Integration Of Financial Services Research Articles

Research on the Impact of Financial Technology on the Performance of Chinese Commercial Banks Taking the Retail Transformation of China Merchants Bank as an Example

In the era of big data, the integration of financial services and science and technology has become a trend, and financial technology has become critical to the financial service industry. This paper takes China Merchants Bank as a representative case study, summarizes the transformation process of China Merchants Bank business, and sorts out the aspects and transformation measures of China Merchants Bank's use of financial technology. By analyzing the case of China Merchants Bank introducing financial technology to realize the transformation, this paper uses the method of financial index analysis to study the impact of financial technology on the transformation of China Merchants Bank, obtains the impact of financial technology on commercial banks, and puts forward appropriate suggestions.The innovation of this paper is mainly reflected in the research methods and directions. According to the comprehensive literature, there are few cases of domestic and foreign scholars studying the combination of commercial banks and fintech. Therefore, this paper adopts the method of combining theory with practical cases, starting with the promotion of financial technology transformation by China Merchants Bank, discusses the impact of financial technology on the performance of China Merchants Bank, and then gives strategic suggestions for other commercial banks to use financial technology.

Peningkatan Akses Layanan Keuangan pada Masyarakat Unbanked di Indonesia melalui Financial Technology

Financial Technology (Fintech) is defined as financial services integration and solutions based on technology. Unbanked is a group of people who do not have savings in the bank. There is a substantial potential increase in financial services for the unbanked by utilizing Fintech in Indonesia. It is seen from the young population and the high growth of internet access. However, compared to other countries, the development of Fintech access in Indonesia is still far behind. The theory used in this research is the Unified Theory of Acceptance and Use of Technology 2 (UTAUT 2). The data were analyzed using the path analysis method using the bright partial least square (Smart-PLS) software. Respondents in this study amounted to 304 people from all over Indonesia. The variable constructs used in this study are usefulness, ease of access, preference, behavioral intention to use, and actual system use. The results of this study explain that usefulness has a significant positive effect on ease of access; help has a positive impact on behavioral intention to use, but the value is not substantial; ease of access has a positive effect on preference and has a considerable discount; priority harms behavioral intention to use, but the value is not significant; pick has a positive impact on actual system use, but the value is not the substantial and behavioral intention to use has a positive effect on actual system use, but the value is not significant.

Кey trends in the financial services digital transformation in Russia and their influence on consumer experience: forecast of expertsm

Purpose: forecasting the key avenues for financial services digital transformation in Russia and its influence on customer experience based on expert surveys.Methods: a set of general scientific methods of analysis and synthesis, as well as marketing research methods – desk and field research. The field research included qualitative method: in-depth interviews with financial market experts. The obtained data were analyzed using content analysis and summarized. Results: the authors provided analysis of secondary data on the main global and local digitalization trends in the financial services market and conducted analytical aggregation of expert opinions on the most likely future changes in the financial services market in the process of digitalization. Analysis of the obtained data enabled to describe three avenues for financial services digital transformation – means of payments digital transformation, payments infrastructure digital transformation and customer interaction models digital transformation. The authors also presented and described the positive and negative influence of the results of digital transformation on the consumer experience.Conclusions and Relevance: the results of this study emphasize the role of financial services digital transformation in the process of new consumer experience creation. The means of payments digital transformation will ensure the total dominance of digital money within the money circulation system positively affecting consumer experience in terms of growing convenience, speed and cost-cutting. Payment infrastructure digital transformation will positively influence on consumer experience by simplifying the customer identification systems and reducing errors. Customer interaction models digital transformation will enhance the level of seamlessness leading to the full integration of financial services in the day-to-day customer activities. The results of the study can be used to develop strategies enabling to achieve the highest level of competitiveness for the financial service providers in the market.

Potential Impact of Integration of Financial Services on Economic Growth ASEAN5 + Vietnam

The paper is structured aims to analyze thepotential economic impact and the integration of financial services to economic growth ASEAN5 + Vietnam. To estimate effect of financial integration on economic growth, this paper uses the findings of Edison. This paper will look at the transition from the integration of financial services is mirrored by financial openness to investment by looking at the influence of the government balance, population growth and inflation.It can be concluded that financial integration is able to boost economic growth through investment channel. In order to integrate the financial sector in ASEAN5+Vietnam, there are three main things that inherent in financial system namely financial literacy, financial inclusion, and financial deepening. ASEAN5+Vietnam need to develop these three agendas before integrate; hence the multiplier effect on economic growth through investment channel can be lifted up and sustainable at acertain level.

