The study aims to investigate the financial technology (FinTech) factors influencing Chinese banking performance. Financial expectations and global realities may be changed by FinTech's multidimensional scope, which is lacking in the traditional financial sector. The use of technology to automate financial services is becoming more important for economic organizations and industries because the digital age has seen a period of transition in terms of consumers and personalization. The future of FinTech will be shaped by technologies like the Internet of Things, blockchain, and artificial intelligence. The involvement of these platforms in financial services is a major concern for global business growth. FinTech is becoming more popular with customers because of such benefits. FinTech has driven a fundamental change within the financial services industry, placing the client at the center of everything. Protection has become a primary focus since data are a component of FinTech transactions. The task of consolidating research reports for consensus is very manual, as there is no standardized format. Although existing research has proposed certain methods, they have certain drawbacks in FinTech payment systems (including cryptocurrencies), credit markets (including peer-to-peer lending), and insurance systems. This paper implements blockchain-based financial technology for the banking sector to overcome these transition issues. In this study, we have proposed an adaptive neuro-fuzzy-based K-nearest neighbors' algorithm. The chaotic improved foraging optimization algorithm is used to optimize the proposed method. The rolling window autoregressive lag modeling approach analyzes FinTech growth. The proposed algorithm is compared with existing approaches to demonstrate its efficiency. The findings showed that it achieved 91% accuracy, 90% privacy, 96% robustness, and 25% cyber-risk performance. Compared with traditional approaches, the recommended strategy will be more convenient, safe, and effective in the transition period.
This article describes the role and importance of the investment climate in the economic development of the country, the content of the Investment Program for 2021-2023, sources of centralized financing of investments in fixed assets in the Republic of Uzbekistan, decentralized sources of financing. issues such as reforms in attraction, investments made by international financial institutions were considered and recommendations were made.
Crowdfunding is a method of obtaining money for a project by asking a lot of people for modest donations, usually online. Nowadays, the biggest issue with crowdfunding is the trust component. People are reluctant to donate because of the increasing number of frauds that are occurring today. However, if donors could be assured that their money would be put to good use, donations may rise significantly. The need to employ blockchain in crowdfunding arises here. With the blockchain system, transactions are tracked over a network of computers that are connected to one another. This essay discusses the shortcomings of the present crowdfunding systems in use and makes recommendations for how to make things better.
Digital financial services have flourished from simple peer-to-peer money transfers to advanced financial technologies that make use of the latest technologies in digital banking, distributed ledgers, and central bank digital currencies. Governments, corporations, and individuals may all benefit from new digital financial services. Expanding inclusive economic growth and addressing the Sustainable Development Goals can be accomplished through the development of inclusive digital financial services in an environment with the right regulatory framework and policies. The number of financial technology (Fintech) companies globally has grown, attracting billions of dollars new investments in recent years. However, Fintech companies remain relatively small compared with traditional financial service providers in developed countries. In contrast, Fintech services and products are becoming economically important in some developing countries. The article summarizes the experience of implementing Fintech in some high-ranked Fintech countries such as the United States, United Kingdom, Singapore, Australia, China and Indonesia; thereby providing policy implications for regulators in Vietnam.
Purpose The eNaira is the central bank digital currency of Nigeria. People who are interested in the eNaira and financial inclusion will seek information about eNaira and financial inclusion. Their interest in information about eNaira and financial inclusion will make it easier for them to adopt the eNaira and embrace other financial inclusion innovations such as FinTech and cryptocurrency. This paper investigates the determinants of interest in eNaira and financial inclusion information. Design/methodology/approach The data were analyzed using descriptive statistics, correlation analysis and ordinary least squares (OLS) regression. The study also used the GMM and 2SLS regression methods for robustness. Findings Using interest over time data, the findings of this study reveal that interest in financial technology (FinTech) and eNaira information are significant positive determinants of interest in financial inclusion information. Also, interest in financial inclusion is a significant positive determinant of interest in eNaira information. Furthermore, interest in FinTech information has a positive and significant correlation with interest in financial inclusion information. There is also a significant positive correlation between interest in central bank digital currency information and interest in FinTech information. The implication of the findings is that interest in information about new financial innovations, such as FinTech and eNaira, can stimulate interest in information about financial inclusion. Originality/value The literature has not examined the determinants of interest in eNaira and financial inclusion information yet.
