Financial Technology Innovation Research Articles

Analyze the Impact of the Digital RMB on International Payments and Financial Structure Based on Literature Review

With the development of network technology and digital economy, the demand for convenience, security, inclusiveness and privacy of retail payment is increasing. Central banks or monetary authorities in many countries and regions are actively exploring ways to digitize fiat money to meet this demand. The Chinese government has decided to introduce digital RMB as a digital form of legal tender to enhance the payment experience, strengthen financial supervision, promote economic transformation and financial technology innovation and application. The introduction of digital RMB helps to reduce the cost and risk of traditional cash flow, promote the upgrading of payment methods and the development of digital economy. Based on the comprehensive and systematic collection, collation and analysis of the relevant literature in the field of digital RMB, this paper explores the impact of digital RMB on international payment and financial structure. The study found that digital RMB has international security as a payment tool, which can promote cross-border transactions and change the global payment system. Digital RMB can enhance international financial security and affect the implementation of financial policies in various countries.

Evaluation of the coordinated development of China’s Forest Resources-Economy-Environment System

Forests provide enormous ecological, economic, and social benefits, as such forest development should be oriented toward resource-economy-environment harmonization. This paper constructs a comprehensive evaluation index system and uses the coupled coordination degree model to measure the coordinated development level of China’s forest resources-economy-environment system. The results show that, across 2006‒2020, the level of coupled coordinated development of China’s forest resources-economy-environment composite system fluctuates in an upward trend, thus gradually developing from an initial imbalance to a high degree of coordination; the level of coordinated development of each subsystem of the forest resources, economy, and environment also shows an upward trend. The factors influencing the coordinated development of the forest resource-economy-environment system are, in order, the government’s financial capacity, market environment, scientific and technological innovation capacity, level of economic development, and strength of policy implementation. Therefore, this paper proposes some measures to improve the coordinated development.

Stabilizing leverage, financial technology innovation, and commercial bank risks: Evidence from China

With the rapid development of financial technology (FinTech), balancing FinTech innovation with capital risk management is an emerging issue for banks and regulators. To address this issue, we investigate FinTech's impact on the leverage risks of commercial banks. First, we formulate a theoretical model about the optimal leverage ratio determination for commercial banks within the context of FinTech development. We then conduct an empirical study using Chinese banking microdata from 2005 to 2020. Furthermore, we perform robustness tests by varying FinTech indexes. Our empirical results reveal that (1) an optimal leverage ratio exists that minimizes the risks of commercial banks. Furthermore, (2) FinTech helps banks balance their asset allocation structure, playing a countercyclical role in risk reduction. Finally, (3) FinTech can improve profitability and decrease leverage risks of large, medium-sized, and listed banks. These findings can help banks enhance their FinTech innovation capabilities and regulators prevent governance risks.

Financial Technological Innovation, Sustainable Operations, and Efficiency: a Study of SMBs in Times of Crisis

Financial Technological Innovation, Sustainable Operations, and Efficiency: a Study of SMBs in Times of Crisis

Research on Financial Support for Transformation and Upgrading of Guangxi's Marine Industrial Structure

Guangxi is the only province in China that is connected with the land and sea of the ASEAN countries. It is also the front and window of China's opening and cooperation to the ASEAN, and an important gateway for the land and sea convergence of the new land and sea channel in the west. Guangxi's marine economy continues to grow rapidly, and the transformation and upgrading of its marine industrial structure are facing both opportunities and challenges. Firstly, this paper reviews and analyzes the development process of Guangxi's marine industry, introduces the resource advantages and basic conditions of Guangxi's marine industry in detail, and focuses on issues such as marine scientific, technological innovation， and personnel training. Secondly, the paper puts forward some suggestions and measures on financial support for the transformation and upgrading of Guangxi's marine industry structure, including increasing credit investment in the marine industry, innovating the financial service model, supporting scientific and technological innovation and personnel training, etc., which provide new paths for Guangxi's marine industry to achieve sustainable development.

Research Progress on Financial Innovation Based on Blockchain Technology

The development of emerging technologies such as blockchain, big data and artificial intelligence has provided new impetus for financial technology innovation. The inherent characteristics of blockchain technology, including multi-party consensus, transparency, immutability, and smart contract functionality, naturally align with the needs of the financial industry. In recent years, blockchain has been applied in various financial domains such as payments, credit reporting, factoring, trade finance, supply chain finance, securities trading, etc., while also presenting problems in the innovation process. In this paper, we provide a theoretical and practical overview of blockchain technology and its intersection with financial innovation, analyzing its key stages, application scenarios, and potential issues.