How the European Commission deepened financial market integration. The battle over the liberalization of public banks in Germany

ABSTRACTIn this article, I argue that the European financial market integration cannot be understood without the European Commission's gradual enforcement of supranational competition law for financial services. The conflict over the liberalization of public banks in Germany demonstrates how the Directorate General for Competition (DG COMP) deepened financial market integration through legal proceedings without the participation of the Council of Ministers. How could DG COMP prevail over the fierce resistance of Germany even though member states never intended for European law to have enough leverage to alter core elements of national financial systems? The article focuses on DG COMP's capacities for strategic action. DG COMP was able to enforce European competition rules for financial services, skilfully combining its legal competences with political strategies. The case illustrates that the regulatory integration of financial services in the EU is much more driven by supranational institutions than assumed by the bulk of the literature.

The Internationalization of Islamic Banking and Finance: The Co-Evolution of Institutional Changes and Financial Services Integration

The basis for Islamic finance lies in the Shariah. In this paper we point out the co-evolution of institutionalchange and the banking expansion in Islamic countries; there are certain parallelism between the quantitative andqualitative developments of the Islamic financing industry and the emergence of supportive institutions. Thereare certain convergences of Islamic banking products and institutions towards traditional banking functioning butkeeping their principles. The Islamic financial institutions are effective instruments towards financial andeconomic integration at regional and global level. The Islamic economy has also showed a lesser impact of theglobal crisis than the western economy.

The Lamfalussy Process and EU Bank Regulation: Another Step on the Road to Pan-European Bank Regulation?

This article focuses on the Lamfalussy process's accelerated method of lawmaking in financial services within the European Union. The first section of this article provides background information on the economic importance of the banking industry in a nation's economy, and the resulting hesitancy of nations to cooperate in international bank regulation. The second section describes and analyzes the Lamfalussy process. The third section analyzes recent assessments of this new legislative process and discusses implementation issues that have arisen during its short life. Finally, I argue that the Lamfalussy process is merely another step in the trend of greater financial integration and regulatory convergence within the European Union. The next step in the integration of financial services markets in the EU may be the creation of a dual banking system similar to that of the United States, where national banks and state-chartered banks operate under two separate, but related, bodies of law. While not an ideal solution, a Europeanized dual banking system is a likely next step in light of the failed ratification of the Constitutional Treaty and the resulting hesitancy and inability to create new European Union wide programs and institutions.

Evolution of Accounting and Financial Sector Regulation within The European Union Policy

The aim of the European Union's policy in the financial services sector is to create an integrated Europe-wide single market through a framework of legislation, co-operation and practice. Efforts to promote the integration of financial services in the EU began in 1973 on a piecemeal basis, but the impetus for an overall framework came at the 1998 European Council. The Commission prepared the Financial Services Action Plan (FSAP) to tackle inflexible market structures, legal and supervisory barriers and administrative difficulties. Our paper presents the evolution of accounting and financial sector legislation pertaining to disclosure provisions marked by two legislative cornerstones: the FSAP and the International Accounting Standards initiatives. We attach indices A1 and B1 to accounting legislation and financial-banking legislation respectively, introduced prior to the FSAP and the IAS; A2 and B2 indices are allocated to accounting and financial-banking legislation following the proposal of these two initiatives. Although some legislation is still pending, the emphasis of the EU 2005-2010 policy is on implementation and consolidation of the FSAP measures, a regulatory pause, rather than a raft of new rules.

The Impact of Revenue Diversity on Banking System Stability

The dismantling of legal barriers to the integration of financial services is one of the recent, major developments in the banking industry. This led to an expansion of the variety of financial intermediaries and types of transactions. However, this trend may alter banks' risk-taking incentives and may affect overall banking sector stability. This paper analyzes how banks' divergent strategies toward specialization and diversification of financial activities affect their ability to shelter from adverse economic conditions. To this end, market-based measures of banks' extreme systematic risk are generated, using techniques developed for extreme value analysis. Extreme systematic risk captures the probability of a sharp decline in a bank's stock price conditional on a crash in a market index. Subsequently, the impact of (the correlation between) interest and non-interest income (and its components) on this risk measure is assessed. The estimation results reveal that the heterogeneity in extreme bank risk can partially be attributed to differences in banks' reliance on non-traditional banking activities. All non-interest generating activities increase banks' sensitivity to the market index during times of extreme equity market movements. In addition, smaller banks and well-capitalized banks are better able to withstand large adverse economic conditions. Furthermore, the effects are stronger during times of market turbulence compared to a situation of normal economic conditions. Overall, diversifying financial activities in one umbrella institution does not lead to a reduction of extreme banking risk, which may explain why financial conglomerates trade at a discount.

