better understand the determinants of Islamic banks’ SP.

U.S. Central Bank Digital Currency: Benefits and Challenges to Policy Implementation

The next technological disruption in the banking and financial services sector involves the introduction of a central bank digital currency - or a CBDC. What is a CBDC? In the U.S., a CDBC is defined as a digital liability of the U.S. Federal Reserve System that is widely available to the general public. In this article, the benefits of instituting a CBDC in the U.S. will be assessed, followed by the public and private sector challenges of such technology adoption identified and discussed along economic, political, privacy, and security parameters. The final section of the article develops the research agenda, i.e., the questions that need to be addressed in the development of a potential policy framework, charged with ensuring that, if a CBDC is adopted by the U.S. Federal Reserve, there will be an effective public regulation regime implemented that effectively addresses the identified economic, political, privacy, and security concerns.

Beneficiary Ownership in Financial Services Sector Conglomerates in Indonesia

This research aims to explore the implications of beneficiary ownership in financial services sector conglomerates in Indonesia on financial system stability. Because financial services sector conglomerates can obscure the true beneficiaries within the conglomerate in Indonesia. This can pose risks to the financial system. If one financial institution within the conglomerate fails, it can have cascading effects on other institutions within the conglomerate. This can lead to systemic crises, which can harm the overall economy. Therefore, the problem lies in how to uncover the true beneficiaries within a financial services sector conglomerate in Indonesia. This is a normative legal research, prescriptive in nature, employing a legislative and legal comparison approach. Secondary data used includes legislation such as the Limited Liability Company Law, Banking Law, Financial Sector Development and Strengthening Law, as well as the Financial Services Authority Regulation on Financial Conglomerates. Additionally, international journals and legal dictionaries are used as references, supported by empirical data in the form of interviews with the Financial Services Authority. Data is analyzed qualitatively, with conclusions drawn using deductive-inductive reasoning. An individual or legal entity as a primary entity that can control changes in the Articles of Association, Share Ownership Structure, replacement of directors, board of commissioners, control the company's finances, but the individual/legal entity is not listed in the company's articles, then can be categorized as a beneficial owner of a limited liability company. Similarly, in a financial services sector conglomerate existing in Indonesia, it can be proven by finding out who controls the conglomerate.

DIGITAL TRANSFORMATION IN FINANCIAL SERVICES: OVERVIEW OF BEFORE AND AFTER THE PANDEMIC

This research examines the significant impact of digital transformation on the financial services sector, focusing on evolutionary changes that occurred before and during the worldwide pandemic. The core goals are to assess the scope of digital transformation in financial institutions, identify important obstacles and possibilities, and examine the techniques used to manage the changing landscape. Data were gathered from a varied group of financial institutions to ensure a complete picture of the sector. The findings show a large increase in digital use before the pandemic, with the pandemic acting as a catalyst for digital activities. Data-driven methods were critical for improving client experiences, increasing operational efficiency, and resolving cyber security issues. The conversation focuses on the industry's resilience in the face of enormous shocks, highlighting the vital role of technology in crisis management. Significant results include a growth in remote banking services, a greater dependence on artificial intelligence for fraud detection, and the adoption of cloud-based solutions for scalability. These findings illustrate the revolutionary impact of digital technology in altering the financial services industry. This comprehensive overview contributes to our understanding of the dynamic relationship between digital transformation and the financial services sector, providing valuable insights for industry stakeholders, policymakers, and researchers. Key Words: World Pandemic, Operational efficiency, Financial Institutions, Stakeholders, Artificial Intelligence

