Wide Range Of Financial Services Research Articles

Digital payments Impact on Indian Economy through Banking systems & Global Comparisons

India’s financial sector has witnessed a significant digital transformation, particularly in the realm of payments. The shift towards digital payment systems has reshaped transactional practices and contributed to financial inclusion. The adoption of digital payment systems like UPI and e-wallets has led to a surge in online transaction volumes, indicating a gradual move towards a cashless economy. Government initiatives and the COVID-19 pandemic have played crucial roles in promoting digital payments. However, challenges remain in achieving complete financial inclusion with approximately 190 million unbanked adults in India. Fintech companies are addressing this by providing a wide range of financial services and utilizing alternative data sources to evaluate creditworthiness. The key factors driving the adoption of digital payments in India include increased awareness, favorable government policies, quick onboarding and ease of use, smartphone proliferation and internet expansion, regulatory support, and improved technology. These factors, coupled with the enabling role of various entities and technologies, are shaping the future of digital payments in India. The rapid growth of digital payment systems, driven by a combination of technological advancements, government initiatives, and changing consumer preferences, is revolutionizing the financial landscape. As the fintech sector continues to evolve, it promises to bring about further innovations, making financial services more accessible and inclusive. The journey towards a digital economy is well underway, and with continued efforts, India is poised to emerge as a global leader in digital payments. The impact of this digital revolution extends beyond the financial sector, influencing various aspects of the economy and society, and paving the way for a more inclusive and efficient future.

Механизмы защиты потребителей цифровых финансовых услуг

Modern trends in digitalization, which are becoming global in nature, radically affect the financial sphere of people’s lives. The use of digital technologies and the capabilities of the Internet helps to speed up and facilitate access to various financial services. Currently, customers can take advantage of a wide range of financial services, ranging from payments (for example, for utilities) to obtaining a consumer loan, without even leaving their place of residence. Such operations can be carried out in various ways: through an ATM, payment terminal, information kiosk, mobile or Internet application, by sending SMS in other ways. Payment for such services can be made either in cash or non-cash, or using special digital means, for example, electronic money or cryptocurrency. However, for financial services clients, the progress and spread of digital technologies not only increases the comfort and speed of financial transactions, but also increases risks that need to be taken into account and analyzed, as well as mitigation measures taken. The object of the study is the economic and legal relations that arise in the process of consuming digital financial services. The purpose of the study is to characterize the current mechanisms for protecting consumers of digital financial services. Research methods - analysis and synthesis, documentary method, abstract-logical method, statistical method, comparative legal, logical-legal methods. The scientific novelty of the research is the systematization of trends in the development of digital financial services, the main risks for users of these services, as well as key areas and mechanisms for protecting consumers of digital financial services.

Examining Landscape of Insurtechs’ Adoption: Level of Moroccan Companies

Digitalization has an impact on a wide range of financial services, including bank services, distribution, and more. Since insurance businesses are also service providers, digital solutions will only improve each component in the Moroccan insurance industry's value chain. Neither scholars nor practitioners have seen insurance industry as technology driven industry. However, the integration of digital solutions is a matter of time in the context of the digitalization of the insurance industry, incumbent insurance companies have been left behind. The aim objective of this article is to fill the gap and propose an adequate solution for Moroccan insurance companies. more particularly a conception for E- declaration of claims and E-renewal.

Islamic Fintech and Financial Inclusion: Innovations for Sustainable Economic Empowerment

The rapid growth of financial technology (fintech) has had a significant impact on the global financial sector. In the context of Islamic economics, Shariah-compliant fintech can be an innovative tool to promote sustainable financial inclusion. This paper aims to analyze the role of Islamic fintech in improving access to financial services from an Islamic economic perspective. The research methods used include an in-depth literature analysis of the concept of financial inclusion in Islam, an exploration of various existing Islamic fintech services, as well as successful case studies that reflect the implementation of this concept in society. Through this approach, this paper explains how Islamic fintech can provide solutions to financial access challenges in underserved communities. The analysis shows that Islamic fintech can provide access to a wider range of financial services and empower individuals and micro businesses. Concrete examples of services such as Islamic digital payment services and Islamic peer-to-peer lending show a positive impact in supporting financial inclusion and economic growth in various communities. However, the challenges in the form of complex regulations and the public trust that needs to be built should not be overlooked. This paper also analyzes the opportunities and challenges faced by Islamic fintech in creating a sustainable financial inclusion ecosystem that is in line with Shariah principles. In conclusion, the paper underlines the great potential of Islamic fintech as an innovative tool to achieve better financial inclusion in the Islamic economy. Policy recommendations and further implications are also discussed to ensure the sustainable development of Islamic fintech and its wider positive impact.