Contemporary financial technologies (FinTech) have revolutionized the world of finance, improved the operations of traditional financial institutions and created a new environment in which banks are no longer the only providers of financial services. Today, competition in the banking sector includes banks' competition with new FinTech companies and digital decentralized financial (DeFI) sectors. In the future, the financial sector will generate new technological innovations, trust in traditional (TradFi) and decentralized financial (DeFi) sectors, as well as a new attitude of monetary authorities towards DeFi systems which currently function outside their control. In contrast to banks, the FinTech non-banking sector quickly adapts to new business requirements by offering more functional and cheaper digital solutions. Although DeFi sectors may threaten financial stability and the application of monetary regulation, their development cannot be stopped. Financial regulation is being extended to digital innovations but its implementation in native DeFi systems is almost impossible, unlike centralized (CeFi) platforms whose segments are much easier to regulate. The regulation of DeFi is additionally aggravated by the international nature of the transfer of financial resources through these networks. The best solution may be provided by an internationally harmonized approach to the regulation of the DeFi sector, which is not easy to reach at all. There has been a shift in that direction since 2008. The regulation of banking and financial markets is slowly losing its exclusively national character and increasingly adopting the solutions based on regional and global financial consensuses, which are still not comprehensive. A hard-to-reach consensus is also necessary between monetary authorities at the global level and the creators of decentralized financial sectors.
The paper is dedicated to the discussion of tokenization of backed assets as a promising and potentially new solution to the long-standing and unresolved issue of growing economic inequality in modern society. Asset tokenization is considered as a simple and technologically realistic way to facilitate the financial availability of valuable investment assets (real estate, securities, gold, etc.), which is a modern and unexpected manifestation of blockchain technology, provided that tokens of real assets are recorded in decentralized information platforms. The paper successively solves three working tasks: the problem of global wealth inequality has been described, and its solution through increasing digital financial accessibility has been presented; the essence of tokenization of assets as a new phenomenon and trend in the modern digital economy has been presented; the idea of asset tokenization due to its ability to radically increase the level of accessibility of investment assets for any strata of the population owing to a unique property of divisibility of the distributed ledger token has been explained. The author uses considerable aggregated data and a review of modern foreign literature. The author concludes that asset tokenization can indeed be a new means of significantly reducing the barrier to investment for billions of people worldwide by lowering the threshold of minimum investment costs and increasing the liquidity of existing physical assets. To make this possible, regulatory compliance, regulation and storage must be addressed. Many countries and organizations have taken steps to better understand the asset tokenization and proper value. It also causes the reconfiguration of institutions and rules of operation of the market infrastructure.
Crowdfunding is a fundraising method that involves raising small amounts of money from a large number of people, typically through online platforms. It allows individuals, businesses, or organizations to present their projects, ideas, or causes to a global audience and request financial support from a crowd of potential backers. Crowdfunding has gained popularity across various industries, including technology, arts, entrepreneurship, social causes, and more. It provides a democratized approach to financing, allowing innovative and creative ideas to come to life with the support of a diverse community of backers. The current research explores the potential of blockchain technology and smart contracts to revolutionize traditional crowdfunding methodologies. Traditional crowdfunding has been plagued by issues such as lack of transparency, centralized intermediaries, slow payment processing, fraud, and limited access. In response to these challenges, blockchain solutions offer a transparent and decentralized approach, allowing contributors to track their contributions, eliminate intermediaries, automate fund disbursement, and enable cross-border transactions. Tokenization and reduced entry barriers further enhance accessibility and participation. The current research presents a conceptual model and implementation of a smart contract-based crowdfunding system using Solidity, addressing these issues and providing a foundation for future research in the field of decentralized crowdfunding. The research scope has been expanded to encompass Initial Coin Offerings (ICOs) as a means of fundraising for startups. Within this context, fungible tokens, which adhere to the ERC-20 standard, are generated using the OpenZeppelin library. These tokens are then subject to approval by the startup, granting authorization to a crowdfunding manager for the purpose of distributing tokens to contributors based on their respective contributions. The percentage of tokens made available for distribution can be customized to suit the specific needs and preferences of the startup.
