Fintech Era Research Articles

Evaluation of the fintech era on the performance of Moroccan banks: analysis through non-performing loans

Background This study aims to contribute to a better understanding of the impact of the financial technologies (fintech) era on the performance in the banking sector, measured through non-performing loans (NPL) and their coverage by provisions for NPL. It is a question of knowing whether banking investment in fintech makes it possible to better evaluate the granting of credits, and therefore makes it possible to reduce overdue credits. Methods To this end, the method used consists of using a regression analysis and a Pearson correlation applied to the financial data of Moroccan banks observed during two distinct periods, namely 2007-2014, considered pre-fintech, and the period 2015-2022, considered as the fintech period. Results With the emergence of the fintech era, the Moroccan banking situation improved slightly compared to the pre-fintech period: bad debts did not increase despite the significant increase in net banking income and the size of banking assets during the fintech era. Conclusions The implementation of fintech has improved customer relationship management, credit risk analysis and loan monitoring services, which ultimately reduces non-performing loans and improves the coverage of non-performing loans by provisions. The main implication of the results allows us to deduce that the implementation of fintech makes it possible to have a positive impact on overdue credits, and they are also likely to serve as a lever for the inclusion of those excluded from banking services.

Investing in green, sustaining the planet: The role of fintech in promoting corporate green investment in the Chinese energy industry

In recent years, fintech has rapidly developed on a global scale, bringing about significant transformations across various industries. Particularly in the energy sector, the potential of fintech to promote corporate green investment has increasingly become a focus. As the energy industry accounts for a significant proportion of global greenhouse gas emissions, guiding companies in implementing green investment has become an important issue for environmental protection and sustainable development. However, previous studies have rarely systematically investigated the influence of fintech on corporate green investment in the energy industry and the mechanisms involved. Hence, this study aims to bridge this research gap within the context of China. By utilizing valid survey data from 466 corporations in the Chinese energy industry and the method of structural equation modeling, the results indicate that: (1) Fintech can promote corporate green investment in the energy industry. (2) Fintech can promote corporate data-driven decision-making capability, information transparency, and sustainable development strategy. (3) Data-driven decision-making capability, information transparency, and sustainable development strategy can also promote corporate green investment in the energy industry. (4) Mediation analysis reveals that data-driven decision-making capability, information transparency, and sustainable development strategy each play a mediating role in the impact of fintech on corporate green investment. (5) Comparative analysis of the mediation effects indicates that there is a certain degree of difference among these three variables’ mediating effects, but it did not reach a statistically significant level. This study provides rich insights for business practices, encouraging companies to strengthen their focus on green investment in the fintech era and offer guidance and recommendations to relevant stakeholders, thereby providing practical guidance for corporate green transformation and sustainable development. Finally, this research also contributes to policy development and optimization.

Role transition, investment practice and risk Management of Peer-to-peer Lending Investors: Based on the perspective of investor learning

Online peer-to-peer (P2P) lending has emerged as a result of the integration of finance and technology. Within the P2P lending market, individual investors have the opportunity to make repeated investments and engage in two-way transactions involving loans and investments. This setting provides an ideal scenario for studying the impact of different learning types on investors' risk management. Drawing on transaction data from the online lending platform Renrendai.com, we empirically examine the influence of role transition and investment practice on investors' risk identification, risk preference, and investment performance. We introduce variables related to loans and investment portfolios to analyze the effects. Our findings reveal that investment practice has a greater effect than role transition in reducing the investment default of online lending investors. Additionally, role transition is associated with a decrease in the investment amount set by investors and a reduced reliance on borrowers' credit ratings. Historical investment experience also leads to a decrease in the investment amount, while experiences of past investment failures improve investors' reference to borrowers' credit ratings. Furthermore, we observe that borrowing experience and previous investment failures contribute to a lower probability and proportion of high-risk loans in the portfolio. We shed light on the “black box” of investor learning and expand the research methodology for understanding investor behavior characteristics in the Fintech era.

Inovasi Perencanaan Keuangan menggunakan Artificial Intelligence (AI) Click Up pada UMKM Chibi-chibi Mochi

This community service aims to innovate Artificial Intelligence (AI) financial planning using the ClickUp application to improve the quality of project management, especially budgeting, thereby increasing efficiency, productivity, and better decision-making so that these MSMEs can be highly competitive in the fintech era. Artificial intelligence is a system in a machine that imitates the way humans think and act (human intelligence). One of a computer science related to the development that can imitate human expertise in carrying out certain tasks is Artificial Intelligence (AI) (Nurcholis, 2023). The program carried out is training and mentoring so that financial planning is more innovative, economical, practical, easily accessible, and has minimal errors. The problem faced by business actors is financial planning that has not been implemented properly so business targets and income targets are often not achieved. This has an impact on the sustainability of the Chibi-Chibi Mochi MSME business in the era of competition. The solution to the problem is that the community service team will provide training and mentoring on financial planning innovation using Artificial Intelligence (AI) ClickUp. The output targets to be achieved are in the form of journal publications and increasing the understanding and skills of business actors.

