scholarly journals Improving Financial Service Innovation Strategies for Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution: A Hybrid MCDM Model

2019 ◽  
Vol 11 (5) ◽  
pp. 1419 ◽  
Author(s):  
Qun Zhao ◽  
Pei-Hsuan Tsai ◽  
Jin-Long Wang
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Service Innovation ◽  
Recent Emergence ◽  
Innovation Strategies ◽  
The Impact

The recent emergence and rapid growth of new financial services by financial technology (Fintech) companies have driven banking institutions towards operational innovation in order to gain sustainable competitive advantage. This study aims to conduct an in-depth investigation of the banking sector in response to the challenges brought by Fintech startups. Based on the service innovation theory, we propose a novel hybrid multiple criteria decision-making method (MCDM) to evaluate service innovation strategies for improving the sustainability of China’s banking industry during the Fintech revolution. A six-dimensional model comprising 20 sub-criteria is constructed and both the decision making trial and evaluation laboratory (DEMATEL) technique and DEMATEL-based analytic network process (DANP) are used to explore interrelationships among the indices and their related weights. Finally, the modified VIšekriterijumsko KOmpromisno Rangiranje (VIKOR) method is employed to evaluate performance gaps in the four major types of commercial banks in China—state-owned, joint-stock, city commercial banks, and other credit cooperatives—in the field of service innovation. The improvement priorities, ranked from highest to lowest, are new business partners, new service concepts, organizational innovation, technological innovation, new customer interactions, and new revenue models. These results will provide strategies for the sustainable development of China’s banking industry and the implementation of changes in response to the impact of the Fintech revolution.

scholarly journals Performance of Foreign Exchange Operation of Private Commercial Banks: A Case on Southeast Bank Limited

2017 ◽  
pp. 76-82
Keyword(s):  
Competitive Advantage ◽  
Foreign Exchange ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking Sector ◽  
Daily Basis ◽  
Service Improvement ◽  
Exchange Performance ◽  
Strategic Plans ◽  
Exchange Operation

The banking sector is participating in many events on a daily basis. Conversely, the process of banking is become faster, simpler, and more universal all at the same time. They're constantly coming up with various ideas and products to meet customer demand. Banks and other financial services organizations all search for service improvement opportunities in order to gain a competitive advantage in the financial sector. As a result, every person has a banking procedure they should know about. In accordance with their goal, Southeast Bank Limited believes in building together towards tomorrow. To accomplish the goal of getting more customers, the bank demonstrates excellence in all stages while also fostering continual development. With this fast changing competitive climate, banks' strategic plans and networking will help them keep pace with the competition. The overall objective of this research had represented the foreign exchange performance of import, export and foreign remittance of Southeast Bank Limited. This paper examined about import, export and remittance performances have been analyzed and find out some problems relating to foreign exchange activities. Finally this research finished with some possible recommendation and concluding remark of the study.

scholarly journals Data Analytics in Banking and Financial Services

2019 ◽  
Vol 8 (S1) ◽  
pp. 67-69
Author(s):  
S. Palaniammal ◽  
V. S. Thangamani
Keyword(s):  
Decision Making ◽  
Developing Countries ◽  
Big Data ◽  
Financial Services ◽  
Data Analytics ◽  
Data Science ◽  
Banking Industry ◽  
Rapid Development ◽  
Banking Services ◽  
The Impact

In Journal of Banking and Finance [1] we are living in the era of the big data. The rapid development of scientific and data technology over the past decade has brought not only new and sophisticated analytical tools into Financial and Banking services, but also introduced the power of data science application in everyday strategic and operational management. Data analytics and science developments have been particularly valuable to financial organizations that heavily depend on financial information in their decision making processes. The article presents the research that focuses on the impact of the data and technology trends on decision making, particularly in Finance and Banking services. It covers an overview of the benefits associated with the decision analytics and the use of big data by financial organizations. The aim of the research is to highlight the areas of impact where the big data trends are creating disruptive changes to the way the Finance and banking industry traditionally operates. For example, we can see rapid changes to organisation structures, approach to competition and customer as well as the recognition of the importance of data analytics in strategic and tactical decision making. Investment in data analytics is no longer considered a luxury, but necessity, especially for the financial organizations in developing countries. Technology and data science are both forcing and enabling the financial and banking industry to respond to transformative demands and adapt to rapidly changing market conditions in order to survive and thrive in highly competitive global environment. Financial companies operating in developing countries must develop strong understanding of data-related trends and impacts as well as opportunities. This knowledge should not only be utilized for survival efforts, but also seen as the opportunity to engage at global level through innovation, flexibility, and early adoption of data science benefits. The paper also recommends further studies in related areas, which would provide additional value and awareness to the organizations that are considering their participation in the global data and analytical trends.

scholarly journals Indicators of financial distress condition in Indonesian banking industry