Performance Evaluation of Mutual Funds Using Risk Return Relationship Models - An Empirical Study

Purpose: The main purpose of this study is to analyse the performance of mutual funds using Risk- Return Relationship Models. Theoretical framework: One of India's most important financial intermediaries, mutual funds can provide a wide range of financial services to small and large investors. They are also involved in the country's transformation, and their market participation has become more important. Evaluating a mutual fund's performance concerns investors, researchers, and fund managers. It should be conducted in a way that helps investors make informed decisions and maximize returns. A regular evaluation of a fund's performance is also essential for investors. Design/methodology/approach: The performance of 12 growth-oriented mutual funds has been evaluated using three Risk Adjusted performance measures, namely the Treynor index, Sharpe index, and Jensen measure. Treynor Index, developed by Treynor and Mazuy (1966), defined the measure as the ratio of returns to systematic Risk (Beta). The higher the ratio better the performance. Sharpe Index, developed by Sharpe (1964) defined as the ratio of returns to the variability of returns. Jensen's measure (Jensen 1968) regresses excess fund return with the excess market return. Monthly data was used during the period from Jan 2015 to Dec 2019. Further monthly returns of 12 diversified Equity mutual funds were compared with the returns of the B.S.E.( Bombay Stock Exchange) national index during the same period. Findings: It is identified from the results that the mutual funds have not performed better than their benchmark indicators except the ICICI Multi-asset fund and HDFC mid-cap opportunity fund in terms of a non-risk adjusted measure of the average returns as well as in terms of Risk-adjusted performance measures. Research, Practical & Social implications: Fund houses, Fund managers, researchers, and mutual fund investors can benefit more from a strong risk management foundation. It can help them make informed decisions and maximize their returns. Originality/value: This study differs from past studies because it examined the risk-adjusted performance of a few mutual funds, which ultimately may use by investors and policymakers to enhance the returns in these funds.

Penerapan Hybrid Contract dalam Pebiayaan Cicil Emas

Islamic banks that are Shariah compliant offer a wide range of financial services to meet local demands. Gold installment financing is a form of financing offered by several Islamic banks. Gold Bullion (bars) can be purchased with installment payments through the Murabahah contract associated with the Rahn contract. The purpose of this study is to study how hybrid contracts can be used to finance gold purchases over time. In this study, using descriptive analysis techniques (descriptive analysis). The authors use this strategy in an effort to provide a transparent explanation given the available research. The purpose of the descriptive method of analysis is to create a description (description) of the event or situation. The study found that the steps involved in providing gold installment financing are as follows: customer application, NAP preparation, financing approval, contract, gold procurement, and collateral deposit. Gold financing can be repaid for two to five years. The general implementation of gold installment financing is governed by the provisions stipulated in SEBI No. 14/16/dpbs of 2012 concerning gold installment financing products and SEOJK No. 36/SEOJK.03/2015 concerning products and activities of Sharia commercial banks and Sharia Commercial Banks and Sharia Commercial Banks. Customers can use gold as collateral to pay a down payment of at least 20%. However, there are costs involved, including the cost of storing and maintaining the guarantee during the installment period, and the guarantee is insured.

A STUDY ON THE AWARENESS ON FINANCIAL INCLUSION SCHEMES AMONG DIFFERENT RELIGIOUS COMMUNITIES WITH SPECIAL REFERENCE TO AREEKODE GRAMA PANCHAYATH

A strong financial sector required for the growth, development and stability of a nation. So, financial inclusion is relevant to achieve inclusive growth of an economy. Financial Inclusion defined as universal access to a wide range of financial services at a reasonable cost. This paper is an attempt to study the level of awareness about financial inclusion schemes among different religious communities in Areekode grama panchayath. The sample evidence shows that PMJDY is the most popular financial inclusion scheme among all communities.