Future-Proofing Islamic Finance: A Bibliometric Review of the Fintech Era

Future-Proofing Islamic Finance: A Bibliometric Review of the Fintech Era

Assessing the Role of the Fintech Era on the Banking Stability of an Emerging Economy: Interaction Analysis of the Indian Banking Industry

Assessing the Role of the Fintech Era on the Banking Stability of an Emerging Economy: Interaction Analysis of the Indian Banking Industry

Price dynamics and volatility jumps in bitcoin options

In the FinTech era, we contribute to the literature by studying the pricing of Bitcoin options, which is timely and important given that both Nasdaq and the CME Group have started to launch a variety of Bitcoin derivatives. We find pricing errors in the presence of market smiles in Bitcoin options, especially for short-maturity ones. Long-maturity options display more of a “smirk” than a smile. Additionally, the ARJI-EGARCH model provides a better overall fit for the pricing of Bitcoin options than the other ARJI-GARCH type models. We also demonstrate that the ARJI-GARCH model can provide more precise pricing of Bitcoin and its options than the SVCJ model in term of the goodness-of-fit in forecasting. Allowing for jumps is crucial for modeling Bitcoin options as we find evidence of time-varying jumps. Our empirical results demonstrate that the realized jump variation can describe the volatility behavior and capture the jump risk dynamics in Bitcoin and its options.

Goal Setting and Saving in the FinTech Era

ABSTRACTWe study the effectiveness of saving goals in increasing individuals' savings using data from a Fintech app. Using a difference‐in‐differences identification strategy that randomly assigns users into a group of beta testers who can set goals and a group of users who cannot, we find that setting goals increases individuals' savings rate. The increased savings within the app do not reduce savings outside the app. Moreover, goal setting helps those individuals previously identified as having the lowest propensity to save. Matching App user survey responses to their behavior highlights the relative merits of monitoring and concreteness channels in explaining our findings.

Program Peningkatan Kompetensi Perusahaan di Era Digital dari FinTech

In the digital era of FinTech, a company uses a program called a “corporate competency improvement program” to help digital-based businesses better meet the demands of increasingly digital customers. Likewise, the financial industry, cooperatives and second-hand goods stores continue to improve their quality. One program that can help a business improve the quality of its customer service is company digitalization. Businesses related to finance have been successful. However, there were several obstacles found in program implementation, for example an outdated IT framework, a work culture that had not been digitized, and poor coordination between internal organizational divisions.

Representing and discovering heterogeneous interactions for financial risk assessment of SMEs

Small and medium-sized enterprises (SMEs) generally have weak risk management abilities, yet their financial risk assessment faces unique challenges due to limited information about those firms. The emergence of network data constructed from the interactions between the SMEs and other stakeholders createsan opportunity to enhance the assessment of SMEs’ financial risks. While existing studies have extracted features from thenetwork data to utilize structural information, they overlook the heterogeneous interactions among the focal firms and other entities in the network. This research aims to fill the above gaps by proposing a represent-then-discover framework based on graph neural networks. The framework comprises an entity-importance based graph contrastive model (EIGC) that represents firms as the embeddings of their heterogeneous interactions and a novel subgraph-distillation based frequent interaction mining model (SDIM) that discovers heterogeneous interactions that signal firms with or without financial risks. The firm embeddings are first trained following an unsupervised paradigm and thenused to build models for predicting financial risks. Our empirical evaluation results not only demonstrate the superior performance of EIGC over state-of-the-art methods but also discover unique interaction patterns that distinguish normal SMEs compared to financial risk SMEs. This study contributes an effective framework for assessing and explaining SMEs’ financial risk in the fintech era. The proposed EIGC provides a promising avenue for constructing predictive features by leveraging network data and graph neural networks.

