scholarly journals Securing Financial XML Transactions Using Intelligent Fuzzy Classification Techniques

2017 ◽  
pp. 214-326
Author(s):  
Faisal Tawfiq Ammari ◽  
Joan Lu
Keyword(s):  
Financial Institutions ◽  
Large Volume ◽  
Real Life ◽  
Internet Banking ◽  
Fuzzy Classification ◽  
Message Content ◽  
Classification Techniques ◽  
Assigned Value ◽  
Fuzzy Variables ◽  
Extensible Markup

The eXtensible Markup Language (XML) has been widely adopted in many financial institutions in their daily transactions. This adoption was due to the flexible nature of XML providing a common syntax for systems messaging in general and in financial messaging in specific. Excessive use of XML in financial transactions messaging created an aligned interest in security protocols integrated into XML solutions in order to protect exchanged XML messages in an efficient yet powerful mechanism. However, financial institutions (i.e. banks) perform large volume of transactions on daily basis which require securing XML messages on large scale. Securing large volume of messages will result performance and resource issues. Therefore, an approach is needed to secure specified portions of an XML document, syntax and processing rules for representing secured parts. In this research we have developed a smart approach for securing financial XML transactions using effective and intelligent fuzzy classification techniques. Our approach defines the process of classifying XML content using a set of fuzzy variables. Upon fuzzy classification phase, a unique value is assigned to a defined attribute named “Importance Level”. Assigned value indicates the data sensitivity for each XML tag. The research also defines the process of securing classified financial XML message content by performing element-wise XML encryption on selected parts defined in fuzzy classification phase. Element-wise encryption is performed using symmetric encryption using AES algorithm with different key sizes. Key size of 128-bit is being used on tags classified with “Medium” importance level; a key size of 256-bit is being used on tags classified with “High” importance level. An implementation has been performed on a real-life environment using online banking system in Jordan Ahli Bank one of the leading banks in Jordan to demonstrate its flexibility, feasibility, and efficiency. Our experimental results of the system verified tangible enhancements in encryption efficiency, processing-time reduction, and resulting XML message sizes. Finally, our proposed system was designed, developed, and evaluated using a live data extracted from an internet banking service in one of the leading banks in Jordan. The results obtained from our experiments are promising, showing that our model can provide an effective yet resilient support for financial systems to secure exchanged financial XML messages.

scholarly journals Securing Financial XML Transactions Using Intelligent Fuzzy Classification Techniques

2020 ◽  
pp. 800-913
Author(s):  
Faisal Tawfiq Ammari ◽  
Joan Lu
Keyword(s):  
Financial Institutions ◽  
Large Volume ◽  
Real Life ◽  
Internet Banking ◽  
Fuzzy Classification ◽  
Message Content ◽  
Classification Techniques ◽  
Assigned Value ◽  
Fuzzy Variables ◽  
Extensible Markup

The eXtensible Markup Language (XML) has been widely adopted in many financial institutions in their daily transactions. This adoption was due to the flexible nature of XML providing a common syntax for systems messaging in general and in financial messaging in specific. Excessive use of XML in financial transactions messaging created an aligned interest in security protocols integrated into XML solutions in order to protect exchanged XML messages in an efficient yet powerful mechanism. However, financial institutions (i.e. banks) perform large volume of transactions on daily basis which require securing XML messages on large scale. Securing large volume of messages will result performance and resource issues. Therefore, an approach is needed to secure specified portions of an XML document, syntax and processing rules for representing secured parts. In this research we have developed a smart approach for securing financial XML transactions using effective and intelligent fuzzy classification techniques. Our approach defines the process of classifying XML content using a set of fuzzy variables. Upon fuzzy classification phase, a unique value is assigned to a defined attribute named “Importance Level”. Assigned value indicates the data sensitivity for each XML tag. The research also defines the process of securing classified financial XML message content by performing element-wise XML encryption on selected parts defined in fuzzy classification phase. Element-wise encryption is performed using symmetric encryption using AES algorithm with different key sizes. Key size of 128-bit is being used on tags classified with “Medium” importance level; a key size of 256-bit is being used on tags classified with “High” importance level. An implementation has been performed on a real-life environment using online banking system in Jordan Ahli Bank one of the leading banks in Jordan to demonstrate its flexibility, feasibility, and efficiency. Our experimental results of the system verified tangible enhancements in encryption efficiency, processing-time reduction, and resulting XML message sizes. Finally, our proposed system was designed, developed, and evaluated using a live data extracted from an internet banking service in one of the leading banks in Jordan. The results obtained from our experiments are promising, showing that our model can provide an effective yet resilient support for financial systems to secure exchanged financial XML messages.