Accounting ◽  
2022 ◽  
Vol 8 (1) ◽  
pp. 27-36
Author(s):  
Abdul Haris ◽  
Imam Ghozali ◽  
Najmudin Najmudin
Keyword(s):  
Data Analysis ◽  
Credit Risk ◽  
Financial Services ◽  
Financial Distress ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Multiple Correlation ◽  
Preventive Actions ◽  
Positive Effect

This study conducts the theme of The Causes of Financial Distress conditions by samples from Indonesian banking sector registered in the Financial Services Authority of Indonesia within the period of 2015-2019. The title of this study: "Indicators of Financial Distress condition in Banking sector in Indonesia” during the period of 2015-2019" with a multiple correlation approach. The purpose of this study is to determine the effect of leverage of Credit Risk, CAR, ROA, and LDR to the Financial Distress conditions. The sample of population in this study are all conventional commercial banks in Indonesia registered in the Financial Services Authority of Indonesia. The number of samples in this study were included 37 commercial banks that their profitabilities were being declined, with a total number 146 observations. The method carried out in determining the sample is “Purposive” sampling. Based on the results of study and data analysis using the panel data method, it shows that capital, credit risk, profitability and liquidity have a positive effect on Financial Distress. The implication of the above conclusion is that it required further research to perform preventive actions to anticipate the measures of financial performance of the Bank, and it is expected to select a larger population of samples and variables that might have not been included in research on banking Financial Distress in Indonesia.

scholarly journals Digital Finance and the Future of Nigerian Banking System: A Review

2020 ◽  
Vol 6 (16) ◽  
pp. 24-35
Author(s):  
Gbenga F. Babarinde ◽  
◽  
Matthew O. Gidigbi ◽  
Julius T. Ndaghu ◽  
Idera T. Abdulmajeed ◽  
...  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Financial Service ◽  
Digital World ◽  
Services Delivery ◽  
The Future ◽  
The Impact ◽  
Nigerian Banking

Digital finance is a type of financial service that employs digital products like personal computers, the internet, mobile phones, cards linked to a digital payment system. Innovations in the digital world cannot be divorced from Nigerian financial services most notably the banking sector. Therefore, it means that banking industry cannot but embrace digital innovations in their services delivery. Hence, there is a need to review the impact of digital finance in the Nigerian banking sector. Desk research method was used to examine how innovations in the digital world could impact the future financial service delivery in the Nigerian banking sector. From the review, it was that the digital world is quickly changing and this impacts banking in all ramification. It is recommended that the banking industry should try to keep pace with the digital innovations, for them to be able to meet up the demands of their digitally-savvy customers.

PANDEMI COVID-19 IMPLIKASI BAGI PEMBIAYAAN BANK SYARIAH DI INDONESIA

2021 ◽  
Vol 10 (1) ◽  
pp. 164-181
Author(s):  
Ana Zahrotun Nihayah ◽  
Lathif Hanafir Rifqi
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Banking Industry ◽  
Descriptive Study ◽  
Islamic Banking ◽  
Financing Policies ◽  
The World ◽  
Long Time ◽  
Almost All ◽  
The Impact

The Covid-19 pandemic is the result of the spread of coronavirus that occurs almost all over the world. In Indonesia, covid-19 first occurred on 02 March 2020. At that time, Indonesian citizen was infected by one of the Foreign Nationals of Japan. The transmission of covid-19 is increasing for a long time, until now covid-19 has spread in almost all 34 provinces in Indonesia. Health problems that further adversely affect almost all sectors of the industry, one of which is the Islamic banking industry. Therefore, the Financial Services Authority (OJK) issued several stimulus policies as a measure of anticipation of customers defaulting. This research is a descriptive study with the aim to determine the impact of pandemic covid-19 on Sharia bank financing in Indonesia. The samples used in this study were 11 Sharia commercial banks. The results showed that there are 8 Sharia commercial banks experiencing a downward trend in breeding, especially in April 2020. It can be concluded that the impact of covid-19 has a decrease in Sharia banking financing. Policies carried out by each Sharia commercial bank related to the anticipation of covid-19 to its financing activities, each bank implements a financing restructuring policy to debtors affected by the spread of covid-19

SISTEM KOORDINASI ANTARA OTORITAS JASA KEUANGAN (OJK) DENGAN LEMBAGA PENJAMIN SIMPANAN (LPS) DALAM PENANGANAN BANK GAGAL

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
WIWIN WINTARSIH WINDIANTINA
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Service ◽  
Financial Service Authority ◽  
Insurance Agency ◽  
Financial Transactions ◽  
The Impact

