Financial Service Providers Research Articles

The Critical Role of Implementing Partners: Evidence From Training Micro and Small Enterprises Across 12 Financial Service Providers

Despite access to financial resources, many micro and small-scale entrepreneurs struggle to grow their businesses due to management inefficiencies. This study analyses a globally recognized ILO business training initiative in Indonesia, involving 12 financial service providers in 2018. Using an RCT and panel data from 3,975 clients to study the impacts of the business training we find largely null results across a large range of outcomes. Exploiting variation across financial institutions implementing the program, we show that one financial service provider demonstrated significant improvements in its clients’ behaviours. This uneven outcome suggests that the efficacy of large-scale interventions critically depends on the quality of implementation by individual partners. The overarching conclusions advise restraint in broadly expanding these programs, while simultaneously highlighting the crucial role of partner selection in the successful implementation of these initiatives.

Supervision of Non-Profit Organizations (NPO) On Potential Criminal Acts of Money Laundering and Terrorist Financing

The biggest challenge for NPOs is how the purpose of the NPO, to serve the community, can be run by legal corridors and not be used as a medium for money laundering for criminals or terrorism funding. Supervision of NPOs has a very important purpose in the context of preventing terrorism financing and also in the context of preventing money laundering. Therefore, the identification of donor recipients or beneficiaries for NPOs needs to be analyzed by looking at the existing regulatory framework, and whether the regulatory framework can effectively prevent money laundering and terrorism financing. This paper aims to discuss the supervision mechanism of NPOs in mitigating money laundering and terrorism financing, as well as the liability of NPOs if used as a medium for Money Laundering or Terrorist Financing. The research in this paper is Normative Research with Explanatory Descriptive Research Typology. The data analysis technique that the author uses is data analysis with a qualitative approach. Based on the research conducted by the author, it can be concluded that to prevent NPO funding from being misused for money laundering or terrorist financing, by way of supervision of the transaction flow of Mass Organizations as customers by the financial service provider through the identification and verification of donors and recipients or beneficial owner of NPO, and by the risk-based supervision of NPOs conducted by the Ministry that has authority to allow the establishment of NPOs through educating, monitoring and evaluation.

THE CONCEPT AND TYPES OF RELATIONS (LEGAL RELATIONS) IN THE SPHERE OF PRIVATE FINANCE

Most financial and legal scientists study financial relations in general, but mean public relations by them, which is typical of the classical (Soviet) theory of finance. Few authors address the relationship in the sphere of private finance. The author reveals the concept of these relations and gives a description of their types. In his opinion, relations in the sphere of private finance are social links that arise from having financial property, carrying out private financial activities, provision of financial services and their state regulation. In legal form, they are determined by the legal properties of their subjects – legal capacity, rights, duties, and prohibitions that form the content of these legal relations, and are aimed at the future monetary condition of the same subjects. The author distinguishes the types of these legal relations from their definition, and characterizes the legal relations arising from: 1) having financial assets, 2) carrying out private financial activities, 3) the provision of financial services, 4) the state regulation of private finance.

Transaction Monitoring Effect on Profitability of Commercial Banks in Kenya

Commercial banks' performance is fundamental to the economy as providers of financial services. In offering this service, commercial banks are exposed to a range of risks that negatively affect financial position and ultimately influence profitability. Profitability is indicative of a bank's stability and potential for growth. Enhancing commercial banks' profitability contributes to shareholder return on investment. In June 2018, five banks were fined a total of Kshs. 392 million by the Central Bank of Kenya for breaching anti-money laundering regulations. Consequently, banks had to invest resources to improve their anti-money laundering measures. Consequently, raising operational and compliance overheads. This study sought to determine the effect of transaction monitoring on profitability of commercial banks in Kenya. The research employed an explanatory research design. The targeted population comprised all the thirty-nine regulated commercial banks as of December 31, 2021. The study period was eight (8) years (2014 to 2021). Respondents were chosen through purposive sampling. Primary data was gathered using structured questionnaires, while secondary data was derived from audited financial reports of commercial banks and the annual banking supervision report from the Central Bank of Kenya. Subsequently, the collected data underwent analysis employing descriptive statistics and regression analysis. The research results disclosed that transaction monitoring positively and significantly influenced commercial banks profitability. Consequently, bank managers should incorporate transaction monitoring into their operations to augment the overall efficacy to detect and report potentially suspicious activities, and to strengthen operational controls.

