Digital financial inclusion risk prevention based on machine learning and neural network algorithms

2021 ◽  
pp. 1-16
Author(s):  
Ning Gu
Keyword(s):  
Risk Prediction ◽  
Financial Services ◽  
Financial Risk ◽  
Rapid Development ◽  
Prediction Method ◽  
Heterogeneous Data ◽  
Mobile Internet ◽  
Financial Inclusion ◽  
Third Party ◽  
Financial Industry

In recent years, China has increased its investment in science and technology, and digital technologies such as mobile Internet, big data, and cloud computing have continuously made breakthroughs. The integration with the modern financial industry has stimulated online lending, third-party payment, digital insurance, and New financial forms such as digital wealth management are booming. With the rapid development of digital financial inclusion, the development of traditional financial industry has broken through time and geographical constraints, allowing more groups excluded from the traditional financial system to participate in financial activities and enjoy more convenient and faster personalized financial products and services, meet their financial needs and improve the reach of financial services. While the development of digital financial inclusion has benefited more groups, it has not changed the original risks of the financial industry. It has also brought about some negative external effects of financial technology, which poses greater challenges to the protection of financial consumers’ rights and interests. Therefore, this research aims at the digital inclusive risk prediction of financial institutions and personal risk prediction respectively, and proposes a financial risk prediction method based on the adaptive fusion of multi-source heterogeneous data, which can improve the effect of financial risk prediction through the effective use of multi-source data. purpose.

scholarly journals Development Status, Causes of Risks, and Risk Supervision Suggestions on Internet Finance in China

2021 ◽  
Vol 4 (5) ◽  
pp. 45-51
Author(s):  
Junxuan Ni ◽  
Haoxuan Ni
Keyword(s):  
Financial Services ◽  
Financial Risk ◽  
Financial Risks ◽  
Financial Industry ◽  
Financial Model ◽  
Healthy Development ◽  
Development Status ◽  
Financial Exclusion ◽  
Internet Finance ◽  
Risk Supervision

As a useful supplement to China’s financial system, the development of internet finance has promoted the innovation of financial model and injected strong vitality into the financial market. Internet finance provides customers with more convenient and fast financial services, effectively alleviates financial exclusion, and reduces information asymmetry. It is of great significance to promote the marketization of interest rate and the development of inclusive finance in China. However, internet financial risk events occur frequently, posing a serious challenge. Therefore, this research analyzes the causes of internet financial risks, and provides suggestions on internet financial risk supervision, so as to promote a healthy development of the internet financial industry in China.

scholarly journals Prospects for cooperation between the financial corporation and companies, working in the field of digital technologies

Upravlenie ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 57-64 ◽  
Author(s):  
V. S. Efremov ◽  
A. S. Pilishvili
Keyword(s):  
Development Strategy ◽  
Financial Services ◽  
Business Processes ◽  
Rapid Development ◽  
Digital Technologies ◽  
Open Architecture ◽  
Financial Industry ◽  
Digital Products ◽  
Advantages And Disadvantages ◽  
Main Regulator

The problems, associated with the development of new digital technologies, which, in turn, have an impact on the activities of large financial institutions of the Russian Federation, have been examined in the article. The aim of the study is to analyze the current situation in the economy, related to the growth of the market for digital products, their integration into the existing model of providing financial services to clients, as well as finding solutions to the joint activities of financial corporations and financial and technological companies. The definitions and main activities of financial corporations and fintech startups have been given in the article. The advantages and disadvantages of a large financial corporation and developing companies, operating in the field of digital technologies, as well as the positive results of combining their resources, have been highlighted. Positive examples of world experience in cooperation between the two types of these organizations and the attitude of the main regulator of the Central Bank of Russia to the development and implementation of financial technologies in the country’s economy have been adduced.The problems and opportunities of high competition in the struggle for the modern consumer, which lead to the rapid development of the entire financial industry market, have been analyzed. The results of the study have showed, that every day, worldwide, fintech companies test a significant number of digital products, various open architecture tools, methods of transferring information through blockchain technologies, and optimize and integrate into the existing systems new client base programs, that completely change the main business processes of large enterprises and have a significant impact on the main consumer - a person. This indicates the need for further research aimed at studying and analyzing the integration of financial corporations with technology companies, changing the existing business model, finding new approaches to the modern consumer and creating a new organization development strategy in the digital economy of the country.