Advances in Blockchain and Crypto Economics

Over the past decade, blockchains and cryptocurrencies have taken a central stage in financial technology (FinTech) innovation. In 2020–2021, as the academic finance and management community began actively investigating this domain, we issued a call for papers for a special issue to encourage interdisciplinary research in this emerging area. This section of Management Science presents the first systematic collection of knowledge, both theoretical and empirical, focusing on blockchain economics, crypto assets, decentralized finance, and Web3 ecosystems. We describe the editorial protocol employed for this special issue (now included in this volume as a special section), summarize what we learn about the field, and introduce the 15 articles included in the special section. We also offer several observations to highlight foundational issues in the new field and to guide future research in this exciting new area at the intersection of technology and finance.

Modeling the impacts of technological innovation and financial development on environmental sustainability: New evidence from the world's top 14 financially developed countries

Developing a sustainable economic system in the wake of unprecedented environmental challenges is the major cry of the day. This study aims to investigate the impacts of financial development, technological innovation, globalization, trade openness, and renewable energy consumption on the ecological footprint of 14 countries with the highest levels of financial development. The utilized econometrics battery include slope homogeneity tests, Westerlund cointegration, panel Augmented Mean Group (AMG), and Dumitrescu-Hurlin (2012) causality approaches. The study period spans from 1990 to 2018. The empirical outcomes indicate that financial development negatively affects environmental sustainability. The results further reveal that globalization technological innovation, trade openness, and renewable energy consumption bolster environmental quality. Based on the causality outcomes, a bidirectional causal link is witnessed between technological innovation, globalization, renewable energy consumption, and ecological footprint; however, a unidirectional causality relationship exists from trade openness and financial development to ecological footprint. The study findings underscore the importance of globalization, technological innovation, trade openness, and renewable energy consumption in fine-tuning environmental policies and improving environmental quality in these countries.

Study on Regional Financial Innovation, Technological Progress Bias and High Quality Economic Development

Abstract This paper designs a coupled mechanism model of financial technology innovation and economic growth, aiming to analyze the impact path of technology finance and technological progress on economic development. Endogenous economic growth theory is adopted, with technological progress as an exogenous variable, and inputs of production factors and products are considered. The growth rate of capital accumulation is calculated using fuzzy principles taken into account from the likelihood distribution under the assumption that the output function is in generalized form. The value of the distance function is calculated considering the orientation efficiency to ensure profit maximization. After eliminating the effect of different magnitudes, the decision degree decomposition is clarified using the Marquist index. The decision unit boundary degrees are reassembled when the information contribution ratio is scaled up by a multiple. Production relative efficiency change index. According to the findings of the economic impact analysis, the eastern financial institutions’ loan growth rate is stable, the entropy index is steadily increasing, and the p-value for the regression coefficient of science and technology finance is less than 0.02. The standard deviation of regional economic growth variables is 1.0209. Consequently, the coupling mechanism model of financial innovation in science and technology and economic growth can encourage investment in such innovation, shorten the technological innovation cycle to speed up the transformation of outcomes and achieve high-quality economic development.

The Impact of Financial Technology Innovations on The Development of Accounting Measurement to Enhance Capital Markets to Reduce Tax Avoidance When Dealing With The Electronic Tax System: An Empirical Study

Many countries of the world have turned to the use of financial technology in advanced economies, as this trend imposed by the fourth technology revolution that the world has known in recent years has allowed to improve the quality of financial services provided to the public of customers, reduce their cost, and provide them to the class of customers that were previously financially excluded. FinTech applications have replaced the human factor in financial institutions and financial systems in general, from managing financial risks, providing financial services to clients, and other tasks that require processing a huge amount of information and data, in a way that enhances the role played by financial technology innovations in Preparing and presenting the financial statements of companies providing these services quickly and with high accuracy in accordance with the requirements of the International Financial Reporting Standards (IFRS), in a way that contributes to reducing financial corruption and audit failures, and limits tax avoidance, and that financial technology innovations lead to adaptation with electronic tax systems, and the researcher prepared An applied study on a sample of financial technology companies, and it became clear to the researcher the existence of a set of challenges represented in accounting and tax problems, the researcher provided solutions to them, and the researcher prepared a field study on the same sample, and it was found from the statistical study, the rejection of the study’s hypotheses and therefore there are no differences between the categories The study was based on the outputs of the SPSS program, Chi-Square, and the study ended with a set of results and recommendations. Keywords: Financial technology – tax avoidance – accounting measurement

Reassessing the linkage between natural resources and economic growth in China: Delving into the impacts of national resource taxes, renewable energy, financial advancements, and provincial fiscal expenditures