İslam ülkelerinin ikinci dünya savaşı sonrasında bağımsızlıklarını kazanmaları ile İslami finansın 1970’li yıllardan itibaren çağdaş anlamda başladığı gelişiminde politik ekonomi önemli bir rol oynamıştır. İslami finans dayandığı iktisadi temelleri üzerinde yükselirken hem geleneksel finansın araçlarından hem de gelişmekte olan dijital teknolojilerden yararlanmıştır. Özellikle 2008 küresel finansal kriz sonrası yaygınlaşan finansal teknolojiler tüm finans sektörünü dönüşüme uğratmaya başlamıştır. İslami finans sektörü ve İslami finansın ekonomi politiği gelişmekte olan finansal teknolojilerden yararlanarak bu alana yeni bir bakış açısı kazandırmıştır. Geleneksel finansal teknolojilere ek olarak blokzinciri ekonomisi üzerinde yükselen merkeziyetsiz finansın ortaya çıkışı tüm dünyaya sistemik bir öneri getirirken İslami finans için de yeni yollar açmıştır. Bu çalışmada İslami finansın ekonomi politiği çerçevesinde merkeziyetsiz finans uygulamaları, özellikle merkeziyetsiz otonom organizasyonlar işlenmektedir. İslami finansın, finansal teknolojilerin sunduğu imkânlar ile daha iyi bir hizmet alternatifi sunacağı düşünülmektedir. Çalışma, İslami finans ve merkeziyetsiz finans kesişiminde ortaya çıkan uygulama alanının “Merkeziyetsiz İslami Finans” kavramsallaştırmasıyla ele alınabileceğini önermektedir. Bu bağlamda İslam ülkelerinin Merkeziyetsiz İslami Finansı politik ekonomi çerçevesinde değerlendirebileceği aktarılmaktadır. İslam ülkelerinin girişimci devlet anlayışıyla İslami finansın ekonomi politiğinde merkeziyetsiz finans uygulamalarının gelişimine öncülük edebileceği savunulmaktadır. Bu yaklaşım dijitalleşmenin yükselişi karşısında İslami finansın daha katılımcı anlayışla birey, devlet ve toplum nezdinde etkin bir şekilde yaygınlaşmasını ve uygulanmasını mümkün kılabilecektir. Merkeziyetsiz İslami Finans, iktisadi temelleri, dijital olanakları ve dağıtık yönetişim anlayışıyla yeni bir tasavvur vaat etmektedir.
Blockchain and its applications have been increasingly familiar to market participants, investors, and developers in the last 5 years. Technology developments and increasing usage of smart devices create a booming environment for blockchain applications, including Decentralized Finance (DeFi) applications. DeFi applications are designed and developed from blockchain technology and decentralized protocols, having the potentials to replace the traditional financial system and applications such as deposits, lending, exchange and derivatives. In this study, we provide detailed comparisions between traditional centralized finance and decentralized finance, which highlight the anonymity, transparency, universal assess and interoperable and composable of DeFi protocols. Moreover, we examine popular DeFi applications in lending, exchange and derivatives, that are expectedly promote financial inclusion and improve social efficiency with the public, security, and anonymity in financial services. Consequently, we discuass the benefits, risks and challenges with which these DeFi applications posing to the authorities and provide some policy implications.
Abstract Over the last decade, the green shoots of a new economic order have emerged as decentralized technologies challenge traditional financial systems. Decentralized finance (DeFi) holds the potential to transform international business (IB) by offering accessible financial services across borders, disrupting traditional intermediaries, and promoting financial inclusion. While traditional fintech has challenged banks, DeFi operates outside legacy systems, leveraging blockchain technology and smart contracting to introduce a new range of products and services that provide first-movers with an upper hand to both expand their business across the globe as well realize cost savings on existing business. Despite offering advantages like efficiency, transparency, and security, DeFi faces regulatory uncertainties and scalability, adoption, and stability concerns. Our study explores how DeFi can seamlessly integrate into the IB space while addressing these challenges. In addition to offering insights for investors, multinational firms, and regulators, we also lay the groundwork for future IB research in the fintech domain. As the DeFi innovation unfolds, understanding and harnessing its potential can empower stakeholders to engage responsibly and effectively in this transformative landscape.
