scholarly journals REGULATION AND SUPERVISION OF FINANCIAL SERVICES IN THE ERA OF GLOBAL DIGITALIZATION: EXPERIENCE OF AZERBAIJAN

2021 ◽  
Vol 5 (40) ◽  
pp. 28-34
Author(s):  
G. Mykhailiuk ◽  
A. Rustamzade ◽  
N. Mykhailiuk ◽  
I. Zaitseva-Kalaur
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Present Article ◽  
Financial Services ◽  
Digital Literacy ◽  
Financial System ◽  
Legal Framework ◽  
Jel Classification ◽  
Management Tools ◽  
Consumer Access

Abstract. The COVID-19 pandemic necessitated the urgent regulation and renewal of financial and banking services in Azerbaijan in the era of global digitalization. A number of important steps have been taken in the country, which are highlighted in the present article. First and foremost, numerous adopted legal acts, measures taken to increase the volume of non-cash payments and minimize the amount of cash payments have been analysed in the present article. It has been emphasized that strengthening of the role of banks in business financing also stimulates the economic growth as a result of the application of opportunities created by the digitalization of banks, legal entities and population. The importance to carry out reforms in the field of payments, to develop the legal framework, to strengthen institutional capacity has been examined. Next, the use of information technology and the enhancement of digital literacy have been identified as crucial issues. Moreover, digitalization is the main goal of improving risk management in banks and is defined as a strategic approach for the long term. The development of information technology and the acceleration of digital transformation in the international arena have contributed to the formation of modern and different approaches in the financial system, as well as in the operating part of banks. Furthermore, a new prudential system for responding to new challenges has been developed and the existing risk management tools based on international experience have been applied. The widespread use of mobile services over the Internet to facilitate consumer access to these services also plays a significant role in reducing costs and wasted time by creating additional capabilities. Finally, the article shows how the use of modern technological channels has increased the ability to collect and analyse more extensive and necessary information about current and potential customers. Keywords: financial system, prudential, financial authority, information technology, regulator, strategic roadmap. JEL Classification G21, O14, K20 Formulas: 0; fig.: 0; tabl.: 0; bibl.: 19.

scholarly journals FINTECH INDUSTRY IN UKRAINE: PROBLEMS AND PROSPECTS FOR THE IMPLEMENTATION OF INNOVATIVE SOLUTIONS

2020 ◽  
Vol 6 (4) ◽  
pp. 46-55
Author(s):  
Vira Vartsaba ◽  
Olha Zaslavska
Keyword(s):  
International Development ◽  
Financial Institutions ◽  
Financial Services ◽  
Digital Literacy ◽  
Public Awareness ◽  
Banking System ◽  
Radical Change ◽  
Legal Framework ◽  
Model Assessment ◽  
Credit System

The article considers the issues of development of the financial technology market, its opportunities and obstacles, as well as the need and inevitability of the in-troduction of fintech solutions in the financial and credit spheres. The main purpose of the research is to determine the role of fintech services in the state economy, the prospects for their development, as well as to substantiate the trends of adaptation of classical credit institutions and consumers of financial services to new financial tech-nologies at different stages of their development. Systematization of literature sources and approaches to solving the problem of intensifying activities in the field of innovative finance has shown that fintech is a specific cross-sectoral industry, which lies on the border of financial and IT spheres, consists of companies that use technology to improve the efficiency of financial services and encompasses digital innovations and programs that facilitate the creation and implementation of financial products. The urgency of solving this scientific problem is that the market of finan-cial technologies is one of the fastest growing. That is why it highlights the need for traditional financial institutions to digitize their activities through a radical change in the business model in order to strengthen competitive positions and provide strategic advantages. The research of the implementation of financial technologies in the article is carried out in the following logical sequence: systematization of stages of development of the fintech industry; assessment of the development of the fintech sphere in Ukraine in the context of the transition to the stage of integration with the banking system; study of the strengths and weaknesses of domestic banks and fintech companies, outlining obstacles and necessary changes for further digitization of the financial and credit system; research of the process of implementation of fintech services on the example of the technology life cycle model; assessment of the relationship between the level of financial and digital literacy of the population and the depth of promotion of innovative fintech products; identifying ways to increase the financial and digital inclusion of the population of Ukraine. Methods of the empirical, experimental and theoretical levels became the methodological tools of the conducted research. The results were evaluated and analyzed on the basis of surveys conducted in 2017-2019 by the Ukrainian Association of Fintech and Innovative Companies, the Ministry of Digital Transformation of Ukraine, the Ukrainian division of the British audit and consulting company Ernst & Young, and the US Agency for International Development. The article presents the results of an empirical analysis of the relations and interdependence of classical and innovative financial institutions, which showed the inevitability of the processes of digitization of financial services. The study em-pirically confirms and theoretically proves that the favorable development of the fintech industry is based on the following: the level of public awareness in the field of finance and information technology; the level of innovative development of financial institutions and the degree of penetration of the fintech companies in the financial market of the country; completeness of the legal framework.

