Investment Platform Research Articles

Distinctiveness from whom? Evaluation of startups' distinctiveness from multiple referents in angel investment platforms

AbstractResearch SummaryOptimal distinctiveness can enhance firm performance, but we know little about how startups can achieve optimal distinctiveness when faced with multiple referents. This study investigates the strategic positioning of startups relative to two interdependent referents—incumbents and peer startups. Analyzing data for 3266 business plans from an angel investment platform in China, we find that a startup's distinctiveness from incumbents positively influences angel investors' evaluations. However, the positive effect is weakened by the startup's distinctiveness from peer startups within the same platform category. Economic signals emitted by the startup can mitigate the negative interaction between distinctiveness from both referents. Our findings suggest that startups can use a nuanced approach to attain optimal distinctiveness by aligning with peers while differentiating themselves from incumbent firms.Managerial SummaryHow can startups use their business plans to differentiate themselves from competitors and attract angel investors? Using data from business plans submitted to an angel investment platform in China, we find that a startup's distinctiveness from incumbent competitors helps attract angel investors, but this advantage diminishes when its distinctiveness from peer startups is also high. Nevertheless, startups can alleviate the negative interaction by presenting economic signals, such as financial records. Overall, our study suggests that startups can achieve optimal distinctiveness by aligning with peers while distinguishing themselves from incumbents, with economic signals acting as a legitimacy buffer to enhance their acceptance by investors.

Russian Experience in Legal Regulation of BRICS Investment Platforms

Aim. The article aims to formulate the problem of formation of such type of investment institutions as investment platform in BRICS.Tasks. The objectives of the article are defined by the fact that the executive director of the Russian Direct Investment Fund proposed to create a joint investment platform of BRICS countries, allowing BRICS members to invest more actively in the economies of their partners. And as is known, BRICS countries currently play a significant and constantly growing role in world politics and international relations. Methods. In the process of research the set tasks were solved by the author usin g general scientific (historical, dialectical, systemic, logical, method of analysis) and legal (comparative legal, sociological, axiological) research methods.Results. The result of the research is the proposal based on the Russian experience of regulation of platform services (financial platforms, investment platforms and information systems) on the formation on the basis of the Russian regulation model of the concept of building the corresponding institution within BRICS. At the same time, the article also draws attention to possible problems that may arise during the preparation of the relevant international act. In particular, the implementation of this initiative raises a wide range of technical, economic and legal issues that require detailed consideration.Conclusions. When choosing specific investment methods that can be used on such a platform, it is necessary to take into account the needs of businesses and the population, both in the long-term and short-term attraction and placement of resources. In particular, legal regulation of the choice of the legal regime for investment should influence the choice of the legal status of entities that will be admitted to such a platform, highlighting, for example, qualified investors or retail investors.

The Behavior of Housewives in the Management of Fixed and Non-fixed Income to Anticipate Economic Problem in the Future. Macassar, Indonesia

Type of qualitative research through phenomenological, approach as for hsl research shows that the role of housewives in managing finances and anticipating the future is increasingly recognized, especially in the context of gold investment as a strategy to protect family wealth from market fluctuations and economic uncertainty. Gold investment is seen as a stable and profitable option in the long run, which allows housewives to plan wisely for the future of their family. The majority of housewives view gold as the ultimate investment, based on a good understanding of the benefits and associated risks, as well as adopting a careful investment strategy, including setting clear goals, consistency in investment, choosing a trusted investment platform, and following market developments. With awareness of the importance of gold investment and continuing financial education, housewives can build a strong foundation for family financial stability, maintain peace of mind in the face of an uncertain future, and provide a solid foundation for future generations.