Better financing, financial management, and information intermediary services are the main objectives of Internet finance. Several aspects of the internet, including payments, cloud computing, social networking, and search engines, are the foundation of this new financial paradigm. It is a newly created financial service with qualities taken from conventional financial services, such as more operational convenience, greater involvement, better collaboration, and increased transparency. Internet finance links the financial industry to the fundamental principles of the Internet, such as decentralization, openness, equality, competitiveness, and competition. The primary distinction between Internet finance and traditional finance lies not only in the many channels each financial organization has employed in its development, but also in the participants' thorough knowledge of the underlying principles of internet cooperation and expansion.
Decentralized Finance, or DeFi, is a financial ecosystem built on blockchain technology, aiming to recreate traditional financial services without the need for central authorities like banks or intermediaries. It is a growing ecosystem of financial applications and services built on blockchain technology. Unlike traditional finance, which relies on centralized institutions like banks, DeFi leverages peer-to-peer (P2P) networks to facilitate financial transactions. Traditional financial systems often leave individuals and communities, particularly those in developing economies or marginalized groups, excluded due to limited access, high transaction costs, and stringent regulations. Decentralized Finance (DeFi) emerges as a potential solution, leveraging blockchain technology to offer an alternative financial ecosystem built on transparency, disintermediation, and accessibility. This paper investigates the potential of DeFi in fostering financial inclusion and economic empowerment. DeFi has gained traction in India, with a growing interest in blockchain-based financial services. However, regulatory uncertainties have led to some cautiousness. Indian regulators are exploring frameworks to address potential risks while encouraging innovation in the DeFi space. As the regulatory landscape evolves, the adoption and development of DeFi in India are likely to be influenced by government policies and industry collaborations
Purpose This paper presents an overview of embedded finance. It identifies the applications, use case examples, benefits and challenges of embedded finance. The paper also analyzes global interest in embedded finance and compares it with interest in related finance concepts such as open finance, open banking, decentralized finance, financial innovation, Fintech and digital finance. Design/methodology/approach Granger causality test and two-stage least square regression were used to assess interest over time in embedded finance. Findings The empirical result show that interest in embedded finance increased significantly during the COVID-19 pandemic. The United States, the United Kingdom and India witnessed the highest interest in embedded finance compared to other countries. There is bi-directional Granger causality between interest in information about embedded finance and interest in information about financial innovation. There is uni-directional Granger causality between interest in information about embedded finance and interest in information about digital finance and open finance. The findings also reveal that interest in decentralized finance and open finance are significant determinants of interest in embedded finance. On the other hand, interest in embedded finance is a significant determinant of interest in digital finance, decentralized finance, Fintech and open banking. Also, interest in embedded finance is significantly correlated with interest in digital finance, decentralized finance, open banking and Fintech. Originality/value Presently, there is little academic interest in embedded finance despite the fact that embedded finance is part of the on-going digital finance revolution. This paper fills this gap in the literature by assessing the benefits, use case, challenges of embedded finance.
In this paper, we sought to assess the factors explaining the repayment of loans by borrowers in SFDs in Togo using a Logit model. A regression analysis of data collected on a sample of 157 loan files shows that older borrowers and those more distant from the institution have a higher credit repayment score, while gender and the amount of credit received by the borrower negatively influence the credit repayment rate. Even if the credit repayment score does not depend on the activity that the borrower has undertaken or wants to undertake, it would be desirable for the SFDs to finance more commercial activities because they favor a rapid turnover of capital.
India is significantly diverse in culture and how it promotes business transactions. Though we are very acquainted with cash, cards, and online mode of payment, the Indian rural economy still believes in the barter system. At this juncture, India is evolving as a tech power house, and its economy is thriving to embrace cryptocurrency as a medium of exchange. After the Indian finance minister declared the same last February that India is working towards building its legal tender called Central Bank-backed Digital Currency (CBDC), this paper is making an impact in explaining our strengths, weakness, market readiness, and necessity to adopt a digital rupee when India's economy is highly regarded as a cashoriented economy. Is our country ready to accept the new technological shift in smart banking in the form of a digital rupee? The paper highlights the socioeconomic and technical challenges our planners need to understand before changing the Central banks' monetary policies. The deployment of fifth-generation (5G) cellular network technology has sparked renewed interest in the potential of blockchain to automate different cellular network use cases. 5G is projected to open up new market prospects for small and large businesses. The article highlights the unique instrument of the digital rupee to enhance peer-to-peer transactions with the evolution of 5G mobile technology.
