CUSTOMER EXPECTATIONS IN THE GERMAN BANKING SECTOR

The last financial market crisis, which affected the whole world in 2008, brought about major changes. As a result of this crisis, customers have become more suspicious and since then the banks have been constantly being prescribed new regulations and controls for supervision. History shows that crises repeat themselves, so that companies always had to adapt to the times and changing requirements. Due to the rapid change in the financial services offered, national borders are being overcome. The boundaries of conventional market segments are eliminated and new products are created. The challenge for the money industry is growing with new providers, like Fintechs, and products and throughout all those changes customers adapt their expectations and their satisfaction might be affected

Four Shades of Customer: How Value Flows in Fintech Ecosystems

The financial sector is undergoing a massive transformation, with new technology-driven players challenging established mechanisms and transforming the sector into a fast-moving market. With the gradual transition from a scale economy to a platform-driven network economy, enterprise networks are gaining strategic importance. Despite the growing interest in fintech’s, research has so far lacked a conceptualization of value creation in fintech ecosystems. Therefore, this research paper aims to analyze key players, value creation activities, and value streams based on the analysis of the business models of payment services, personal financial management, robo-advisory, peer-to-peer lending, trading, and cryptocurrency. We present a holistic value network for the fintech ecosystem based on structured literature review and analysis of 171 fintech companies. We were able to show that fintech platform orchestrates multiple market sides and that customers take four distinct roles at the center of the ecosystem when using fintech services

iGaming versus Banking: Differences and Similarities

This work compares existing and emerging risks of the banking and iGaming industries. Moreover, whilst a solvency framework is established in the banking industry, this study researches the potential implementation of a solvency regime in the iGaming industry. Our literature review is complemented with semi-structured interviews held with 23 stakeholders working in risk management in Malta. The common risks identified were compliance with regulations, money laundering, liquidity and solvency risks. The banking industry highlighted credit, market and jurisdiction risks as specific risks faced by their industry – the latter being potential worry specific to the Maltese jurisdiction. iGaming experts highlighted financial, responsible gaming and market changes as specific risks for their industry. A formalised solvency framework would be beneficial to the iGaming industry by further enhancing its reputation. Finally, we find that more focus should be given to risk management in banks and iGaming operators to improve the relationship between both industries

The rise of customer-oriented banking: electronic markets are paving the way

The banking industry has been a pioneer in adopting electronic markets with exchanges, clearinghouses, and multilateral trading facilities having become the backbone of today’s globally integrated financial transactions. While most banks use the services of these electronic markets to handle interbank processes, they still strive for bilateral relations in the field of customer-facing processes. This position paper argues that the financial crises, the changing behavior of customers, upcoming innovations based on information technology (IT) and financial services offered by non-banks are strong drivers towards more customer-orientation in the financial industry. A large variety of banking IT innovations has emerged and illustrates that traditional banks are expected to have less power to impede competition at the customer interface and in consequence need to re-position themselves. Building on these developments on the one hand and existing electronic market infrastructures in the banking industry on the other, the concept of a customer-oriented financial market infrastructure is proposed as a possible future solution. The impact is illustrated using a competitive analysis of the banking industry and analogies to the media industry where new entrants from the computing industry have caused disruptive changes. Besides describing the threat to existing banks, the position paper also discusses the perspectives for banks

FINANCIAL TECHNOLOGY AND SHARIA COMPLIANCE REGULATIONS IN ISLAMIC BANKING IN INDONESIA

Purpose: The purpose of this study is to analyze the FinTech phenomenon and compliance with sharia regulations in Islamic banking in Indonesia. Use of research as information for regulators, Islamic banking, and other stakeholders in compiling compliance regulations as an element of supervision and optimal strategy to improve the quality of FinTech in Indonesian Islamic banking.Method: This research is a qualitative case study with literature studies related to the phenomenon of Sharia FinTech and Islamic regulations in Islamic banking in Indonesia.Results: The results of Yudaruddin's research (2022) stated that the better the economic conditions, the higher the potential for FinTech growth. Meanwhile, the results of Muryanto's research (2022) stated that apart from focusing on FinTech, Islamic banking is also required to maintain compliance with regulations, sharia principles, operational standards for sharia FinTech governance, and the Sharia Supervisory Board.Implication: With the existence of technology and the digital world, it will make easier life for human activities which can be accessed through any telecommunication media, anywhere, easy to use, and speeds up the process (Yudaruddin, 2022) . One of the outputs from the digital world is financial technology (FinTech). The development of FinTech can also be felt in Islamic finance where Islamic FinTech transactions in Indonesia in 2020 reached $2.9 billion in transaction volume and are the fifth largest transaction volume globally (Darmansyah et al., 2020; Muryanto, 2022; and Yudaruddin, 2022).Originality: This study looks directly at the FinTech phenomenon and compliance with sharia regulations in Islamic Banking in Indonesia which will be able to make good corporate governance of Indonesia Islamic Banking. Considering that there are not too many study at FinTech and sharia compliance in Indonesia Islamic Banks

THE CONDUCT OF RISK MANAGEMENT IN TRADE FINANCING PROCESSES: EXPLORING THE PROSPECTS AND CHALLENGES IN FINTECH ERA

Purpose of the study: To investigate the conduct of risk management in trade financing processes as well as to identify potential issues in risk management relating to fintech in trade financing. At the same time, this study had the opportunity to explore all possible prospects and challenges that this new era of digital could offer to the banking industry. Methodology: The study employed an interview with experts for the means of data collection with the aim of gathering a wide range of information and opinion from the industry experts on the subjects of this study. The data collected from interview transcripts are analysed contextually based on thematic analysis and framework analysis. Main Findings: The findings suggested risk management in trade financing processes is critical due to the nature of cross-country transactions and the current era of fintech has further escalated the risk exposure to fintech-related types of risk. Strategies to improve the current conduct of risk management in trade finance processes have been identified where opportunities and challenges can be managed effectively. Applications of this study: Findings from this study will give valuable insights to the banking and finance industry’s practitioners, especially those who are directly involved in trade financing processes as well as the top management of the banks to further improve current risk management practices in particular catering for the new fintech era. This is essential in facing the wave of the 4th industrial revolution. Novelty/Originality of this study: This study has contributed to the limited number of published studies in this area. Most importantly, the attempt to investigate the current practice of risk management and identify actual issues and problems in trade financing processes through financial technology platform has not been researched and explored before