TRANSFORMING CUSTOMER RETENTION IN FINTECH INDUSTRY THROUGH PREDICTIVE ANALYTICS AND MACHINE LEARNING

In recent years, the fintech industry has experienced rapid growth, driven by technological advancements and evolving consumer expectations. Fintech companies offer innovative financial services, such as digital banking, investment platforms, and payment solutions, catering to the needs of a tech-savvy customer base. However, as competition intensifies, customer retention has emerged as a critical challenge for these companies. According to a study by Ransom (2021), acquiring a new customer can cost five times more than retaining an existing one, making it imperative for fintech organizations to focus on strategies that enhance customer loyalty. The financial technology (fintech) sector has experienced unprecedented growth in recent years, fundamentally transforming how individuals and businesses access and manage financial services. Characterized by the integration of technology with financial services, fintech encompasses a wide array of offerings, including digital banking, peer-to-peer lending, robo-advisory services, and payment processing. As of 2023, the global fintech market was valued at approximately $309 billion and is projected to reach around $1.5 trillion by 2030, according to a report by Fortune Business Insights. This remarkable growth is largely attributed to advancements in digital technology, increasing smartphone penetration, and a growing consumer preference for online financial solutions. Moreover, the COVID-19 pandemic accelerated the adoption of digital financial services, as consumers sought contactless transactions and remote banking options.

Analysis of investment behavior among Filipinos: Integration of Social exchange theory (SET) and the Theory of planned behavior (TPB)

Despite the emergence of more accessible and modern forms of investment, the ever competitive and volatile market remains subject to anomalous irrationalities caused by investors. To this day, predicting their behavior remains difficult with lacking information, and poses a problem for investment platforms to effectively adjust to their predispositions. Therefore, this study aimed to comprehensively analyze the factors that have influenced investors’ behaviors using the integrated construct of the Social Exchange Theory and the Theory of Planned Behavior. With consideration of convenience sampling, a total number of 10,725 data points were collected and analyzed through machine learning algorithms of decision tree and neural network. Specifically, the comparison between long short-term memory (LSTM) and neural network, and random forest classifier and LightGBM were considered. It was found that the investor’s attitude, accessibility to financial services, and perceived economic benefits were the most influential predictors to their behavior, while six other factors also showed varying levels of significance. This study aimed to provide a unique framework which could be utilized by investment platforms to cater to the different behavioral factors expressed by investors. In line with these findings, it is recommended that platforms create flexible solutions that are based on their intentions and preferences, and more user-friendly through the implementation of new technologies. In addition, they are suggested to appeal to novice investors by reducing the burden of costs, promising future benefits, and promoting financial education. The results of this study proved the reliability of the integrated model as a social and behavioral framework, and consequently, LSTM overpowering other tools on accurate forecast made, followed by neural network, and random forest.

Comparative Performance Evaluation of Real Estate Investment Trusts Shares and Money Deposit Bank Shares in Nigeria (2013 – 2022)

This study presented a need to evaluate the investment performance of Real Estate Investment Trust shares and Money Deposit bank shares in Nigeria using dividend yields between 2013 to 2022. The aim of the study was to determine the mean annual dividend yields of both investment media and subsequently compare the relative performance so as to enable investors to make informed decisions about their choice of investment. The objectives of the study were to ascertain the dividend yield of both investment platforms over the last ten years, from 2013 to 2022 and to determine whether or not REIT shares outperformed Money Deposit Bank shares in dividend yield between 2013 to 2022.The methodology of data sample technique used was the purposive sampling technique, quantitative method of data collection was used to gather, assemble and collate data from the annual reports of selected of Real Estate Investment Trust and Money Deposit bank companies as well as through special publications of the Nigerian Stock Exchange (NSE) and Central Bank of Nigeria (CBN). Descriptive statistical techniques (Mean, standard deviation) were employed in analysing the data. The study found out that the performance of REITs shares showed a mean return of 5.275% over the ten years, this was compared to that of the performance of Money Deposit bank shares at 8.632% over the same ten years, showing under-performance. The study also found out that investments in Money Deposit Bank shares are much riskier than investment in REITs between 2013 to 2022. The study recommended that investment appraisal should be carried out before a decision is made towards embarking on such investment. It was also suggested that stakeholders in REIT should create an enabling environment for REIT to thrive in Nigeria.

