Personal Financial Services Research Articles

Strategy for Increasing Customer Financial Literacy on Decisions to Use Financial Products, Especially Savings Products at PT BPD Sumsel Babel Muaradua Branch Office

This study aims to analyze the strategy of improving customer financial literacy on the decision to use savings financial products of PT BPD Sumsel Babel Muaradua Branch Office. PT BPD Sumsel Babel is one of the leading financial institutions in Indonesia whose main objective is to support economic growth in South Sumatra and Bangka Belitung. This research is quantitative descriptive with the methods used are library research, direct observation in the field and documentation. Participant selection technique through purposive sampling model with target questionnaire that is customer. The number of respondents was 255 customers. The questionnaire in this study was processed through the Microsoft Excel application. The expected outcome of this research is the preparation of effective strategies in improving customer financial literacy and the implementation of literacy programs that can have a positive impact on customers. Policy recommendations for Bank Sumsel Babel Muaradua Branch Office involve providing ongoing financial literacy programs, improving educational communications, personal financial counseling services, developing financial literacy applications, and incentives for active customers. Enabling factors include management support, active customer participation, and availability of resources.

A memetic-based technical indicator portfolio and parameters optimization approach for finding trading signals to construct transaction robot in smart city era

With the development of smart cities, the demand for personal financial services is becoming more and more importance, and personal investment suggestion is one of them. A common way to reach the goal is using a technical indicator to form trading strategy to find trading signals as trading suggestion. However, using only a technical indicator has its limitations, a technical indicator portfolio is further utilized to generate trading signals for achieving risk aversion. To provide a more reliable trading signals, in this paper, we propose an optimization algorithm for obtaining a technical indicator portfolio and its parameters for predicting trends of target stock by using the memetic algorithm. In the proposed approach, the genetic algorithm (GA) and simulated annealing (SA) algorithm are utilized for global and local search. In global search, a technical indicator portfolio and its parameters are first encoded into a chromosome using a bit string and real numbers. Then, the initial population is generated based on the encoding scheme. Fitness value of a chromosome is evaluated by the return and risk according to the generated trading signals. In local search, SA is employed to tune parameters of indicators in chromosomes. After that, the genetic operators are continue employed to generate new offspring. Finally, the chromosome with the highest fitness value could be provided to construct transaction robot for making investment plans in smart city environment. Experiments on three real datasets with different trends were made to show the effectiveness of the proposed approach, including uptrend, consolidation, and downtrend. The total returns of them on testing datasets are 26.53% 33.48%, and 9.7% that indicate the proposed approach can not only reach risk aversion in downtrends but also have good returns in others.

The Impact of Subjectivity on Financial Accounting

In this paper it is attempted to explore current trends in Financial Accounting, that connect research endeavors in the relatively new branch of Behavioral Finance, with the impact of subjectivity on the accounting cycle of each fiscal year, as well as on the preparation of financial statements.
 The investigation of subjective factors in Financial Accounting expands its scope, while the systematic utilization of its two-way relationship with the field of Neurofinance (unbiased data) may create a broader framework of knowledge for the further improvement of the investment process, through an understanding of the methodology required by accounting operations and rules up until the preparation of financial statements. By extension, a better understanding of how financial markets operate will be beneficial not only for governments wishing to promote savings incentives and responsible management, but also for supervisory authorities seeking to ensure that the market for personal financial services operates rationally and without bias. 
 
 Keywords: Behavioral Finance, Neurofinance, Financial Accounting
 JEL Classification: D87, G41, M41

Analysis of the Intention to Use Digital Banking as Personal Financial Services among Gen X

Analysis of the Intention to Use Digital Banking as Personal Financial Services among Gen X

