Banking Products Research Articles

Smart technologies in banking

The article is aimed at the current issues of using smart technologies and innovative approach during evolution and transformation processes in banking. The study identifies the special place of this topic for achieving a high level of efficiency and competitiveness of banks and characterizes the impact of the introduction of technological approaches on the customer base and its perception of banking products. The main functions of banking innovations in this area are analyzed and the justification of their feasibility at the present stage of economic development is provided. A number of the most promising technologies and approaches to banking activities are allocated, namely: contactless payment, digital wallets, biometric identification, person-to-person payments, collective financing, omnichannel banking, interaction with FinTech companies, blockchain, big data, artificial intelligence, smart machines, Internet of Things, behavioral banking, retail bank, application programming interfaces, multi-component bank, open banking, augmented reality, robotic automation, hybrid clouds. The relevance of the identified areas is proved based on their perception by analyzing the popularity of the identified topics in Google search queries using the Google Trends tool. The perception of smart technologies in banking by Internet users in the world and specifically in Ukraine is investigated, which gave grounds to conclude that there is a significant interest in them, and therefore the expediency of further study and implementation in the activities of banks. It is identified that the most perspective technologies are biometric identification, blockchain, Internet of Things, big data analysis, artificial intelligence, etc. Several technologies have been identified, namely, collective financing (crowdfunding), application programming interfaces (APIs) and digital wallets, which are less popular in Ukraine than in the world in general, and therefore require detailed research and study of the relevance of their application in the domestic banking market. Possible directions for further innovative development of banking institutions based on the use of smart technologies are proposed. Based on panel data for 60 banks of Ukraine for the period 2014-2022, the author analyzes the correlations between the indicators of the use of digital technologies and the financial performance of banks and builds regression dependencies of financial indicators of banks on the indicator of the number of electronic means of payment in active circulation. The theoretical value of the study is to identify the most promising smart technologies and innovative approaches to banking business in modern conditions. The practical value lies in studying the level of perception of high-tech innovations in the field of banking services by the active public and identifying further directions for the development of this process. We consider it advisable to direct further research in the context of a detailed study of the possibilities of applying the identified technologies in specific banking products or business processes.

The Influence of Celebrity Endorsement, Green Brand Image and Green Product Quality on Decisions to use Sharia Banking Product

This research aims to analyze the influence of Celebrity Endorsement, Green Brand Image, and Green Product Quality on Decisions to Use Sharia Banking Products. The population in this study who had used sharia banking products. Sampling used Non-Probability sampling with Purposive Sampling technique, with a sample size of 120 respondents. The data analysis method in this research uses the Partial Least Square (Smart-PLS) program version 3.0. The research results prove that (1) Celebrity Endorsement has a positive and significant effect on Using Decisions, (2) Green Brand Image has a positive and significant effect on Using Decisions, and (3) Green Product Quality has a positive and significant effect on Using Decisions.

Determinant of Qard: Evidence from Indonesian Islamic Rural Banks

This study was conducted to offer an assessment of the qard factors, concerning Indonesian Islamic Rural Banks. To conduct this analysis, data from Indonesian Rural Banks and macroeconomic panels were used. In addition, an approximated generalized method of the moment was also used to report qard determinants from 2012-2022. The results showed that Return on Assets (ROA), Bank Operational Costs to Operating Income (BOPO), and inflation negatively impacted the distribution of qard, while Non-Performing Financing (NPF) variable indicated a positive and significant impact. Valuable recommendations were formulated by comprehending the interplay between profitability ratios and macroeconomic conditions. These recommendations informed the development of products within the context of BPRS and Sharia banking, contributing to rural economic growth through qard financing. This study developed BPRS and Sharia banking products to increase rural economic growth. Qard financing served as an essential resource for individuals who did not meet the eligibility criteria of conventional banks. The adoption and expansion also promoted financial inclusion for marginalized communities.

