Directions of transformation of the financial market infrastructure

Natalia Dedyukhina, Tatyana Cherkesova, Mafura Uandykova, Diana Stepanova, Assel Yeleukulova, Mikhail Dorofeev, Vera Ivanyuk, Alexey Mikhaylov, Gulnar Talapbayeva

Article ID: 6531
Vol 8, Issue 12, 2024

VIEWS - 84 (Abstract) 20 (PDF)

Abstract


Financial markets have adopted measures aiming at strengthening insurance industry and digital financial assets. Efforts have also been made to strengthen the financial sector and expand lending opportunities in times of economic turmoil. The role of the central banks as a mega-regulator have played a crucial role in implementing coordinated policies and improving the stability of the financial sector. This review paper analyses 100 papers and proposes recommendations for policy makers. The results confirm the financial sector has shown positive performance indicators, and the capital market has become increasingly important along with non-credit financial institutions. However, the growing number of first-time investors in the capital market requires a renewed focus on consumer protection and financial literacy. In addition, the development of digital technologies has changed the landscape of financial services, forcing financial institutions to fight for continued customer loyalty.


Keywords


sustainability; transformation; growth; financial market infrastructure

Full Text:

PDF


References


Abakah, E. J. A., Adeabah, D., Tiwari, A. K., & Abdullah, M. (2023). Effect of Russia–Ukraine war sentiment on blockchain and FinTech stocks. International Review of Financial Analysis, 90, 102948.

Almond, D. (2006). Is the 1918 influenza pandemic over? Long-term effects of in utero influenza exposure in the post-1940 US population. Journal of Political Economy, 114 (4), 672–712.

Alshater, M. M., Polat, O., El Khoury, R., & Yoon, S. M. (2024). Dynamic connectedness among regional FinTech indices in times of turbulences. Applied Economics Letters, 31(7), 670–675.

Alzoubi, H. M., & Aziz, R. (2021). Does Emotional Intelligence Contribute to Quality of Strategic Decisions? The Mediating Role of Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 130. https://doi.org/10.3390/joitmc7020130

An, J., Mikhaylov, A. (2020). Russian energy projects in South Africa. Journal of Energy in Southern Africa, 31(3), 58–64, https://doi.org/10.17159/2413-3051/2020/v31i3a7809

An, J., Mikhaylov, A., Chang, T. (2024). Relationship between the popularity of a platform and the price of NFT assets. Finance Research Letters, 61, 3, 105057. https://doi.org/10.1016/j.frl.2024.105057

An, J., Mikhaylov, A., Jung, S.-U. (2020). The Strategy of South Korea in the Global Oil Market. Energies, 13(10), 2491. https://doi.org/10.3390/en13102491

Basic Income Earth Network. (2020). About basic income. Available online: https://basicincome.org/about-basic-income/CNN (accessed on 15 March 2024).

Billiam, B., Abubakar, L., & Handayani, T. (2022). The urgency of Open Application Programming Interface Standardization in the implementation of open banking to customer data protection for the advancement of Indonesian banking. Journal of Law, 9(1), 67–88.

Bollaert, H., Lopez-de-Silanes, F., & Schwienbacher, A. (2021). Fintech and access to finance. Journal of corporate finance, 68, 101941.

Broby, D. (2021). Financial technology and the future of banking. Financial Innovation, 7(1). https://doi.org/10.1186/s40854-021-00264-y

Chernova, G. V. (2011). Issues of effective management of financial stability of insurance organizations (Slovenian). Insurance Business, 1, 6–11.

Darma, G. S., & Noviana, I. P. T. (2020). Exploring digital marketing strategies during the new normal era in enhancing the use of digital payment. Jurnal Mantik, 4(3), 2257–2262.

Daud, I., Nurjannahe, D., Mohyi, A., et al. (2022). The effect of digital marketing, digital finance and digital payment on finance performance of Indonesian SEMS. International Journal of Data and Network Science, 6, 37–44.

Diener, F., & Špaček, M. (2021). Digital Transformation in Banking: A Managerial Perspective on Barriers to Change. Sustainability, 13(4), 2032. https://doi.org/10.3390/su13042032

Dinçkol, D., Ozcan, P., & Zachariadis, M. (2023). Regulatory standards and consequences for industry architecture: The case of UK Open Banking. Research Policy, 52(6), 104760.