scholarly journals RISK MANAGEMENT IN PUBLIC PROCUREMENT PROCESS. PARTICULARITIES AND SOLUTIONS FOR OPTIMIZING PUBLIC PROCUREMENT IN ROMANIA IN THE CONTEXT OF EMERGENCY CAUSED BY THE COVID-19 CRISIS

2020 ◽  
Author(s):  
Costel Ceocea ◽  
Raluca Alexandra Ceocea ◽  
Adrian Vatamaniuc ◽  
Vasile Mihălaș
Keyword(s):  
Risk Management ◽  
Public Procurement ◽  
National Level ◽  
Legal Framework ◽  
Public Institutions ◽  
Management Tools ◽  
Procurement Process ◽  
Rapid Changes ◽  
Management Factors ◽  
High Uncertainty

Public procurement involves adequate risk management, specific to the procurement portfolio established at the level of the organization. In order to achieve the proposed objectives, in accordance with the regulated framework established at the level of public institutions from Romania, decisions made at the level of contracting authorities must be based on risk management tools and mechanisms. These tools and mechanisms are defined on the basis of analyses of public procurement processes, carried out in compliance with the legal framework applicable at both European and national level. The new context created at the level of the contracting authorities in Romania, with the onset of the COVID-19 crisis, forced the management factors to adopt emergency decisions, to manage new risks and to implement rapid changes in public procurement processes, in the context of high uncertainty. This paper aims at analyzing the way decisions are made at the level of contracting authorities in Romania, in order to identify specific risk management mechanisms, based on the assessment and anticipation of risks related to public procurement organized in an matter of emergency.<div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div><div id="mouseposition-extension-element-full-container" style="position: fixed; top: 0px; left: 0px; right: 0px; bottom: 0px; pointer-events: none; z-index: 2147483647; font-weight: 400;"> </div>

scholarly journals IMPACT OF INFORMATION TECHNOLOGY AND DIGITALIZATION ON BANKING STRATEGY PRE-COVID-19, CHALLENGES IN THE COVID ERA AND POST-COVID STAKES

2021 ◽  
Vol 6 (2) ◽  
pp. 60-73
Author(s):  
Syrine Ben Romdhane
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Jel Classification ◽  
Digital Transformation ◽  
Strategic Plans ◽  
Banking Strategy ◽  
The One ◽  
The Impact

The spread of information technology and the digitalization of financial services raise a range of theoretical questions as the structures of the banking industry undergo change. This change has intensified with the impact of the COVID-19 pandemic which is already being observed. The purpose of this study is therefore threefold: (1) to analyze the impact of IT and the digitalization of financial services on the strategy and functioning of the pre-COVID-19 banking sector; (2) to study the challenges banks are facing in the COVID era in managing the crisis, and (3) to highlight post-COVID stakes.  This study shows, on the one hand, that the crisis confirms the need for banks to combine physical proximity and digital offer, and on the other hand, that digitalization could be the solution for banks to consistently mitigate risks. Through this digital transformation and their ability to re-invent themselves, the banks would guard against potential similar crises. By adopting a more digitized and open behavior, they would be immune to such crises because they would have appropriate strategic plans, as they would be better equipped to counter the threats and better prepared to transform them into opportunities. JEL Classification Codes: B26, B41, G21, G32, O32.

scholarly journals Methodical approaches for reducing the credit risk

2021 ◽  
Vol 11/1 (-) ◽  
pp. 16-20
Author(s):  
Tetiana HORODETSKA ◽  
Kateryna ZAICHENKO ◽  
Alla IVASHCHENKO
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Banking System ◽  
Developed Countries ◽  
Legal Framework ◽  
Foreign Banks ◽  
Methodological Framework ◽  
Credit Risk Management ◽  
Management Tools ◽  
Starting Point