The Role of Self Control as a Moderating Variable on The Effect of Financial Inclusion on Financial Behavior

Financial behavior among the public is still low, based on research conducted by the OCBC Financial Index showing data that the financial literacy and behavior index of the younger generation is still in the low range category, namely 37.72 out of 100 in 2021 for 1,027 respondents. Previous research on "financial behavior" that was carried out by Perry and Moris (2005) suggests that there are three factors that can affect "financial behavior" including: first one's self-control over whatever happens in life or also called (locus of control). Second, one's financial knowledge of matters related to money or banking products. Third, the level of one's income or (income). Research Objectives: to provide empirical evidence of the effect of financial inclusion on financial behavior. This research was conducted on students of the Faculty of Economics, Hasyim Asy'ari University with a total population of 980 students with sample calculations using the slovin formula. Research Methods using quantitative research methods with Smart PLS. The results of the hypothesis analysis show that the results of financial inclusion influence financial behavior. And Self Control can moderate or strengthen the relationship of financial inclusion to financial behavior.

CUSTOMER'S PERCEPTION AND DIGITALIZAION ABLE TO INCREASING INTEREST TO INVEST IN GOLD IN ISLAMIC SHCEME

The aim of this research is to find and determine the influence of perceptions of Islamic banking products, digitalization and income on interest in investing in gold at BSI Mobile. Sampling used purposive sampling technique with a total sample of 121 respondents. The approach used is a quantitative model with data collection techniques using questionnaires. SPSS 26 and Excel are data analysis tools. Data testing uses data quality tests, classical assumption tests, multiple linear regression analysis tests and hypothesis tests. The results of this research are that perceptions of sharia banking products and digitalization partially have a significant effect on interest in investing in gold at BSI Mobile, while partially income does not significantly affect interest in investing in gold at BSI Mobile. Simultaneously, all independent variables have a significant effect on the dependent variable.

Banking Risk Management: Assessment of Existing Company Practices

Main problem is that banking is one of the most important sectors of the economy all over the world. Being high-tech, it is most susceptible to ongoing changes, both at the macro and micro levels. As practice shows, such changes are associated with the increasing internationalization of credit institutions and markets, improvement of banking legislation and modern computer technologies, increased competition, and the emergence of new banking products and services in financial markets. The relevance of the topic of the master's thesis is that in order to ensure the effective functioning of a commercial bank, it is necessary to form, use and integrate into the bank's management structure mechanisms for effective protection against the negative impact of uncertainties arising in the course of banking activities. Such a mechanism is banking risk management. Purpose of this article is to study the existing problems of the effectiveness of bank risk management and develop practical recommendations for its improvement. Methods: The methodological basis of the work is the general scientific methods of comparative-systemic, structural-level, dialectical, vertical and horizontal analysis, qualitative and quantitative approaches and analytical techniques. In substantiating the theoretical provisions of the conclusions and recommendations, economic, statistical and empirical methods of cognition were used. Results and their significance: The theoretical and practical significance of the study lies in the development of theoretical provisions of a comprehensive analysis of banking risk management, as well as in the possibility of using the developed conclusions and recommendations in the practical activities of commercial banks. The analysis of the state and assessment of the effectiveness of risk management of commercial banks was carried out, the analysis of the features of the mechanism of functioning of risk management was carried out.

PERSEPSI PENGURUS MASJID TENTANG PRODUK TABUNGAN BANK SYARIAH DAN MINAT MENABUNG DI BANK SYARIAH (Studi di Kelurahan Simpang IV Sipin Kecamatan Telanaipura Jambi)

This study aims to: (1) to find out how the perception of mosque administrators towards Islamic bank savings products (2) to find out how mosque administrators are interested in saving their mosque funds to Islamic banks. The method used to collect data in this study is through interviews, observation and documentation. In this study, the research objects used were 9 mosques in the Simpang IV Sipin Telanaipura area. The results of this study are that the mosque administrators in the Simpang IV Sipin Telanaipura area there are still some mosque administrators who do not really understand the products issued by Islamic banks, 6 out of 9 mosques studied that the administrators have the perception that Islamic bank products are good, guaranteed by the sharia which is free from usury elements. While the other 3 mosques mosque administrators perceive that Islamic bank products are not much different from conventional banks, they assume that as long as conventional banks do not take excessive profits from customer savings, it is still different if they take profits beyond the limit. Furthermore, as many as 6 mosques, the administrators are interested in saving the mosque funds that they manage in Islamic banks. Meanwhile, as many as 2 mosques, the administrators are not interested in saving the mosque funds that they manage in Islamic banks, they prefer conventional banks. If it is percented, 67% of mosque administrators are interested and 22% of mosque administrators are not interested. Mosque administrators who do not save in Islamic banks because they save in conventional banks, they have the perception that Islamic banks have complicated requirements, difficult and long arrangements, which is why they prefer conventional banks. And 1 mosque administrator is not interested in either Islamic banks or conventional banks, if percented by 11%. The implication of the findings of this study is that it is necessary to follow up on efforts related to increasing public knowledge of Islamic financial products for the better development of Islamic banking, mosques and society.