Financial insight and behaviour of household consumers in Port Elizabeth

Financial literacy is a crucial factor affecting individuals, households, financial institutions and the broader economy of South Africa (Oseifuah 2012: 23–24). Lack of financial literacy has been cited by various commentators (Brink 2011: 3, Schüssler 2014: 1–2; Dempsey 2015: 1–3) as the main reason for poor saving rates, increasing consumer debt and inadequate retirement planning among South Africans. The purpose of this study was to investigate the financial insight and behaviour of household consumers in Port Elizabeth. Economists have urged South Africans to start living within their means, improve their money management skills and ensure they eliminate debt, which can be viewed as the symptoms of mediocre financial insight and behaviour. Addressing these problems requires empirical evidence. A research model guided the investigation. A field survey (n = 560 consumers) was conducted in Port Elizabeth. The survey revealed six factors for financial behaviour and one for financial insight. The negative results for most factors confirmed the need for improved financial literacy of Port Elizabeth consumers. Significant relationships between demographical variables and financial behavioural factors were further observed for the sampled population. Educators and training facilitators should focus in their financial literacy programmes on financial planning, executing, vigilance, discipline, control and outsourcing personal financial services. Marketers and providers of credit should act responsibly when dealing with consumers with inadequate financial literacy.

Asset-liability management and goal-based investing for retail business

The industry of online personal financial services is expected over the next years to absorb an increasing share of households and individuals' savings and investment decisions with a parallel expansion of tailored decision tools and underlying methodological developments. In this article we present a dynamic stochastic optimisation model formulated to tackle a long-term optimal wealth management problem-based explicitly on the introduction of consumption and investment goals with a terminal inflation-adjusted retirement target. By embedding a goal-based investing philosophy in a dynamic framework we provide a reference modelling approach for increasingly popular households asset-liability management services. In a discrete setting we show that a dynamic stochastic programming formulation will lead to a highly realistic representation and solution of an otherwise hardly manageable optimisation problem and it is consistent with computer-aided decision support tools' operational requirements.

The Financial System in Barbados 50 Years after Independence

The financial system plays a crucial role in transferring funds from savers to investors and consumers, facilitating payments and allowing individuals and institutions to manage a range of financial risks. Imagine life in Barbados as a family with no access to consumer credit or a home mortgage. Imagine operating a business without access to financing. Imagine the limits in the services which government could provide if it was limited to the amount and timing of tax revenues. Imagine the vulnerability of families and institutions if there was no life, fire or motor insurance, or if there was no National Insurance Scheme. In fact, some would argue that the financial system is one of the unsung heroes of the high quality of life we enjoy in Barbados, as we approach 50 years of independence. As the end of 2015 approaches, and the year 2016 and 50 years of independence beckons, Barbados boasts a modern, sophisticated and well-regulated financial system. At independence in 1966, commercial banks from Canada and the United Kingdom dominated the financial landscape, alongside the locally owned Mutual Assurance Company. 50 years later, the financial system is still dominated by commercial banks, and Barbados possesses what is often termed a “Bank based” financial system. However, the banking system is now regulated by a local central bank, banks from the United Kingdom have disappeared, and Canadian and Trinidadian owned banks dominate the landscape. Alongside the commercial banks, there is an emerging non-bank financial sector where the Mutual Assurance Company has morphed into a global financial corporation together with international and regional Insurance companies. Credit Unions are now major players; Finance Houses provide a range of modern sophisticated retail financial services; there is a thriving mutual fund industry and the National Insurance Scheme is the largest domestic financial institution. The emergence and importance of the roles played by the Barbados Central Bank and Financial Services Commission, the emergence and growth of Credit unions and the National Insurance Scheme, and the emergence of the Barbados Stock Exchange and Mutual Funds are probably the most significant developments in the financial services sector since independence in 1966. Over the next 50 years I expect the major developments in the financial system to be, a greater variety of corporate debt instruments, venture capital investments, greater use of online services and an increase in personal financial planning services.

SEM-based Customer Loyalty Model: An Empirical Analysis with IT Enabled Financial Industries