scholarly journals A multicriteria credit scoring model for SMEs using hybrid BWM and TOPSIS

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Pranith Kumar Roy ◽  
Krishnendu Shaw
Keyword(s):  
Credit Risk ◽  
Financial Institutions ◽  
Credit Scoring ◽  
Real Life ◽  
Financial Data ◽  
Loan Pricing ◽  
Scoring Model ◽  
Record Keeping ◽  
Return On Capital ◽  
Credit Scoring Model

AbstractSmall- and medium-sized enterprises (SMEs) have a crucial influence on the economic development of every nation, but access to formal finance remains a barrier. Similarly, financial institutions encounter challenges in the assessment of SMEs’ creditworthiness for the provision of financing. Financial institutions employ credit scoring models to identify potential borrowers and to determine loan pricing and collateral requirements. SMEs are perceived as unorganized in terms of financial data management compared to large corporations, making the assessment of credit risk based on inadequate financial data a cause for financial institutions’ concern. The majority of existing models are data-driven and have faced criticism for failing to meet their assumptions. To address the issue of limited financial record keeping, this study developed and validated a system to predict SMEs’ credit risk by introducing a multicriteria credit scoring model. The model was constructed using a hybrid best–worst method (BWM) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). Initially, the BWM determines the weight criteria, and TOPSIS is applied to score SMEs. A real-life case study was examined to demonstrate the effectiveness of the proposed model, and a sensitivity analysis varying the weight of the criteria was performed to assess robustness against unpredictable financial situations. The findings indicated that SMEs’ credit history, cash liquidity, and repayment period are the most crucial factors in lending, followed by return on capital, financial flexibility, and integrity. The proposed credit scoring model outperformed the existing commercial model in terms of its accuracy in predicting defaults. This model could assist financial institutions, providing a simple means for identifying potential SMEs to grant credit, and advance further research using alternative approaches.

A proposed framework for implementing risk-based Shari’ah audit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suleiman Dalhatu Sani ◽  
Mustapha Abubakar
Keyword(s):  
Financial Institutions ◽  
Real Life ◽  
Financial System ◽  
Practical Work ◽  
System Stability ◽  
Illustrative Case ◽  
Content Type ◽  
Finance Industry ◽  
Islamic Financial Institutions

Purpose This paper aims to recommend a framework that serves as a practical work tool for conducting risk-based Shari’ah audit (RBSA) in Islamic financial institutions (IFIs). Design/methodology/approach Qualitative research method was used through critical in-depth content analysis of documented literature to generate deep insights, further supported with a hypothetical illustrative case study application of the framework on an Islamic bank, aimed at bringing the framework to a practical, near real-life scenario. Findings A robust RBSA framework has been developed which focuses on Shari’ah non-compliance risks to systematically and practically arrive at a rated opinion on the level of an IFI’s adherence with Shari’ah rules and principles as recommended by the Accounting and Auditing Organization for Islamic Financial Institutions, aimed to safeguard the IFI and promote financial system stability at large. Research limitations/implications Practical realities limited the study to the use of a hypothetical case study bank. Future researchers can apply the framework to a real case study of diverse IFIs for effective contextual recalibration in diverse jurisdictions. Practical implications This paper aids the development of both internal and external Shari’ah audit practice using the risk-based approach. Social implications The RBSA framework contributes to promoting public trust and confidence in the Islamic finance industry. Originality/value This paper has proposed this RBSA framework as a practical work tool for Shari’ah auditors in their engagements and regulators in promoting sound governance and financial system stability. It provides foundation for future researchers in the field.