A Study of Financial Planning on Young Individuals in Delhi NCR

This research paper investigates the significance of financial planning for young individuals in achieving long-term financial security and stability. With the increasing complexity of the financial landscape and the challenges posed by economic uncertainties, effective financial planning is indispensable for the younger generation. The paper examines various strategies and tools available for young individuals to manage their finances prudently, including budgeting, saving, investing, and debt management. Additionally, it explores the role of financial education and literacy in empowering young people to make informed decisions about their finances. Through a comprehensive review of existing literature and case studies, this paper highlights the importance of early financial planning in building wealth, mitigating risks, and achieving financial goals. Furthermore, it discusses the potential barriers and challenges faced by young individuals in implementing financial plans, such as student loans, low income, and lack of knowledge. Finally, the paper offers practical recommendations and actionable insights for young individuals to enhance their financial well-being and lay a strong foundation for a secure financial future. Monetary items function as a venture route, providing the financial supporters with the predefined monetary security and upholding the monetary items' gamble return profile. In the past traditionally, In India, banks (credit and store accounts), the Life Insurance Corporation (LIC), and the Post Office (repeating shop, National Saving Certificate, Kisan Vikas Patra) all displayed financial products. However, in recent times, as the financial services sector has advanced, new financial products have been introduced, including common stocks, shares, subordinates, annuity plans, children's education plans, life and non-extra security plans (Unit Linked Investment Plans, or ULIPs), common assets, and shares. Each person behaves differently when contributing, therefore each has a different predisposition towards speculation. A private person's investment behavior is influenced by his own circumstances. With the presumption of producing yields people invest in a few financial goods with the hope of earning sizable returns over time and with varying degrees of risk. The goal of the current analysis is to examine how salaried individuals speculate about financial goods that are supported by various segment elements.

CSR Disclosure and Bank’s Financial Performance Nexus: Evidence from Pakistan.

Present research intends to evaluate the nexus among the corporate social responsibility (CSR) disclosure and financial effectiveness of banking industry in Pakistan. This investigation applies a quantitative research approach using panel data from a sample of Pakistan’s commercial banking institutions over timeframe limited from 2009 to 2020. The outcomes of mixed effect model visualize that there is inverse significant association among CSR disclosure ROE. Whereas no statistically significant linked in the context of short-term financial performance, by using a proxy of ROA. The results suggesting that the focus on CSR events and initiatives may have a detrimental effect on financial effectiveness. It is generally acknowledged that CSR offers numerous non-financial benefits, such as enhancing social media campaigns and luring ethical investors from both domestic and foreign markets. In developing countries context (i.e., Pakistan), we can conclude that the “cost of the CSR initiatives” and “shift of focus view” can affect the performance of banking industry. The lack of a positive correlation among corporate social responsibility (CSR) and financial performance in the Pakistani financial services sector can be attributed to a lack of interest and engagement in socially conscious investing. These findings indicate that the adoption of socially responsible investment has not gained significant cultural traction in Pakistan. The results emphasize the importance of banks, regulators, and stakeholders reassessing the balance between social responsibility and financial performance, considering the possible negative consequences of revealing CSR initiatives.

Harmonization of Authority in the Investigation of the Financial Services Sector in Indonesia

The rapid growth of the financial services sector in Indonesia demonstrates its strategic role in the national economy. However, harmonizing investigative authorities in this sector poses a challenge that needs to be addressed to maintain stability and public trust. This paper aims to investigate the issue of harmonizing investigative authorities in the Indonesian financial services sector, focusing on regulatory frameworks, case developments, and potential harmonization models. The evolution of investigative authority regulations in the financial services sector is outlined, identifying weaknesses in the system that need to be addressed. Case studies provide a concrete overview of the challenges faced in field investigations. A harmonization model for investigative authorities is proposed as a solution to enhance the effectiveness and efficiency of investigations. Under this harmonization model, OJK investigators are not the sole authority to conduct investigations in the financial services sector, but their authority must be elaborated with that of the POLRI or PPNS investigators as regulated in the Criminal Procedure Code (KUHAP). Article 49 paragraph (5) of Law No. 4 of 2023 concerning Financial Services Sector (P2SK Law), which essentially states that criminal investigations in the financial services sector can only be conducted by OJK investigators through a harmonization model of investigative authority in the financial services sector in Indonesia, should be elaborated so that investigative authority in the financial services sector can be carried out by POLRI or PPNS with the assistance of OJK investigators.

