Banking Technology Research Articles

Exploring theoretical constructs of blockchain technology in banking: Applications in African and U. S. financial institutions

This review paper explores the theoretical underpinnings and practical applications of blockchain technology within the banking sectors of African and U.S. financial institutions. It delves into key theoretical constructs such as Distributed Ledger Technology (DLT), smart contracts, and cryptographic security, examining their potential to revolutionize banking operations through enhanced efficiency, security, and transparency. The paper contrasts the applications and challenges faced by banks in Africa and the U.S., highlighting the unique opportunities and hurdles in each region. Regulatory environments, technological barriers, and market potential are critically analyzed to understand the landscape of blockchain adoption in banking. The review underscores the transformative potential of blockchain in banking while suggesting areas for future research aimed at overcoming challenges and harnessing emerging opportunities for innovation and growth in the sector.

The eMoney revolution: how culture and technology drive adoption and use?

Purpose The use of electronic money (eMoney) as a noncash payment method is gaining popularity globally. However, the usages of eMoney are culturally influenced and can vary within a country. These cultural disparities can result in divergent patterns of eMoney adoption and use. This study aims to investigate the factors influencing the adoption and use of eMoney in Indonesia. This study integrated the unified theory of acceptance and use of technology model with Hofstede’s cultural dimensions to develop a framework examining both technological and cultural perspectives. Design/methodology/approach Data was collected through an online survey of 484 Indonesians and analyzed using partial least squares structural equation modeling. Findings The results showed that the constructs of the unified theory of acceptance and use of technology model, namely, performance expectancy, effort expectancy, social influence and facilitating conditions, all had a significant impact on behavioral intention to adopt eMoney as well as actual usage. However, not all of Hofstede’s cultural dimensions moderated these relationships as hypothesized. Surprisingly, masculinity/femininity and power distance emerged as important moderators of eMoney usage. Practical implications This integrated model provides valuable insights into how to consider cultural influences when designing strategies to promote new payment technologies in Indonesia. The findings point to both technological and cultural factors shaping patterns of adoption and use of eMoney in the country. Originality/value Although many research has looked at how culture affects the acceptability of technology in banking, few studies have looked at how culture affects the use of mobile money. This study offers a valuable contribution by investigating how Indonesian culture moderates the relationship between behavioral intentions and actual use of eMoney. The findings provide guidance for practitioners seeking to facilitate eMoney services in developing markets by elucidating the cultural factors that most influence customer adoption. As such, this research fills an important gap regarding the understudied domain of mobile money and its intersection with national culture.

Interpreting The Impetus of Artificial Intelligence (AI) On Customer Satisfaction in The Digital Banking Landscape

Artificial Intelligence (AI) transforms digital banking technology by augmenting the consumer banking experiences. This study explored the stimulus of AI attributes-trendiness, visual attractiveness, and problem-solving on customer satisfaction in digital banking. To accomplish this, a descriptive and quantitative research approach was embraced, gathering and analysing 120 sample using SPSS 23.0. The correlation analysis exposed positive association between AI attributes and customer satisfaction. Trendiness indicated a modest correlation, Visual Attractiveness and Problem Solving exhibited robust correlations. The regression analysis proved that visual attractiveness is exceptionally significant, problem solving exhibited significant impact and trendiness did not forecast substantial customer pleasure. This study emphasizes the significance of visual attractiveness and problem-solving in shaping positive customer experiences in AI-induced digital banking, stressing the necessity for the constant innovation in the competitive business environment.

Banking Service Technologies as a Tool for Increasing the Efficiency of Interaction with Clients

Introduction. The efficiency of customer service in a commercial bank is inextricably linked with the need to implement modern banking technologies that affect the speed and quality of the service provided. The intensity of development of banking technologies requires a study of their features and application criteria. Purpose of the study. To study the trends in the implementation and development of modern technologies in banking and their impact on the quality of bank customer service. Methods. The study used such general scientific methods as analysis and synthesis, formal and dialectical logic, statistical processing methods, and a systems approach. The object of the study was Sberbank PJSC, a leader in the implementation of modern technologies in the banking market. Results. The article considers the main components of banking technologies. The influence of technologies on the effectiveness of banking services is substantiated. Positive and negative aspects of the implementation of modern banking technologies in the customer service process are highlighted. Modern service technologies used in the banking system when creating a digital infrastructure, regulated by the Central Bank, are highlighted. The trends in the use of modern banking technologies are considered based on the degree of digitalization development in the bank, age preferences, as well as as a result of the impact of the coronavirus pandemic. The performance indicators of Sberbank PJSC as a technological leader in the banking services market are considered. Conclusions. Effective interaction of banks with clients in the context of digital transformation is carried out using modern banking technologies containing many components with appropriate characteristics. Maximizing efforts to use modern technologies contributes to the expansion of the client base and profit growth.