Challenges and Opportunities of ESG Integration in Financial Operations

In contemporary society, with the burgeoning concern for sustainable development among the populace, Environmental, Social, and Governance (ESG) criteria have emerged as a pivotal discourse within the global financial sector. Responsible investment is increasingly paramount, directing capital flows towards enterprises and ventures of greater sustainability. Against this backdrop, the integration of ESG criteria into financial operations poses both a significant challenge and opportunity for financial institutions. Architects and providers of financial products and services are gradually incorporating ESG factors into their decision-making processes to align with escalating regulatory demands and meet investors' expectations of social responsibility. Nevertheless, this transition is not devoid of challenges. Issues such as data acquisition and quality, regulatory uncertainty, and inadequate comprehension of ESG values among market participants constitute substantial obstacles that the financial realm must surmount in the pursuit of ESG integration. Nonetheless, through a series of strategies and recommendations, such as enhancing data transparency and quality, bolstering relevant education and training for market participants, and advocating for regulatory authorities to formulate clearer and more unified directives, financial institutions can harness technological advancements to optimize the analysis and integration of ESG data, thereby paving the way for new opportunities.

Towards Digital Forensic Readiness: A Framework for Financial Service Providers

Digital Forensic Readiness has widely been referred to as an organization’s ability to proactively capture digital evidence and as a result, incur minimum costs of investigation in the event of incidents. However, several organizations still underestimate the usefulness of setting up their environments to be forensically ready until an incident occurs, and this often results in huge losses and costly investigations. Global trends show that financial institutions are amongst the worst-hit companies by cybercriminals, and this is attributed to one of the key motivations for cybercrime, which is financial gain. Kenya’s cybercrime statistics over the past five years also show that financial services remain amongst the top hit sectors by cybercriminals. The aim of this study was to develop a Digital Forensic Readiness framework for Financial Services Providers. To achieve this, the study assessed the relevant existing frameworks to explore their strengths and gaps. Additionally, the study explored the current state of forensic readiness in Kenyan financial institutions by reviewing secondary data and analysing primary data collected from respondents in the financial services sector. The study adopted a descriptive research design with the main data collection tool being questionnaires, which were administered to respondents through an online survey. The collected data was analysed using the SPSS software 28.0.1 and a multiple regression analysis was performed to determine the influence of organizational factors, legal factors, technology, and policies on Digital Forensic Readiness. The outcome of the analysis indicated that these factors indeed had a significant effect on forensic readiness, with organizational factors and policies having more impact on the framework. The study recommended that organizations not only focus on complying with laws and implementing technological controls, but also prioritize improving forensic readiness awareness and culture, supporting forensic readiness activities, setting up training, and enforcing policies to ensure personnel compliance

TABUNGAN CINTA YANG PECAH: DAMPAK DAN RISIKO PERCERAIAN AKIBAT PINJAMAN ONLINE TANPA SEPENGETAHUAN PASANGAN

A This study aims to analyze the issue of the impact and risk of divorce due to online loans without the knowledge of the couple. Studies on divorce may often be discussed but for the reason that specific online loans do not yet exist. Online loans are facilities used to borrow money that are sheltered by online-based financial service providers. Online loans are one of the factors behind divorce in Boregah Village RT02/RW09, Cilampunghilir Village, Padakembang District, Tasikmalaya Regency. The method used in the research is qualitative with a descriptive approach with data collection techniques based on observations and interviews. Participants came from former married couples who divorced due to borrowing online loans without the couple's knowledge, which includes resource person 1 under the pseudonym Mentrari and resource person 2 under the pseudonym Rain.The act of borrowing online loans without the knowledge of the spouse is a wrong act because it is considered a betrayal. Loss of trust in the spouse leads to disharmony in the household. Limited communication is also a factor that causes a partner to feel lonely and have to make quick decisions when in urgent circumstances. Keep in mind that the act of borrowing online loans is not a solution to family financial problems, but instead raises new problems. Openness and honesty between spouses are needed to create harmony so that there is no divorce.