Sustainable resource management in China's energy mining sector: A synthesis of development and conservation in the FinTech era

The optimal exploitation of energy and mineral resources is crucial to the optimal allocation of resources and the sustainable development of Society. Based on the optimal control theory, this paper establishes a dynamic model of inter-period optimal exploitation of mineral resources and examines the impacts of energy resource supply and environmental pollution with the help of a panel data vector autoregressive (PVAR) model under the constraints of environmental regulations and technological advances in each region. These results show that the estimated coefficient for the one-period lag of energy supply is significantly positive at the 1% level, indicating that a positive shock resulting in increased energy supply in the preceding period is associated with a pronounced escalation in environmental pollution. Meanwhile, the estimated coefficient for the one-period lag of environmental pollution is negative at the 1% level. In contrast, the estimated coefficients for the one-period lag of environmental regulation and technological progress are positive. It implies that positive shocks in the intensity of environmental regulation and technological progress in the previous period contribute to a more efficient energy supply. Furthermore, the estimated coefficient for the one-period lag of environmental pollution and energy supply is significantly positive at 1%. It suggests that heightened environmental pollution and energy shortages in the preceding period prompted the government to undertake necessary measures to address these issues. Therefore, establishing a theoretical model that meets the characteristics of China's resources will be conducive to realizing sustainable development of resources and the environment.

Implikasi Peran Financial Technology Dalam Meningkatkan Efektivitas Sistem Informasi Akuntansi

In the era of internet technology, it has a lot of impact on all lines of the company's sector and daily life, one of which is the existence of supporting applications that can be used with the aim of helping in carrying out daily activities. In addition, the development of digital technology is very influential in the order of life both in the social and economic fields, which initially in paying had to meet face to face and carry a certain amount of cash, now can make remote transactions in seconds. This era is called the era of digital economy or fintech which enters the age of time efficiency. The age and productivity of a human being have limits, a person can be said to be unable to be productive again at a certain period of time. If someone is said to be no longer productive, then that person can be said to be someone who has reached the retirement age limit. Of course, in this case, it requires adequate infrastructure support. Currently, the government has an Old Age Savings program and a pension program for someone who has entered the retirement age limit. PT Taspen is one of the companies that organizes and manages pension funds, especially for the State Civil Apparatus (ASN). In the era of internet technology, it has a lot of impact on all lines of the company's sector and daily life, one of which is the existence of supporting applications that can be used with the aim of helping in carrying out daily activities. In addition, the development of digital technology is very influential in the order of life both in the social and economic fields, which initially in paying had to meet face to face and carry a certain amount of cash, now can make remote transactions in seconds. This era is called the era of digital economy or fintech which enters the age of time efficiency. The age and productivity of a human being have limits, a person can be said to be unable to be productive again at a certain period of time. If someone is said to be no longer productive, then that person can be said to be someone who has reached the retirement age limit. Of course, in this case, it requires adequate infrastructure support. Currently, the government has an Old Age Savings program and a pension program for someone who has entered the retirement age limit. PT Taspen is one of the companies that organizes and manages pension funds, especially for the State Civil Apparatus (ASN). This research took the object at PT Taspen (Persero) KCU Semarang. The purpose of this study is to find out how fintech is used in organizing and managing pension funds. This research is qualitative research, with research methods using interview techniques. There were 3 participants, consisting of financial head sector, customer service and human resource department. In testing data credibility, researchers use riangulation of data sources and trigulation of data collection techniques. The results of this study show that PT Taspen already has fintech application facilities that are used for retirees easily and can be applied properly, and there are facilities for visiting participants' homes for participants who are sick and cannot take pension funds. On the other hand, financial management using fintech has been implemented well and efficiently, so that financial transparency and accountability are well controlled and monitored. However, based on interviews in customer service, there are obstacles in the file that are not appropriate and there is a passive account attachment

Analyzing the Banking Sector- Fintech Companies Nexus in Jordan

This paper presents an analytical framework that describes the nexus between the banking sector and financial technology (fintech) companies. It explains existing trends, and by collaborating with banks, the importance of fintech companies grows daily. It examines the choices that established banks will have to explore to mitigate the profitability threat. At the onset of the fintech era, many analysts discussed its disruptive potential for the financial sector. However, we expect more future debates regarding collaboration between fintech businesses and banks. The other point that is significantly essential to debate about is financial inclusion. We pick Jordan as a case study since the local fintech sector is expanding, and it acts as a gateway for the broader MENA region. First and foremost, we attempt to assess the scientific literature that examines the major components of the fintech sector. The second section of the paper discusses the evolution of the sector and the critical aspects of the methodology employed, including statistical analyses. Our findings indicated that it is preferable to rely on qualitative assessment when valuing the relationship between banking and fintech because statistical analysis might produce inconsistent and incorrect conclusions. In Jordan, we discovered that both sectors interact with one another. The study offers scientific recommendations for the banking sector and fintech companies.