Ding, C., Liu, C., Zheng, C., & Li, F. (2021). Digital economy, technological innovation and high-quality economic development: Based on spatial effect and mediation effect. Sustainability, 14(1), 216.

European Commission. (2020). ILO Policy Brief–Protecting migrant workers during the COVID-19 pandemic. Available online: https://migrant-integration.ec.europa.eu/news/ilo-policy-brief-protecting-migrant-workers-during-covid-19-pandemic_en (accessed on 6 March 2024).

Eurostat (2024). Available online: https://ec.europa.eu/eurostat (accessed on 14 August 2024)

Farimani, S. A., Jahan, M. V., Fard, A. M., & Tabbakh, S. R. K. (2022). Investigating the informativeness of technical indicators and news sentiment in financial market price prediction. Knowledge-Based Systems, 247, 108742

Farrow, G. S. (2020). Open banking: The rise of the cloud platform. Journal of payments strategy & systems, 14(2), 128–146.

Feyen, E., Frost, J., Gambacorta, L., et al. (2021). Fintech and the digital transformation of financial services: implications for market structure and public policy. BIS papers.

Fritsch, C., Abt, R., & Renz, B. (2020). The benefits of a feature model in banking. Available online: https://dl.acm.org/doi/abs/10.1145/3382025.3414946 (accessed on 5 March 2024).

Gentilini, U. (2020). Weekly social protection links. Available online: www.ugogentilini.net/ (accessed on 6 March 2024).

Giglio, F. (2021). Fintech: A Literature Review. European research studies journal, 24(2B), 600–627. https://doi.org/10.35808/ersj/2254

Hasan, F., Al-Okaily, M., Choudhury, T., & Kayani, U. (2024). A comparative analysis between FinTech and traditional stock markets: Using Russia and Ukraine war data. Electronic Commerce Research, 24(1), 629–654.

Hasan, M. M., Yajuan, L., & Khan, S. (2022). Promoting China’s inclusive finance through digital financial services. Global Business Review, 23(4), 984–1006.

He, Z., Huang, J., & Zhou, J. (2023). Open banking: Credit market competition when borrowers own the data. Journal of Financial Economics, 147(2), 449–474. https://doi.org/10.1016/j.jfineco.2022.12.003

Hensen, J., & Kötting, B. (2022). From open banking to embedded finance: The essential factors for a successful digital transformation. Journal of Digital Banking, 6(4), 308–318.

Human Rights Watch. (2020). Human rights dimensions of Covid-19 response. Available online: www.hrw.org/news/2020/ 03/19/human-rights-dimensions-covid-19-response (accessed on 6 March 2024).

ILO (International Labour Office). (2020). Social protection responses to the COVID-19 crisis around the world. Available online: https://www.social-protection.org/gimi/Media.action;jsessionid=ntgKFdfNbgAkemG3GECNdtDlSHX49ADc92eDuKirkRrDTDU2MHKM!-959037405?id=17275 (accessed on 5 March 2024).

Ionaşcu, I., Ionaşcu, M., Nechita, E., et al. (2022). Digital Transformation, Financial Performance and Sustainability: Evidence for European Union Listed Companies. Amfiteatru Economic, 24(59), 94–109. https://doi.org/10.24818/ea/2022/59/94

Kellezi, D., Boegelund, C., & Meng, W. (2021). Securing open banking with model-view-controller architecture and OWASP. Wireless communications and mobile computing, 2021, 1–13.

Khurshidbek, T., Shakhzodbek, Y., & Shoxruxmirzo, A. (2022). Open banking: how platforms and the API economy change competition in financial services. International Academic Research Journal Impact Factor, 7, 51–54.

Kitsios, F., Giatsidis, I., & Kamariotou, M. (2021). Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptance Rate of E-Services. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 204. https://doi.org/10.3390/joitmc7030204

Kudryavtsev A. A., Vdovina A. A. (2010) Modeling the life insurance reserve in the presence of positive feedback. St Petersburg University Journal of Economic Studies, 3, 57–65. (In Russian)

Kutukov, V. B. (2008). Insurance reserves-reality and castles in the air (Slovenian). Strakhovoe delo, 4, 3–6.

Li, R., Wang, Q, Han, X. & Yang, X. (2023). Trajectory and drivers of China's consumption-based and production-based renewable energy consumption. Energy Strategy Reviews 47, 101083, https://doi.org/10.1016/j.esr.2023.101083.

