Adoption of Internet Services in the Enlarged European Union: Lessons from the Internet Banking Case.

Abstract not availableJRC.J-Institute for Prospective Technological Studies (Seville

Capital markets and e-fraud: policy note and concept paper for future study

The technological dependency of securities exchanges on internet-based (IP) platforms has dramatically increased the industry's exposure to reputation, market, and operational risks. In addition, the convergence of several innovations in the market are adding stress to these systems. These innovations affect everything from software to system design and architecture. These include the use of XML (extensible markup language) as the industry IP language, STP or straight through processing of data, pervasive or diffuse computing and grid computing, as well as the increased use of Internet and wireless. The fraud is not new, rather, the magnitude and speed by which fraud can be committed has grown exponentially due to the convergence of once private networks on-line. It is imperative that senior management of securities markets and brokerage houses be properly informed of the negative externalities associated with e-brokerage and the possible critical points of failure that exist in today's digitized financial sector as they grow into tomorrow's exchanges. The overwhelming issue regarding e-finance is to determine the true level of understanding that senior management has about on-line platforms, including the inherent risks and the depth of the need to use it wisely. Kellermann and McNevin attempt to highlight the various risks that have been magnified by the increasing digitalization of processes within the brokerage arena and explain the need for concerted research and analysis of these as well as the profound consequences that may entail without proper planning. An effective legal, regulatory, and enforcement framework is essential for creating the right incentive structure for market participants. The legal and regulatory framework should focus on the improvement of internal monitoring of risks and vulnerabilities, greater information sharing about these risks and vulnerabilities, education and training on the care and use of these technologies, and better reporting of risks and responses. Public/private partnerships and collaborations also are needed to create an electronic commerce (e-commerce) environment that is safe and sound.Environmental Economics&Policies,Insurance&Risk Mitigation,Financial Intermediation,ICT Policy and Strategies,Banks&Banking Reform

Privacy Regulations in the Context of Finance: Comparison Between Developing and Developed Countries

Information security and privacy regulation are significant areas of legislation in the financial and micro-finance sectors in the world. There are significant disparities between the developed and developing countries concerning adoption and application of the data protection laws. The developed world has exemplified its laws in the General Data Protection Regulation (GDPR) clause of the European Union that comes into effect on May 18, 2018. In the US, the main law has been the Gramm-Leach-Bliley Act (GLBA) of the late 1990s. The developing countries, on the other hand, exhibit slow drafting of new finance and micro-finance privacy laws and still use policies of the 1990s. The purpose of the study is, therefore, to examine the effectiveness of privacy and data protection laws in finance and micro-finance sectors in the developed and developing parts of the world in the current technological era. The method of the study is a mixed qualitative and quantitative assessment of case studies of recent literature on the subject. Each case study will feature the variables of the presence of privacy laws and information security regulations, and the level of enforcement of those regulations that inform the statistics. The other variable will be the level of effectiveness of the application of privacy and information security laws in developed and developing nations based on case study outcomes. The results indicate that out of 10 examined cases, six show failures of the laws in developing nations while 1 shows failure in a developed nation (South Korea) and 1, in the US, presents mixed results. The recommendations include the adoption of international laws that govern data security in the financial sector, such as the current GDPR of the European of Union

ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development

Public Service Delivery: Role of Information and Communication Technology in Improving Governance and Development Impact

The focus of this paper is on improving governance through the use of information and communication technology (ICT) in the delivery of services to the poor, i.e., improving efficiency, accountability, and transparency, and reducing bribery. A number of papers recognize the potential benefits but they also point out that it has not been easy to harness this potential. This paper presents an analysis of effective case studies from developing countries where the benefits have reached a large number of poor citizens. It also identifies the critical success factors for wide-scale deployment. The paper includes cases on the use of ICTs in the management of delivery of public services in health, education, and provision of subsidized food. Cases on electronic delivery of government services, such as providing certificates and licenses to rural populations, which in turn provide entitlements to the poor for subsidized food, fertilizer, and health services are also included. ICT-enabled provision of information to enhance rural income is also covered

Mobile services in banking sector: The role of innovative business solutions in generating competitive advantage

The wide-ranging economic developments of the previous decade, e.g. the integration of world economies, have made a significant impact towards increasing the mobility of the working populace and their families. At the same time, technological developments especially in the field of telecommunication have made it possible to offer innovative, location sensitive services on ubiquitous basis to customers on the move. Our paper examines innovative mobile solutions in the field of mobile financial services (MFS) by using four case studies from Germany and Switzerland - representing two banks and two different technology solutions. The paper scrutinizes the strategic relevance of MFS to the competitive position of the firm concerned. Finally, we present five propositions about the role of innovative business solutions in the banking sectors and recommend that a large scale empirical study to test these propositions be conducted in the future. --Mobile Banking,Mobile Commerce,Mobile Financial Services,Multi-channel strategy,Innovation in banking sector

A Comparative Study Of Smartphone Users Perception And Preference Towards Mobile Payment Methods In The U.S. And Korea

As the Smartphone adoption rate increases, Smartphone users pay more attention to mobile payment. There are several options for mobile payment but there is no dominate method. Proximity mobile payment is the newest form of mobile payment. Security, cost, and convenience are three main factors Smartphone users keep in mind when making a mobile payment. This paper investigates Smartphone users perceptions and preferences toward mobile payment methods in Korea and the U.S. U.S. Smartphone users have a willingness to pay more for a secure mobile payment transaction, even though Korean users have more experience in the mobile payment frequency. Among the three factors, mobile security is the factor of strongest influence on mobile payment frequency in both countries