Financing Millennials in Developing Economies

2018 ◽  
pp. 104-133
Author(s):  
Bernardo Amezcua ◽  
Alicia De la Peña ◽  
Arturo Briseño ◽  
Alfredo Sánchez-Aldape ◽  
Juana María Saucedo-Soto ◽  
...  
Keyword(s):  
College Students ◽  
Financial Services ◽  
Developing Economies ◽  
Banking System ◽  
Banking Services ◽  
The World ◽  
Credit Programs ◽  
Spending Behavior ◽  
Banking Credit ◽  
To Receive

Young millennials (i.e., 18 to 24 years old) are not a primary market for the traditional banking system, especially in emerging economies. Despite the fact that almost 30% of college students have partial jobs, economic resources are limited and access to finance seems utopic. Banking services throughout the world but especially in growing economies do not fully serve students because of their lack of resources. Whether to pay for college studies or clothing, dinner or a weekend vacation, young millennials do not expect to receive banking credit from the big bank brands. In fact, this market segment is served by the retail industry with their own credit programs and financial services. In this chapter, the authors explore how young millennials have access to savings and credit, their spending behavior, their attitudes towards traditional sources of finance, and their financial inclusion and literacy. They also conducted an empirical exploratory study among college students in Mexico to hear firsthand how they managed their finances.

Financing Millennials in Developing Economies

2021 ◽  
pp. 269-291
Author(s):  
Bernardo Amezcua ◽  
Alicia De la Peña ◽  
Arturo Briseño ◽  
Alfredo Sánchez-Aldape ◽  
Juana María Saucedo-Soto ◽  
...  
Keyword(s):  
College Students ◽  
Financial Services ◽  
Developing Economies ◽  
Banking System ◽  
Banking Services ◽  
The World ◽  
Credit Programs ◽  
Spending Behavior ◽  
Banking Credit ◽  
To Receive

Young millennials (i.e., 18 to 24 years old) are not a primary market for the traditional banking system, especially in emerging economies. Despite the fact that almost 30% of college students have partial jobs, economic resources are limited and access to finance seems utopic. Banking services throughout the world but especially in growing economies do not fully serve students because of their lack of resources. Whether to pay for college studies or clothing, dinner or a weekend vacation, young millennials do not expect to receive banking credit from the big bank brands. In fact, this market segment is served by the retail industry with their own credit programs and financial services. In this chapter, the authors explore how young millennials have access to savings and credit, their spending behavior, their attitudes towards traditional sources of finance, and their financial inclusion and literacy. They also conducted an empirical exploratory study among college students in Mexico to hear firsthand how they managed their finances.

scholarly journals BANKING INNOVATIONS: PERSPECTIVES AND THREATS OF ELECTRONIC BANKING SERVICES

2018 ◽  
pp. 121-136 ◽  
Author(s):  
Yaroslav CHAIKOVSKYI ◽  
Yaroslava KOVALCHUK
Keyword(s):  
Customer Service ◽  
Structural Changes ◽  
Innovation Policy ◽  
Banking System ◽  
Internet Banking ◽  
Electronic Banking ◽  
Banking Services ◽  
Current State ◽  
The World ◽  
Incident Cases

Introduction. Nowadays, innovation is not the only economic phenomena, which affects the growth of productivity of factors of production, growth of volumes of production, structural changes, economic growth and national competitiveness, etc. Now innovations have become identified with development and improvement in all areas of the economy, including banking business. The purpose of the article is to disclose the concept of “banking innovations” and then to study the current state of electronic banking innovations in Ukraine, to identify the main threats, which influence the development of innovations in the domestic banking system, and determine the prospects for the development of banking innovations. Results. The article defines the notion of “banking innovations”. The current state of electronic banking innovations and the influence of the Internet development on the banking services are considered. The essence of Internet banking is also revealed and its distribution in Ukraine and in Europe is analyzed. In addition, the article presents the main threats affecting the development of innovations in the banking system of Ukraine, and specifies incident cases and their consequences in Ukraine and in the world. The prospects for the development of banking innovations are considered, the most promising banking innovations that could be launched in Ukraine were proposed. Conclusions. In general banking innovations in Ukraine are not independent development of truly innovative and unique products, services or technologies at the world level. It`s noticeable that there is development in the field of electronic banking services. The undisputed leader in the implementation of innovation at all levels of its own activities is the PJSC PrivatBank. There are highlight key areas for improving innovation in the banking system of Ukraine, such as: the formation of innovation policy, the development of distance servicing, and improvement customer service. In addition, with the development of technologies, new threats to innovation in the banking system are emerging. So there should be given a lot of attention in order to be in demand and banking institutions need to keep pace with global innovation and trends.

