Range Of Financial Products Research Articles

Alms-Giving and Financial Management

Objectives of financial management may be broadly divided into two parts such as profit maximization and wealth maximization. But alms-giving doesn’t have any connection with profit maximization or wealth maximization. Giving of alms is individual spending with non-profit oriented. Alms-giving objective for religious reason only to obey God’s order. In macro economics and micro-economics theory there are alms component as spending. Because alms-giving is better to be spent secretly. The research aims to analyze causality relationship between giving of alms with individual financial management using Econometric analysis Toda-Yamamoto causality test with E-views software. Purposive sampling method is employed to get primary data from respondents. Personal finance management is an activity that involves all the individual financial decisions, which includes budgeting, saving, insurance, mortgages. When a person plans his personal finance, he needs to take a range of financial products and other personal factors into consideration. Personal finance management has a huge influence on one’s life and future. Respondents comes from various region with various occupation and income with various religion background. Research analysis finds overwhelming support for the idea which optimism impacts economic decision-making by proving that alms affect financial management.
 Keywords: Alms-giving, financial management, Toda-Yamamoto causality test

Rural Financing as a Panacea for Poverty Alleviation: A Study of Selected Micro and Small Enterprises in Ogun State

Economic reforms have been implemented in Nigeria since 1980s which essentially entailed the shift from an administratively managed and public sector led economy to a market oriented and private sector led economy. Financial sector reforms were part of these broader economic reforms. A successful financial sector reform was expected to generate a dynamic process involving substantial changes in the country’s real activities of production, exchange (trade) and finance. Sustainability of the reforms was expected to result in financial deepening, increase in the range of financial products in order to better serve the needs of the economy and enhance transformation of the economy (urban as well as rural) so that production, exchange and other economic activities take place in different ways and in the context of new or reformed institutions. However the progress being made as a result of financial sector reform, financial services to the rural population have been slow to develop. The financial sector reforms are still in progress, but there is increasing concern that the majority of the rural population which constitutes 70-80% of the population and comprise 90% of all the poor in Nigeria have not benefited from the financial reforms. They have largely been bypassed by these reforms. The need to enhance accessibility of financial services to the rural poor in Nigeria deserves high priority on the agenda of the on-going financial sector reforms. In recognition of the need for improving access to financial services by the rural population, this paper will address the experience and lessons learned to date in the development of rural finance with a view to facilitating appropriate design of rural finance and develop sustainable financial services for the needs of rural population in Nigeria, in order to reduce the increasing rate of poverty. The survey research design was adopted and data collected through questionnaires. The impact of rural financing as a panacea for poverty reduction in Nigeria was analyzed using the OLS regression method. The study revealed the existence of positive relationship between rural financing and poverty reduction in Nigeria. The study recommended that adequate measure must put in place to continue encouragement of rural financing in Nigeria.

On Volatility Trading & Option Greeks

Commensurate with this exponential growth in the depth and breadth of derivative markets and the range of financial products traded therein, there needs to be developed a comprehensive mathematical framework to support the, hitherto, empirically established features of trading strategies involving these instruments. It is the objective of this article, to provide a mathematical backup for the various properties of volatility trading strategy using call options. Additionally, an attempt is made to elucidate the implications of behavior of various option Greeks on volatility trading.

A STUDY OF THE IMPACT OF ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER LOYALTY BY USING STRUCTURAL EQUATION MODELING IN BANKING SECTOR