BENEFITS OF SOFTWARE-ORIENTED ARCHITECTURE TO CORPORATE SERVICES: AN ANALYSIS OF ABN AMRO BANK EXPERIENCE IN BRAZIL

Software architecture is a major enabler in providing effective profits related to agility and efficiency in corporate information systems maintenance and evolution: a key factor in competitive environments. The benefits resulting from the adoption of software- oriented architecture (SOA) are demonstrated in this article through the analysis of a practical case of its implementation in the financial institution: ABN AMRO in Brazil. The case describes how the institution solved a traditional dilemma faced by financial institutions: the composition and integration of financial services delivered through software to different communications channels made available to clients.

BENEFÍCIOS DA ARQUITETURA DE SOFTWARE ORIENTADA A SERVIÇOS PARA AS EMPRESAS: ANÁLISE DA EXPERIÊNCIA DO ABN AMRO BRASIL

Software architecture is a major enabler in providing effective profits related to agility and efficiency in corporate information systems maintenance and evolution: a key factor in competitive environments. The benefits resulting from the adoption of software- oriented architecture (SOA) are demonstrated in this article through the analysis of a practical case of its implementation in the financial institution: ABN AMRO, in Brazil. The case describes how the institution solved a traditional dilemma faced by financial institutions: the composition and integration of financial services delivered through software to different communications channels made available to clients.

Integration of Lending and Underwriting: Implications of Scope Economies

We present a model which informational economies of scope that provide a cost advantage to universal banks offering one-stop shopping for lending and underwriting services also enable these intermediaries to lock in their clients' subsequent business. This (limited) market power of universal banks reduces their incentive, relative to that of investment banks, to undertake costly effort underwriting their clients' securities. The consequent reduction firms' likelihood of successful security issues with universal bank underwriters prevents these intermediaries from using their scope economies to completely dominate their markets. Our analysis identifies economy, intermediary, and firm characteristics that motivate either the integration or segmentation of underwriting and bank lending. Our results also have implications for financial innovation and capital market development markets characterized by the integration of financial services. Some of our empirical implications have not been tested; others can be compared with findings Kroszner and Rajan (1994).

The Regulation of Cross-Border Financial Services in the EU Internal Market: A Primer for Third Countries

While numerous articles and reports identify problems and obstacles that continue to impede the completion of a European internal market in financial services, this article is intended to review the progress that has been made to date in Europe in a more positive light. A considered appraisal of European Union directives adopted in the field of financial services and markets exposes the iterative development of a highly coordinated legal and regulatory framework calculated to permit the creation of a pan-European securities market and to achieve a progressive liberalization of restrictions on the cross-border provision of services by financial intermediaries and markets within Europe. Through the implementation of this framework, the European Union has acquired significant experience concerning cross-border services provided by financial intermediaries and markets and has developed unique methods to oversee those services. This article is intended to provide users of EU financial markets with an overview of the thinking underpinning the European Union's approach to the regulation of financial services. As such, it provides: (i) a general overview of the basic policy objectives pursued by the European Union in the field of financial services and markets; (ii) a general overview of the legal framework within which such policies are pursued; (iii) a analysis by topic of the methods that have been developed by the European Union to regulate the cross-border provision of services by financial intermediaries and markets; (iv) a review of initiatives to reorganize the European financial infrastructure to facilitate the cross-border provision of financial services within Europe; and (v) a review of other current initiatives to enhance European regulations in the field of financial services and markets. The article includes an analysis of the components of the mutual recognition regimes for financial services and markets within the EU internal market and of the manner in which general conflicts of laws principles and the historical methods of regulating cross-border financial services in Europe have manifested themselves in the EU financial services directives. Where possible, the European Union approach to financial services regulation is contrasted with the United States approach. Lastly, the implications of the European experience on current issues regarding the international integration of financial services and markets also are considered.