Lo Prete, A. (2022). Digital and financial literacy as determinants of digital payments and personal finance. Economics Letters, 213, 110378. https://doi.org/10.1016/j.econlet.2022.110378

Long, G., Tan, Y., Jiang, J., & Zhang, C. (2020). Federated learning for open banking. Available online: https://link.springer.com/chapter/10.1007/978-3-030-63076-8_17 (accessed on 5 March 2024).

Lynn, T., Rosati, P., & Cummins, M. (2020). Exploring open banking and banking-as-a-platform: Opportunities and risks for emerging markets. Entrepreneurial Finance in Emerging Markets: Exploring Tools, Techniques, and Innovative Technologies, 319–334.

Machkour, B., & Abriane, A. (2020). Industry 4.0 and its Implications for the Financial Sector. Procedia Computer Science, 177, 496–502.

McClean, D. (2020). Extreme weather events in a time of Covid-19. Available online: https://www.undrr.org/news/extreme-weather-events-time-covid-19 (accessed on 7 February 2024).

Mehralian, M. M., & Khazaee, P. (2022). Effect of Digital Marketing on the Business Performance of MSMEs during the COVID-19 Pandemic: The Mediating Role of Customer Relationship Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4195985

Mhlanga, D. (2020). Industry 4.0 in finance: the impact of artificial intelligence (ai) on digital financial inclusion. International Journal of Financial Studies, 8(3), 45.

Mikhaylov, A. (2021). Development of Friedrich von Hayekʼs theory of private money and economic implications for digital currencies. Terra Economicus, 19(1), 53–62. https://doi.org/10.18522/2073-6606-2021-19-1-53-62

Mikhaylov, A. (2022). Efficiency of renewable energy plants in Russia. Anais Da Academia Brasileira de Ciências, 94(4). https://doi.org/10.1590/0001-3765202220191226

Mikhaylov, A. (2023). Understanding the risks associated with wallets, depository services, trading, lending, and borrowing in the crypto space. Journal of Infrastructure, Policy and Development, 7(2), 2223. https://doi.org/10.24294/jipd.v7i2.2223

Mikhaylov, A., Dinçer, H., & Yüksel, S. (2023). Analysis of financial development and open innovation oriented fintech potential for emerging economies using an integrated decision-making approach of MF-X-DMA and golden cut bipolar q-ROFSs. Financial Innovation, 9(1). https://doi.org/10.1186/s40854-022-00399-6

Mikhaylov, A., Dinçer, H., Yüksel, S., et al. (2023). Bitcoin mempool growth and trading volumes: Integrated approach based on QROF Multi-SWARA and aggregation operators. Journal of Innovation & Knowledge, 8(3), 100378. https://doi.org/10.1016/j.jik.2023.100378

Moiseev, N., Mikhaylov, A., Dinçer, H., et al. (2023). Market capitalization shock effects on open innovation models in e-commerce: golden cut q-rung orthopair fuzzy multicriteria decision-making analysis. Financial Innovation, 9(1). https://doi.org/10.1186/s40854-023-00461-x

Mosteanu, N. R., & Faccia, A. (2020). Digital systems and new challenges of financial management–FinTech, XBRL, blockchain and cryptocurrencies. Quality–Access to Success, 21(174), 159–166.

Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81, 102103. https://doi.org/10.1016/j.irfa.2022.102103

Mutalimov, V., Kovaleva, I., Mikhaylov, A., & Stepanova, D. (2021). Assessing regional growth of small business in Russia. Entrepreneurial Business and Economics Review, 9(3), 119–133. https://doi.org/10.15678/EBER.2021.090308

Naeem, M. A., Hamouda, F., Karim, S., & Vigne, S. A. (2023). Return and volatility spillovers among global assets: comparing health crisis with geopolitical crisis. International Review of Economics & Finance, 87, 557–575.

Nam, R. J. (2023). Open banking and customer data sharing: Implications for fintech borrowers. Available online: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4278803 (accessed on 5 March 2024).

Nanaeva, Z., Aysan, A. F., & Shirazi, N. S. (2021). Open banking in Europe: The effect of the revised payment services directive on solarisbank and insha. Journal of Payments Strategy & Systems, 15(4).

Niemand, T., Rigtering, J. C., Kallmünzer, A., Kraus, S., & Maalaoui, A. (2021). Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization. European management journal, 39(3), 317–326.

Ning, Y., & Zhang, Y. (2023). Does digital finance improve corporate ESG performance? An intermediary role based on financing constraints. Sustainability, 15(13), 10685.