INTRODUCTION:The Indian banking sector has undergone phenomenal change with the initiation of financial sector reforms leading to opening up of sectoral markets and emergence of private banks in the otherwise nationalized bank dominated domain. The change has been further stimulated with the introduction of technologies, particularly internet and information technology. Modern bank customers are enlightened enough to make investment decisions and other transactions and thereby choose a bank or a combination of banks. The transition of the banking sector has also ensured that the banks increase their spectrum of activities from a linear service to a host of cross and up-selling services. Historically, CRM has been a feature of the service marketing sector, where intangible nature of services and its inseparability fromits delivery and consumption process have made service provider-customer dyadic relationship quite pivotal in determining customer loyalty, retention of valued customers, profitability etc. The financial services industry has gone through a rapid structural change (Peter, 2012). Competitive pressure and customer demand has compelled the financial services providers focus on core competencies in order to deliver better value to their customers. Consequently, companies that were formally highly integrated have split into divisions or independent companies focusing on different parts of the value chain (Heinrich & Leist, 2002). On the other hand, many customers demand a complete range of financial products in order to satisfy their financial 'on-stop' needs. This forces financial services companies to collaborate with providers of complementary products and services. Ultimately, networks of financial services companies emerged (Alt & Reitbauer, 2005). This emergence stimulated initiation of networks consisting of relationship managers, product providers and transaction processors (Heinrich & Leist, 2002); (Hagel & Singer, 2014). CRM emerged as a response to decreasing customer loyalty in different industries. The reasons for decreasing customer loyalty in the financial services industries are manifold and closely interconnected. Three fundamental factors can be identified (Walter, 2015); (Kamer, 2013); (Krisnan, 2012):■ New technological opportunities.■ Increasing competition from new market entrants.■ Customers' changing behaviour.Community and retail banking system has evolved as a major domain of CRM application. As banks automated back-office functions with mainframes, and the number of products and services, particularly related to cross - selling and up-selling activities, grew, banks found it increasingly necessary to introduce and replace its branchbased filing cards with a Central Information file (CIF). At the beginning of the 1970s, CIFS were equivalent to centrally located file cards which during the latter half of the decade was replaced by mainframe based hierarchical database management system. Even with computerized CIFs it became difficult to update customer records particularly at a time when the banking sector proliferated rapidly and expanded its business spectrum in cross-selling and up-selling product lines like insurance, mutual funds, cards etc. A customer investing in a diversified portfolio across the product/service line offer of a single bank has different data for different accounts. Banks that are organized around product 'silos' with separate systems for deposit accounts and other transaction involvements, found that effective customer relationship revolves around retrieval of data from different databases and synchronizing it according to homogeneous information provided. (Panda & Parida, 2009) pointed out the needs for implementation of CRM solutions in retail banking which are as follows:(i) Need for increase in operating efficiencies.(ii) Need to derive more values from the employees.(iii) Dealing with increasing competition(iv) Managing the rise in NPAs(v) Increasing importance of Fee-based income(vi) Lack of clarity regarding branch banking(vii) Emergence of Universal banking concept(viii) Vasudevan Committee recommendations. …

Empowering Women: Uncovering Financial Inclusion Barriers

In recent years, developing countries including India have witnessed significant efforts by civil society organisations and governments to promote thrift activities among the poor especially women. This has been followed by interventions in the area of micro-credit and microfinance. The designation of 2005 as the International Year of Micro credit by the United Nations helped to raise global awareness on the pivotal role that more inclusive finance can play in achieving the Millennium Development Goals. Globally, the focus is now on financial inclusion and on strategies to make available a range of financial products and services that meet the specific needs of the poor. This article is an attempt to ascertain the awareness of Financial Inclusion among rural women in Tirunelveli District.

EMPOWERING WOMEN: UNCOVERING FINANCIAL INCLUSION BARRIERS

In recent years, developing countries including India have witnessed significant efforts by civil society organisations and governments to promote thrift activities among the poor especially women. This has been followed by interventions in the area of micro-credit and microfinance. The designation of 2005 as the International Year of Micro credit by the United Nations helped to raise global awareness on the pivotal role that more inclusive finance can play in achieving the Millennium Development Goals. Globally, the focus is now on financial inclusion and on strategies to make available a range of financial products and services that meet the specific needs of the poor. This article is an attempt to ascertain the awareness of Financial Inclusion among rural women in Tirunelveli District.

Short-form disclosure documents—an empirical survey of six jurisdictions

A fundamental principle that underpins the securities and financial markets is that investors, both institutional and retail investors, should be given all information necessary to enable them to make informed decisions about whether to acquire securities or invest in financial products. In conjunction with financial advice and measures to improve financial literacy, a core mechanism for implementing this principle is the use of disclosure documents. These come in a variety of forms, ranging from lengthy prospectuses or offer documents, to short-form documents that are designed to make it easier for investors, particularly retail investors, to read and understand the features and risks of securities and financial products. There are a number of questions that jurisdictions must consider when designing disclosure documents for use with financial products. For example, what is the purpose of the disclosure document and should it be the sole basis for investment decisions? Should the length and format of disclosure documents be prescribed? Should the same approach be adopted for all financial products or only a specified range of financial products? Should any restrictions be imposed for complex financial products as a result of the difficulties that investors, particularly retail investors, face in understanding how such products work? The answers to these questions will inevitably turn on the answers to various threshold questions: Does length matter? Does presentation or format matter? How important are length and format relative to other factors such as content and language? And how useful are devices such as synthetic risk indicators in helping investors to understand risk?