The Comprehensive analysis includes the development of personal financial services under IT environment and the effect of personal financial services in the banking industry, Through the questionnaire survey, the factors affecting the loyalty of personal financial services on commercial banks were collected, Using the structural equation model to analyze, The process quality, customer satisfaction, customer age, monthly income and the degree of customers culture .All of them have an effect on the loyalty of personal financial service in the banking industry, And the technical quality, the customer gender has not directly affect the personal loyalty to financial service, And the commercial banks' personal financial services are proposed to base on the technical quality and the process quality of service proposal, increase customer loyalty. In recent years, along with the constant strengthening of liberalization, internationalization and integration in the financial market, homogeneous competition among commercial banks has become increasingly fierce, and a decline in cost of carry has exacerbated this fiercely competitive market environment. In order to survive and develop, commercial banks have actively sought for new opportunities of creating incomes and shifted their focus to personal financial services. Meanwhile, foreign commercial banks have developed mature financial services. Compared with Chinese commercial banks, foreign commercial banks show a much larger proportion of personal financial incomes in their total income. Moreover, personal financial service of foreign commercial banks has greatly contributed to improvement in their profits and benefits. Therefore, in past few years, vigorously developing personal financial services has become one of strategic development plans for most banks. How the technical quality and process quality of the bank financial service affect satisfaction and loyalty of consumers has become an issue of concern. In this article, questionnaire investigation and customer loyalty model ,they just are the demonstration method. The core of this paper is the following content. We must prove that technical quality and the process quality is the key elements to establish consumers' loyalty and satisfaction. In the industry of our country's bank,Paying attention to technical quality and the process quality meet the needs of objective trend that IT become more and more widespread. In 2015, China's government working report should accelerate the speed that is the integration of information technology and Internet finance .Therefore, we need to put forward the reforming measures in line with national policy .The purpose is to enhance the customer's loyalty in the process of personal

Worldwide Comprehensive Payment System: A Comparison

A modern, efficient and reliable payments infrastructure is now an essential requirement for any country looking to promote growing financial markets and improve execution of monetary policy. To attract foreign investments a country must be capable of clearing and settling national as well as international transactions. For implementing such cost effective, comprehensive payment clearing and settlement systems that are java based (platform independent), many payment systems were designed by a company MONTRAN. One main challenge in design of these networks is their vulnerability to security attacks. In this paper, we study the different comprehensive payment systems and comparison between them and how these online payment systems prevent from cyber criminals to steal victim’s personal online banking, webmail service and financial service account details.

The Feminisation of Finance

This article focuses on recent reconfigurations of the home as a space of financial calculation and speculation that requires new kinds of domestic labour. It considers the 2008 financial crisis, but redirects the analysis towards the ordinary and normalised presence of financial capitalism at the level of domesticity, home-life and the everyday ‘calculative agencies’ which households are now regularly called on to perform. It also examines the constitution of ‘women’ as a target group for personal financial products and services, and addresses the various strategies that promote financial inclusion as a means to secure individual responsibility, autonomy and entrepreneurial consumer participation in a financialised ownership society. The article argues that this feminisation of finance suggests a considerable challenge to received understandings of the relationships between gender and economy, production and reproduction, and life and labour.

Evolution and Innovation Regarding the Firms Using E-Banking

Evolution is undeniable. Nothing is continuous but the evolution. Evolution should be controlled exactly. Companies have to be careful about applying evolutions whenever it is necessary. Evolution is a continuous phenomenon. Evolution can help firms remain static. The major environmental forces, which make the evolution necessary evolution is necessary due to some factors like: technology, market forces and socio- economic factors. Managers must evolve policies to affect evolution. Internet technology is rapidly changing the way personal financial services are being designed and delivered. Hence, banks have found themselves at the forefront of technology adoption for the past three decades

Factors Influencing the Adoption of Internet Banking In Kenya

This research project seeks to improve the rare empirical knowledge on the adoption of internet banking in Kenya. Traditional branch based retail banking remains the most widespread method for conducting banking transactions in Kenya with agency banking and mobile banking being the recently adopted and widely used. However, internet technology is rapidly changing the way personal financial services are being designed and delivered.Among the major objectives of the study are, to determine how awareness of IB by the consumers affect adoption of internet banking, to determine how website security affects adoption of internet banking and to determine to what extent website features affect adoption of internet banking. The population is all the individuals who own bank accounts and currently have, those who have not adopted the internet banking as a mode of transacting. A total of 100 respondents were issued with questionnaires of which 81 were successively recovered.A random sampling was used to select the customers that would participate in the study. Content analysis and descriptive statistics was used to analyze the data. Statistical package for social science (SPSS) was used to analyze the data through the equation for best line of fit. Multi-linear regression analysis was used to test models' prediction capabilities. All hypotheses were tested at 0 .05 level of significance.The result showed that more men have adopted banking than women; education level is not a barrier to the banking services, the middle-aged people have embraced the banking services than any other age category; awareness, website features and security all affect the adoption of IB. The major recommendations of the study are; Internet banking should be adopted by both individuals and cooperates since it is inevitable in the 21st Century, and the banking institutions should also enlighten the public about internet banking.