While there has been extensive research on the relationship between natural resources and the economy, the indirect impacts of natural resources on economic growth remain underexplored. This study, spanning from 1995 to 2017, delves into the link between natural resources and economic growth across China's provincial economies. The research incorporates controllable variables such as financial development, renewable energy, technological innovation, and provincial fiscal expenditures. A variety of panel methodologies were employed, with the innovative MMQR serving as the primary technique. Additionally, the CIPS and Westerlund tests were utilized for unit root and cointegration assessments. To ensure the robustness of the findings, the study also incorporated Granger causality, Bootstrap quantile regression, and causal observations. The results demonstrate that long-term cointegration has been found and that the data are stable at Difference D(1). National resource taxes have a favorable effect on economic growth across all quantiles, according to the MMQR findings. Renewable energy and financial growth also boost all quantiles of the province's economy. Furthermore, the economic expansion brought on by renewable energy occurs in the lower quantiles while it declines in the upper quantiles, indicating that the investment or transition will slow down over the next few years. Furthermore, outcomes from robustness check analysis are similar, trustworthy, and true. The causal connection shows that whereas national resource tax, technological innovation, renewable energy, and financial development have a bidirectional causal relationship between components, public fiscal expenditures have a unidirectional causal relationship with economic growth. Since the study is linked to the provincial government rather than the federal government, the policies are mostly concentrated at the provincial level.

ТРАНСФОРМАЦІЯ СВІТОВОЇ ФІНАНСОВОЇ АРХІТЕКТУРИ ПІД ВПЛИВОМ ФІНАНСОВОЇ ГЛОБАЛІЗАЦІЇ

At the current stage of the evolution of the global economy, there is an intensive increase in the pace of financial globalization (FG), which leads to qualitative and quantitative changes in its institutional environment. In parallel, the interaction and interdependence of all components of theglobal financial system is being restructured. Thus, the purpose of the article is to analyze the transformational dynamics of the world financial architecture (WFA) under the influence of financial globalization and to develop a scientific and practical mechanism for regulating WFA transformations in the context of financial integration. To achieve this goal, the author generalizes and expands the scope of study of financial globalization (its positive and negative effects) as a key factor influencing the transformation of the WFA. In this context, the average daily cash flow on the Forex market, general flows (inflows and outflows) of direct foreign investments, export-import operations on international markets, and the pace of development of financial technological innovations (FinTech) were investigated. To make the study more thorough, the author analyzed the transformational processes of WFA after the global economic and financial crisis of 2007-2009, which led to a number of structural shifts and led to the emergence of alternative stabilization mechanisms and sources of international liquidity. In addition, modern trends in the development of the world financial architecture in the conditions of the FG were revealed. Thus, the COVID-19 pandemic highlighted the interconnectedness of financial markets and the vulnerability of economies to external shocks and caused a sharp decline in stock market indices, significant fluctuations in exchange rates and general economic instability. Even more devastating consequences are threatened by a full-scale invasion of russia into Ukraine, which caused a significant slowdown in the economic growth of many countries due to a large-scale break in international production and trade ties, changes in the direction of FDI flows, aggravation of crises on international markets, in particular food and energy, and an increase in labor migration, world inflation. The result of the conducted research was the development of a mechanism for the transformation of the world financial architecture in the conditions of financial globalization. Thus, it was proposed to single out seven main vectors of the transformation of the world financial architecture, including: strengthening of global economic governance; improving the financial safety net; improvement of the political and regulatory framework of the financial system; easing the debt burden and reducing the cost of government borrowing; strengthening regulation and supervision of banking and non-banking financial institutions; restructuring of the global tax system, increasing international public development.

The impact of financial technology and risk management practices on corporate financial system profitability: evidence from Kuwait

A vital element of the stability of banking institutions is the presence of an effective risk management system, as well as the financial stability of the corporate sector of the economy in terms of the fulfilment of assumed credit obligations. This study investigates the relationship between financial technology (Fintech) adoption, risk management practices and corporate profitability in Kuwait. The object of the study was 62 industrial enterprises registered on the stock market of Kuwait as of 2022. Methods of descriptive statistics, least squares method for estimating regression model parameters, and correlation analysis served as methodological tools of this study. This study aims to overcome the gaps in theoretical justification and empirically prove the existence of a relationship between the implementation of financial technologies and risk management methods. The results showed a positive correlation between the development of financial technologies and return on assets (correlation coefficient 0.6540), which indicates that implementing innovative financial technologies will contribute to improving the efficiency of banking institutions. The strong and positive correlation between the effectiveness of risk management and the profitability of business entities emphasizes the importance of responsible risk management practices for increasing banking institutions’ profitability. Based on the results of building a regression model, it was established that fintech has a significant impact on indicators of the return on equity of economic entities (р<0.050, t = 1.7700). The originality of this study lies in its focus on Kuwait and the Middle East as a whole and in its exploration of the relationship between corporate financial system profitability, risk management strategies and Fintech adoption. The use of innovative technologies (advanced analytics, artificial intelligence and blockchain) increases the effectiveness of risk management, which contributes to rational decision-making and a better understanding of the banking institution’s potential risks and development opportunities. This study contributes significantly to the existing literature by highlighting the relationships between financial technology innovation adoption, risk management and business financial performance in a market environment in the Middle East.