Financial Deepening and Economic Growth in Zambia

A strong financial system with a wide range of financial services has an impact on economic growth and development. In this paper, we examine the effects of financial deepening on Zambia’s economic growth using data from 1986 to 2017. Financial deepening is approximated by domestic credit to the private sector as a ratio of GDP (DCPY), liquid liabilities as a ratio of GDP (LLY), and financial system deposits as a ratio of GDP (FSD). We use bound test approach to co-integration that justified the use of the Autoregressive Distributed Lag (ARDL) model. The study found that DCPY had an insignificant effect in the short-run but a significant negative effect in the long-run, whilst the variables LLY and FSD had insignificant effects in both the long-run but their two previous values had significant effects in the short-run. LLY’s values had positive significant effects while FSD’s values had negative significant effects. Therefore we concluded that there is weak link between financial deepening variables and GDP growth rate in Zambia.

"I Don't Like All Those Fees" Pragmatism About Financial Services Among Low-Income Parents.

Basic financial services facilitate people's ability to manage their finances, save, and receive payments from employers or the government. Drawing on survey data as well as qualitative interviews with 80 mothers with limited incomes, we find that parents take a pragmatic view and use a wide range of financial services to meet their needs including fintech, prepaid cards, and mobile phone-based solutions, as well as traditional banks. Mistrust in institutions is an important factor in shaping the services mothers avoid. Structural factors, like employers' payment methods, also play a role in financial service use. These low-income parents of young children are actively using a range of financial services, much broader than those provided by traditional banks. Many mothers engaged in complex financial management practices to receive income and pay their bills. This opens room for potentially costly errors and is, at least, taxing their cognitive bandwidth. Researchers must attend to the diverse set of financial services with which parents engage and investigate how this affects families' financial wellbeing and inclusion.

The macroeconomic impacts of the mobile money: empirical evidence from EVC plus in Somalia

PurposeThe purpose of this study was to examine the macroeconomic impact of mobile money in Somalia using quarterly data from 2010 to 2020.Design/methodology/approachThis study applied the structural vector autoregressive approach to examine the response of the macroeconomic variables to the mobile money shocks.FindingsThe results show that mobile money increases consumer spending by reducing transaction costs and enhancing access to finance, which promotes the expansion of aggregate output. This study also finds that mobile money helps exchange rate stability and price level maintenance, boosting trade openness. Moreover, mobile money is linked to the rise in real income due to productivity improvement and price stability. The results of this study indicated that mobile money has a short-run relationship with aggregate output, household consumption, price level, trade openness and real income. Through the Granger causality test, this study finds that mobile money has a unidirectional relationship with the exchange rate, price level, household consumption and trade openness.Originality/valueThe empirical findings of this study imply that mobile money can create a wide range of financial services to improve the financial system in rural and urban areas; hence, it enables poor and rural members of society to make payments and receive-and-transfer money using their mobiles.

Financial resources of households – guarantee of a sustainable financial system of Ukraine

Introduction. Ukraine's financial system needs some changes: development and adoption of a strategy for financing sustainable development, which should take into account all possible sources of funding - from public and household to domestic and international. The purpose of the paper is to study the theoretical aspects of financial resources of households, determine the status and structure of sources of their formation in Ukraine during 2015-2020. Results. Household finances are part of the country's financial system and have a significant impact on economic potential - due to the active participation of household members in various areas of financial relations. The task of the financial system in the context of sustainable development is to "serve" sectors of the real economy and provide a wide range of financial services for households. In terms of finding sources of formation and use of financial resources of the state, the priority level is microeconomic. Households act both as consumers of goods and services and as producers of certain types of goods and services. They are part of the national income of the country, as the household is a direct participant in social production, in particular through the supply of factors of production, which allows the entity to participate in the distribution and redistribution of national income and claim a share. Conclusion. Financial resources of households play an important role in social reproduction, the main purpose of which is to ensure a continuous process of recovery of the labor force with financial resources. In order to improve the financial capacity of the state, it is necessary to create conditions for increasing the financial resources of households and creating a basis for investment development of the national economy.