KeyCorp

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)KeyCorp is a bank holding company. Through its subsidiaries, Co. provides retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients through two major business groups: Community Banking and National Banking. Also, Co.'s bank and trust company subsidiaries provide personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. At Dec 31 2007, Co. had total assets of around $100.00 billion and total deposits of $63.10 billion.

Comerica, Inc.

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Comerica is a financial services company. Co.'s segments include: Business Bank, comprised of the middle market, commercial real estate, national dealer services, international finance, global corporate, leasing, financial services, and technology and life sciences businesses; Retail Bank, which includes small business banking and personal financial services; Wealth & Institutional Management, which provides fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and discount securities brokerage services; and a Finance Division. At Dec 31 2007, Co. had total assets of $62.33 billion, and total deposits of $44.28 billion.

Northern Trust Corp.

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)Northern Trust is a financial holding company that provides investment management, asset and fund administration, fiduciary, and banking products and services for corporations, institutions, and affluent individuals. Co. conducts business through U.S. and non‐U.S. subsidiaries, including its primary bank subsidiary, The Northern Trust Co. Co. has two business units: Corporate and Institutional Services; and Personal Financial Services. As of Dec 31 2007, Co. had a network of 85 offices in 18 U.S. states and international offices in 15 locations in North America, Europe, and the Asia‐Pacific region; and had consolidated total assets of $67.61 billion and total deposits of $51.21 billion.

Northern Trust Corp.

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)Northern Trust is a financial holding company that provides investment management, asset and fund administration, fiduciary, and banking products and services for corporations, institutions, and affluent individuals. Co. conducts business through U.S. and non‐U.S. subsidiaries, including its primary bank subsidiary, The Northern Trust Co. Co. has two business units: Corporate and Institutional Services; and Personal Financial Services. As of Dec 31 2007, Co. had a network of 85 offices in 18 U.S. states and international offices in 15 locations in North America, Europe, and the Asia‐Pacific region; and had consolidated total assets of $67.61 billion and total deposits of $51.21 billion.

Comerica, Inc.

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Comerica is a financial services company. Co.'s segments include: Business Bank, comprised of the middle market, commercial real estate, national dealer services, international finance, global corporate, leasing, financial services, and technology and life sciences businesses; Retail Bank, which includes small business banking and personal financial services; Wealth & Institutional Management, which provides fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and discount securities brokerage services; and a Finance Division. At Dec 31 2007, Co. had total assets of $62.33 billion, and total deposits of $44.28 billion.

KeyCorp

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)KeyCorp is a bank holding company. Through its subsidiaries, Co. provides retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients through two major business groups: Community Banking and National Banking. Also, Co.'s bank and trust company subsidiaries provide personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. At Dec 31 2007, Co. had total assets of around $100.00 billion and total deposits of $63.10 billion.

Banking for the Poor: Addressing the Needs of Financially Excluded Communities in Newcastle upon Tyne

In the UK, many low-income communities have seen the withdrawal of `mainstream', high-street-based financial service infrastructure from their local areas since the mid to late 1980s, whilst more costly sub-prime lenders have flourished, often in their place. There has been a developing search for `alternative', welfare-oriented rather than profitdriven solutions to the problem of social and spatial segregation in financial service provision. This paper explores an initiative to create such an alternative, affordable and locally embedded form of personal financial service in a socially disadvantaged urban neighbourhood in the North East of England, Financial Inclusion Newcastle (FIN). This paper reflects on FIN's successes and failures, the potential limitations of such alternative area-based solutions and the lessons that can be learnt from these, through a focus on three key issues surrounding FIN's demise—the FIN model, its internal functioning and, perhaps most important of all, its relationship with the local community.

KeyCorp

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC: 522110)KeyCorp is a bank holding company. Through its subsidiaries, Co. provides retail and commercial banking, commercial leasing, investment management, consumer finance, and investment banking products and services to individual, corporate and institutional clients through two major business groups: Community Banking and National Banking. Also, Co.'s bank and trust company subsidiaries provide personal and corporate trust services, personal financial services, access to mutual funds, cash management services, investment banking and capital markets products, and international banking services. At Dec 31 2007, Co. had total assets of around $100.00 billion and total deposits of $63.10 billion.