Credit and Financial Risk Measurement of Financial Enterprises Based on PSM Model

2021 ◽  
Vol 7 (5) ◽  
pp. 3710-3723
Author(s):  
Yijun Chen ◽  
Xiao Yan ◽  
Qiuhong Jia
Keyword(s):  
Financial Risk ◽  
Rapid Development ◽  
Social Economy ◽  
Risk Measurement ◽  
Financial Risks ◽  
Financial Industry ◽  
Corporate Credit ◽  
Enterprise Credit ◽  
Fuzzy Neural ◽  
Default Rate

With the rapid development of social economy and information technology, the credit risk and financial risk of my country’s financial enterprises are also facing severe challenges. In financial enterprises, credit is related to the survival of the enterprise. As the business volume and scale of financial enterprises continue to expand, financial risks are correspondingly increased. Therefore, the research on financial enterprise credit and financial risks is of great significance. The research on the credit and financial risks of financial enterprises is helpful to help financial enterprises handle financial risks well and perform evasive operations on them. In addition, it can also enhance the credit awareness of enterprises and reduce the default rate in the financial industry. This paper studies and analyzes the financial enterprise credit and financial risk measurement based on the PSM model. First, it uses the literature method to study the PSM model, corporate credit, financial risk and other theoretical knowledge, and then establish a fuzzy neural network model for risk assessment. And the establishment of a PSM model to conduct a questionnaire survey experiment design, analyze the price sensitivity changes and acceptable price ranges under the PSM model, and get the optimal pricing of new financial products issued by financial companies. Finally, it analyzes the relationship between the default rate of corporate credit and internal finance. The conclusion is that when this financial product is priced at 45 yuan, the proportion of reserved recipients is the largest, reaching 66%; when the price is 75 yuan, the acceptable proportion is 23%, which is the acceptable number of people in the three price ranges. The proportion is the largest; if the price is 100 yuan, the unacceptable proportion is the largest, reaching 45%. This shows that the pricing of a new financial product is directly related to its sales. The reasonableness of the product pricing directly determines whether people are willing to pay for it and accept it.

Financial Inclusion

2020 ◽  
pp. 149-165
Author(s):  
Dian Agustia ◽  
Nadia Anridho
Keyword(s):  
Sustainable Development ◽  
Financial Services ◽  
Low Cost ◽  
Financial Inclusion ◽  
Low Risk ◽  
Easy Access ◽  
Financial Industry ◽  
Development Goals ◽  
Low Costs

Financial inclusion is a term that is used to describe easy access of financial products and services for everyone. G20 countries, including Indonesia, show high commitment to accelerate financial inclusion. Financial inclusion also facilitates the achievement of 17 Sustainable Development Goals. Fintech or digital financial technology is one of the most recent innovations in financial industry. It has grown at a rapid speed in the recent years. Fintech provides products and services with low costs, better quality, and stable financial landscape. With its flexibility and simplicity, Fintech may facilitate the offering of financial services to people who are “unbanked,” or to small business at low cost and low risk. Hence, this chapter thoroughly discusses FinTech's role in supporting financial inclusion in Indonesia. Indonesia is one of the G20 countries that is committed to conduct financial inclusion. Specifically, this chapter elaborates financial inclusion, Fintech in Indonesia, and role of Fintech in supporting financial inclusion in Indonesia.

scholarly journals Digital Financial Inclusion and Sustainable Growth of Small and Micro Enterprises—Evidence Based on China’s New Third Board Market Listed Companies

2020 ◽  
Vol 12 (9) ◽  
pp. 3733 ◽  
Author(s):  
Liu Yang ◽  
Youtang Zhang
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Financial Inclusion ◽  
High Tech ◽  
Financial Industry ◽  
Medium Enterprises ◽  
The Impact ◽  
Micro Enterprises

