Financial Services Research Articles

Financial Literacy in India

The Financial literacy is very important and plays a crucial role in individuals economic well-being and overall societal development. Financial Literacy is also important to learn money management. This research paper aims to provide a comprehensive analysis and information of the current state of financial literacy in India. This paper explores various terms and factors which influencing financial literacy levels, such as education, income, money management. It covers the why India need financial literacy into different areas. This research paper investigates the critical role of financial literacy in India. By examining the current state of financial literacy among Indian citizens, the study explores its impact on personal finance decisions, economic well-being, and overall quality of life. The paper analyzes the factors influencing financial literacy levels, including education, income, and access to financial services. Furthermore, it discusses the challenges and opportunities in promoting financial literacy in India and proposes recommendations for policymakers, educators, and financial institutions to enhance financial education

Migration experience and risky financial assets investments of county households: evidence from China

Enhancing the support for inclusive finance in county economies is crucial in achieving the strategic goal of building financial power. Drawing upon the theoretical lens of county-level inclusive financial accessibility, this study examines the effect of the migration experience (ME) of county socialites on their risky financial assets investment (FAI) and the underlying mechanisms. We utilize data sourced from the County Consumption Survey, a nationwide effort by the Department of Sociology of Tsinghua University and the 58 Tongzhen Research Group. Our findings reveal that the ME of county socialites significantly boosts their likelihood of engaging in financial markets. Furthermore, housing inequality factors, such as housing property rights and housing loans, play a moderating role in the impact of individual ME on their FAI. Additionally, the financial concept has a masking effect rather than a mediating effect on the path of the ME affecting FAI. Notably, the promotion effect of ME displays heterogeneity. Specifically, ME has a stronger positive effect on FAI among college-educated groups, members of the Communist Party of China (CPC), and urban hukou residents than on those who have not completed college education, non-CPC members and rural hukou households. In light of these findings, we propose policy recommendations to optimize the distribution of financial services, adjust the housing equality policy, and enhance inclusive financial literacy.

MODERN TRANSFORMATIONS OF NATIONAL ECONOMIES IN RESPONSE TO THE GLOBALIZATION OF FINANCE AND CREDIT

The study's relevance is determined by the fact that the global economy is a chaotic system composed of millions of interconnected elements (economies of individual countries). In this context, it is emphasized that each national economy experiences periods of growth and decline. These cycles have an irregular nature and can be triggered by intermittenсies in the finance and credit sectors in globalized economies, specifically phenomena of sudden, unpredictable surges in activity or volatility that cause their transformation, while in periods of relative stability, they ensure their sustainability. Thus, the article's aim is a comprehensive analysis of typical transformations of national economies as a response to the globalization of the finance and credit. The study emphasizes that the globalization of the finance and credit creates a highly dynamic and complex environment where the economies of various countries are closely interconnected. As a result of globalization, financial crises, technological innovations, and geopolitical events can rapidly spread across the globe, triggering significant changes in the economies of different nations. These processes are quite chaotic, but they exhibit certain recurring patterns. The transformations of national economies, driven by core intermittent events, manifest in the liberalization of financial markets, the development of financial innovations, the strengthening of central banks, and the reinforcement of international cooperation. Most countries have liberalized their financial markets by lowering barriers for foreign investors and expanding access to financial services. National economies are actively developing financial innovations such as fintech, blockchain, and cryptocurrencies to adapt to the new conditions of global competition. Central banks are playing an increasingly important role in stabilizing financial systems and mitigating the effects of financial crises. Countries are collaborating internationally to develop common rules and standards in the financial and credit sectors, aiming to minimize the risks of global financial crises. The transformations of national economies affect developed and developing countries, bringing about positive and negative consequences.

Pengaruh Financial Teknologi, Pengelolaan Keuangan dan Modal Sosial Terhadap Kinerja UMKM di Sentral Grosir Cikarang (SGC)

The study aimed to analyse the impact of financial technology, financial management, and social capital on SME performance. Several factors influence SME performance, including internal funding and external factors. Issues to address include underutilisation of financial technology, ineffective financial management, and lack of utilisation of social capital. This quantitative study collected data via a questionnaire from 60 SME operators using purposive sampling. Data analysis employed multiple linear regression assisted by SPSS. Findings revealed that financial technology, financial management, and social capital positively influence SME performance. This is due to the effective utilisation of technological advancements in business operations significantly enhancing SME performance. Improved financial management enables SMEs to seek funds selectively and use them efficiently. Similarly, building social capital facilitates SME operators' adaptation to their business environment, thereby enhancing SME performance. Recommendations for future research include expanding the scope of study variables, and SMEs should maintain and enhance the factors of financial technology, financial management, and social capital influencing SME performance. With financial technology, SMEs can access financial services more easily, utilise financial management for better record-keeping and calculation, and build social capital to develop their businesses.