Drivers of Sustainability Credentialling in the Red Meat Value Chain—A Mixed Methods Study

Sustainability credentialling is the communication of environmental, social, economic, or animal-welfare-related information about a producer or product. Demand for sustainability credentials has been increasing and the aim of this study was to describe the main drivers for this kind of information in Australian red meat value chains that reach consumers across Australia and internationally, mainly in Asia, the USA, and the Middle East. The mixed methods approach included consultation with red meat processors. Desk-based research explored drivers from outside the value chain identified in the consultation. Little evidence was found that consumers are a driver of sustainability credentialling. The main drivers were in the global financial system, expressed in coordinated climate action policies by financial service providers and emerging government climate-related financial legislation. The inclusion of Scope 3 emissions extends coverage to most value chain participants. Net zero transitioning presents many risks to red meat value chains, potentially involving costly interventions and greater difficulty accessing financial services, with direct implications for production costs and asset values. Urgent action is recommended to achieve the formal recognition and use of climate metrics that differentiate the management strategies that are applicable to short-lived biogenic methane compared to CO2 to achieve the Paris Agreement goals.

Kebijakan Hukum Terhadap Perlindungan WHITSLE BLOWER Pada Tindak Pidana Pencucian Uang

Law enforcement against money laundering crimes currently refers to the provisions of Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes (UU No. 8/2010 concerning PP-TPPU), which is the legal basis (umbrella law) for enforcers law in preventing and eradicating criminal acts of money laundering. Regarding reporting parties who are burdened with the obligation to report suspicious financial transactions to PPATK, this has been explicitly stipulated in the provisions of Article 17 of Law no. 8/2010 concerning PP-TPPU, where the parties consist of Financial Services Providers and Goods/Services Providers. There are inconsistencies in the formulation of the articles of Law no. 8/2010 concerning PP-TPPU and PP no. 43/2015 as an implementing regulation, will of course have implications for the legal certainty of protection for whistleblowers, which will have an impact on the implementation of reporting not being optimal and ultimately will also have an impact on efforts to prevent and eradicate money laundering crimes. This research is normative research. The research was carried out by researching the literature using a statute approach. The ideal regulation which is more legal and just, is to include several matters relating to whistleblowers in the Special Law on Whistleblowers or the revision of Law no. 31/2014 concerning PSK, namely: regarding information criteria, whistleblower rights, report substance, reporting system, technical protection and rewards for whistleblowers. Barriers to protection for whistleblowers of money laundering crimes, consisting of juridical factors and law enforcement factors . Juridical factors, protection of whistleblowers have not been clearly regulated in Law no. 31/2014 concerning prostitutes. Meanwhile, as a law enforcement factor, there are still differences in perception between law enforcers who are members of the criminal justice system and whistle blowers.

Unveiling the effect of renewable energy and financial inclusion towards sustainable environment: Does interaction of digital finance and institutional quality matter?

Maintaining environmental sustainability has escalated to the top of the agenda in practically all nations today, including Pakistan. Hence, our research supports the United Nations sustainable development goal line, specifically SDG-11 for sustainable societies and SDG-13 for mitigating climate change vulnerability. To address these challenges, the present study investigates the association of digital finance, financial inclusion, renewable energy, and institutional quality with environmental sustainability in Pakistan. While financial inclusion is assessed using five proxies that are indexed by principal component analysis (PCA), digital finance is quantified by the number of ATMs. We used data from 2004 to 2021 to explore the relationship among the study variables. Employing the auto-regressive distributed lag (ARDL) model, we examined the long-run and short-run symmetric relationships between variables. Additionally, the study investigate the moderating impact on environmental sustainability by analysing the interaction term of institutional quality and digital finance (DF*INSQ). The results show that financial inclusion and digital finance can help developing countries like Pakistan achieve environmental sustainability. The study also highlights the vital role of renewable energy sources in the long-term reduction of carbon emissions. Moreover, the interaction between digital finance and institutional quality presents positive prospects for advancing environmental sustainability. These findings underscore the necessity of redefining financial inclusion and giving environmental sustainability projects top priority. They provide insightful information for policymakers and digital financial service providers in less developed countries. Furthermore, the study emphasizes the importance of robust financial institutions prioritizing renewable energy and institutional integrity for long-term financial health and growth.