Nugroho, A., & Supangkat, S. H. (2023). Improving Global Financial Inclusion: Implementing Open and Standardised API for Cross-Border Payments. Available online: https://t20ind.org/wp-content/uploads/2023/07/Open-Standard-API.pdf (accessed on 3 March 2024).

Okoyeuzu, C., & Isa, K. D. (2020). What Type of Investment Does Digital Finance Promote: Speculative or Non-Speculative? International Journal of Economics and Financial Issues, 1(4), 237–246.

Olowe, A., Kunle Olorundare, J., & Phillips, T. (2021). Using Open APIs To Drive Financial Inclusion Via Credit Scoring Built on Telecoms Data. International Journal on Data Science and Technology, 7(1), 17. https://doi.org/10.11648/j.ijdst.20210701.12

Pakhnenko, O., Rubanov, P., Hacar, D., et al. (2021). Digitalization of financial services in European countries: Evaluation and comparative analysis. Journal of International Studies, 14(2), 267–282. https://doi.org/10.14254/2071-8330.2021/14-2/17

Pazarbasioglu, C., Mora, A. G., Uttamchandani, M., et al. (2020). Digital financial services. Available online: http://pubdocs.worldbank.org/en/230281588169110691/Digital-Financial-Services.pdf (accessed on 7 March 2024).

Ramdani, B., Rothwell, B., & Boukrami, E. (2020). Open banking: The emergence of new digital business models. International Journal of Innovation and Technology Management, 17(05), 2050033.

Rastogi, S., Goel, A., & Doifode, A. (2020). Open API in Indian banking and economic development of the poor: opportunities and challenges. International Journal of Electronic Banking, 2(4), 321. https://doi.org/10.1504/ijebank.2020.114772

Risman, A., Mulyana, B., Silvatika, B., & Sulaeman, A. (2021). The effect of digital finance on financial stability. Management Science Letters, 11(7), 1979–1984.

Roser, M. (2020). The Spanish flu (1918–20): The global impact of the largest influenza pandemic in history. Available online: https://ourworldindata.org/spanish-flu-largest-influenza-pandemic-in-history (accessed on 8 March 2024).

Sahabuddin, M., Sakib, Md. N., Rahman, Md. M., et al. (2023). The Evolution of FinTech in Scientific Research: A Bibliometric Analysis. Sustainability, 15(9), 7176. https://doi.org/10.3390/su15097176

Shen, Y., Hu, W., & Hueng, C. J. (2021). Digital financial inclusion and economic growth: a cross-country study. Procedia computer science, 187, 218–223.

Siddik, M. N. A., & Kabiraj, S. (2020). Digital finance for financial inclusion and inclusive growth. Digital transformation in business and society: Theory and cases, 155–168.

Sloboda, L. Y., & Demianyk, O. M. (2020). Prospects and Risks of the Fintech Initiatives in a Global Banking Industry. The Problems of Economy, 1(43), 275–282. https://doi.org/10.32983/2222-0712-2020-1-275-282

Song, X., Wang, Q, Li, R. & Jiang, X.-t. (2023). A novel evaluation framework for China’s Environmental-Economic impacts by global trade. Environmental Impact Assessment Review 101, 107133, https://doi.org/10.1016/j.eiar.2023.107133.

Spiegelhalter, D. (2020). Coronavirus deaths—how does Britain compare with other countries? Available online: https://www.theguardian.com/commentisfree/2020/apr/30/coronavirus-deaths-how-does-britain-compare-with-other-countries (accessed on 8 March 2024).

Standing, G. (2019). Basic Income as Common Dividends: Piloting a Transformative Policy. London: Progressive Economic Forum.

Stefanelli, V., & Manta, F. (2023). Digital Financial Services and Open Banking Innovation: Are Banks Becoming ‘invisible’? Global Business Review, 097215092311514. https://doi.org/10.1177/09721509231151491

Stepanova, D., Yousif, N. B. A., Karlibaeva, R., Mikhaylov, A. (2024). Current analysis of cryptocurrency mining industry. Journal of Infrastructure, Policy and Development, 8(7), 4803. https://doi.org/10.24294/jipd.v8i7.4803 Karlibaeva, R., Yousif, N. B. A., Stepanova, D., Mikhaylov, A. (2024). Current analysis of cryptocurrency mining industry. Journal of Infrastructure, Policy and Development, 8(5), 4803. https:////doi.org/10.24294/jipd.v8i5.4803

Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (Fintech): a systematic literature review. Information, 11(12), 590.