ABSTRACTThe banking industry is a dynamic sector along with economic growth, an increasing of complex financial transactions, and the impact from global trade, therefore the presence of an independent institutions is really needed. The Deposit Insurance Agency (LPS) is an institution that is independent, transparent and accountable in implementing its duties and authorities. As an independent agency, accountability is very important to be applied, so that stakeholders aware of what and how LPS implement the functions and duties as mandated by Law No. 24 of 2004 concerning the Deposit Insurance Agency (LPS). Procedurally, if the Financial Services Authority (OJK) indicate a bank that is experiencing liquidity problems, Financial Services Authority (OJK) immediately inform the Bank of Indonesia (BI) to take steps in accordance with BI's authority. In practise, Financial Service Authority (OJK) coordinate withBank of Indonesia (BI) to make regulatory supervision in banking sector. Coordination in handling between failed banks between the Deposit Insurance Agency (LPS) and Financial Services Authority (OJK) is shown by a confirmation from Financial Services Authority (OJK) to the Deposit Insurance Agency (LPS) about troubled banks that are in the restructuring efforts by Financial Services Authority (OJK), then the Deposit Insurance Agency (LPS) investigate the banks in accordance with its functions, duties and responsibilities. The Deposit Insurance Agency (LPS) as an institution that checks condition of banks surely will review and determine whether the troubled banks will be saved or not saved.

scholarly journals Role of State in the Evolution and Success of Commercial Banks in China

2018 ◽  
Vol 9 (2) ◽  
pp. 38
Author(s):  
Bhabani Shankar Nayak ◽  
Yilin Gao
Keyword(s):  
Competitive Advantage ◽  
Commercial Banks ◽  
Development Process ◽  
Banking Sector ◽  
Banking Industry ◽  
Commercial Banking ◽  
The State ◽  
Financial Reforms ◽  
Large Joint

The article outlines the role of state in the evolution of commercial banks in China. It looks at different stages of its development process. The paper engages with the deepening of state led financial reforms which led to the competitive advantage of China's commercial banking industry. The state-owned commercial banks, large joint-stock commercial banks, and small private commercial banks keep increasing their strengths due to regulations and monitoring by the Chinese state. Therefore, the article argues that state-owned commercial banks have relatively large market share and dominate in commercial banking sector due to the state.

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 THE IMPACT OF BANKING NETWORK SERVICES THROUGH PROFITABILITY ON INDONESIA BANKING COMPANIES

2020 ◽  
pp. 10-15
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Statements ◽  
Network Services ◽  
Switching Network ◽  
Switching Networks ◽  
Use Of Technology ◽  
Public Data ◽  
The Impact

The banking sector has embraced the use of technology to serve its clients faster and also to do more with less. Emerging technologies have changed the banking industry from paper and branch based banks to digitized and networked banking services. ATM machines and the number of switching networks is among the technologies used in the banking industry. The aim of this study is to analyze the influence of network switching and number of ATM machine through non-interest income to profitability. The paper proposes to examine whether the number of ATM machines of the bank affect the fee-based income, whether the amount of ATM switching network membership of the bank affects the bank’s fee-based income, and whether the feebased income affects the performance of the bank. The study was conducted in banking companies belonging to members of the switching principal network appointed by Bank Indonesia and switching network companies in Indonesia. The data used for this research is represented by financial statements from Indonesian commercial banks that have gone public, data from banking magazines and data available from each bank’s page avaiolable for open access. The number of samples from this study is represented by 30 commercial banks that are listed in IDX. The results of this study show that the number of ATM machines has no significant effect on Fee Based Income. At the same time, the number of switching networks has a significant effect toward Fee Based Income, and the Fee Based Income has no significant effect on the bank’s return on investment.

scholarly journals Determinants of Banks Profitability: Empirical Evidence from Ghana’s Commercial Banking Industry

2021 ◽  
pp. 175-189
Author(s):  
Abdul-Hamid Ahmed ◽  
Kouadio Stephane N’Dri
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Commercial Banking ◽  
Annual Data ◽  
Z Score ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
The Impact

Over the years, Ghana’s commercial banking industry has been bedeviled with numerous challenges. The unbridled effect of this is the 2018 banking sector megrim which led to the collapse of seven major banks. This pointed out that it is very crucial to identify and mitigate the factors that negatively affect the performance of the banking sector. This paper is used to investigate the effect of banks specific variables (BSVs) and macroeconomic variables (MEVs) on the profitability of commercial banks (NIM, ROE, and ROA) in Ghana using FRED annual data of 25 years. In order to avoid endogeneity problems and aggregation bias, we used the SURE model to run the estimates simultaneously. The result reveals that profit earned by Ghana’s commercial banks is largely influenced by both internal factors such as KA, AQR, LMGT, MEFFI, and Z-Score and fluctuations in the macroeconomic environment (GDP and FOREX). The impact of KA, LMGT, MEFFI, and Z-score is significantly positive whereas AQR (NPLs) is found to have a negative effect on banks profitability. GDP has a significant negative impact on Ghana’s commercial bank’s profitability whiles forex induced commercial banks profitability positively, but inflation CPI does not determine the profitability of commercial banks in Ghana.

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