Beyond Traditional Banking: Exploring the Influence of Technology on Depositors' Decision-Making in Bank Selection

Purpose: The banking sector is crucial for the economy, and with growing competition, banks must pinpoint factors influencing depositors' choices. This study aims to uncover how technology adoption by commercial banks plays a role in depositors' decisions. Methodology: A hybrid approached is attempted in this study to explore the phenomenon of interest. In the qualitative phase, focus group discussion was conducted on two heterogeneous groups, each with ten participants. The recorded audio was further transcribed using speech-to-text modules. A natural language processing tool has been used to identify words or phrases that are semantically related or have similar meanings to depositors’ sentiment analysis. The quantitative phase involved descriptive statistics, principal component analysis and regression analysis to explore insight numerically. Findings: Respondents expressed a generally positive sentiment toward technology in banking, influencing their selection decisions, in the qualitative phase. In the quantitative phase, significant technological aspects affecting depositors' post-selection evaluations are identified. Findings from both approaches converge on the same line. Practical implications: Findings of this study may aid decision-makers in banking industry to articulate distinct technological aspect implied in banking service delivery and better design service offerings to attract new depositors and gain competitive advantages. Originality/Value: This is the first study to focus solely on technology to explore how technology influences depositors' bank choices in the context of Bangladesh. Research Limitations: Significant parts of several conversations were sorted out for sentiment analysis. If it was possible to consider all relevant statements of the focus group discussion for sentiment analysis, it might convey a more pertinent sentiment score.

Perception of Transaction Ease, Security and Trust on Customer Satisfaction in Using BSI Mobile Banking to Generation Z Customers in Jabodetabek

Problems faced by Bank Syariah Indonesia (BSI) regarding the development of digital banking technology in banking. Especially for BSI users mobile banking namely: (1) the percentage of use of BSI services is still low Mobile compared to service mobile banking other banks (2) review users who are still not satisfied with the ease of transactions (3) there are information security threats such as cases ransomware on BSI Mobile which causes a decrease in customer trust (4) internet use which is relatively high in generation Z, is not yet commensurate with usage mobile banking in generation Z which is still relatively low. The purpose of this research is to determine and analyze the influence of perceptions of convenience, security, trust and which variables have the greatest influence on customer satisfaction in using BSI mobile banking for Generation Z customers in Jabodetabek. The analytical method for testing customer satisfaction is carried out via google form, in this research using quantitative data with a sample of 350 generation Z customers in Jabodetabek using techniques purposive sampling. The analytical tool used is software SmartPLS version 4.1.0.3. Data analysis uses PLS-SEM analysis. This research data consists of descriptive data, outer model (test instrument) and inner model (hypothesis testing). The research results show that perceived ease of transactions and trust influence customer satisfaction in using BSI Mobile Banking for generation Z customers in Jabodetabek. Meanwhile, security has no effect on customer satisfaction in using BSI Mobile Banking for generation Z customers in Jabodetabek. The perception of ease of transactions has a greater influence compared to security and trust.

Information Technology in Banking and Entrepreneurship

We study the importance of information technology (IT) in banking for entrepreneurship. Guided by a parsimonious model, we establish that job creation by young firms is stronger in US counties more exposed to banks with greater IT adoption. We present evidence consistent with banks' IT adoption spurring entrepreneurship through a collateral channel: entrepreneurship increases by more in IT-exposed counties when house prices rise. Further analysis suggests that IT improves banks' ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and cost of disbursing collateralized loans.

Low/no-code and traditional code integration in digital banking

This paper seeks to combine the merits of low/no-code programming (LNCP) with traditional programming (TP) systems for increased agility in digital banking software development. While it is easy to fall prey to shiny object syndrome in today’s dynamic banking technology landscape, it is not easy to select the right technology to suit the current and future needs of the financial industry. Instead, LNCP makes it possible to lower the technical entry barriers to technology development. Integrating TP with LNCP, when needed, compensates for the shortcomings related to LNCP and provides digital banks with a more comprehensive software development approach. The adoption of this approach improves time-to-market of new innovative financial solutions. There has been little progress in this direction, academically or in practice. This paper includes an empirical study, interviews with banking professionals, on the merits of LNCP and TP, as well as an experimental project implementation that integrates LNCP and TP in the development of a retail Internet banking application. In the context of digital banking solution development, the result of the experiment reveals the merits of LNCP/TP hybrid systems in terms of agility, scalability, change management and cost-effectiveness.