Upscaling with a focus on microfinance institutions' largest market: women entrepreneurs

As microenterprises grow, so do their financial and non-financial needs. Entrepreneurs may eventually need larger loans than microfinance institutions (MFIs) typically offer. To respond to the demands of clients that are transitioning into the small business segment, many MFIs, especially in Latin America and the Caribbean, have undergone upgrading and upscaling in order to provide a wider range of financial products and services. However, even though MFIs have a significant number of female clients in their portfolios, their upgrading and upscaling processes rarely integrate a gender focus and thus lack a value proposition tailored to that growing client base. Hence, this article seeks to open the discussion on how MFIs can implement successful upgrading and upscaling processes by recognizing the key opportunities presented by their largest market: women entrepreneurs.

The Structure of Financial Supervision: Consolidation or Fragmentation for Financial Regulators? A Game Theoretical Perspective

Consolidation or fragmentation for financial regulators? This debate has gained importance since the 2007-2009 financial crisis. The financial services sector has changed considerably over the last 25 years. Financial institutions have evolved from domestic firms engaged in distinct insurance, securities, and banking services into integrated financial services conglomerates offering a broad range of financial products across the globe. These conglomerates and their products now appear even in the most unexpected places, wearing all manner of disguises, and the task of regulating them has grown astronomically. Given these developments, an assessment of the architecture of financial regulators in different parts of the world is long overdue. This paper aims to assess the existing structures of financial supervision using game theory concepts. The paper develops a game theory matrix describing how two regulators working in the same field are expected to interact with each other. Possible market failures and possible solutions are identified and applied in order to assess the existing financial regulatory structures. The results of this analysis help shed light on why countries keep on switching, in what seems like a random move, from one financial supervisory structure to the other. The paper concludes with an application in Public Choice theory providing a possible solution to the problem of regulators’ incentives identified by this paper, a problem which might lead to lack of regulation which in turn could result in a financial crisis.

The Financial Crisis and the Response of the United States: Will Dodd Frank Protect Us from the Next Crisis?

In July of 2010 Congress enacted the Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”). The Dodd Frank Act is the primary legislative response in the United States to the financial crisis of 2007-09. It makes wide-ranging and significant changes to a number of aspects of financial services regulation. This article examines the eight most significant initiatives undertaken in the Dodd Frank Act; initiatives which are intended to avoid the next financial crisis, to give regulators the tools to deal with a future crisis when it occurs and to substantially increase the levels of protection provided to U.S. consumers of financial services. The Act creates a new Financial Stability Oversight Council with the broad responsibility to anticipate and to take measures to avoid the next financial crisis. It gives to the Federal Deposit Insurance Corporation the authority to liquidate very large financial services companies in an orderly manner in the event they fail. It creates a new National Insurance Office in the Department of the Treasury to provide limited oversight of our state-regulated insurance industry and, more importantly, to collect information on the risk to the U.S. financial system generated by the failure of the largest insurance companies. It provides for more intensive and effective regulation of credit rating agencies, overseen by a new Office of Credit Ratings at the Securities and Exchange Commission. It imposes registration requirements on hedge fund advisers and provides a process for collecting information on the risks posed to the U.S. financial system by the investment activities of hedge funds. It mandates significant new regulation at the Commodities Futures Trading Commission and the Securities and Exchange Commission over the trading of derivatives, requiring exchange-based trading for some classes of derivatives and for transparency in the trading of customized derivatives not suitable for exchanges. It requires a variety of corporate governance reforms for publicly traded companies, including a “say on pay” (a shareholders’ advisory vote on executive compensation plans), increased disclosures to shareholders, independent board compensation committees and consultants, and board risk committees for large financial services companies. Finally, it creates a major new agency, the Bureau of Consumer Financial Protection, located in the Federal Reserve System with significant powers to protect consumers in their purchases of a broad range of financial products. Each of these eight initiatives undertaken in Dodd Frank is complex and dependent to a significant degree on the promulgation of regulations for its implementation. It remains to be seen if these regulations will reflect the spirit of Dodd Frank’s ambitious and serious approach to avoiding or, at least, to providing the tools to survive the next financial crisis. This article offers a summary and some comments on the Dodd Frank initiatives outlined above. The ultimate effect of the Dodd Frank Act will depend to a large extent upon how it is implemented by U.S. financial regulators.