Deep Learning-Powered Financial Product Recommendation System in Banks

With the rapid evolution of financial technology, the recommendation system for financial products, as a crucial technology to enhance user experience and reduce information search costs, is increasingly becoming the focus of the financial services sector. As market competition intensifies, the diversity of user demands, coupled with the continuous expansion of financial product types, has exposed limitations in traditional recommendation systems regarding accuracy and personalized services. Therefore, this study aims to explore the application of deep learning technology in the field of financial product recommendations, aiming to construct a more intelligent and precise financial product recommendation system. The metrics we focus on include precision, recall, and F1-score, comprehensively evaluating the effectiveness of the proposed methods. In terms of methodology, we first employ a Transformer model, leveraging its powerful self-attention mechanism to capture the complex relationships between user behavior sequences and financial product information.

Financial technology FINTEC innovation and disruption

The advent of financial technology (fintech) advances has caused a rapid transformation of the financial industry, causing major disruptions to the traditional banking and finance sectors. In an effort to shed light on how the financial industry is changing, this thesis examines the patterns and ramifications of fintech innovation and disruption. The first section of the paper is a thorough examination of the literature that describes the development of fintech as well as the theoretical underpinnings of disruption and innovation. Through case studies of profitable fintech businesses, it investigates current developments in fintech innovation, such as robo-advisors, blockchain technology, and digital payments. The thesis also examines the disruptive effects of fintech on the financial sector, emphasizing the ways in which fintech is changing the landscape of traditional banking and finance. Additionally, it addresses the regulatory issues raised by fintech. The thesis makes predictions about the direction of fintech based on the data and suggests possible areas for more study. With a summary of the most important findings and their ramifications for researchers, financial institutions, and legislators, it ends by highlighting the necessity of proactive tactics for adjusting to the shifting fintech environment. By adding to the body of knowledge already available on fintech innovation and disruption, this thesis helps academics, business professionals, and policymakers navigate the changing financial world. Through innovation and disruption, financial technology, or fintech, has become a disruptive force in the financial industry, altering traditional banking and finance. This thesis examines how fintech has developed and how it has affected the financial industry, emphasizing trends, obstacles, and stakeholder consequences. This study examines the several ways that fintech is changing the financial services sector, including banking, insurance, and investment management, through an extensive assessment of the literature. With an emphasis on regulatory sandboxes and open banking initiatives, it investigates how regulatory frameworks either support or impede fintech innovation and disruption. This thesis also explores the tactics used by prosperous fintech startups to overthrow established players and increase market share. It also takes into account the dangers and difficulties that come with fintech innovation, like issues with cybersecurity, data protection, and regulatory compliance.

Regulatory Sandbox dan Implementasi pada Inovasi berbasis Financial Technology (Fintech)

Abstract. The development of financial innovation called "Financial Technology" has developed rapidly so far. Disruption to digital finance certainly needs to be regulated in such a way as to minimize risk and stabilize the state financial system. In an effort to regulate this innovation, regulators place limits on digital forms of finance that are widely used by the public. Today's society tends to have an instant, easy lifestyle, and use online transactions. In this era, digital finance is at the top of society, one of the most forms of fintech is application-based lending that brings together lenders and recipients/borrowers in one application. With digital financial innovation getting fast attention from competitors in the business world outside of banks, they tend to take advantage of the community and namely the rise of online loans. One of the efforts to mitigate risk by financial institutions is to issue a Regulatory Sandbox policy through Bank Indonesia Regulation Number PBI No.19/12/PBI/2017 of 2017 concerning the Implementation of Financial Technology and Financial Services Authority Regulation (POJK) Number 13/POJK.02/ 2018 of 2018 concerning Digital Financial Innovation in the Financial Services Sector (POJK 13/2018). This study intends to analyze the extent to which these regulatory issues have represented the needs of agencies and society. This legal research uses empirical legal research methods, which this research relies on applicable laws and regulations as well as other related literature. The results of this research are the ineffectiveness of current regulations among the public and regulators as well as the increasingly complex problems faced by financial institutions, especially in the field of banking.