Banking is inevitably associated with risks. No matter what efforts the bank makes to minimize risks, they will always exist – the only question is to what extent. Lending operations are among the most profitable types of banking, but they are associated with a high level of risk. The instability of the economic situation in the country, the imperfection of the legal framework in this area necessitate a detailed study of the problems of minimizing credit risks. It should be noted that the choice of methods of credit risk management in the bank is quite relevant today. Credit risk management is the most important task of any bank, and choosing the right method of credit risk management will increase the stability, reliability and competitiveness of the banking system, which will positively affect the overall economic condition of the country. Credit risk is the oldest in the system of banking risks and occupies a prominent place. It is necessary to work out an effective system of using the tools recognized by the world banking community to minimize risks, given the possibility of their transfer from the bank to investors. The starting point in the development of the latest risk management tools of the bank should be the creation of a regulatory framework that will regulate this process. It is necessary to improve the existing methodological framework and develop a new methodological framework for credit risk management of the bank, concentrating the advantages of existing assessment methods, create a single method of assessing the borrower's creditworthiness, not to mention a certain algorithm for banks to form credit procedures. It is necessary to adopt the experience of foreign banks in credit risk management. The experience of foreign banks in developed countries, based on a detailed study of all credit procedures, multifactor analysis of the creditworthiness of potential borrowers.

Consumer access to capital in the age of FinTech and big data: The limits of EU law

2018 ◽  
Vol 25 (4) ◽  
pp. 476-499 ◽  
Author(s):  
Federico Ferretti
Keyword(s):  
European Union ◽  
Big Data ◽  
Technological Innovation ◽  
Financial Services ◽  
Legal Framework ◽  
Financial Inclusion ◽  
Eu Law ◽  
Consumer Access ◽  
Fit For Purpose ◽  
Credit Data

There is much hype about the potential for technological innovation (FinTech) and big data to transform and deliver financial services to consumers. The aim of this paper is to analyse, from the perspective of financial inclusion and consumer protection, the extent to which the current European Union legal framework is prepared to respond to the challenges posed by such innovation in the context of the prospective opportunities and detriment for consumers. Departing from an assessment of the already problematic and jeopardised uses of traditional credit data in the Member States, it concludes that the risks are likely to contrast or outweigh the benefits, but the legal framework does not seem fit for purpose despite the enactment of brand new legislation.

Design Thinking as a Tool for the Analysis of Project Risks

2019 ◽  
Vol 16 (6) ◽  
pp. 60-77
Author(s):  
E. V. Vasilieva ◽  
T. V. Gaibova
Keyword(s):  
Risk Management ◽  
Risk Analysis ◽  
Design Thinking ◽  
Management Tools ◽  
Project Risk ◽  
Team Members ◽  
Investment Projects ◽  
Risk Management Process ◽  
Project Objectives ◽  
Project Risk Analysis

This paper describes the method of project risk analysis based on design thinking and explores the possibility of its application for industrial investment projects. Traditional and suggested approaches to project risk management have been compared. Several risk analysis artifacts have been added to the standard list of artifacts. An iterative procedure for the formation of risk analysis artifacts has been developed, with the purpose of integrating the risk management process into strategic and prompt decision-making during project management. A list of tools at each stage of design thinking for risk management within the framework of real investment projects has been proposed. The suggested technology helps to determine project objectives and content and adapt them in regards to possible; as well as to implement measures aimed at reducing these risks, to increase productivity of the existing risk assessment and risk management tools, to organize effective cooperation between project team members, and to promote accumulation of knowledge about the project during its development and implementation.The authors declare no conflict of interest.

Protection of Customers for Management of Digital Banking Services (Study at PT. BRI Unit Boyolali)

2020 ◽  
Vol 3 (2) ◽  
pp. 170
Author(s):  
Herdian Ayu Andreana Beru Tarigan ◽  
Darminto Hartono Paulus
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Industry ◽  
Service Innovation ◽  
Quality Of Services ◽  
Legal Research ◽  
Banking Services ◽  
Services Sector ◽  
Financial Services Sector

<p>Increasing competition in the Indonesian banking industry has encouraged many banks to improve the quality of services to customers by utilizing information technology developments. Service innovation in the use of information technology encourages banks to enter the era of digital banking services. However, the development of digital banking services also increases the risks faced by banks. The purpose of this study is to provide an overview of the implementation of digital banking services and customer protection for risks from digital banking services. The method used in this study is an empirical legal research method. The results of this study indicate that the implementation of digital banking services is regulated by OJK Regulation No.12/POJK.03/2018. The existence of this OJK Regulation is expected by banks as providers of digital banking services to always prioritize risk management in the use of information technology. In addition, this study also shows the existence of 2 types of customer protection for the use of digital banking services, namely preventive protection in the form of legislation related to customer protection in the financial services sector and repressive protection in the form of bank accountability for complaints from customers using digital banking services.</p>

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