Financial services consumption constraints: Empirical evidence from Rwandan rural households

The concentration of banking and financial institutions in the city and/or urban in any developing countries in general, Rwanda in particular creates various constraints in availing and consuming different financial products and services by the rural households. The article examines the forms and determinants of credit constraint status of rural households of Rwanda and the impact of constraints variables on availing and using the range of financial products and services. The study concludes that 42.5 per cent of the Rwandan rural households surveyed face triple forms of credit constraints including self-imposed constraints, quantity rationing and risk rationing by formal financial institutions. However, quantity rationing is perhaps not as pervasive as self-imposed rationing and risk rationing by the lenders. The results from the empirically tested model revealed that in addition to demographic and socioeconomic characteristics of households, the variables constraining demand and/or supply of financial services with reference to accessibility were significant predictors of households' credit constraints. The study informs on the needs for innovative systems, products and services that would increase access relax credit constraints and improve rural consumers' welfare. The authors conclude that establishing an enabling legal and regulatory environment, providing adequate public goods and physical infrastructure, designing capacity building and technical assistance programs and maintaining political and macroeconomic stability are perhaps major public and policy issues needed for a robust rural financial market.

Critical Review of Financial Sector Reforms and Financial Liberalization in Developing Countries [A Practical Discussion in Nigerian Context

The main objective of this paper is to assess the impact of financial sector reforms/liberalizations on savings mobilization in Nigeria. Financial liberalization involves the elimination of credit controls, deregulation of interest rates, easing of entry into the financial services industry, development of capital markets, increased prudential regulation and supervision, and liberalization of international capital flows. Reforms are expected to increase competitive efficiency within the financial market in at least three ways. Firstly, the elimination of regulations and price distortions, which allows savings to be directed into highest-yielding [risk-adjusted] form of investment [improved allocative efficiency]. Secondly, increased competition reduces the cost of financial intermediation [higher operational efficiency]. Thirdly, the reform measures, generates and improved range of financial products and services adaptable to changing consumer need [dynamic efficiency]. Although financial reforms can increase the efficiency by channeling resources into productive use, its impact on the quantity of savings is theoretically ambiguous. Accordingly, this paper dwells on theoretical issues and critical review of financial sector reforms/financial liberalization in Nigeria. Attempt was also made to assess the impact of the reforms/liberalization. The paper analyzed the roles of the recent literature. Ten indicators that encompass all the qualities of a well developed financial sector reforms were selected to measure the impact of financial sector deregulation on the economy.

Fifth Third Bancorp (Cincinnati, OH)

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)Fifth Third Bancorp is a financial holding company. Through its subsidiaries, Co. provides a range of financial products and services to the retail, commercial, financial, governmental, educational and medical sectors, including a variety of checking, savings and money market accounts, as well as credit products such as credit cards, installment loans, mortgage loans and leases. Co. operates through five business segments: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors, and Fifth Third Processing Solutions. As of Dec 31 2007, Co. had total assets of approximately $110.96 billion and total deposits of approximately $75.45 billion.

Peoples Bancorp, Inc. (Marietta, OH)

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Peoples Bancorp is a finance holding company. Through its main operating subsidiary, Co. provides a range of financial products and services to its customers, including interest‐bearing and non‐interest‐bearing demand deposit accounts, savings and money market accounts, certificates of deposit, commercial, consumer, and real estate mortgage loans, credit and debit cards, corporate and personal trust services, and safe deposit rental facilities. Co. also provides a range of life, health, property and casualty insurance products and provides custom‐tailored applications for asset management needs. As of Dec 31 2007, Co. had total assets of $1.89 billion and total deposits of $1.19 billion.