The United Nations’ 2030 Agenda for Sustainable Development aims to promote inclusive and sustainable economic growth and encourage the formalization and growth of micro, small, and medium enterprises through access to financial services. This study examines the impact and mechanism of the digital financial inclusion on the sustainable growth of small and micro enterprises in China. For this purpose, it uses the data from China’s New Third Board Market listed companies from 2011 to 2018 and the digital financial inclusion index of Peking University. The results show that the development of digital financial inclusion helps promote the sustainable growth of small and micro businesses, particularly in private, high-tech industries, and competitive markets. The impact mechanism of this development prevents any financial crisis caused by the capital structure imbalance and capital liquidity problems of small and micro enterprises by alleviating the financing constraints, thus promoting their sustainable growth. The research results show that, under the background of high-quality development of China’s economy, continuous promotion of digital financial inclusion and reshaping of the ecological pattern of the financial industry can provide steady financial support for the sustainable growth of small and micro enterprises, and realize the healthy development of micro enterprises and macro economy.

scholarly journals Organization Evolution of Fuzzy System Based on Financial Risk Degree of Commercial Banks

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Chao Liu
Keyword(s):  
Risk Assessment ◽  
Fuzzy System ◽  
Commercial Banks ◽  
Financial Risk ◽  
Business Models ◽  
Rapid Development ◽  
Foreign Banks ◽  
Financial Industry ◽  
Entropy Weight ◽  
Information Quantity

After the market-oriented reform of China’s financial industry, there have been some problems in financial risk assessment. In recent years, commercial bank finance has made rapid development, but on the whole, the financial risk assessment of commercial banks is still the weakest link in the Chinese financial system. This experiment selects data from state-owned commercial banks and foreign-funded commercial banks. Through the analysis and deconstruction of the macroenvironment, participants, and business models, this paper systematically combines the factors influencing the financial risk of commercial banks, which can identify the main sources of financial risk in this complex way of financing and clarify the effects of the transfer of financial risk between different participants. Based on this, the paper studies the differences between the assets and liabilities between banks on the risk-taking of banks and the reform of the organizational evolution of fuzzy system. According to the application scenarios and actual needs of commercial banks’ financial risks, the entropy weight analysis method is used to reflect the weight of indicators by the difference degree of observed index values. The information quantity of indicators is measured to ensure that the established indicators can reflect most of the initial information. The experimental results show that, compared with state-owned banks, the proportion of foreign banks’ assets in 2018 is very small. The highest value of public debt assets is 9.2 billion yuan, followed by financial institutions with 2.58 billion yuan, and deposit institutions with 280 million yuan. The central bank has no debt amount.

scholarly journals THE FORECASTING OF FINANCIAL INCLUSION IN EAST JAVA THROUGH ISLAMIC MICROFINANCE INSTITUTION: AN AUTOREGRESSIVE INTEGRATED MOVING AVERAGE APPROACH

2018 ◽  
Vol 3 (2) ◽  
pp. 38
Author(s):  
Muhammad Anif Afandi ◽  
Indanazulfa Qurrota A'yun
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Moving Average ◽  
Financial Inclusion ◽  
Public Access ◽  
Third Party ◽  
System Stability ◽  
Autoregressive Integrated Moving Average ◽  
Microfinance Institution

Financial inclusion is an effort intended to eliminate price and non-price barriers toward public access to formal financial institutions. The aim of that is income equalization of the societies affecting increasing economic growth, poverty alleviation, and financial system stability. East Java is one of the provinces in Indonesia with the most number of Islamic Rural Banks (BPRS). This study wants to find out how the role of BPRS in realizing the acceleration of Islamic financial inclusion in East Java. Then, this research is conducted in the period January 2014 – May 2018 in which data sourced from the Islamic Banking Statistics (SPS), Financial Services Authority (FSA). An Autoregressive Integrated Moving Average (ARIMA) is applied as research method to predict the level of Islamic financial inclusion in East Java through BPRS by using three from four financial inclusion indicators released by Bank Indonesia in 2014 namely access with number of BPRS as its proxy, usage with amount of third party funds and amount of financing as its proxies, and quality with total assets and Non-Performing Financing (NPF) as its proxies. The results show that based on forecasting values until December 2020, the number of BPRS predicted will decrease with the last number as many as 27 banks, DPK will increase with the last number 1,680,558.79 million Rupiah, the amount of financing will increase with the last number as many as 1,822,810.80 million Rupiah, asset will increase with the last number 2,299,250.44 million Rupiah, and NPF will increase with the last number 12.48 percent.Keywords: Financial Inclusion, Islamic Rural Banks, ARIMA, East Java