ANALYSIS OF FACTORS INFLUENCING THE RETURNS ON BROILERS PRODUCTION IN UYO LOCAL GOVERNMENT AREA OF AKWA IBOM STATE, NIGERIA

The study analysed the factors influencing the returns on broilers production in Uyo Local Government Area of Akwa Ibom State. Simple random sampling technique was used to select 100 poultry farmers practicing deep litter system for the study. The data were obtained from a cross-sectional survey of broiler farmers in the study area. The study revealed that male farmers (52%) dominated the broiler production in the study area. The total cost of broilers production was N786,303.60 while the total revenue was N1,430,329.8. The gross margin and net farm income were N 682,052.76 and N 644,026.20 respectively. The study also revealed that the high cost of feed accounted for 80.18% of the total cost of broilers production inversely affected the profitability of broilers production in the study area. The study also reaved that, despite the high cost of feeds deep litter system of broilers production is profitable as depicted by the net farm income of N 644,026.20. Besides, the return on a naira invested was N 0.819 implying that for every N1 invested 81.9k was return as profit. The study concluded that high cost of feeds and lack of funds are the major factors influencing the returns on broilers production in the study area. Based on the findings, it was therefore recommended; Subsidy on feed cost, simple procedures for credit facilities, increase in flock size to enhance profitability, Provision of adequate incentives and financial services to farmers for increase productivity, as well as stoppage of the arbitrary fees levied such as environmental fee, business premises fee and other levies that were introduced by the local government authorities to restore sanity and create a conducive environment for investment in poultry industry.

Fintech, financial inclusion, and sustainable development in the African region

In this study, we explore the nexus between sustainable development and finance, with a specific focus on the African region–a critical yet underexplored context in the existing literature. Against the backdrop of evolving challenges in financial inclusion, improved access, and the growing prevalence of financial technology (FinTech), we aim to fill a research gap by investigating the connection between FinTech, financial inclusion, and sustainable development. The empirical exploration spans 25 African countries from 2011 to 2019, employing econometric methods such as dynamic panel (SGMM two-steps) and static panel (OLS, FE, LSDV). Utilizing key indicators like Adjusted Net Savings (ANS) and Gross Saving rate (GS), our findings reveal a substantial positive impact of financial inclusion and FinTech on sustainable development. However, an intriguing discovery emerges as the interaction between these variables exhibits a weak negative and significant effect. As a unique contribution to the existing literature, we estimate marginal effects at various levels of FinTech and financial inclusion on sustainable development. Beyond insights, our study offers vital policy recommendations, emphasizing the necessity for improved collaboration among financial service providers to avoid redundancy. Furthermore, we highlight the critical need to expand financial infrastructure, advocate for FinTech promotion, and foster inter-African cooperation.

Moving up toward sustainable development: Digital finance and income mobility

AbstractThe fact that financial exclusion leads to income inequality is detrimental to sustainable economic growth. Digital finance facilitates the provision of financial services to poor people and has the potential to promote income mobility so that to reduce income inequality. This study uses the Digital Financial Inclusion Index and household data from the China Household Finance Survey to examine the association between digital finance and households’ income mobility. Results show a significantly positive association between digital finance and upward income mobility. Underlying mechanism analyses suggest that digital finance is positively associated with upward mobility through the channels of equal opportunity and financial capability. Further heterogeneous analyses find that asset, education, and age can be moderators in the relationship between digital finance and income mobility. The findings demonstrate the importance of digital finance in promoting the income mobility of disadvantaged people and achieving the goal of inclusive and sustainable development.