Fifth Third Bancorp (Cincinnati, OH)

AbstractCommercial Banking (MIC: SIC: 6022 NAIC: 522110)Fifth Third Bancorp is a financial holding company. Through its subsidiaries, Co. provides a range of financial products and services to the retail, commercial, financial, governmental, educational and medical sectors, including a variety of checking, savings and money market accounts, as well as credit products such as credit cards, installment loans, mortgage loans and leases. Co. operates through five business segments: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors, and Fifth Third Processing Solutions. As of Dec 31 2007, Co. had total assets of approximately $110.96 billion and total deposits of approximately $75.45 billion.

Peoples Bancorp, Inc. (Marietta, OH)

AbstractCommercial Banking (MIC: SIC: 6021 NAIC: 522110)Peoples Bancorp is a finance holding company. Through its main operating subsidiary, Co. provides a range of financial products and services to its customers, including interest‐bearing and non‐interest‐bearing demand deposit accounts, savings and money market accounts, certificates of deposit, commercial, consumer, and real estate mortgage loans, credit and debit cards, corporate and personal trust services, and safe deposit rental facilities. Co. also provides a range of life, health, property and casualty insurance products and provides custom‐tailored applications for asset management needs. As of Dec 31 2007, Co. had total assets of $1.89 billion and total deposits of $1.19 billion.

Fifth Third Bancorp (Cincinnati, OH)

AbstractCommercial Banking (MIC: 8.1 SIC: 6022 NAIC: 522110)Fifth Third Bancorp is a bank holding company. Through its subsidiaries, Co. provides a range of financial products and services to the retail, commercial, financial, governmental, educational and medical sectors, including a variety of checking, savings and money market accounts, and credit products such as credit cards, installment loans, mortgage loans and leases. Co. operates five business segments: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions.As of Dec 31 2007, Co. had total assets of $111.00 billion, and total deposits of $75.45 billion.

Peoples Bancorp, Inc. (Marietta, OH)

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC: 522110)Peoples Bancorp is a finance holding company. Through its main operating subsidiary, Co. provides a range of financial products and services to its customers, including interest‐bear ing and non‐interest‐bearing demand deposit accounts, savings and money market accounts, certificates of deposit, commercial, consumer, and real estate mortgage loans, credit and debit cards, corporate and personal trust services, and safe deposit rental facilities. Co. also provides a range of life, health, property and casualty insurance products and provides custom‐tailored applications for asset management needs. As of Dec 31 2007, Co. had total assets of $1.89 billion and total deposits of $1.19 billion.

Peoples Bancorp, Inc. (Marietta, OH)

AbstractCommercial Banking (MIC: 8.1 SIC: 6021 NAIC:522110)Peoples Bancorp is a finance holding company. Through its main operating subsidiary, Co. provides a range of financial products and services to its customers, including interest‐bearing and non‐interest‐bearing demand deposit accounts, savings and money market accounts, certificates of deposit, commercial, installment, and real estate mortgage loans, credit and debit cards, corporate and personal trust services, and safe deposit rental facilities. Co. also provides a range of life, health, property and casualty insurance products and provides custom‐tailored applications for asset management needs. As of Dec 31 2006, Co. had total assets of $1.88 billion and total deposits of $ 1.23 billion.

South Financial Group Inc (THE)

AbstractCommercial Banking (MIC: 8.1 SIC: 6022 NAIC: 522110)The South Financial Group is a financial holding company that provides a range of financial products and services, including mortgage, trust, investment, and insurance services to consumers and commercial customers. As of Dec 31 2006, Co. operated through 77 branch offices in South Carolina, 66 in Florida including Hendersonville, Asheville Greenville, Anderson, Rock Hill, Columbia, Myrtle Beach, Georgetown, Wilmington, Charleston and Hilton Head metropolitan areas, as well as 24 in North Carolina including Orlando, Tampa Bay, Gainesville, Jacksonville, Palm Beach, Miami‐Dade and Broward areas. As of Dec 31 2006, Co. had total assets of $14.20 billion and total deposits of $9.52 billion.