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l security at various levels of the economic system come to the fore, from the finances of individual households to national finances. As the practice of developed countries shows, one of the main drivers of financial security is the implementation of the principles of financial inclusion. After all, financial inclusion, combined with confidence in the financial and credit system by the population and business, is the stimulus for directing savings to the investment sphere, reducing the shadowing of the economy, increasing financial stability of economic entities, and, consequently, increasing government revenue and financial security. Purpose. The aim of the study is to improve the theoretical and methodological foundations and practical tools for identifying problems and effective ways to spread financial inclusion in Ukraine during the war. Results. Theoretical approaches to defining the essence of the concept of financial inclusion are considered. The content of financial inclusion as universal access of the population to a wide range of financial services, the most common of which are banking services, is revealed. The quantitative characteristics of financial inclusion in Ukraine during the wartime are considered and the generally unsatisfactory level of financial awareness, financial inclusion and access of the population to basic financial services is noted. It is determined that financial inclusion, combined with confidence in the financial and credit system by individuals and businesses, is a stimulus for directing savings to investment, reducing the shadowing of the economy, increasing financial stability of economic entities, and, consequently, increasing level of government revenues and financial security. Theoretical and methodological principles of spreading financial inclusion as a driver of financial security of Ukraine are studied. Risks threatening financial stability and tools for their minimization in Ukraine are analyzed. Conclusions. The research shows that the spread of financial inclusion in Ukraine today does not meet the requirements of the modern economically developed world. Thus, the low level of financial inclusion does not allow the state to fully use the powerful resource of savings, promotes the development of the shadow sector, which ultimately reduces the level of financial security in general. The high uncertainty caused by the war also makes it difficult to predict economic processes with reasonable probability. Therefore, the National Bank may temporarily refrain from publishing its own macroeconomic forecasts.

A study on Financial Inclusion for Rural Development in India with reference to Tourism Sectors

Financial inclusion has been recognized as being a critical means of poverty reduction amongst underprivileged persons living in rural India and a way of providing them with inexpensive and ready access to financial services as well. However, despite a plethora of financial inclusion schemes, the fact is that large numbers of people in rural areas are not benefited by them. The aim of this research was to examine the causes of the failure of financial inclusion schemes in India and to identify what needs to be done to give impetus to financial inclusion initiatives in the country. 100 rural folks were interviewed and the primary data was analysed. It was found that apathetic implementation of schemes, lack of awareness, disbursed funds being used for non – developmental / personal purposes and a lack of adequate distribution of banking facilities are the main reasons for limited success of financial inclusion schemes. The respondents indicated that there is an urgent need to diversify financial product offerings to beyond the current loan-based schemes. Similarly, the distribution networks and the modes of disbursement of financial inclusion schemes need to be urgently broadened. Technology plays a vital role in facilitating financial inclusion and the respondents have indicated several ways in which this may be done. Promoting financial literacy and ensuring safety and security of technology based financial instruments are other ways of facilitating financial inclusion. Perhaps the biggest stimulator of financial inclusion is the promotion of rural tourism as this provides the village people with a continuous and stable source of income in addition to agriculture. Finally, it may be noted that financial inclusion is not just providing village people with a wide range of financial services but providing them with the understanding of what these services are, how these products may be leveraged, with guidance and counselling on money management and awareness of the existence of these schemes and facilities as well.