ПЕРСПЕКТИВИ ВИКОРИСТАННЯ ВБУДОВАНИХ ФІНАНСІВ : ІННОВАЦІЇ FINTECH ЛАНДШАФТУ

Formulation of the problem. Noting the rapid development of innovative technologies in the financial sphere, especially in the context of FinTech, today embedded finance is becoming an increasingly important element of the financial ecosystem. Given the diversity and depth of embedded finance's impact on the financial landscape, the challenge lies in understanding the potential of these tools and determining their prospects in the context of innovative FinTech development. The purpose of the study is to analyze the technological, economic and regulatory aspects of the use of embedded finance, as well as to identify their impact on the financial landscape and innovative strategies in FinTech. This research aims to deepen understanding of the potential of these innovative tools and to contribute to the development of the modern financial sector. The object of research is technological platforms, tools and services based on embedded finance, as well as their impact on the economy, business models and the regulatory environment. Scientific publications and monographic editions, magazine articles and materials of scientific and practical conferences became the methodological basis of the research. During the research, content analysis of scientific periodicals was used; comparative critical analysis of existing approaches and methods of analysis of financial stability and tax burden; statistical methods of analysis. The main hypothesis of the study was the assumption of the possibility of integrated finance to become a key catalyst of changes in the financial sphere, ensuring greater efficiency, accessibility and competitiveness of financial services in the future. Presenting main material. Innovative technologies and platforms based on the concept of embedded finance and their potential to change and transform the financial sphere are highlighted. The technological, economic and regulatory aspects of the use of embedded finance are analyzed, and the key challenges and opportunities associated with their application are identified. As a result of the study, it is established that integrated finance can become a significant factor in accelerating the innovative development of the financial sector, improving the quality of financial services, and ensuring greater accessibility and efficiency in the provision of financial products and services. Originality and practical significance. Investigating the impact of innovative technologies on the financial sector, the article draws attention to the underestimated potential of embedded finance as a critical element for the development of innovative strategies in FinTech. The originality lies in the approach to the analysis of embedded finance as a key catalyst of changes in the financial sphere, which opens up new opportunities for improving the quality of financial services and ensuring greater accessibility for users. The analysis of the challenges facing the implementation of embedded finance is shown and indicates ways to overcome them, which makes it a valuable resource for developers of strategies in the financial sphere and regulatory authorities who seek to stimulate innovation and ensure the stability of the financial system. Conclusions and prospects for further research. The performed analysis confirms the great potential of integrated finance for the transformation of the financial sphere, ensuring greater availability, efficiency and quality of financial services. It was revealed that there are certain challenges on the way to the implementation of embedded finance, in particular, related to the regulatory environment, data security and privacy. These obstacles must be overcome in order to fully realize the potential of embedded finance and ensure the sustainable development of the financial sector. Further research could focus on a detailed study of specific aspects of the use of embedded finance, such as their impact on financial inclusion, financial system stability, and the effectiveness of regulatory oversight. In addition, the possibilities of using embedded finance in specific industries such as international payments, micro-finance and investment management can be explored. It is also important to explore the relationship between embedded finance and other innovative technologies such as artificial intelligence, blockchain and the Internet of Things.

Tinjauan Perampasan Aset dalam Tindak Pidana Pencucian Uang dari Perspektif Keadilan

Money laundering is a crime that harms the public interest, causes economic instability in a country, and is more dangerous than corruption because tracking money flow from money laundering will be more difficult. When considering the impact, asset forfeiture is vital since it employs a "follow the money" strategy. This study reviews asset forfeiture in money laundering from the perspective of justice. This study is a normative or doctrinal research, also called dogmatic research, with a conceptual and statutory approach. The study shows that asset forfeiture in money laundering has been regulated in Indonesia as criminal forfeiture based on the Criminal Code and Criminal Procedure Code, civil forfeiture, and administrative forfeiture based on the PPTPPU Law. However, in its regulation and implementation, there are still legal loopholes that criminals can use to hide the proceeds of their crimes, so it has not provided a sense of justice and is detrimental to the state and society as victims of money laundering. Based on the perspective of justice rooted in the principle of fundamental justice, crime should not benefit the perpetrators. This perspective underlies the need to expand the scope of asset forfeiture arrangements, especially civil/in rem forfeiture, by reformulating the provisions in the PPTPPU Law. Furthermore, broadening coverage can be achieved by enacting laws that govern asset forfeiture. This legislation should encompass not only assets held in the user accounts of financial service providers but also all assets connected to criminal activity. Protecting good faith third parties is necessary to enhance the society and state's sense of fairness.

Evaluation Of Digital Banking Application Adoption Based On The Technology Acceptance Model (Tam)

In this digital era, digital banking has become an integral part of the banking sector. Users decisions to adopt and use digital banking services are significantly influenced by their perceptions and attitudes toward this technology. This research aims to analyze the factors that influence users' intention to use digital banking, utilizing the Technology Acceptance Model (TAM) as the theoretical framework. The study involves 100 respondents randomly selected through the method of random sampling. Data will be collected via an online questionnaire comprising TAM variables, including perceived usefulness and perceived ease of use. The data analysis will be conducted using the Partial Least Square Structural Equation Modeling (PLS-SEM) statistical method. The findings of this research are expected to provide a deeper insight into the factors affecting the adoption of digital banking and can serve as a guide for banks and financial service providers in enhancing the acceptance of digital banking technology among users.