Anti-money laundering and customer due diligence: empirical evidence from South Africa

PurposeThe purpose of this study is to examine the South African banks’ customer due diligence (CDD) practices in the fintech era to mitigate money laundering (ML) risks and ensure financial stability. Financial technologies have brought substantial transformations to the financial services sector. However, such technologies have exposed the sector to emerging risks that threaten the integrity and stability of the financial system globally. Before any bank–customer relationship is established, proper customer background checks must be conducted. These background checks enable financial institutions to validate information provided and ensure customers are properly risk profiled. Failure to risk profile customers could result in financial institutions being used as conduits for ML. Undoubtedly, CDD procedures are pivotal to overall anti-money laundering efforts and curbing financing terrorism in a regulatory framework.Design/methodology/approachA qualitative research approach was adopted to address the research questions of the study. Given the confidentiality associated with the financial services sector, data triangulation was used in blending mainly secondary and primary data sources. Secondary data sources used in the study were published reports available in the public domain that were corroborated with subject matter experts’ interviews.FindingsBased on the findings of this study, it is concluded that in South Africa, technological solutions have been incorporated into CDD functions, which is now risk-based (enhanced due diligence). Also, legally, South Africa has incorporated the biometrics, integration with Department of Home Affairs and Companies and Intellectual Property Commission databases, customer consent to third-party sources with the Financial Intelligence Centre Act and the Protection of Personal Information Act.Originality/valueThe shift towards digital banking in South Africa results in increased data and dynamic risk profiling. This study advocates a policy shift requiring a risk-based approach to mitigating emerging ML risks (in particular digital laundering), especially in the wake of South Africa’s recent greylisting by the Financial Action Task Force.

Peningkatan Kualitas Laporan Keuangan : Pelatihan SAK-EMKM & Aplikasi KLEDO Pada Industri Keripik Batang Pisang Desa Cimenyan

The background is financial reports have not complied with accounting standards and no digital-based financial system innovations. This will affect banking decisions to provide financing assistance and MSMEs difficulties in sustaining their business. This service aims to improve the quality of financial reports and digital-based financial innovation (fintech) then MSMEs can be highly competitive and continuously reduce banana stem waste in Cimenyan. The method used is training & mentoring so that more "bankable" to prospective borrowers from banks and a more updated financial application system is produced. The finding is the reduction of banana stem waste in Cimenyan. The implication, training program, that in the end the bank approves the application for funds. The output is partners have knowledge about financial reports that are according to standards, more practical in the fintech era. They can be highly competitive and profitable for the MSME industry on a national and international scale.

Customer Due Diligence in the FinTech Era: A Bibliometric Analysis

This study examined the current developments in customer due diligence (CDD) in the financial technology (FinTech) era. The study of anti-money laundering (AML) and combating financing of terrorism (CFT) gained prominence after the 2007–2009 global financial crisis (GFC), in which administrative penalties were issued to financial institutions. Faced with AML regulatory compliance issues, technological solutions were or are still being developed. Thus, several technological innovation developments have shaped the future direction of the CDD aspects in the AML/CFT sphere. A bibliometric review and meta-analysis was employed for the study. The Scopus database was utilised to generate the dataset for the study, while SciVal was applied for research metric analysis. The major findings revealed that the key research themes in this area include anti-money laundering, banks and crime, and cryptocurrency, as well as blockchain and corruption. It was also established that most of the research done in this area is focused on the United Kingdom, the United States, and China. The integration of CDD with FinTech is still an emerging area that requires interdisciplinary collaborations.

An evolutionary game analysis of digital currency innovation and regulatory coordination.

The innovation and regulatory coordination of digital currency is an important proposition in the new era of Fintech. There is increasing competition between traditional currencies and new digital currencies, so a spontaneous game model of currencies is analyzed. By introducing the role of financial coordination, this paper revises the evolutionary game model of digital currency innovation, and analyzes their competition strategies through case and simulation. The results show that: first, the dominant result of digital currency spontaneous game is that both parties tend to digital cooperation strategy. Second, with the introduction of financial regulation, the dominant result of digital currency tripartite evolutionary game is that financial institutions tend to participate in coordination and both currency parties tend to cooperate. Third, the choice strategy of currency is more sensitive to the changes of willingness to participate in cooperation, cooperation costs and cooperation benefits of financial coordination. The selection strategy of financial coordination institutions for digital currency is more influenced by changes in cooperation costs and incentive return in the process of participating in cooperation.

Regulating Buy Now, Pay Later: Consumer Financial Protection in the Era of FinTech

Regulating Buy Now, Pay Later: Consumer Financial Protection in the Era of FinTech

An investigation into the acceptance of mobile wallets in the FinTech era: an empirical study from Kuwait

An investigation into the acceptance of mobile wallets in the FinTech era: an empirical study from Kuwait

Preventing Payments Fraud in the FinTech Era: New Evidence from a Behavioural Experiment

Preventing Payments Fraud in the FinTech Era: New Evidence from a Behavioural Experiment