TRANSFORMING CUSTOMER RETENTION IN FINTECH INDUSTRY THROUGH PREDICTIVE ANALYTICS AND MACHINE LEARNING

In recent years, the fintech industry has experienced rapid growth, driven by technological advancements and evolving consumer expectations. Fintech companies offer innovative financial services, such as digital banking, investment platforms, and payment solutions, catering to the needs of a tech-savvy customer base. However, as competition intensifies, customer retention has emerged as a critical challenge for these companies. According to a study by Ransom (2021), acquiring a new customer can cost five times more than retaining an existing one, making it imperative for fintech organizations to focus on strategies that enhance customer loyalty. The financial technology (fintech) sector has experienced unprecedented growth in recent years, fundamentally transforming how individuals and businesses access and manage financial services. Characterized by the integration of technology with financial services, fintech encompasses a wide array of offerings, including digital banking, peer-to-peer lending, robo-advisory services, and payment processing. As of 2023, the global fintech market was valued at approximately $309 billion and is projected to reach around $1.5 trillion by 2030, according to a report by Fortune Business Insights. This remarkable growth is largely attributed to advancements in digital technology, increasing smartphone penetration, and a growing consumer preference for online financial solutions. Moreover, the COVID-19 pandemic accelerated the adoption of digital financial services, as consumers sought contactless transactions and remote banking options.

The analysis of factors affecting online investment platforms in the Philippine context: an integration of SET-VBN theory

The analysis of factors affecting online investment platforms in the Philippine context: an integration of SET-VBN theory

Registrars as institutions for ensuring the development of the real sector of macroeconomics

Subject. This article discusses the importance of diversified institutions of the financial system, linking the functionalities of the financial and real sectors of macroeconomics. Objectives. The article aims to substantiate the need for such institutions to recognize professional participants of the securities market engaged in maintaining registers of securities holders (registrars), and formulate proposals that contribute to the qualitative disclosure of the potential of registrars in this capacity. Methods. For the study, we used the methods of systems and logical analyses, and the tabulation procedure. Results. The article presents the author-developed proposals aimed at the implementation and development of the potential of registrars as diversified institutions of the financial system, capable of ensuring the development of equity investment as a factor of qualitative and quantitative growth of the real sector of the macro-economy. Conclusions and Relevance. The arguments set forth in the article regarding the need to create an institution of insurance for direct investments of citizens in the creation of new and the development of existing joint-stock companies, the need to provide individuals with the right to register on the websites of investment platforms as persons attracting investments, and other formulated proposals will form the basis for creating norms that contribute to the development of the functionality of registrars, including registrars that are operators of investment platforms, and the realization of their potential as an effective diversified institution of the financial market. The presented proposals may be in demand in the future work of the Bank of Russia, as well as in the work of all interested specialists and scientists aimed at improving the efficiency of the financial sector.

The role of blockchain technology and smart contracts in enhancing the transparency of fragmented investments in overseas real estate

As the mobility of global capital is getting higher, more and more investors tend to invest in overseas real estate. However, the conventional model of investing in real estate possesses several disadvantages including high entry hurdles, low levels of market liquidity, and low transparency, particularly for retail investors. This article will seek to establish how blockchain technology as applied in smart contracts can help in the clarification of unclear fragmented investments in overseas property. First of all, this paper begins with the definition and examples of applying conventional and advanced blockchain technology and then describes the work of smart contracts and the comparison between regular contracts and smart contracts. The paper also evaluates the nature of fragmented investment in overseas property and its associated risks before suggesting the use of blockchain and smart contracts for a new institutional structure of the investment platform. This study demonstrates how the technologies can advance data sec, promote trust in transactions, and how investment can be automated. It can be concluded that blockchain technology, and smart contracts, can enhance Overseas Real Estate Investment by increasing transparency and decreasing the investment threshold as well as the instances of fraud. This study also presents an analysis of the potential difficulties that may be encountered in real-world applications and a recommendation of what may be done in subsequent studies. On one hand, this research offers a new perspective to the theoretical world, on the other hand, it offers practical problems and solutions to the practitioners who are a part of overseas real estate markets and businesses by steadily helping the overseas real estate markets to move in the fairer and more transparent direction.