Pengaruh Inklusi Keuangan dan Pengelolaan Keuangan Terhadap Kinerja UMKM di Desa Rengasdengklok Utara

This study aims to analyse the impact of financial inclusion and financial management on SMEs. Financial inclusion refers to SMEs' access to financial services, while financial management encompasses the practices of managing funds and the effective use of capital. The unit of analysis for this research is SMEs in the village of Rengasdengklok Utara, with data collection conducted through the distribution of questionnaires. A sample of 65 respondents was targeted, but data was obtained from 58 respondents, with sampling conducted using purposive sampling technique. The analysis technique used is multiple linear regression analysis, which is a statistical method to determine the relationship between dependent and independent variables. This is because improved financial inclusion and financial management can enhance the overall performance of SMEs; financial inclusion provides financial access to business actors, while effective financial management can optimise the use of funds, thus these two factors can improve SME performance. For future researchers conducting similar studies, it is suggested that the sample size be larger and the data distribution more extensive. Furthermore, it is recommended to investigate variables such as social capital, financial technology, and more, to identify other factors that may influence SME performance..

Knowing When to Step Down as a Leader

This article explores when it is appropriate for leaders to consider stepping down from their roles and passing the torch to new leadership. It examines signs that it may be time to transition based on research on leadership fatigue, stagnating vision, and succession planning. Specific factors discussed include declining health and enthusiasm from prolonged stress, an inability to drive innovative strategies, and having a capable successor prepared to take over. The article then outlines practical signs for leaders in industries like financial services, healthcare, technology, and non-profits that a transition should be considered. It provides examples of Microsoft CEO Satya Nadella and OWN founder Oprah Winfrey effectively navigating leadership successions. Finally, the article emphasizes the importance of succession planning, identifying the right time for an orderly transition, and ensuring the smooth handoff of leadership responsibilities to allow organizations to continue thriving under new vision and perspectives.

Space cybersecurity challenges, mitigation techniques, anticipated readiness, and future directions

Space Cybersecurity (SC) is becoming critical due to the essential role of space in global critical infrastructure – enabling communication, safe air travel, maritime trade, weather monitoring, environmental surveillance, financial services, and defence systems. Simultaneously, involving diverse stakeholders in space operations further amplifies this criticality. Similarly, previous research has identified isolated vulnerabilities in SC and proposed individual solutions to mitigate them. While such studies have provided useful insights, they do not offer a comprehensive analysis of space cyber-attack vectors and a critical evaluation of the effectiveness of mitigation strategies. This study addresses this problem by holistically examining the scope of potential space cyber-attack vectors, encompassing the ground, space, user, cloud, communication channels, and supply chain segments. Furthermore, the study evaluates the effectiveness of legacy security controls and frameworks and outlines SC-vector-aligned counterstrategies and mitigation techniques to tackle the unique SC threats. Based on the analysis, the study proposes future research directions to develop and test advanced technological solutions and regulatory and operational frameworks to establish international standards policies and foster stakeholder collaboration. The study contributes a multi-disciplinary foundation and roadmap that researchers, technology developers, and decision-makers can draw on in shaping a robust and sustainable SC framework.

Can improving the business environment narrow the within-firm pay gap? Evidence from data on 233 Chinese cities

This paper investigates the impact of the business environment (BE) on the within-firm pay gap (WFPG) by using data on listed firms from 233 cities in China. The main finding is that a better BE reduces the WFPG between management and regular employees. After a series of endogeneity treatments and robustness tests, this conclusion remains unchanged. The results of mechanism analysis suggest that intensifying market competition and the alleviating agency problems are two important channels for this effect. Heterogeneity tests indicate a stronger effect for non-state owned enterprises, firms with worse governance, and firms in noncompetitive industries. Additional analysis indicates that human resources, the innovation environment, and financial services are the main factors through which the BE affects the WFPG. This paper provides empirical insights for practical application.