ALTERNATIVE FINANCE TECHNIQUE IN THE LOGISTICS SECTOR: BLOCKCHAIN

Purpose- As a new generation financial concept “Blockchain and Cryptocurrencies”, which have rapidly entered into the world recent years, have intense effects on our social norms, financial system and business models in the industry. In this research, it is aimed to examine the effects and contributions of innovative financial technologies that have developed with the intense digital transformation, which started with the concept of Logistic 4.0, through the sector. Actually innovative solutions to be developed by the fintech companies are expected to emerge in the logistics sector in the coming years. As we are experiencing the financial opportunities offered by fintech companies in the world, the logistics industry can also take new financial steps forward in our country with the help of great technological opportunities. However, logistics service providers traditionally focus on the delivery of goods and can quickly adapt to the realization of the opportunities so that Fintech’s can present new techniques to their business processes. Both fintech and logistics companies can provide significant added values to the industry by bringing their forces together. Methodology- In this study, I searched the current financing practices in the industry through a comprehensive literature review of the blockchain as an alternative way in financing options in the logistics sector. Findings- When a logistics company agrees to work with blockchain technology, it enrolls in an intensive collaborative effort. This is because much of it involves facilitating reliable co-operation between multiple entities, including state institutions of all types, industrial organizations, regulators, partners, and even competitors public and private organizations. Collaboration platforms have been created to enable competitors to work together to research the implementation of blockchain technology, taking the very competitive financial services industry example. Although competing cooperation does not seem intuitive, economies of scale affect the value of the blockchain. When more parties agree to use a single blockchain solution, more value is generated for each participating organization. That's why several blockchain consortia appear in the logistics sector. Conclusion- Fintech’s provide logistics service providers with an opportunity to expand their service portfolio. In particular, they can increase their role in the supply chain and add value to their business. By reducing risks and costs, customers logistics service providers have real-time insight, reliable supply-chain data can provide them with commercial opportunities for new enhancements. These services can gradually change the role in the supply chain. Logistics service providers that want to make the industry strategic are trying to fully understand these markets in their decision to enter new markets. At this stage, it is important to enhance the infrastructure investments and to encourage governments to invest in transportation. According to the OECD, changes in infrastructure construction and investment decisions, including maintenance, will require investments in the industry globally from 2010 to 2030 of $220 billion per year. For roads, infrastructure needs, maintenance needs have emerged. According to the model employed, maintenance needs and infrastructure expenditure varies between 3.3 percent of GDP. Low-income countries require an additional investment of 2.5 percent of their GDP for middle-income countries and 0.76 percent for high-income countries. Keywords: Logistics, supply chain, blockchain, fintech, smart contracts. JEL Codes: M10, M15, M16

THE RISE OF CRYPTOCURRENCY ADOPTION IN PAKISTAN: THE LEGAL LANDSCAPE

This article explores the rise of cryptocurrency adoption in Pakistan and examines the promising future that lies ahead for this emerging digital asset class in the country. Pakistan, with its cash-centric economy and limited access to formal financial services for a significant portion of its population, has witnessed a remarkable shift in attitudes toward cryptocurrencies. Factors such as financial inclusion efforts, economic instability, and supportive government policies have contributed to this growing interest. The younger generation, in particular, is embracing digital currencies as a means of participating in the global economy and preserving their wealth in the face of inflation. The establishment of crypto exchanges and supporting infrastructure, along with educational initiatives and awareness programs, has further facilitated cryptocurrency adoption. The government's positive approach and efforts to develop a comprehensive regulatory framework have instilled confidence and encouraged individuals and businesses to explore the opportunities presented by cryptocurrencies. Moreover, partnerships with global crypto projects and the potential applications of blockchain technology in various sectors have contributed to Pakistan's promising future in the cryptocurrency space. As more individuals and businesses embrace cryptocurrencies, Pakistan is poised to leverage the benefits of this transformative technology, fostering financial inclusion, economic growth, and technological innovation in the years to come. Cryptocurrencies have garnered significant attention and adoption worldwide, and Pakistan is no exception. In recent years, Pakistan has witnessed a growing interest in cryptocurrencies, with an increasing number of individuals and businesses embracing this digital financial revolution. This article explores the factors contributing to the rise of cryptocurrency adoption in Pakistan and examines the promising future that lies ahead.