Analysis of the Impact of Mobile Banking Technology, Fintech, and Digital Transaction Security on Customer Loyalty at BUMN Banks in Indonesia

This study investigates the impact of mobile banking technology, fintech innovations, and digital transaction security on customer loyalty at state-owned banks in Indonesia. Utilizing a quantitative approach, data were collected from 300 respondents through a structured questionnaire with a Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). The data were analyzed using SPSS version 25, employing descriptive statistics, reliability analysis, exploratory factor analysis, correlation analysis, and multiple regression analysis. The results revealed that all three independent variables—mobile banking technology, fintech innovations, and digital transaction security—positively and significantly influence customer loyalty. Mobile banking technology had a correlation coefficient of 0.62, fintech innovations 0.57, and digital transaction security 0.68 with customer loyalty. The regression analysis showed that these factors collectively explained 38% of the variance in customer loyalty, with digital transaction security having the strongest impact. The findings underscore the importance of enhancing technological capabilities and security measures to foster customer loyalty in state-owned banks. The study provides valuable insights for banking institutions seeking to improve customer satisfaction and retention through advanced technological solutions and robust security protocols.

Navigating the Integration of Blockchain Technology in Banking: Opportunities and Challenges

Integrating blockchain technology within the banking sector represents a pivotal transformation, promising enhanced security, transparency, and efficiency in financial operations. This qualitative research employs a systematic review approach to investigate the current state, challenges, and prospects of blockchain adoption in banking, drawing insights from a comprehensive analysis of scholarly literature. Through a systematic search and review of relevant academic journals, conference papers, books, and reports, this study explores critical variables such as security, transparency, efficiency, challenges, opportunities, and impact associated with blockchain adoption in banking. Thematic analysis is the primary methodological approach to identify recurring themes, patterns, and relationships across literature, facilitating a nuanced understanding of blockchain's implications for banking operations. The findings reveal a dual nature of blockchain adoption in banking, highlighting significant opportunities alongside critical challenges. While blockchain technology offers enhanced security, transparency, and efficiency, challenges like scalability issues, regulatory uncertainties, and interoperability concerns persist. Nonetheless, the study underscores the transformative potential of blockchain in revolutionizing banking operations, urging policymakers and banking practitioners to address these challenges through continued research, technological innovation, and collaborative efforts. By leveraging blockchain effectively, the banking industry can navigate the digital landscape, enhance operational efficiency, and deliver superior customer experiences, thereby gaining a competitive edge in the financial sector

The Role of QR Code Technology in Revolutionizing Banking

The financial services industry has undergone a significant digital revolution, with QR code technology playing a crucial role in the development of the banking sector. Evolving from basic barcodes, QR codes have become essential tools for identity verification, secure online transactions, and financial account management. They represent a shift from conventional banking practices, offering enhanced security and user convenience. In banking, QR codes are used for account management, payments, and robust security protocols. The widespread adoption of QR codes has transformed how customers interact with banks and has led to stronger security measures for online banking. This article examines the growing use of QR codes in banking, highlighting the convenience, security, and improved customer experience these codes offer. The increasing importance of QR technology in banking is further demonstrated by emerging trends such as Data Matrix QR Codes, Blockchain-Enabled QR Codes, Secure Timestamping, Encryption, and Dynamic QR Codes.

Value creation of green banking technology sustainability: The role of initial trust

This study aims to identify the factors influencing GBT acceptance. Questionnaires were distributed online to users of green banking technology in Indonesia, with 456 respondents. Reducing emissions and utilizing environmentally friendly technologies have been and are still necessary to address the issue of climate change. Green banking technology (GBT) is a banking technology that supports green business. GBT can carry out online banking activities to reduce excessive paper use. The data was analyzed using Partial least squares (PLS). The results show that perceived usefulness (PU) is the strongest predictor for continuously supporting GBT. However, perceived ease of use (PEOU) cannot positively influence technology adoption. The rapid growth of digitalization allows users to become familiar with the technology, so convenience is not the determining factor. Meanwhile, on the aspect of trust and value, it has been proven to be a strong link. This research offers academics and practitioners a perspective on green business practices using GBT. Green banking practices, particularly those focusing on reducing environmental footprints, like transitioning to online banking, should be further explored and promoted. This study also recommends optimizing the functionality of green banking technology to suit user needs. In addition, the level of trust is also a serious concern because it can determine whether someone will continue or leave GBT.