Effect Of Consumer Education By Consumer Federation Of Kenya On Consumer Protection In Commercial Banks Of Kenya

Background: In many jurisdictions, consumer protection law has not been enacted despite the financial services industry's development. This means that in order to boost client confidence and promote the adoption of innovative products, financial services clients must have access to fundamental protections. The prevalence of uninformed customers who rely on financial institutions for their information has led to a rise in the misuse of consumer confidence. Abuse by banks and its marketers, such as imposing exorbitant charges on clients' accounts without providing formal advice, is becoming more widespread. The purpose of the study was to ascertain the measures taken by the Consumer Federation of Kenya to ensure adequate access to information by Kenyan commercial banks customers in an effort to ensure their protection. approach was taken to get in touch with the COFEK staff. Methodology: Questionnaires were utilized in the study to collect data. Both inferential and descriptive statistics were used to analyze the data. Version 22 of the Statistical Package for Social Sciences (SPSS) was employed. Frequency tables, percentages, and relevant statistical descriptions were used to display the data. Results: Most of the respondents were fairly aware of the consumer education activities carried out by the protection agency in commercial banks. Consumer education had a significant coefficient (p-value = 0.0001; β = 0.469) according to the data analysis. Consumer education is statistically significant in ensuring consumer protection. Conclusion: COFEK should enhance the sensitization programs put in place for clients with a view of making them more informed. Public drives to raise the awareness levels should be carried out.

Inklusi Keuangan dan Efektifitas Kebijakan Moneter : Studi Kasus Negara Indonesia dan Malaysia

Financial inclusion, defined as access and use of formal financial products and services by individuals and companies, has become a major focus in Indonesia and Malaysia in recent years. Authorities in both countries have implemented various policies and programs to increase financial inclusion, hoping to provide economic benefits, namely reducing inflation. The aim of this research is to analyze the influence of financial inclusion, exchange rates, interest rates, broad money, and GDP on inflation in Indonesia and Malaysia. The data used in this research is secondary data ranging from the period 2013Q1 to 2022Q4. The analytical method used in this research is the Vector Error Correction Model (VECM). The conclusion of this research states that the financial inclusion variable has a negative influence on inflation in Indonesia with a VD contribution at the end of the period of 29.37%, while in Malaysia Financial Inclusion has a positive influence on inflation with a VD contribution at the end of the period of 11.22% . The exchange rate negatively influences inflation in Indonesia and Malaysia with VD contributions at the end of the period of 1.28% and 3.87% respectively. Interest rates have a negative influence on inflation in Indonesia with a VD contribution at the end of the period of 1.71%, while in Malaysia interest rates have a positive influence on inflation with a VD contribution at the end of the period of 13.19%. Broad Money positively influences inflation in Indonesia and Malaysia with VD contributions at the end of the period of 2.27% and 2.57% respectively. GDP has a positive influence on inflation in Indonesia with a VD contribution at the end of the period of 22.01%, while in Malaysia GDP has a negative influence on inflation with a VD contribution at the end of the period of 45.39%.

Public Service Equalization, Digital Financial inclusion and the Rural Revitalization: Evidence from Chinese 283 prefecture-level cities

While China has made significant strides in poverty alleviation, the persistent urban-rural divide poses challenges for sustainable development. Previous studies have explored various factors influencing rural revitalization, yet the interplay between public service equalization, digital financial inclusion, and rural development remains understudied. This research investigates how public service equalization impacts rural revitalization in China and examines the moderating role of digital financial inclusion. Using panel data from 283 prefecture-level cities from 2011 to 2021, we employ a fixed-effects model and conduct robustness checks including endogeneity tests and alternative specifications. Our findings reveal that public service equalization positively influences rural revitalization, with both accessibility and beneficiality dimensions playing crucial roles. Importantly, digital financial inclusion enhances this positive impact, suggesting a synergistic effect. These results underscore the need for a holistic approach integrating public service provision and digital financial services to promote inclusive growth in rural China. By elucidating the mechanisms through which these factors interact, our study contributes to the broader literature on rural development and offers policymakers valuable insights for designing effective rural revitalization strategies.