Penerapan Akad Murabahah di PT. BANK SYARIAH KCP MEDAN Padang Bulan

Sharia banks are currently on the rise and have become a reference for the public. One of them is 4.444 loans with a profit sharing system. Therefore, various sharia banking products, including the application of Murabahah contracts to PT financing products, must be understood by the wider community. Sharia People's Financial BANK SHARIA INDONESIA KCP MEDAN PADANG BULAN. This article explains the introduction of Murabahah contracts in PT loan products. People's Sharia Financial BSI KCP MEDAN PADANG BULAN This article uses qualitative research, collecting data through online interviews with PT manager BANK SHARIA INDONESIA KCP MEDAN PADANG BULAN. The result of this research is the application of a financing contract, namely the Murabaha contract, namely a contract for buying and selling goods at the original price with additional agreed profits. Technically, Sharia Banking Murabahah is defined as an agreement agreed between a sharia bank and a customer where the bank provides financing for the purchase of raw materials and other working capital needed by the custome.

Pengaruh Literasi Keuangan Terhadap Minat Pemilihan Produk Perbankan Syariah Di Kalangan Mahasiswa

The choice of Islamic banking products among students is becoming an increasingly interesting issue in the development of the Islamic banking sector. The younger generation, including students, has a crucial role in shaping the future direction of Islamic banking. An important factor that is believed to influence the decision to choose Islamic banking products by students is the level of financial literacy. This study aims to investigate the effect of financial literacy on the interest in choosing Islamic banking products among university students. The survey method through questionnaires was used on 68 respondents of Islamic banking study program students. The results showed that the thitung value was 25.181 > ttabel 2.000 and it was found that the fhitung value exceeded the ftabel value, which was 634.100 > 3.986, with a significance value of 0.000, which is smaller than the significance value of 0.05. From these results, Islamic financial literacy has a significant influence on the interest in choosing Islamic banking products among students. The coefficient of determination reached 90.4%, indicating a strong influence. Support from religious aspects is also important in the selection of Islamic banking products, by Islamic principles that emphasize fairness and understanding in transactions. This study is consistent with previous findings by Nahla Zamharira et al. (2021), which also shows that Islamic financial literacy has a significant impact on students' decisions to utilize Islamic banking services. In conclusion, the higher the Islamic financial literacy, the more interest in choosing Islamic banking products in college students.

EKSPLORASI TEORI DISRUPSI DIGITAL CLAYTON CHRISTENSEN DAN MAQASHID SYARIAH TERHADAP INOVASI PERBANKAN SYARIAH DI ERA DIGITAL

This research holistically explains the innovation of Islamic banking in the digital era, where, in the last decade, the digital revolution has changed the way financial institutions operate, triggering challenges and opportunities for Islamic banking. Through in-depth desk research with qualitative research based on analytical descriptive analysis to highlight the complex challenges and innovations faced by Islamic banking accompanied by Clayton Christensen's Digital Disruption theoretical framework and Maqashid Syariah concept. This research highlights the various challenges Islamic banking faces, ranging from integrating digital technology with Sharia principles to competition with conventional financial institutions, the information gap and the need for competent human resources. On the other hand, innovations in Islamic banking products in the digital era include using technologies such as mobile banking, blockchain, and AI to improve services and operational efficiency and expand access to finance through innovative financing and investment products. Analysis based on Clayton Christensen's Digital Disruption theory reveals how Islamic banking adopts technology to offer more efficient and personalised solutions to customers, while the Maqashid Shariah perspective shows how such innovations fulfil the objectives of Islamic law, such as safeguarding religion, soul, mind, offspring, and property, as well as protecting the environment. Overall, Islamic banking product innovation in the digital era illustrates the synergy between technology and Sharia principles to create a fair, inclusive, sustainable financial ecosystem. By continuously developing solutions that meet the needs of modern society while maintaining the integrity of Sharia values, Islamic banking is at the forefront of providing added value to customers and society while opening up new economic growth opportunities.