Exploring the Influence of Financial Literacy on Mobile Financial Service Usage: An Ordered Probit Analysis

Mobile financial service, an emerging form of financial services that has developed alongside the internet and mobile devices, are becoming increasingly significant in the global financial market. Financial literacy is crucial for safely and effectively using these services, as it equips individuals with the necessary knowledge and skills to navigate the digital financial landscape, make informed decisions, and manage their finances responsibly. This study explores the link between financial literacy and the use of mobile financial services, aiming to promote financial inclusion and help users benefit from mobile banking technologies. The results indicate that the impact of objective financial literacy varies significantly across different types of mobile financial services. It boosts the utilization of mobile banking services, with coefficient 0.025 (p<0.01), while simultaneously reducing the frequency of mobile payments and transfers, with coefficients -0.041 and -0.012 respectively (p<0.01). The results also show that subjective financial literacy always positively relate to the use of mobile banking, mobile payments and mobile transfers, with coefficients 0.038, 0.044 and 0.03 respectively (p<0.01). Further, this paper investigates how financial literacy miscalibration affects the use of mobile financial services. The results show that individuals who over-evaluated their financial literacy are more likely to use mobile financial services than individuals who under-evaluated or correct-evaluated their financial literacy. The results serve as decisive evidence for policymakers to enhance consumer financial literacy, thereby improving their use of mobile financial services. Future studies could delve deeper into the underlying reasons for the differential impact of objective financial literacy on various MFS types.

Routine maternal ABO/Rhesus D blood typing can alert of massive foetomaternal haemorrhage.

Spontaneous massive foetomaternal haemorrhage (SM-FMH) is a rare yet critical condition that poses substantial risk to foetal health and survival. Existing data indicate that many cases may be undiagnosed. The current study aimed to investigate and validate the utility of identifying mixed field red blood cell (RBC) agglutination during maternal blood typing as a diagnostic aid for SM-FMH. Retrospective analysis of medical records from neonates born at our tertiary, university-affiliated medical centre between 2016 and 2023 was performed. Diagnosis of SM-FMH was based on neonates born with severe anaemia (haematocrit [HCT] <15%) within the first 24 h post-delivery with positive maternal Kleihauer-Betke (KB) test. Maternal ABO/Rhesus D (RhD) blood typing results were scrutinized with the primary objective of assessing the ability to identify dual RBC populations in cases clinically diagnosed with SM-FMH. Among 29,192 neonates studied, a mere 0.02% (5 cases) exhibited severe SM-FMH. Notably, a mixed field RBC agglutination was discerned in 80% (4/5) of these cases. This study underscores the significance of detecting mixed field RBC agglutination during antepartum maternal ABO/RhD blood typing as a potential indicator for SM-FMH. Increased awareness among blood bank technology specialists and obstetricians regarding these laboratory findings could prove instrumental in saving foetal lives.

The Influence of Expectations Regarding Performance on the Acceptance of Mobile Phone Banking Services by Smallholder Farmers: A Case of Smallholder Grape Farmers in Dodoma Region, Tanzania

This study uses a cross-sectional survey design to examine the influence of expectations regarding performance on the acceptance of mobile phone banking services by smallholder farmers in Dodoma Region, Tanzania. A total of 360 smallholder farmers were selected randomly for the study. The collected data was analysed using multiple linear regression to assess the relationship between expectations regarding performance and acceptance of mobile phone banking services. The study’s findings showed that expectations regarding performance measures (job fit, perceived usefulness, extrinsic motivation, and outcome expectations) have good predictive potential in explaining smallholder farmers' adoption of mobile phone banking services. The findings suggest that smallholder farmers have trust (i.e. perceived usefulness), in using a mobile phone banking system to improve agricultural commercialization. The findings also emphasize that smallholder farmers believe (i.e. job fit) that using mobile phone banking technology is beneficial to them. Furthermore, smallholder farmers believe that people who engage in farming activities are likely to achieve the desired results if rewards and/or incentives are given (i.e. extrinsic motivation). The study draws attention to mobile phone banking service providers to fulfil the expectations of smallholder farmers by providing services that address smallholder farmers’ needs. Finally, policy attention should focus on the expected performance of mobile phone banking services used by smallholder farmers in rural areas.