Tessier, L., M., Stern-Plaza, M., Christina, B., et al. (2013). Social protection floors and gender equality: A brief overview. ILO.

Tsanakas, E. (2023). Open Banking: Application difficulties & API security, under PSD2. Available online: https://www.diva-portal.org/smash/get/diva2:1793048/FULLTEXT01.pdf (accessed on 5 March 2024).

UNAIDS. (2020). HIV treatment. Available online: www.unaids.org/en/topic/treatment (accessed on 14 August 2024).

United Nations. (2020). UN Secretary-General’s press briefing 30th April. Available online: www.un.org/sg/en/content/sg/press-encounter/2020-04-30/un-secretary-generals-press-briefing (accessed on 14 August 2024).

Vaganova, O. V., Bykanova, Н. N. I., Gordya, D. V., & Golubotskikh, V. Н. N. (2022). Development of the Open banking system in Russia. Modern Economy: Problems and Solutions, 1, 27–37.

Valero, S., Climent, F., & Esteban, R. (2020). Future banking scenarios. Evolution of digitalisation in Spanish banking. Journal of Business Accounting and Finance Perspectives, 2(2), 13.

Vital signs: How to think straight in the age of information overload. Available online: https://edition.cnn.com/2015/10/09/health/information-overload-daniel-levitin/index.html (accessed on 14 August 2024).

Wang, Q, Guo, J., Li, R. & Jiang, X.-t. (2023a). Economic growth and carbon emission in the Organization for Economic Cooperation and Development countries: The effects of oil, gas, and renewable energy. Energy & Environment, 0958305X221138817 (2023).

Wang, Q, Hu, S., Li, L. & Li, R. (2023b). Accelerating urbanization serves to reduce income inequality without sacrificing energy efficiency–Evidence from the 78 countries. Sustainable Cities and Society 92, 104477 (2023).

Wang, Q., Guo, J. & Li, R. (2023c). Spatial spillover effects of official development assistance on environmental pressure in sub-Saharan African (SSA) countries. Geography and Sustainability 4, 170-178, https://doi.org/10.1016/j.geosus.2023.03.004 (2023).

Westermeier, C. (2020). Money is data – the platformization of financial transactions. Information, Communication & Society, 23(14), 2047–2063. https://doi.org/10.1080/1369118x.2020.1770833

Wewege, L., Lee, J., & Thomsett, M. C. (2020). Disruptions and digital banking trends. Journal of Applied Finance and Banking, 10(6), 15–56.

Wójcik, D., & Ioannou, S. (2020). COVID‐19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres. Tijdschrift Voor Economische En Sociale Geografie, 111(3), 387–400. Portico. https://doi.org/10.1111/tesg.12434

World Bank. (2020). Exploring universal basic income: A guide to navigating concepts, evidence, and practices. Available online: https://www.worldbank.org/en/topic/socialprotection/publication/exploring-universal-basic-income-a-guide-to-navigating-concepts-evidence-and-practices (accessed on 5 March 2024).

World Economic Forum. (2020). A visual history of pandemics. Available online: https://www.weforum.org/agenda/2020/03/a-visual-history-of-pandemics/ (accessed on 9 March 2024).

Yue, P., Korkmaz, A. G., Yin, Z., et al. (2022). The rise of digital finance: Financial inclusion or debt trap? Finance Research Letters, 47, 102604. https://doi.org/10.1016/j.frl.2021.102604

Yumashev, A., & Mikhaylov, A. (2020). Development of polymer film coatings with high adhesion to steel alloys and high wear resistance. Polymer Composites, 41(7), 2875–2880. https://doi.org/10.1002/pc.25583

Zachariadis, M., & Ozcan, P. (2022). Open Banking: How Platforms and the API Economy Change Competition in Financial Services. Global Fintech, 57–72. https://doi.org/10.7551/mitpress/13673.003.0007

Zuo, L., Strauss, J., & Zuo, L. (2021). The Digitalization Transformation of Commercial Banks and Its Impact on Sustainable Efficiency Improvements through Investment in Science and Technology. Sustainability, 13(19), 11028. https://doi.org/10.3390/su131911028




DOI: https://doi.org/10.24294/jipd.v8i12.6531

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Authors

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.