Development of the market of digital financial assets in the context of ensuring financial sovereignty of Russia

Currently, in the context of limited external funding, the issues of forming the financial sovereignty of the country are becoming the subject of scientific discourse among Russian economists. The introduction of digital financial assets (DFA) into business practice and their legislative recognition largely ensures the expansion of investment opportunities for economic entities, which will contribute to the end of the stagnant macroeconomic shock of the period of 2021–2024. The work covers solving such scientific problems as clarifying the essential nature of DFA and developing their classification; assessing the process of functioning of the investment market based on the use of digital financial instruments; identifying key limitations in the functioning of the basic institutions regulating the DFA circulation. The authors proposed a clarified formulation of the economic category of digital financial assets, taking into account the peculiarities of its essential nature. An analysis of the functioning of the domestic DFA market is carried out. Among the factors hindering the development of the DFA market, its fragmentation, low liquidity, and weak institutional regulation of the issue and circulation of DFA are highlighted. The authors emphasize the positive effect of the development of the digital infrastructure of the market, in particular, the increase in the number of investment platforms licensed by the Bank of Russia, the reduction of costs of access to them, the development of a market-making system in the secondary market of digital financial assets. The authors believe that the leveling of the contradictions of the investment market should occur due to the improvement of the institutional environment in the field of strengthening control over transactions with digital financial assets, as well as ensuring their mandatory registration, which is absent at the present stage. The development of the domestic market of digital financial assets has significant potential due to, firstly, the desire of economic entities to replace traditional financial instruments with digital ones, which allow reducing significantly transaction and transformation costs; secondly, the expansion of investment opportunities for economic actors through the use of digital platforms and other elements of the digital ecosystem for the purpose of business development; thirdly, the transformation of the traditional business model, which provides for the transition from vertical interaction of entities to a network form of coordination of economic agents using decentralized financial instruments in their activities.

EXPRESS: The Last Hurrah Effect: End-of-Period Temporal Landmarks Increase Optimism and Financial Risk-Taking

Understanding what drives risk-taking is fundamental for the study of choice under uncertainty. One widely discussed question is when and why people engage in risk-taking. Prior work finds evidence for an ending effect, where risk-taking increases on the last gamble in a series when outcomes are immediately realized. We test whether socially ubiquitous endof-period temporal landmarks (e.g., last day of the work week, month, year) alter financial risk-taking even when outcomes are not immediate. Using data from a large peer-to-peer investment platform in the United States, we show that investors make riskier financial investment decisions on Fridays relative to those made earlier in the week. Consistent with a broader end-of-period effect, risk-taking also increases on the last day of the month, last day of the year, and on weekdays prior to a long weekend. Follow-up lab experiments identify a novel mechanism driving ending effects: As people near the end of a temporal period, they feel more optimistic that their financial risks will pay off, driving greater financial risk-taking. The shift in risk-taking is not without consequence: In our specific peer-to-peer context, we show that end-of-period investments perform worse over time, losing money relative to investments made on other days.

The Role of Platforms in Fostering Sustainable Finance: A Comprehensive Approach

As the global financial ecosystem undergoes a paradigm shift toward sustainability, platforms emerge as instrumental intermediaries, connecting diverse stakeholders, facilitating information flow, and catalyzing impactful investments. This paper analyses the evolving landscape of sustainable finance and investigates the role of platforms in fostering its growth. Sustainable finance platform-based enablers were determined using a systematic literature review and bibliometric techniques on a sample of papers retrieved from the SCOPUS database, and included crowdfunding platforms, impact investment platforms, peer-to-peer (P2P) lending platforms, blockchain-based financing platforms, and ESG data platforms. The analysis showed that platform-based solutions act as accelerators of sustainable finance mobilization, by enhancing transparency of the processes, and by improving dissemination and accessibility of the funds needed. Thus, platform-based solutions help a broader set of stakeholders direct the potential of platforms to accelerate the transition toward a more sustainable and inclusive global financial system.