CHALLENGES IN THE IMPLEMENTATION OF MUDHARABAH FINANCING IN THE ISLAMIC BANKING INDUSTRY

In recent decades, the proliferation of Islamic banking has rendered it a significant entity in the global financial arena, captivating numerous entrepreneurs and businesses with its ethically distinctive financing alternatives. Several Islamic financial institutions adhere robustly to the profit-sharing principle, notably via mudharabah, in product financing. This research paper explains why mudharabah contracts are used in Islamic banking products, focusing on financing schemes, literacy, and the lack of equal access to information. Moreover, within the context of Islamic FinTech, this research highlights high business risk as a pronounced impediment to the efficacious implementation of mudharabah. In addition, this study offers a rigorous analysis of the issues and challenges endemic to mudharabah financing, venturing into perspectives from regulators and Islamic bank customers. This paper utilized a literature review methodology, and data extracted from relevant literature is systematically analyzed to evaluate mudharabah products as a viable business financing model. Conclusively, the insights derived from this research are positioned to formulate strategic recommendations, fostering advancements in implementing mudharabah contracts within Islamic product financing.

In Pakistan, the Choice of Requirements for Islamic Easy House Financing by Meezan Bank

Islamic Easy House Financing (IEHF) increased from RS. 6.8 billion to RS 23.3 billion over 10 years. Identifying the factors that affect the satisfaction of both Muslim and non-Muslim clients with Islamic Easy House Financing (IEHF) is significant. This research then considers the major variables that impact Pakistan's choice of Islamic Easy House Finance (IEHF). Questionnaires were distributed to 160 employees of Meezan Islamic Bank. The current study employed a testing strategy called random sampling. The questionnaire was divided into two segments. One segment included data about the segments, while the other segment focused on the factors that influence how Muslims finance their Islamic Easy House (IEHF). The results demonstrate that several significant variables impact the choice of Islamic Easy House Financing (IEHF), including circumstances, management quality, integrity, prominence in the media, and social impact. The most reliable indication is reputation, as most customers feel comfortable choosing Islamic Easy House Finance (IEHF) because Islamic Meezan Bank has a strong reputation and vision. The study needs to be completely structured. The focus also refers to representatives of a single financial institution. Future research may involve personnel from various Islamic financial institutions. Policymakers and directors could use the tests suggested in the current study as a guide for enhancing Islamic Meezan Bank products and services. There will be an article published on Pakistan's Meezan Islamic Bank as part of the study. This research is the first to examine Pakistan's easy-house-choice Shari'ah laws. For experts and scholars concerned about advancements in Pakistan's Meezan Islamic Bank's banking sector, the findings made throughout this research process will be of the utmost importance.

Banking Technologies Trends in 2024: Advantages and Challenges

A bank is a crucial company in the services sector. The most important role in the bank is played by the customers. The person who utilizes banking products and services and evaluates their quality is the client. A contract between a bank and a customer is known as a banking relationship. Every industry needs to continue expanding and changing in order to meet consumer demands and thrive. The same idea applies to the financial sector as well. Since many in this industry have worked hard for years to meet the urgent needs of their customers, they have long resisted changing their management and processes. This industry has been reluctant to adapt since these systems are less appropriate for the technologically advanced world of today. In this paper the researcher aims to study the latest banking technologies, advantages and challenges.