How to Promote Data Sharing of Financial Service Providers Based on Federated Learning Technology

Data sharing between financial service providers (FSPs) can promote the reduction of financial risks, but the reality is that the FSPs may be unwilling to share data with each other due to data security problems. The emergence of federated data technology provides a convenient way to address this issue. In this article, the author proposes using a federated data sharing model for FSPs and two dynamic evolutionary games for evaluating influencing factors. Cooperation results when both FSPs reach a certain level of mutual payoff. The reward and punishment mechanisms are important means by which FSPs actively implement real data sharing. The interaction between the FSP and the federated technology service provider (FTSP) demonstrates the practicality of this new technology. The results show that the data sharing improved the data trust and supported regulatory mechanisms.

Effective financial inclusion and the need to put the horse before the cart: Saving!

The financial inclusion paradigm is increasingly considered a veritable development model. Therefore, we argue that a deeper understanding of it is necessary for enabling policies and strategies that would yield positive development outcomes (successful financial inclusion). We explore this argument by first, defining “effective financial inclusion” along the lines of identifiable population groups that are often financially excluded from mainstream financial services; and second, by hypothesizing that large national savings pools are a crucial prerequisite for effective financial inclusion. Furthermore, we posit that if effective, financial inclusion should enhance economic welfare, thus engendering “successful financial inclusion.” We evaluate these hypotheses by using a battery of econometric techniques, and document robust supportive findings. Moreover, we evolve first-of-its-kind robust definition of financial inclusion and provide unambiguous evidence that would guide governments and other stakeholders on how to leverage financial inclusion, as a development model, more productively. Importantly, we highlight the primacy of large savings pools for effective financial inclusion.

Financial development, electronic payments, and residents' consumption: Evidence from Rural China

The development of rural finance, by providing convenient credit, introducing modern financial services, and improving electronic payment systems, addresses the financial needs of rural residents, fosters the growth of rural industries, and improves the quality of life. This study utilizes provincial panel data from China covering the period 2011 to 2021 to examine the impact of rural financial development on the consumption levels of rural residents. The findings indicate that rural financial development exerts a significant positive influence on rural consumption, with rural electronic payments serving as a transmission mechanism in this relationship. A heterogeneity analysis further reveals that the effect of rural financial development on consumption levels differs according to the level of digital financial inclusion. Specifically, the positive impact is more pronounced in provinces with higher levels of digital financial inclusion compared to those with lower levels.

Digital inclusive finance and the resilience of households involved in financial markets

This paper develops a multidimensional framework composed of resistance ability, recovery ability and transition ability to measure the resilience of households involved in financial markets, and then discusses the impact of digital inclusive finance. Taking Chinese households holding financial assets as the research sample, we unveil that the majority of households display low financial resilience and there are great differences among them. We also discover that the development of digital inclusive finance has positive influence on household financial resilience, and the use of online financial services has a mediating effect.

Bridging India's Financial Divide: The Power of Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are transforming India's financial sector, enhancing decision-making, risk assessment, and personalized services. They extend financial services to underserved populations through scalable solutions like digital lending and mobile banking, fostering financial inclusion and bridging urban-rural gaps. Notable progress has been made through initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which opened over 53 crore accounts by August 2024. However, challenges such as low literacy rates, inadequate digital infrastructure, and a large informal economy persist. AI and ML address financial inclusion gaps by automating KYC processes and improving onboarding through facial recognition and identity verification. Initiatives like Aadhaar provide digital identities, enhancing access to banking. ML algorithms expand financial access by analyzing alternative data for credit scoring. Companies like Lenddo and Tala leverage ML for loans, and AI revolutionizes fraud detection by analyzing transaction data in real-time. AI integration with digital payment platforms like UPI has transformed India's financial ecosystem, processing over 15 billion transactions monthly by August 2024 (NPCI). AI-driven micro-lending platforms like Capital Float and Aye Finance address a $380 billion credit gap (BCG) by assessing creditworthiness using alternative data. AI-driven chatbots and financial products tailored to rural customers improve financial literacy and services. In agricultural finance, AI introduces lending models and enhances crop insurance through satellite data and weather patterns. Programs like PMFBY and companies like Skymet use AI for faster claims processing. AI-driven solutions in RegTech simplify compliance and improve fraud detection. Fintech collaborations and government initiatives like IndiaStack, Aadhaar, and DigiLocker promote financial inclusion. Overcoming barriers like infrastructure challenges, data privacy concerns, and AI bias is essential for leveraging AI to provide equitable financial services in India. The constructive interaction between AI and blockchain further enhances financial inclusion, creating a secure, transparent ecosystem that drives economic growth and social well-being.