Financial Analysis of COFCO Capital under the Framework of Harvard

In recent years, COFCO Capital will continue to benefit from the synergistic advantages of the gold-control platform and the release of dividends from state-owned enterprise reform. The company has industrial advantages in the direction of strategic layout of food security, and realizes rapid growth in revenue and profit. Taking COFCO Capital Corporation, a professional finance company and investment platform under COFCO Group, as an example, this study applies Harvard financial analysis method, selects data from the 2018-2022 annual report, and comprehensively analyzes COFCO Capital Corporation's current operating status, competitive advantages, and future development potential in four dimensions: strategy, finance, accounting, and outlook to provide decision-making reference for the company and relevant stakeholders. It is found that the enterprise's solvency and operating ability are good, but its profitability and growth ability are in poor condition. It is proposed that solutions should be explored in terms of internal management and external investment and financing to improve its financial status and operational performance, which provides a reference for the company and relevant stakeholders to make decisions.

Understanding Investment Motivation in the Young Generation Using Self-Determination Theory

This study aims to analyze the investment motivation of students using the Self-Determination Theory (SDT) framework. SDT emphasizes three basic psychological needs that influence motivation: competence, relatedness, and autonomy. Data were collected through a survey involving students from various disciplines at Universitas Negeri Makassar (UNM). The findings reveal that fulfilling the need for competence through investment training programs and seminars, fostering relatedness through investment communities and discussion groups, and supporting autonomy in investment decision-making significantly enhance students' investment motivation. The conclusion of this study highlights the importance of institutional support in the form of education, community building, and the provision of investment platforms that empower students to make independent decisions. These findings have practical implications for universities and other educational institutions, suggesting the need for effective strategies to boost financial literacy and encourage investment participation among students. By addressing these psychological needs, educational institutions can play a pivotal role in shaping the investment behaviors of the young generation.

Designing Intuitive Financial Technologies for Elderly Users: A User-Centered approach to Retirement Planning and Investment Platforms

This literature review explores the intersection of user-centered design (UCD) principles and financial technologies (FinTech) tailored for older adults, with a focus on retirement planning and investment platforms. It synthesizes existing research on the challenges and opportunities in designing FinTech solutions that accommodate the cognitive, physical, and emotional needs of elderly users. The review highlights the impact of age-related cognitive decline, technological literacy, and the potential benefits of FinTech for older adults. Ethical considerations, such as privacy and security, are also discussed. The review concludes with design recommendations, emphasizing simplicity, customization, and user involvement, while identifying gaps for future research, particularly in addressing the emotional and social aspects of FinTech usage among older adults.

Sentiment Analysis of User Reviews on Cryptocurrency Application: Evaluating the Impact of Dataset Split Scenarios Using Multinomial Naive Bayes

The surge in cryptocurrency investors in Indonesia, reaching 18.83 million by January 2024, signifies an expanding interest in this market. This research conducts a sentiment analysis of user reviews on Indodax and Tokocrypto, the premier cryptocurrency trading platforms in Indonesia. Utilizing the Multinomial Naive Bayes method, the study examines the influence of various dataset split scenarios and random states on the model's performance. The findings reveal substantial variability in the model's accuracy based on different random states and test sizes. Notably, the Positive sentiment label consistently shows high-performance metrics, while the Neutral label underperforms. These insights are invaluable for developers aiming to improve user experience and for investors seeking to make informed decisions. This research underscores the significance of sentiment analysis in understanding user interactions and enhancing the credibility of cryptocurrency investment platforms.

The Effect of Parental Income and Level of Trust in Using Online Stock Investment Applications on Gen Z Investment Decisions in DKI Jakarta

KSEI data (2024) shows that the number of investors in the capital market is dominated by investors under 30 years old. At the age of 20-27 years, it is suspected that the existence of parental income in a person's financial decisions is still very large. The level of trust in investment applications is also thought to be a consideration in investment decisions in Generation Z. The sample in this study was 110 respondents who were Generation Z aged 20-27 years in DKI Jakarta. This study is a quantitative study analyzed using SmartPLS version 4. The results of the research test, the t-statistic value of 1.954 and the p-value of 0.026 and the original positive sample of 0.147 indicate that parental income has a positive and significant effect on stock investment decisions. The second hypothesis, the t-statistic of 12.020 and the p-value of 0.000 and the original positive sample of 0.709 indicate that the level of trust in the use of stock investment applications has a positive and significant effect on stock investment decisions. The third hypothesis, it can be seen that based on the simultaneous F test calculation, the F-count value of 82.29> F-table 3.08, which means that the parental income variable and trust in the use of stock investment applications have a simultaneous effect. This study has implications for Generation Z to properly manage their finances to be invested in reputable investment platforms, and for the government to eradicate fraudulent investments.