Financial technology and relationship lending: Complements or substitutes?

We describe the dimensions along which bank technologies differ from fintech competitors and construct a novel measure of a bank’s technology based upon its overlap with fintech firms in terms of granular product installation data. A one standard deviation increase in our financial technology measure is associated with an 8.3 percentage point increase in Paycheck Protection Program (PPP) loans in 2020Q2. We show that smaller banks benefited more from marginal technology gains, that technology facilitated out-of-area lending, and that technology complemented small banks’ branch-based in-area lending. In a difference-in-differences analysis, we show an outsized increase in small business lending growth in 2020 for high tech small banks relative to their peers.

A Study on Employee Understanding with Banking Technology and Training: A Way to Employee Adaptability

In the rapidly evolving landscape of banking technology, the ability of employees to understand and adapt to new technological advancements is crucial for organizational success. This study investigates the relationship between employee understanding of banking technology and the effectiveness of training programs designed to enhance adaptability. Utilizing a mixed-methods approach, quantitative surveys and qualitative interviews were conducted across multiple banks to gather data on employee perceptions and experiences. Key findings indicate that while a baseline understanding of technology exists among employees, targeted training significantly improves their adaptability. Moreover, factors such as understanding of technology, ease of application, training content relevance, delivery methods, and organizational support emerged as critical influencers of employee readiness and willingness to adapt. Recommendations include tailored training programs that address specific technology gaps and foster a culture of continuous learning within banking institutions. This research contributes to the growing body of knowledge on employee development in technology-driven industries and offers practical insights for enhancing employees adaptability in the banking sector.

Smart Banking Technology: A Cornerstone for Enhancing the Performance of Banking Institutions towards Entrepreneurial Horizons - An Applied Study of a Group of Iraqi Private Banks

Smart Banking Technology: A Cornerstone for Enhancing the Performance of Banking Institutions towards Entrepreneurial Horizons - An Applied Study of a Group of Iraqi Private Banks

Usability Evaluation of the Mobile Banking Application By Hijra Bank Using the User Experience Questionnaire Method

The rapid growth of mobile banking technology requires special attention to user experience so that applications can be used efficiently and satisfactorily. App users perform a series of tasks designed to cover the app's key features, while researchers observe and record responses, difficulty, and time required to complete the tasks. The results of usability testing provide in-depth insight into the specific problems users face when using the Hijra Bank mobile banking application. Next, the User Experience Questionnaire (UEQ) is used to measure qualitative aspects of user experience, such as satisfaction, fear, stimulation, and concentration. Data from UEQ is used to identify design elements that contribute positively or negatively to the user experience. The results of this research provide an in-depth view of the strengths and weaknesses of the mobile banking application by Hijra Bank in Indonesia. This information can be used by application developers to make necessary improvements and improvements, ensuring that users have a satisfactory and efficient experience when using mobile banking services by Hijra Bank. This research also contributes to increasing awareness and understanding in the development of user-oriented mobile banking applications by Hijra Bank in Indonesia.

Analysis of Innovation and Technology in Banking

As proven by both private and public banks, IT-enabled innovation has had a substantial influence on a range of industries, including banking. These financial institutions value innovation and have achieved success as a consequence of technical breakthroughs. The increased competitiveness has compelled all players to act more rapidly. As a result, public sector banks have experienced substantial transformations, and consumers are now confronted with a slew of new options. These banks, which previously depended on traditional methods, are now proactively getting out to the public through billboards, FM radio, and other media outlets. In addition, endorsements from famous people are becoming more common in government entities. The widespread usage of basic banking processes has increased banks' need to innovate. Client satisfaction increases as a consequence in both public and private banks. The study's purpose is to investigate how new technology affects customer satisfaction in Bhopal's public and commercial banks. Customer data obtained from these banks was reviewed, with substantial results. In terms of innovative successes, private banks outscored state banks, according to the poll. Rising banking rivalry is widely considered to have had an immediate influence on how financial institutions prioritize customer-oriented operations and define company goals. Considering the significance of technology and innovation in the modern economy for strategic management, business development, and economic success, new approaches to understanding the relationship among technological innovation and financial services are critical. These unique strategies are required for gaining an advantage over the competition. With this in mind, the goal of this study is to investigate the basic implications of technological innovation on financial services at the bank's location level, specifically through an examination of customer-facing staff input. According to the findings, information and communication technology is critical to the sector's performance. The paper also examines the empirical study's practical implications, strengths, and limitations.