Constraints to agricultural finance in underdeveloped and developing countries: a systematic literature review

ABSTRACT Agricultural finance plays a pivotal role in facilitating the modernization and commercialization of farming practices and bolstering global food security. However, the provision of sustainable financial services in remote regions poses a significant challenge within the developing and underdeveloped countries. Consequently, farmers often grapple with inadequate access to formal credit sources and essential productive assets due to diverse constraints. Although, several studies have investigated constraints to agriculture finance; the literature is divergent and a holistic framework of constraints to agriculture finance is missing. Therefore, this research explores the constraints to agriculture finance in 31 developing and underdeveloped countries using systematic review approach, and synthesizes a holistic framework of the constraints using Qualitative Evidence Synthesis (QES) method that can be used as dependable framework for conceptualization and policy formation. Moreover, it describes the interplay and mutual reinforcement between the challenges faced by different stakeholders to elaborate how they influence each other in complex ways. Additionally, this study suggests a collective and multi-faceted approach for overcoming barriers to agricultural financing, and highlights the limitations and unintended consequences of agricultural credit and its implications for agricultural sustainability.

Editorial

"Blockchain has gained significant importance due to its ability to make digitals transactions flow secure, transparent, and cost-efficient. By using blockchain technology in digital payments, transactions can be executed without the need for intermediaries such as banks, clearinghouses, or financial services providers. Earlier, before blockchain technology, the financial industry faced several challenges. One of the major issues was the lack of transparency and trust in transactions. Traditional banking systems rely on intermediaries such as banks or clearinghouses to facilitate and validate transactions. This often led to delays, high costs, and the potential for fraud. Additionally, the centralized nature of these systems makes them vulnerable to cyberattacks and data breaches. The global blockchain in financial services market size is expected to reach $23.6 billion by 2024. 65% of financial institutions are planning to implement blockchain technology by 2023. 54% of financial institutions believe that blockchain will have a significant impact on their bottom line. Blockchain technology has steadily evolved to become a disruptive force in the financial services industry,"

Technological perspectives of Metaverse for financial service providers

Most banking institutions are inadequately prepared for the ongoing integration of technology, including the digitalization of financial services, the advent of the Metaverse, and the emergence of Web 3.0. While other sectors are making strides in navigating virtual environments, financial institutions appear to be trailing. Concurrently, the nascent ecosystem of the Metaverse presents promising opportunities for businesses and industries, potentially revolutionizing economic models, governance frameworks, and ethical paradigms. This study aims to contribute to the emerging discourse on the provision of financial services within the Metaverse. The paper envisages virtual reality's future financial services landscape using a scenario-based technological foresight approach. This research is the first attempt to map the comprehensive landscape of financial services in the Metaverse, both in the present context and the foreseeable future. The paper delineates the economy of the Metaverse, its key sectors, and its enablers. It overviews the initial experiences with virtual financial services and proposes potential prospects for financial institutions operating within the Metaverse. This study, therefore, serves as a foundational reference for understanding the evolving dynamics of financial services in the virtual realm.

Impact of Financial Technology on Traditional Banking

The study’s goal is to quantify how financial technology has affected the banking sector. The influence of financial technology, or fintech, on traditional banking has been nothing short of revolutionary. Fintech companies and technologies have caused a disruption in the banking industry by offering alternative ways for individuals and businesses to get financial services. One of the most noticeable outcomes is an increase in the customer experience. User-friendly interfaces, quicker account creation processes, and round-the-clock access to financial services through computers and smartphones have all been made possible by fintech companies. As a result, in order to satisfy customer expectations, traditional banks have been forced to update their digital systems and services. The term “financial technology,” or “Fintech,” refers to new technology that aims to enhance and automate the provision of financial services. Fundamentally, Fintech uses specialized software and algorithms that are employed on computers and, increasingly, smartphones to assist organizations, company owners, and individuals in better managing their financial operations, procedures, and lifestyles. The study’s goal is to examine how Fintech is affecting the banking sector.