A Blockchain-Based Key-Revocation Access Control for Open Banking

Open banking allows banks and financial sectors to easily access the customers’ financial data which is revolutionizing. It also provides the customers with excellent cloud access to various providers’ wide range of financial services. The storage of such sensitive services and data on cloud servers is a double-edged sword. It can ease and support fine-grained access to such services/data anywhere and anytime, supporting the open banking system. But, on the other hand, data privacy and secrecy are a challenge. Thus, efficient access control should exist for open banking’s services and data to protect cloud-hosted financial sensitive data from unauthorized customers. This paper proposes a new access control scheme that employs blockchain for the key-revocation process. We implement the smart contract’s functions on the Ethereum platform and test the contract’s code on the Kovan Testnet before deploying it to the Mainnet. Although the customer is authenticated to open banking, his key/s can be revoked according to the status response of the bank branch. Thus, his access to financial services and data is denied. We did comprehensive experiments for the revocation status response time, data exchanged until receiving the revocation status, and the time spent updating the policy. Also, we compared the results of our proposed scheme with two well-known methods—Certificate Revocation List (CRL) and Online Certificate Status Protocol (OCSP). The experimental results show that our proposed scheme (BKR-AC) has a faster response time than Certificate Revocation List (CRL) and Online Certificate Status Protocol (OCSP) in case of nonrevoked keys/certificates and a slower response time in case of revoked keys to avoid nonrevoking a revoked key. But the data exchanged is an average for BKR-AC between CRL and OCSP, which is still a tiny amount and accepted. The security analysis proved that our scheme is secure against some well-known attacks on open banking systems. In addition, it is also secured against the chosen-text attack by employing the challenge-response authentication mechanism.

Determinants of Financial Capability: A Situational Analysis for Namibia

It is imperative that if the poor in society benefit from the massive developments in the financial sector, then such a sector must be genuinely inclusive. It should meet the needs of all citizens with the potential to use such financial services productively. This paper scopes financial inclusivity as a process ensuring ease of access, availability, and usage of financial services by all members of society. To reduce socio-economic inequality, the poor in developing countries, like everyone else, need access to a wide range of financial services that are convenient, flexible, and reasonably priced. Therefore, financial inclusivity is sought to be significant towards the global development agenda as a tool for increasing the poor’s access to financial services, often cited as a mechanism that can help reduce poverty and lower income inequality. For many years, microfinance has been heralded as a mechanism for enhancing financial inclusion. It provides an avenue through which the marginalized and the poor can access and benefit from the formal financial system. Moreover, financial inclusivity is substantially evident in the rural areas among the poor, who have no collateral or credit history for participating in the legal financial system. As a result, financial inclusion is receiving increased attention as an essential tool for reducing aspects of socio-economic inequality characterized by the isolation of individuals and communities from formal financial services, like affordable and accessible credit.

ОБУЧЕНИЕ ФИНАНСОВОЙ ГРАМОТНОСТИ И ЕЕ ВЛИЯНИЕ НА РАЗВИТИЕ СТРАНЫ

It is necessary to increase the level of financial literacy among the population. And, taking into account the wide range of financial services that exist in the modern world, we must realize that financial literacy directly affects each of us so that we have the ability to make effective decisions on the rational use of our funds. Accordingly, our task is to increase our level of financial literacy, which, in turn, becomes an impetus for ensuring the economic growth of any country and economic development at both the micro and macro levels, since all these processes are closely interrelated. Consequently, all this contributes to the effective management of individuals of their financial transactions, taking into account all risks, in preventing the accumulation of loans, in reducing the risks of bankruptcy, in increasing their own savings and creating the most favorable conditions for a quiet retirement.

Financial Performance Analysis of Motilal Oswal Financial Services Ltd (MOFSL)

Purpose: Over the last two decades, globalization and technology advancements in financial markets have resulted in a surge of individual investors, granting them improved access to the financial markets. However, the large range of investment avenues available makes the investors’ decision-making process more complex. To make investors’ lives easier, a stockbroker functions as a liaison between the investor and the stock exchange, allowing them to make more precise investment decisions that are more advantageous for them. Motilal Oswal Financial Services Ltd (MOFSL) is the leading stockbroker firm that offers a wide range of financial services and is the popular choice among Indian investors. To attract new clients and retain the trust of existing customers, the firm needs to maintain a good financial track record. The investment advisor’s financial performance helps to a large measure in determining the firm’s overall financial health. This paper attempts to analyze the financial performance of Motilal Oswal Financial Services Ltd, for the past three fiscal years i.e., 2018-19, 2019-20, and 2020-21. Design/Methodology/Approach: The technique of ratio analysis has been adopted to assess the financial performance of MOFSL using secondary data. Also, the correlation between profitability and efficiency of MOFSL was examined using Pearson correlation. Moreover, SWOC analysis is performed to gain a better understanding of the company’s strategic position. Findings/Result: The interpretation of the ratios calculated, given a favorable impression of the financial status of the company and the tested hypothesis of correlation significance has discoursed that there is no significant correlation between profitability and efficiency of MOFSL. Further, the result of the SWOC investigation has offered new insights into the business. It can be concluded from the study that in the FY 2020-21, the company has outperformed in terms of profitability, liquidity, solvency, and efficiency ratios. Originality/Value: To acknowledge MOFSL’s growing popularity in the financial services industry, research was conducted in which the company’s financial performance was evaluated using four key financial indicators: profitability, liquidity, solvency, and efficiency ratios. Paper Type: A case study analysis based on empirical data.