LEGAL PROTECTION TOWARDS PUBLIC COMPANIES FROM BANKRUPTCY

<p>Law Number 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligations (UU KPKPU) only requires the provision that a Bankruptcy/PKPU application to be submitted by one creditor, and that it can be proven that the public company has at least two creditors, one of which is past due. Financial Services Authority (OJK) has the authority to regulate and supervise activities in the capital market field or sector carried out by public companies. OJK should be responsible for providing legal protection for public companies that submit applications for bankruptcy. The research method used is a normative legal research method. The results of this research confirm that Article 55 paragraph (1) of the OJK Law and Article 8 paragraph 4 of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law) are the legal basis or legal protection that gives the authority to the Financial Services Authority to carry out regulation and supervision of financial services activities in the capital markets sector, where financial services activities in the capital markets sector are also carried out by public companies. There must be rules that are made firmly and explicitly so that the OJK is given responsibility, function and authority in protecting public companies from bankruptcy by carrying out insolvency tests. This means that before a public company is submitted for bankruptcy, the OJK must first carry out an insolvency test to determine whether the public company is in a state of insolvency or is actually in a state of solvency. If the results state that the public company is indeed insolvent, then the OJK must provide a product stating either in the form of a cover letter or a certificate that the public company is suitable for the debtor to submit a bankruptcy petition.</p>

Managing Inclusion and Financial Education for Sustainable Development

Objective: The objective of this study is to analyze the importance of effective management of financial inclusion and education in the context of sustainable development, highlighting its impact on the achievement of the SDGs. It also aims to identify the main challenges faced by vulnerable populations in accessing financial services and propose comprehensive strategies to improve financial literacy and accessibility, contributing to a more inclusive and equitable society. Theoretical Framework: For this research we have several relevant approaches and theories such as: financial inclusion theory; its relationship with the SDGs; financial education theory, as well as inclusion and sustainable development. Method: The methodology adopted for this research comprises a qualitative approach, based on the review of documents, public policies and government programs on financial inclusion and education to assess their effectiveness with respect to the SDGs. Data from the World Bank's Data Dashboard (The Global Findex Database, 2024) was analyzed using content analysis, which allowed identifying key themes and gaining a deeper understanding of the perceptions and experiences related to the evaluated programs.. Results and Discussion:The results obtained revealed that, although there is progress in financial inclusion in Mexico, there are still areas of opportunity to improve access to and use of financial services, especially among the most vulnerable segments of the population. It is necessary to highlight the need to continue working on the promotion of financial inclusion in Mexico and in other regions, through public policies that promote financial education, technological innovation, and collaboration between the public and private sectors. Research Implications: The practical implications of this research include the improvement of public policies and programs focused on financial inclusion and education, promoting more equitable access to financial services in vulnerable populations. At a theoretical level, the study provides a deeper understanding of the relationship between financial management and sustainable development, offering a conceptual framework that links financial inclusion with the SDGs. This strengthens the academic analysis on how financial education can drive inclusive economic growth. Originality/Value: The originality and value of this research lies in its focus on the direct relationship between financial inclusion and financial education with the SDGs, an area underdeveloped in the literature. The research offers a new perspective by assessing how financial education can be a key tool for achieving equitable and sustainable development. Its contribution to the literature is in providing a detailed analysis of public policies and government programs, highlighting their effectiveness and identifying areas for improvement, which brings a comprehensive and updated approach to the study of financial inclusion.

The impact of digital finance on financial inclusion in Zimbabwe

This study looks at how digital finance affects financial inclusion in Zimbabwe. There has been a noticeable change in Zimbabwe's financial services sector with the introduction of digital technology, especially mobile money and digital banking services. The present study investigates the ways in which digital finance initiatives have facilitated the expansion of financial services accessibility, the advancement of financial literacy, and the promotion of economic empowerment among marginalised communities in Zimbabwe. This study offers insights into the potential obstacles related to digital finance in achieving financial inclusion objectives in Zimbabwe through an extensive analysis of current research and empirical data.

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.