Classification Techniques in Data Mining

2017 ◽  
pp. 153-188
Author(s):  
Ali Hosseinzadeh ◽  
S. A. Edalatpanah
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Data Mining ◽  
Fuzzy Classification ◽  
Classification Techniques ◽  
Learning Machines ◽  
Advantages And Disadvantages ◽  
Behavior Based ◽  
Knowledge Learning

Learning is the ability to improve behavior based on former experiences and observations. Nowadays, mankind continuously attempts to train computers for his purpose, and make them smarter through trainings and experiments. Learning machines are a branch of artificial intelligence with the aim of reaching machines able to extract knowledge (learning) from the environment. Classical, fuzzy classification, as a subcategory of machine learning, has an important role in reaching these goals in this area. In the present chapter, we undertake to elaborate and explain some useful and efficient methods of classical versus fuzzy classification. Moreover, we compare them, investigating their advantages and disadvantages.

scholarly journals Prospects and Challenges of E-banking in Nepal

2008 ◽  
Vol 4 (1) ◽  
pp. 96-104 ◽  
Author(s):  
Amrit Banstola
Keyword(s):  
Financial Institutions ◽  
Internet Banking ◽  
Business Studies ◽  
Banking Policy ◽  
Brick And Mortar ◽  
Narrow Space ◽  
And Gender ◽  
Surge Protection ◽  
The Cost ◽  
Electronic Delivery

Financial Institutions are slowly moving from Brick and Mortar (Physical branches) to click and Brick (E-banking). ATM's are the most popular electronic delivery channel for banking services in Nepal. Only few customers are using internet banking facilities. Nepalese financial institutions till date have not faced any kind of electronic fraud or risk. Banks have basic security tools like firewall, lightening/power surge protection. But it is found that the some banks are in lack of having regular back up of website information and E-banking policy. Nepalese banks are using E-banking for their own convenience and for the purpose of retaining exiting customers. The cost analysis of most of the banks in Nepal is seems to be either inadequate or not applied due to their narrow space of business transaction or lack of sufficient tools. No significant correlation was found between use of E-banking and gender, marital status or salary of customer. However, Use of E-banking signification association was found with age and education. The Journal of Nepalese Business Studies Vol. IV, No.1(2007) pp. 96-104

New Adaptation Linkages

2012 ◽  
Vol 3 (2) ◽  
pp. 62-77
Author(s):  
Richard Nyangosi ◽  
Kennedy O. Nyariki ◽  
Samuel Nyambega Nyang’au
Keyword(s):  
Emerging Markets ◽  
Technological Change ◽  
Electronic Commerce ◽  
Financial Institutions ◽  
Internet Banking ◽  
Barriers To Adoption ◽  
Substantial Evidence ◽  
Customer Perceptions ◽  
Economic Landscape ◽  
Negative Link

Web technology is transforming all businesses into information-based activities and the rate of technological change is so high that emerging electronic commerce is already making fundamental changes in the economic landscape, affecting every aspect of how business is and will be conducted. There is substantial evidence to suggest that e-banking is being embraced by financial institutions in developed and emerging markets to the extent that explosive growth is almost at hand. This paper explores the adoption linkages in customer perceptions, preferences, and barriers to the adoption of banking technology in Kenya. The data for this study has been collected from bank customers in using well structured and pre-tested questionnaires. The result indicated that necessity perception is positive and ATM, Mobile and Internet banking were mostly preferred compared to others whilst negative linkage was observed between barriers and adoption as Security, bank lag in adoption and unawareness were identified as the most reported barriers to adoption. It means that positive link enable adoption while negative link distract adoption. The findings implicate banks and other financial institutions to increase the campaigns which may develop positive customer perceptions and preferences at the same time look for alternatives of reducing the possible barriers posing the banking technology.

A practical process mining approach for compliance management

2019 ◽  
Vol 27 (4) ◽  
pp. 464-478
Author(s):  
Michael Becker ◽  
Rüdiger Buchkremer
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Data Privacy ◽  
Process Mining ◽  
Financial Institution ◽  
Real Life ◽  
Practical Implementation ◽  
Process Data ◽  
Content Type ◽  
Compliance Management