The World Economy: Forecast Summary

2016 ◽  
Vol 237 ◽  
pp. F2-F2
Keyword(s):  
Interest Rates ◽  
Federal Reserve ◽  
Financial Services ◽  
European Central Bank ◽  
World Economy ◽  
Banking System ◽  
List Type ◽  
European Central ◽  
The World ◽  
Single Rulebook

The world economy is expected to grow by 3.0 per cent in 2016, an unchanged forecast from the May Review. However, world growth in 2017 is revised down to 3.3 per cent from 3.5 per cent.A number of financial sector risks remain. Many large Euro Area banks are fragile, with the banking system in Italy particularly weak. This is likely to test the viability of the Single Rulebook covering financial services.Inflation is likely to be below target in the OECD economies in 2017. The European Central Bank (ECB) stands ready to ease monetary conditions while the Federal Reserve is likely to raise interest rates very gradually.

scholarly journals Informal Sector’s Structural and Demographic Fundamentals against the Efficacy of Monetary Policy in Nigeria

2020 ◽  
pp. 1-18
Author(s):  
Emeka Osuji ◽  
Stanley Emife Nwani
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Developing Economies ◽  
Banking System ◽  
Working Capital ◽  
Access To Finance ◽  
Banking Services ◽  
Start Up ◽  
Monetary Policy Effectiveness ◽  
Structured Questionnaire

The informal sector is globally significant because it accounts for much of the job placements, especially in the developing economies. About 99 per cent of the 37million enterprises in Nigeria are microenterprises, most of which are financially excluded. This study examined the structural and demographic features of Nigeria’s MSMEs, from the stand point of the efficacy of monetary policy. The study employed survey research design using structured questionnaire administered on 282 microenterprises in Lagos. The results indicated that the MSME sector suffers significantly from limited access to finance and banking services. Operators in the sector placed little or no reliance on commercial banks for both start-up and additional working capital. They, therefore, operated largely outside the banking system thereby acting, at best, as passive observers of government’s monetary policy actions. The study recommended the vigorous pursuit of financial inclusion, as a strategy for enhanced monetary policy effectiveness.

scholarly journals Factors that Influence the Adoptions of Internet Banking Among Customers

2018 ◽  
Vol 3 (1) ◽  
pp. 35-41
Author(s):  
Muhammad Azimulhakim Bin Haji Saman
Keyword(s):  
Technology Acceptance ◽  
Technology Acceptance Model ◽  
Banking System ◽  
Internet Banking ◽  
Business Systems ◽  
Banking Services ◽  
The World ◽  
Main Factors ◽  
Acceptance Model ◽  
Internet Banking Services

Internet banking is the latest technology that has revolutionized the changes of banking and business systems around the world. However, arrival of technology has an impact on Internet banking and transforms from a traditional banking system to a very useful innovation technology. The purpose of this study is to analyze factors that have influenced users to use Internet banking in doing financial transaction. This study uses content analysis on the previous literatures. The findings showed that there were 10 main different factors which influence the adoption of internet banking by the users. This study also proved that the highest factors which consist of 2 main factors are generated from technology acceptance model (TAM). Contribution of this research are significantly helps bank to have a better understanding on factors that influence the adoption of internet banking as well as help to develop a strategy to improved internet banking services.

scholarly journals Implementation of Platforms’ Strategy by Financial Companies in China and Russia

2020 ◽  
pp. 112-122
Author(s):  
K. L. Astapov ◽  
Yifan Liu
Keyword(s):  
Financial Services ◽  
Cost Efficiency ◽  
Traditional Approach ◽  
Banking System ◽  
Competitive Advantages ◽  
Payment Systems ◽  
Banking Services ◽  
Global Trends ◽  
Russian Bank ◽  
Private Banking

The global trends underline importance of e-commerce, development payments system as well as alternative banking services. China is considered as one the leader in digital transformation. In that regard development of Tencent in the previous decades and the strategy of the company give understanding, how new financial services evolve from traditional approach to platform model. We believe that payment systems as well as other financial platforms would play more important role, competing with traditional banking system and determining landscape of financial system in future. At the same time strategies, based on digital platform, are also actively implemented by Russian financial sector. But competition of new financial organizations with traditional banks are more difficult in our country, because some banks (including Sberbank, Tinkoff) are started building their own platforms. Platform’s strategies are usually effective in mass market, because they are based on cost efficiency model. Nevertheless, some platform could be implemented in premium sector too and in the article, we developed private banking platform strategy for a large Russian bank, which might present strong competitive advantages in the nearest future. Current epidemic enforces digitalization processes, including premium sectors.

scholarly journals Digital transformation of the banking sector of the economy of Ukraine