“Who Says Financial Services Integration Is in Consumers’ Best Interests?” Joseph M. Belth, July 2000

“Who Says Financial Services Integration Is in Consumers’ Best Interests?” Joseph M. Belth, July 2000

The Integration Of Financial Services in Europe

Changes over the last few decades in managing risk and investing money have been so radical that we can only describe them as being huge disruptions, maybe even revolutions. The boundaries that used to exist between the different financial activities have disappeared. Although things have accelerated rapidly over the last few decades, we should keep in mind that these developments are by no means new. The pawnbrokers and foreign exchange dealers of the Middle Ages, whose professions were separate and clearly identifiable, have seen their activities completely integrated into so-called universal banking services. More recently, merchant banks in France, who used to be the subject of specific regulation, have disappeared as separate legal entities. In the insurance field, it was barely 30 years ago, that some large businesses insured only against fire risks and others only casualty risks. The distinction between life and non-life, which is still maintained in the regulations, makes little sense in the everyday reality of insurance groups who transact these two activities together. However, when we talk of the integration of financial services, we have in mind an even more recent phenomenon. Financial integration incorporates two developments, known in French as bancassurance and assurfinance. Today, under extremely diverse legal guises but following the same economic logic, banks sell insurance products and insurance networks sell banking products. This movement can only be understood initially as the result of a need to diversify. Each one of these two large categories of financial intermediaries borrowed something from the other in order to increase its product range or bolster the know-how of its networks. It was simply about making sales organizations more cost effective by having them sell products outside of their traditional skills area, at more or less marginal cost. Today the expansion of offerings is done, approved, and even expounded on by theorists. And so now the next question is whether we should go further—turning our attention from distribution to manufacturing. This is where the current debate on the integration of financial services lies. Bluntly, if we allow banks to sell insurance policies and insurers to sell consumer credit, should we allow a joint organization to design such products and distribute them down both channels at the same time? More subtly, we might ask ourselves whether we should be exercising more specific control over these financial conglomerates that, while maintaining a formal legal separation between banking and insurance, constitute in fact a single decision-making center. This article sets out to portray what is perhaps not the state of the law, but at least the state of the art, on this topic in the European Union. In the first part, it will show that while sales integration is an undeniable fact, with the customer seeing fewer and fewer differences, it still remains that banks and insurance carriers are separate entities from a legal perspective and that the European Union remains totally committed to controlling financial conglomerates. In practice, integration of financial services takes different forms. In part two, we examine cases involving problems between entities doing the same job, and cooperation between design facilities without any apparent desire to go further. In the long run, this integration will succeed only if it receives the public�s approval. Part three addresses what consumers and investors want. We observe that after decades of exposure to specialized networks, consumers are not necessarily as enthusiastic as proponents of integration would have hoped. As adult consumers, they are not prepared to buy just any financial service anywhere they can, and they still largely place their trust in the brands they know.

Integration of Financial Services

This paper examines convergence in the Australian financial services industry. It traces the emergence of financial conglomeration in Australia from its origins in the 1950s. The institutions involved, their market shares, and their mix of financial activities are described. The causes of financial conglomeration in Australia are discussed, noting that conglomeration has occurred in two main phases in Australia. The regulatory treatment of financial conglomerates in Australia is described, including recent changes to the Australian regulatory framework following the 1997 Financial System Inquiry. The paper concludes with some speculation as to the likely future of financial conglomeration in Australia.

Integration of Financial Services

Integration financial services is a term with many meanings. Definitions might include: ownership of different segments of financial services, the distribution of products of one segment by another, and a consumer-centric strategy driven to satisfy the needs of the customer regardless of organizational structures. For the purposes of my paper, I will define it as the erasing of boundaries leading to consumers receiving value propositions that are not restricted by traditional industry segment barriers.

Who Says Financial Services Integration Is In Consumers’ Best Interests?

Who Says Financial Services Integration Is In Consumers’ Best Interests?

The Role of Electronic Commerce In Financial Services Integration

In recent years, the combined effects of deregulation in financial services, along with advances in telecommunications and information technology, are forcing far-reaching changes upon the insurance industry. The result is the industry is becoming more competitive. The emerging role of electronic commerce (e-commerce) is particularly important and interesting to study. I offer a brief survey of the role of e-commerce in the insurance industry. The paper is organized in the following manner: Section 1 summarizes Internet trends and discusses various related public policy issues; Section 2 addresses online insurance supply and demand; Section 3 discusses the economics of disintermediation and reintermediation and explains how this applies to e-commerce in the insurance industry. Finally, Section 4 offers a set of concluding remarks.

Remarks on “Financial Services Integration: Right for some, Wrong for Others?”

I have been asked to provide some introductory remarks on the structure of the financial services industry in the 21st century. Each of the panelists will give their own unique perspective on why consolidation is or is not a good idea for the firms where they work. I, on the other hand, would like to take a little time to provide an overview of what I see as competing “models” for the delivery of financial services. I will try to argue that these models are not necessarily mutually exclusive and that certain clientele may be attracted to one or the other. Thus, integration will indeed turn out to be right for some and wrong for others.