THEORETICAL AND APPLIED ASPECTS OF AI IMPLEMENTATION IN FINTECH AS A DRIVER OF SOCIO-ECOLOGICAL-ECONOMIC DEVELOPMENT

Introduction. Financial technologies play a crucial role in socio-ecological-economic development by automating various processes across all sectors and increasing service accessibility not only in large cities but also in every corner of the country. The use of remote customer service channels reduces labor and associated costs, promoting more efficient resource utilization. FinTech supports the growth of financial markets and serves as a vital tool for optimizing both the everyday lives of individuals and the functioning of the entire ecosystem. These technologies significantly facilitate the formation of connections between different sectors, accelerating the attainment of economic, social, technological, political, and other benefits. FinTech not only fosters economic growth but also supports sustainable development by enhancing social inclusiveness and promoting ecological sustainability through more efficient resource use and reduction of the carbon footprint. The purpose of the article. It is necessary to investigate the theoretical and applied understanding of AI in Fintech as a driver of socio-ecological-economic development. Results. Trends in AI, considering sustainable development and financial technologies, highlight the following key directions: Green AI (energy-efficient algorithms; energy consumption optimization); Ethical and Transparent AI (ethical principles; explainability); Inclusive Financial Technologies (financial inclusion; personalized financial services); Innovations in Lending and Risk Management (creditworthiness analysis; risk forecasting); Intelligent Investment Platforms (robo-advisors; micro-investments); Cybersecurity (threat detection; behavior analysis); Sustainable Development through Financial Technologies (investing in sustainable development; impact monitoring). Therefore, it can be argued that the integration of artificial intelligence in financial technologies not only drives innovation in financial services but also upholds the principles of sustainable development, ensuring ethical, inclusive, and efficient practices. Conclusions. Financial technologies are rapidly evolving, stimulating the emergence of diverse services, including internet payments, lending through distributed ledgers, and mobile money transfers. Key directions in the development of financial technologies include fraud protection, business interchanges, and adaptation to regulations, opening up new opportunities for all consumer categories. Transformational trends in fintech innovations significantly impact Ukraine's financial sector, expanding the accessibility of financial services and enhancing the efficiency of financial companies. It is necessary to ensure the creation of appropriate legislative and regulatory environments to guarantee the security and stability of the financial sector in the face of rapid development of digital technologies. The application of artificial intelligence in the financial sector is defined by key directions such as green AI, ethical and transparent AI, fostering innovation and sustainable development, increasing the efficiency and accessibility of financial services.

Integrating fintech in natural resource management: Assessing the EKC hypothesis for sustainable development in E7 countries

The main objective of the study is to examine the impact of green finance, fintech and mineral resources on environmental sustainability is of great importance in the E7 nations namely Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. The E7 countries are selected as these countries are mineral rich countries and account for a major portion of global mineral export. The data of twenty-five years spanning from 1998 to 2022 is used for the analysis. The study has employed the three measures namely carbon dioxide emissions, ecological footprint, green economic growth to conceptualize the sustainable growth. For the data analysis the study has employed the nonlinear auto-regressive distributed lag (NL-ARDL) model. The results of the study highlights that encouraging and promoting the green finance, and fintech in E7 countries promote sustainable growth, by reducing CO2 emission, improving economic growth, and reducing ecological footprints. The results of the study are in line with the proposition of EKC hypothesis. Moreover, the results of the study also highlight that mineral resource abundance have significant impact of environment sustainability. The study suggests that E7 countries should establish dedicated funds or subsidies to help businesses transition to green technologies and practices, especially for small and medium-sized enterprises. Fintech is seen as a transformative tool in advancing environmental sustainability by improving financial service efficiency and offering new green investment platforms in E7 countries. This could help mitigate initial costs associated with green technology adoption.