Financial Innovation and Financial Risk

The market economy has made new progress and development, and the development of the financial industry has gradually become internationalized. To occupy an important position in the fierce competition of the financial market and win more voice, Reform, and innovation are the development direction of financial enterprises in the future Financial innovation is a continuous reform of the financial system and its connotation, with innovations in financial technology and institutional innovation. Innovation represents a break from the norm, a change in the previous mode of financial supervision, the scope of financial activities, and the structure of financial products, but this inevitably. Although Financial innovation can eliminate some of the hidden financial risks, financial risks have not completely disappeared, so financial innovation is not omnipotent and still has great limitations. This article analyses the relationship between financial innovation and financial risk, as well as the characteristics of financial innovation, and provides feasible suggestions from various perspectives.

Analysis of environmental sustainability and economic development from electricity consumption based on the modified spatial Durbin model

The study investigates the impacts of financial development, electricity use, and technology innovation on CO2 emissions. International trade also plays an essential role in the economic development of Pakistan. Studying the relationship between ecological parameters, technological innovation, electricity use, and CO2 emissions is necessary to formulate the country's reasonable and practical energy policies. Based on the study's use of data from 292 Pakistani firms from 2006 to 2021, the paper investigates the mechanism of the role between financial development, electricity use, technological innovation, international trade, and CO2 emissions using the spatial Durbin model. The results reveal that the effect of economic growth, electricity use, and technological innovation on CO2 emissions has a spatial spillover effect. The results verify that international trade and the transport sector promote the country's carbon emissions. The typical speculation spike on technology innovation enhanced and financial development should concentrate more on protective ecological parameters. The research provides theoretical guidance for solving the contradictory problem of renewable energy use growth and CO2 emission limitation while promoting green and low-carbon development in the country.

The impact of financial development and technological innovations on renewable energy consumption: Do the roles of economic openness and financial stability matter in BRICS economies?

There is a significant gap in comprehensively probing the determinants of renewable energy consumption (REN) in developing markets. Extant literature suggests the beneficial role of using renewable energy in diminishing carbon emissions and increasing environmental quality. This work addresses this gap and contributes by investigating the factors which significantly affect the REN in emerging economies. More specifically, the present study attempts to contribute by probing the effects of economic openness and financial stability on REN while considering the roles of financial development, technological innovations, and economic growth. To achieve this purpose, this study focuses on BRICS emerging countries, which are five massive and outstanding emerging economies of the globe, and uses both the fixed effects and quantile panel data approaches for yearly data between 2000 and 2021. Remarkably, the results reveal that economic openness and financial stability positively impact REN, implying that rising them helps achieve environmental sustainability. Moreover, the findings indicate the positive and significant role of financial development and technological innovations in increasing REN, whereas economic growth impacts adversely. The findings have essential recommendations for governments, policymakers, and regulatory bodies especially by focusing on the drivers of REN and attempting to maintain banking sector stability to increase REN and promote environmental sustainability.

Application of Innovative Systems for Achieving Compliance in Countering Hybrid Threats

The main goal of this article is to draw attention to and contribute to the discussion on the new challenges facing the countering of the financing of hybrid threats. The research problem cuts across three study and policy areas: national security, legal codification and Artificial Intelligence. A serious theoretical conflict regarding the concept of hybrid warfare is identified and an attempt is made to demonstrate the seriousness of the risk of funding hybrid threats by global actors. The focus of the study is the economic aspects of hybrid warfare, related to the threat of covert financing of hybrid operations, and accordingly a possible model with innovative financial technologies for risk management. A short but comprehensive overview of the current legal regulations providing possible guidelines for legislative changes and technological solutions in this area has been made. On the basis of an interdisciplinary systematic analysis, including a presentation of technical parameters of innovation systems with Artificial Intelligence elements (AIE) and an overview of European and American practices and regulations, gaps in the current regulations in Bulgaria are identified and some conclusions are made about this aspect of the country’s security.

Analysis and Enlightenment of the "Regulatory Sandbox" Model for Financial Technology Innovation

Analysis and Enlightenment of the "Regulatory Sandbox" Model for Financial Technology Innovation