The Credit Card of Murabaha & Ijarah (Leasing) of Benefits and Services in the Palestinian Islamic Bank: A Critical and Analaytical Jurisprudential Study

The research attempts to answer a crucial question: To what extent does the Mastercard issued by the Palestinian Islamic Bank adhere to Sharia principles and regulations related to agency contracts, Murabaha (cost-plus financing), and Ijarah (leasing)? The research followed a descriptive-analytical approach, examining everything related to the mentioned card and its application, along with the Sharia principles it is based on, through discussion, analysis, and critique. The research is distinguished by its analytical and critical jurisprudential study, producing a new Islamic banking product, amidst the scarcity of Sharia studies on it. The research was divided into two sections and a conclusion: the first dealt with defining the card, its application in the Palestinian Islamic Bank, and its Sharia adaptation. The second section addressed the most significant jurisprudential issues concerning it. The research concluded several key points, including genuine jurisprudential issues with the card undermining its legitimacy, such as violating agency and leasing rules regarding responsibility and guarantee, selling, and leasing in the seller's knowledge of the market value, and the client's acceptance of purchasing or leasing from the bank itself occurring in the card issuance agreement before the bank's ownership. It also noted the absence of genuine Sharia oversight ensuring Sharia compliance in operations and their regulations, which could lead to significant harm to Islamic banks in their form and differentiation from interest-based banks.

The Implementation of Bank as a Service Marketing Communication Strategy in Increasing the number of customers on blu by BCA Digital

Marketing communication activities through strategies to develop market penetration and brand positioning strategies are very significant efforts for blu by BCA Digital. blu is an all-in-one banking product that is a solution to answer the financial and non-financial needs of digital savvy through an interconnected digital ecosystem, as well as spreading brand awareness for the BCA Digital platform. This study aims to identify blu's marketing communication strategy with the implementation of public relations, marketing mix, efforts and challenges in their promotional activities. This research also seeks to find the most dominant form of blu's promotional efforts. Descriptive qualitative method is used in this study. The data collection was carried out through non-participant observation, in-depth interviews, literature review and archiving. Key informants were obtained through purposive sampling technique. Data analysis was carried out by means of data reduction, data presentation and verification. shows that blu is very dominant and active in carrying out digital promotional mixes through mobile application platforms, social media and establishing collaborative partnerships with various communities to build ecosystems. In addition, blu also has the goal of educating its multi-segment target audience to make blu's digital banking relevant to everyday life. blu launched a mobile banking application which as of December 2022, the users achieve more than 1.1 million people. This achievement could not have been separated from good collaboration and integration with fintech partners, cooperation with companies and various universities with bank as a service or blu access is installed in the partner’s applications.

Resistance to technological innovation and brand equity in the banking sector

Abstract Consolidating strategies in the banking sector to reduce the impact of resistance barriers to technological innovation can bring brands closer to older people, thus reinforcing the brand value of banking institutions; therefore, the objective of this research was to identify the incidence of resistance barriers to technological innovation on the dimensions of brand equity in the banking sector by elderly people. For this purpose, a descriptive correlational study was developed with 502 elderly people living in the city of Bogotá, Colombia, aged between 60 and 80 years old. Data collection was carried out using a questionnaire applied in person, which was adjusted and validated based on the information obtained. The questionnaire assessed brand equity components of brand image and awareness, brand associations, perceived quality and performance, and brand loyalty, and included items to assess psychological and functional barriers. A confirmatory factor analysis and structural equation modelling were developed for the different barriers of resistance to technology and for the dimensions of brand equity, identifying that the different types of resistance to innovation affect only the dimensions of brand awareness and brand importance. The results lead to the conclusion that elderly people experience different barriers to using the technological applications of their banking products and that the design of these applications must consider them in order to achieve or maintain brand recognition in this segment, as well as to achieve true financial inclusion for elderly people.