A Study on the Fintech Penetration in Rural Karnataka

Abstract: In the financial services sector, financial technology, or Fintech, has become a disruptive force, especially when it comes to expanding financial inclusion. In order to comprehend the degree of acceptance, the effect on financial inclusion, and the difficulties encountered, this paper presents a study on the penetration of Fintech services in rural Karnataka, India. The study uses a mixed-methods approach to collect data from important stakeholders, non-users, and Fintech users. The methods include surveys, interviews, and case studies.

Towards Digital Forensic Readiness: A Framework for Financial Service Providers

Digital Forensic Readiness has widely been referred to as an organization’s ability to proactively capture digital evidence and as a result, incur minimum costs of investigation in the event of incidents. However, several organizations still underestimate the usefulness of setting up their environments to be forensically ready until an incident occurs, and this often results in huge losses and costly investigations. Global trends show that financial institutions are amongst the worst-hit companies by cybercriminals, and this is attributed to one of the key motivations for cybercrime, which is financial gain. Kenya’s cybercrime statistics over the past five years also show that financial services remain amongst the top hit sectors by cybercriminals. The aim of this study was to develop a Digital Forensic Readiness framework for Financial Services Providers. To achieve this, the study assessed the relevant existing frameworks to explore their strengths and gaps. Additionally, the study explored the current state of forensic readiness in Kenyan financial institutions by reviewing secondary data and analysing primary data collected from respondents in the financial services sector. The study adopted a descriptive research design with the main data collection tool being questionnaires, which were administered to respondents through an online survey. The collected data was analysed using the SPSS software 28.0.1 and a multiple regression analysis was performed to determine the influence of organizational factors, legal factors, technology, and policies on Digital Forensic Readiness. The outcome of the analysis indicated that these factors indeed had a significant effect on forensic readiness, with organizational factors and policies having more impact on the framework. The study recommended that organizations not only focus on complying with laws and implementing technological controls, but also prioritize improving forensic readiness awareness and culture, supporting forensic readiness activities, setting up training, and enforcing policies to ensure personnel compliance

Financial Technology FINTEC Innovation and Disruption

Abstract: The advent of financial technology (fintech) advances has caused a rapid transformation of the financial industry, causing major disruptions to the traditional banking and finance sectors. In an effort to shed light on how the financial industry is changing, this thesis examines the patterns and ramifications of fintech innovation and disruption. The first section of the paper is a thorough examination of the literature that describes the development of fintech as well as the theoretical underpinnings of disruption and innovation. Through case studies of profitable fintech businesses, it investigates current developments in fintech innovation, such as robo-advisors, blockchain technology, and digital payments. The thesis also examines the disruptive effects of fintech on the financial sector, emphasizing the ways in which fintech is changing the landscape of traditional banking and finance. Additionally, it addresses the regulatory issues raised by fintech. The thesis makes predictions about the direction of fintech based on the data and suggests possible areas for more study. With a summary of the most important findings and their ramifications for researchers, financial institutions, and legislators, it ends by highlighting the necessity of proactive tactics for adjusting to the shifting fintech environment. By adding to the body of knowledge already available on fintech innovation and disruption, this thesis helps academics, business professionals, and policymakers navigate the changing financial world. Through innovation and disruption, financial technology, or fintech, has become a disruptive force in the financial industry, altering traditional banking and finance. This thesis examines how fintech has developed and how it has affected the financial industry, emphasizing trends, obstacles, and stakeholder consequences. This study examines the several ways that fintech is changing the financial services sector, including banking, insurance, and investment management, through an extensive assessment of the literature. With an emphasis on regulatory sandboxes and open banking initiatives, it investigates how regulatory frameworks either support or impede fintech innovation and disruption. This thesis also explores the tactics used by prosperous fintech startups to overthrow established players and increase market share. It also takes into account the dangers and difficulties that come with fintech innovation, like issues with cybersecurity, data protection, and regulatory compliance