Financial inclusion is seen as a dynamic tool for achieving multifaceted microeconomic stability, (and) sustainable economic growth, job creation, poverty reduction, and income equality for both developed and developing nations. The needy segments of the population must be provided with financial services to accomplish this inclusion. Still, the traditional financial market is unavailable due to its lack of collateral and shallow income. Thus, they go to local moneylenders, also known as "loan sharks," who charge exorbitant interest rates. Introduction to microfinance came as a new and refreshing light to these needy segments of the population as it provides small valued loans (micro-credit) to support their micro-scale businesses and engage in productive activities. As emerging technology started to be incorporated into every aspect of society, thus microfinance also needed to be incorporated into the technology. An application is required to protect data integrity and smoothly influence the microfinance sector. As the databases are vulnerable to data manipulation, this can affect the transaction history of the loan. Blockchain technology can be used to solve this problem, as data in the Blockchain is stored immutably. So, we designed a microfinance application that uses blockchain technology with decentralised KYC architecture to reduce multiple KYC verification and easy access to micro-credit.
Peter Wänke, M. Kabir Hassan, Md. Abul Kalam Azad, Md. Azizur Rahman · 5 authors
Abstract The literature gap in microfinance paradox of double bottom line (financial performance vs. outreach) has always been an interesting area of research. This paper proposes a theoretical model most suitable for Islamic Microfinance Institutions (MFIs) which enables Islamic MFIs’ to operate together with the existing financial models compliant with Islamic Shariah Law. This model is based on a distributed verification/decision-making process that might be realized (but not necessary) through blockchain. Among the available distributed verification techniques, blockchain technology is an attractive emerging computing paradigm due to its decentralized, immutable, shared, and secure data structure characteristics. This model proposes three significant propositions. First, sharing information through blockchain will allow a transparent network in MFI operations, which will raise confidence for donors resulting in a causal effect of a relatively lower profit rate to be charged by the MFIs. Second, the consensus mechanism will enable risk-sharing, a character of Islamic finance; thus, the MFIs will operate without any collateral for low-risk firms. Third, the double bottom line of MFIs' long-lasting paradox would be solved. As for practical implication of this proposed model, the causal impact of lower cost investment by the lenders would increase social welfare because of no collateral and no initial wealth requirement. The proposed model proposes a credit rationing approach where profit can be negative. No collateral will be used when calculating the creditworthiness of a borrower.
Abstract As blockchain and DLTs technology makes its presence felt strongly in many industries like finance and banking,<br> this study investigates the business case for the application to social impact bonds (SIBs). Technological innovation in<br> general, and distributed ledger technology (DLT) in particular, could become a game changer in the development of new<br> social impact bonds sector. This paper discusses the potential impact of DLT on SIBs market and the potential scenarios of<br> DLT adoption. Alongside presenting strengths, weaknesses, opportunities, and threats analysis (SWOT), the study exhibits<br> the requirements for and steps toward a SIBs structure facilitated by blockchain technology.
Klemens Katterbauer, Hassan Syed, Laurent Cleenewerck de Kiev
The digital economy has undergone significant transformations with blockchain becoming a household name in the fintech environment. Besides powering cryptocurrencies, blockchain technology enables power transactions in a variety of forms and enables decentralization which may reduce transaction costs. Islamic microfinance has become important with many new institutions arising in order to satisfy the demand for microfinance services while ensuring that these services comply with the Shariah Law. Cost of transactions and low degree of digitalization are the major obstacles with current solutions. We present an innovative blockchain artificial intelligence framework for the optimization of Islamic microfinance service provisioning as well as providing financial and transaction services in order to ease transactions and make them more secure and readily available. The framework was evaluated on a large dataset from the Central African Republic, and we could demonstrate strong performance of the AI-blockchain framework. The framework provides a viable solution for Islamic microfinancing to enhance transactions services and overcome some of the existing challenges with Islamic finance.