Know your customer: Unravelling the challenges

Regulated financial institutions must conduct regular know-your-customer (KYC) reviews on corporate clients to prevent money laundering and the financing of terrorism. However, national add-on requirements and regulatory discrepancies challenge the vision of a unified Europe, hindering the creation of an efficient, digital and hence scalable pan-European anti-money laundering (AML) process for all stakeholders who are active beyond their national borders. The current inability of banks to introduce efficient but robust pan- European KYC processes delays customers’ access to finance and other banking products, and indirectly impedes the free movement of goods, services and capital. The European Commission plans to introduce the Anti-Money Laundering Regulation (AMLR) to harmonise and strengthen the EU AML framework. This could reduce national divergences, allowing for a level playing field across the internal market and consistent application of provisions throughout the EU. Unfortunately, harmonised regulation alone does not solve the current issues faced by financial institutions. While a harmonised rulebook provides certainty related to ‘what’ needs to be done, significant pan-European discrepancies remain related to ‘how’ the requirements can be fulfilled. For example, the EU has directed all member states to establish commercial and beneficial ownership registers, but left the design of such registers under the authority of the member state. Consequently, banks active on a pan-European level have to adjust their processes based on the type and content of the national register. Also, the definition of what constitutes a politically exposed person (PEP) varies significantly across the EU, as do the enhanced due diligence requirements which are triggered upon the identification of such a PEP. This paper provides suggestions on how EU member states can help the financial industry in a joint effort to prevent money laundering and combat the financing of terrorism more effectively. The objective of this discussion is to create a streamlined and unified approach to KYC processes across Europe.

The Relationship between Age and Level of Income with Understanding of Islamic Digital Banking

The rapid growth of information and communication technology development has driven the Islamic banking and finance industry to digitalize all transactions and Islamic banking products to go fully online. However, there is a hindrance in developing Islamic digital banking which is the lack of understanding about Islamic digital banking among Malaysia community from different age and level of income. This study aims to investigate the relationship between age and level of income of Malaysian community with the level of knowledge about Islamic digital banking. This study employed a quantitative survey questionnaire of 100 respondents. The Statistical Product and Service Solutions (SPSS) software version 27 has been used in this study in analysing the data through descriptive analysis. The general finding of this study showed that the young generation and people with lower income have more intention to adopt this new application compared to the older generation and people with higher income. By analyzing these relationships, the research could help Islamic banks tailor their services and products to various demographic groups, enhancing accessibility and understanding. Additionally, the findings might inform policymaking to create a more inclusive financial system, particularly in predominantly Muslim countries. Overall, the study appears to connect the fields of demographics, technology, economics, and cultural studies, potentially providing essential insights for the development and growth of Islamic digital banking.

Half-dose direct oral anticoagulation versus warfarin for atrial fibrillation following cardiac surgery.

Optimal anticoagulation strategies have not been defined for patients with atrial fibrillation following cardiac surgery. From a total cohort of 228 patients with pre-existing or new onset atrial fibrillation following coronary artery bypass grafting and/or valve surgery, we compared in-hospital and 30-day outcomes in 119 patients treated with low-dose aspirin and a half-dose direct oral anticoagulant (DOAC) versus 109 treated with low-dose aspirin and warfarin. DOAC patients were older (73.1±7.0 vs. 68.7±11.4 years, P<0.001) and had a lower incidence of preoperative atrial fibrillation (37 [31.1%] vs. 69 [63.3%], P<0.001). Otherwise, the two cohorts were well matched for baseline demographics, cardiovascular risk factors, comorbidities, prior cardiac history and STS Risk Score. In comparison to Warfarin patients, DOAC patients had a shorter length of post-surgical stay (6 [5-8] vs. 7 [5-10] days, P=0.037). The two cohorts, however, had a similar incidence of stroke, transient ischemic attack, reoperation for bleeding and postoperative blood bank product usage. Follow-up 30-day outcomes did not differ between the two groups with respect to mortality (0 [0.0%] vs. 0 [0.0%], P=1.000) and hospital readmission (16 [13.4%] vs. 14 [12.8%], P=0.893), although two DOAC patients required drainage of sanguineous pericardial effusions. In comparison to warfarin, half-dose DOAC anticoagulation in patients with atrial fibrillation following cardiac surgery is associated with a shorter postoperative length of stay, without a significant increase in stroke/transient ischemic attack, reoperation for bleeding or postoperative blood product transfusion. Follow-up echocardiography in anticoagulated patients is recommended to rule out significant sanguineous pericardial effusions in the early postoperative period following hospital discharge.

Assessment of the main trends in the digitalization of financial products of banks within the framework of the new paradigm of the Russian financial market

Assessment of the main trends in the digitalization of financial products of banks within the framework of the new paradigm of the Russian financial market