Purpose The purpose of this study is to examine whether the compliance management activities in the risk management environment of financial institutions can be enhanced using a Process Mining application. Design/methodology/approach In this research, an implementation procedure for a selected Process Mining application is developed and evaluated at a financial institution in Germany. Findings The evaluation of the process data with the Process Mining application Disco shows that the compliance of the real-life execution of business processes can be monitored in real-time. Moreover, potential non-compliant activities and durations can be analysed in a detailed manner. Research limitations/implications When the research results are regarded, it must be considered that a general condition for the usage of a Process Mining application is that the process data is available and exportable in the required format and that data privacy regulations are fulfilled. Originality/value This research presents a practical use case for the implementation of a Process Mining application at the risk management department of financial institutions. It shows the value of using a technical application to carry out tedious tasks that are usually executed manually. This value is discussed and compared with the aim to help financial institutions in determining how the effectiveness and efficiencies of compliance management activities can be improved. Therefore, this research can be taken as a foundation for the practical implementation of a Process Mining application at financial institutions.

scholarly journals A New Approach for Solving Type-2-Fuzzy Transportation Problem

2019 ◽  
Vol 4 (3) ◽  
pp. 683-696
Author(s):  
Somnath Maity ◽  
Sankar Kumar Roy
Keyword(s):  
Transportation Problem ◽  
Original Problem ◽  
Fuzzy Numbers ◽  
Real Life ◽  
Simplex Algorithm ◽  
New Approach ◽  
Fuzzy Variables ◽  
Linear Programming Problems ◽  
Fuzzy Transportation Problem

In this paper, a new approach is introduced to solve transportation problem with type-2-fuzzy variables. In most of the real-life situations, the available data do not happen to be crisp in nature. It gives rise to the fuzzy transportation problem (FTP). This proposed approach concentrates on the problem when the vertical slices of type-2-fuzzy sets (T2FSs) are trapezoidal fuzzy numbers (TFNs). The original problem reduces to three different linear programming problems (LPPs) which are solved using the simplex algorithm. Then the effectiveness of this paper is discussed with numerical example. In conclusion, the significance of the paper and the scope of future study are discussed.

scholarly journals A SUCCINCT ANALYSIS OF MITIGATING LIQUIDITY RISK IN ISLAMIC BANKS IN THE LIGHT OF LIQUIDITY AND RISK MANAGEMENT PRINCIPLES

2019 ◽  
Vol 4 (1) ◽  
pp. 527
Author(s):  
Atharyanshah Puneri ◽  
Naeem Suleman Dhiraj ◽  
Hafiz Benraheem
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Institution ◽  
Real Life ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Islamic Financial Institutions ◽  
The Subject ◽  
Key Aspects

Liquidity management has been incessantly challenging for the financialinstitutions and especially Islamic financial institutions due to their nature of business. The�convoluted nature of liquidity management impedes the task of Islamic banks in managing�their liquidity efficiently. Given the intricacies of the subject matter, this paper delves into�elaborating the key aspects of liquidity management; subsequently, discusses the�consequences of poor liquidity management and problems inherent in managing the latter by�analyzing the real-life failure of Islamic financial institution as a result identifying the issues that could possibly jeopardize the existence of the Islamic banks. Finally, equipping the�readers with tools to mitigate the liquidity risk.

Implications of FFIEC Guidance on Authentication in Electronic Banking

2009 ◽  
pp. 266-278 ◽  
Author(s):  
Manish Gupta ◽  
JinKyu Lee ◽  
H. R. Rao
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Information Assurance ◽  
The United States ◽  
Internet Banking ◽  
Security Measures ◽  
Information Technology Managers ◽  
Banking Organization ◽  
Prevailing Paradigm ◽  
Technology Managers

The Internet has emerged as the dominant medium in enabling banking transactions. Adoption of e-banking has witnessed an unprecedented increase over the last few years. In today’s online financial services environment, authentication is the bedrock of information security. Simple password authentication is the prevailing paradigm, but its weaknesses are all too evident in today’s context. In order to address the nature of similar vulnerabilities, in October 2005, the Federal Financial Institutions Examination Council (FFIEC)—which comprises the United States’ five federal banking regulators—published joint guidance entitled Authentication in an Internet Banking Environment, recommending that financial institutions deploy security measures to reliably authenticate their online banking customers. The analysis of FFIEC guidance presented in the article are with the view to equip the reader with a glimpse of the issues involved in understanding the guidance for specific banking organization that may help towards learned and better decisions regarding compliance and improved security. The chapter will allow Information Technology managers to understand information assurance issues in e-banking in a holistic manner, and help them make recommendations and actions to ensure security of e-banking components.

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