FinTech's Interpretations and Tunisian Ecosystem Analysis

2021 ◽  
pp. 167-190
Author(s):  
Fatma Bouaziz ◽  
Amira Sghari
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Communication Technology ◽  
Financial Services ◽  
Rapid Development ◽  
Digital Technologies ◽  
Financial Industry ◽  
Loyalty Program ◽  
Information And Communication ◽  
Financial Technology

The evolution of information and communication technology (ICT) affects all areas of activity including the financial industry. Indeed, it leads to rapid development of innovative and modern financial services, namely financial technology (Fintech). The latter is not well defined in the literature. This descriptive chapter aims to propose a comprehension of the Fintech concept based on three interpretations: Fintech as financial services relying on digital technologies, Fintech as startups and IT companies, and Fintech as an industry. An analysis of the components of the Tunisian Fintech ecosystem is then presented. The latter is mainly composed-of Central Bank of Tunisia, fintech startups (financing, payments, loyalty program, blockchain and cryptocurrencies, exchange services and insurance, and technology, IT, and infrastructure), technology developers, traditional financial institutions, and financial customers.

Simulation analysis of financial stock market based on machine learning and GARCH model

2020 ◽  
pp. 1-11
Author(s):  
Jie Tian ◽  
Yaoqiang Wang ◽  
Wenjing Cui ◽  
Kun Zhao
Keyword(s):  
Stock Market ◽  
Financial Risk ◽  
Simulation Analysis ◽  
Financial Analysis ◽  
Rapid Development ◽  
Model Performance ◽  
Garch Model ◽  
Decision Makers ◽  
Statistical Characteristics ◽  
Financial Industry

With the rapid development of the world’s financial industry, the complexity and relevance of risks are gradually increasing. At present, there are still some deficiencies in the model for measuring financial risk. In view of this, this study analyzes the financial stock market and combines VAR model and GARCH model to conduct financial analysis. Moreover, this study uses the standard deviation in the statistical characteristics of the data to characterize the fluctuation of futures, and then uses the univariate GARCH model to measure the fluctuation. In addition, this study combines the examples to analyze the effectiveness of the model, and compares the predicted data with the actual data to verify the model performance. The results show that the algorithm proposed in this paper has certain effectiveness, and through this research algorithm, investors, speculators or macro decision makers in the futures market can obtain some inspiration.

KEBIJAKAN KEUANGAN INKLUSIF DALAM PERSPEKTIF EKONOMI SYARIAH

2020 ◽  
Vol 2 (1) ◽  
pp. 33-40
Author(s):  
Efrita Norman
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Education ◽  
Media Analysis ◽  
Financial Inclusion ◽  
Monetary Authority ◽  
Policy Reforms ◽  
Financial Industry ◽  
Financial Policies

  ABSTRACT This study aims to explore inclusive financial policies in the perspective of Islamic economics. The method used is a qualitative method with a literacy study and mass media analysis approach. Hasilnuya, Indonesia (BI) as the monetary authority believes the NSFI program as the main way to improve financial literacy in order to increase the ability of individuals to manage their finances. The banking sector as the majority of financial services activities in Indonesia is a front liner for the program. The strategies used in achieving financial inclusion goals include five pillars, namely financial education, increasing financial eligibility, supporting regulations, increasing intermediation facilitation, and policy reforms covering customer protection, banking agents, and phone banking. Going forward, the financial industry needs to map the potential of the community and business sector as targets of the financial inclusion program. For this reason, a comprehensive partisanship and strategy from the financial industry is needed to expand access to services for the community, especially in preparing products that can meet the savings and investment needs of the community. Keywords: Bank Indonesia, Islamic economics, financial inclusion, monetary authority.  

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