Financial Performance Analysis of Motilal Oswal Financial Services Ltd (MOFSL)

Purpose: Over the last two decades, globalization and technology advancements in financial markets have resulted in a surge of individual investors, granting them improved access to the financial markets. However, the large range of investment avenues available makes the investors’ decision-making process more complex. To make investors’ lives easier, a stockbroker functions as a liaison between the investor and the stock exchange, allowing them to make more precise investment decisions that are more advantageous for them. Motilal Oswal Financial Services Ltd (MOFSL) is the leading stockbroker firm that offers a wide range of financial services and is the popular choice among Indian investors. To attract new clients and retain the trust of existing customers, the firm needs to maintain a good financial track record. The investment advisor’s financial performance helps to a large measure in determining the firm’s overall financial health. This paper attempts to analyze the financial performance of Motilal Oswal Financial Services Ltd, for the past three fiscal years i.e., 2018- 19, 2019-20, and 2020-21. Design/Methodology/Approach: The technique of ratio analysis has been adopted to assess the financial performance of MOFSL using secondary data. Also, the correlation between profitability and efficiency of MOFSL was examined using Pearson correlation. Moreover, SWOC analysis is performed to gain a better understanding of the company’s strategic position. Findings/Result: The interpretation of the ratios calculated, given a favorable impression of the financial status of the company and the tested hypothesis of correlation significance has discoursed that there is no significant correlation between profitability and efficiency of MOFSL. Further, the result of the SWOC investigation has offered new insights into the business. It can be concluded from the study that in the FY 2020-21, the company has outperformed in terms of profitability, liquidity, solvency, and efficiency ratios. Originality/Value: To acknowledge MOFSL’s growing popularity in the financial services industry, research was conducted in which the company’s financial performance was evaluated using four key financial indicators: profitability, liquidity, solvency, and efficiency ratios. Paper Type: A case study analysis based on empirical data.

The value of in-person banking: evidence from U.S. small businesses

We produce the first systematic study of the determinants and implications of in-person banking. Using survey data from the U.S., we show that firms which are informationally opaque or operate in rural areas are liable to contact their primary bank in-person. This tendency extends to older, less educated, and female business owners. We find that a relationship based on face-to-face communication, on average, lasts 17.88 months longer, spans a wider range of financial services, and is more likely to be exclusive. The associated loans mature 3.37 months later and bear interest rates which are 11 basis points lower. For good quality firms, in-person communication also relates to less discouraged borrowing. These results are robust to multiple approaches for endogeneity, including recursive bivariate probits, treatment effect models, and instrumental variables regressions. Overall, our findings offer empirical grounding to soft information theory and a note of caution to banks against suppressing channels of interpersonal communication.

Business models of FinTechs – Difference in similarity?

Abstract The FinTech industry is gradually maturing and offers a wide range of financial services on the global stage. Still, the understanding of FinTech business models remains at its infancy with a shortage of cross-country comparisons. This paper aims to determine the differences in business model attributes of FinTechs in five rapidly emerging FinTech hotspots in Central and Eastern Europe (CEE). Survey results from Estonia, Latvia, Lithuania, Poland, and Russia, accompanied by cluster analysis, enable us to provide unique in-depth evidence on FinTech business models. Across the selected countries, we observe significant differences in the attributes of FinTech business models: key activities, key resources, value propositions, customer segments, delivery channels, cost structure, and revenue stream. We identify four clusters of FinTechs: “lending community”, “mixed services”, “payment service”, and “payment community”. Although these clusters share similarities with FinTech archetypes proposed in previous research, they remain rather unevenly distributed across countries.