2021 ◽  
Vol 2021 (3) ◽  
pp. 84-98
Author(s):  
Viktoriia KOVALENKO ◽  
Keyword(s):  
Information And Communication Technologies ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Financial Education ◽  
Internet Banking ◽  
Digital Transformation ◽  
Banking Services ◽  
Banking Business ◽  
Self Service

The article considers the main digital transformational changes in the banking business. The current state of banks' use of financial digital technologies is analyzed, and the factors of digital transformation that affect their financially stable development are singled out. It is determined that the digitalization of the world economy over the past decade has posed new challenges to the banking system, which are caused by increased competition in the financial services market. The factors of emergence of financial intermediaries of the new generation and the need for digital transformation of contemporary banks are described. It is proved that the digital transformation of the banking sector of the economy is due to the development of financial technologies, digital marketing channels and innovation. Three main holistic proposals for FinTech development have been identified. The digital transformation of the banking business is changing not only the supply to customers. It is changing the contours of the business and staffing requirements. Such tools as ATMs and self-service terminals, telephone banking, SMS banking, Internet banking and mobile banking represent the evolution of customer access channels to banking services based on the use of information and communication technologies. The article considers the basic scheme of transformation of a classical bank into a dynamic system of a digital bank by gradually forming the directions of digital distribution. Further digital transformational changes in the banking business should be aimed at the vectors of financial education of consumers of banking services, regulation of the cryptocurrency market in Ukraine, definition of common standards of regulation and supervision of banks and non-banking institutions in the area of digital financial services.

The Nexus Between FinTech Adoption and Financial Inclusion

2020 ◽  
pp. 193-209
Author(s):  
Marouane Moufakkir ◽  
Qmichchou Mohammed
Keyword(s):  
Technological Innovation ◽  
Financial Services ◽  
Social Inclusion ◽  
Business Models ◽  
Financial Inclusion ◽  
Banking Services ◽  
The World ◽  
Pass Through ◽  
Number Of Customers ◽  
Digital Channels

Notwithstanding the increase of using and adopting FinTech all over the world by users who prefer managing their lives through digital channels, including financial and banking services, a large number of customers are still using the classic financial services, or even ignore the existence of such financial technologies. The aim of this chapter is to underline the concept of FinTech, a technological innovation in the financial field. Indeed, several theories and models has tried to explained the factors of adopting an innovation. Besides the theoretical framework of innovation, FinTech has to pass through different business models to attain the maturity as a successful pure player actor. Accordingly, the overall purpose of this paper is to provide an overview of the financial technologies use evolution, as a business model, and to highlight how FinTech contribute to enhance the financial and social inclusion, by providing convenient and accurate digital financial services (DFS) to the excluded population.

Impact of Digitization on Commercial Banking Services

2020 ◽  
pp. 71-90
Author(s):  
Preeti Garg
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Descriptive Analysis ◽  
Banking System ◽  
Commercial Banking ◽  
Online Banking ◽  
Consumer Attitude ◽  
Banking Services ◽  
Degree Of Satisfaction

The chapter gives us an overview and defines digitization and financial services and how both of the verticals can be incorporated into each other. It aims to determine factors that influenced consumer attitude towards online banking, discrepancies faced by the consumers in online banking, the degree of satisfaction among the consumers and their background of the Indian banking system. How the banking system in India is categorized is included. The chapter defines the various functions of commercial banks and the myriad services they provide. In order to conduct the research, a questionnaire was prepared. It is attached below. Descriptive analysis has been done.

The Nexus Between FinTech Adoption and Financial Inclusion

2021 ◽  
pp. 175-191
Author(s):  
Marouane Moufakkir ◽  
Qmichchou Mohammed
Keyword(s):  
Technological Innovation ◽  
Financial Services ◽  
Social Inclusion ◽  
Business Models ◽  
Financial Inclusion ◽  
Banking Services ◽  
The World ◽  
Pass Through ◽  
Number Of Customers ◽  
Digital Channels

Notwithstanding the increase of using and adopting FinTech all over the world by users who prefer managing their lives through digital channels, including financial and banking services, a large number of customers are still using the classic financial services, or even ignore the existence of such financial technologies. The aim of this chapter is to underline the concept of FinTech, a technological innovation in the financial field. Indeed, several theories and models has tried to explained the factors of adopting an innovation. Besides the theoretical framework of innovation, FinTech has to pass through different business models to attain the maturity as a successful pure player actor. Accordingly, the overall purpose of this paper is to provide an overview of the financial technologies use evolution, as a business model, and to highlight how FinTech contribute to enhance the financial and social inclusion, by providing convenient and accurate digital financial services (DFS) to the excluded population.

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