Narrow Results

Based on survey data, we analyze the level of financial exclusion during the development of digital finance in the rural area of three Chinese provinces of Beijing, Tianjin and Hebei (Jingjinji). We use a censored probit model to examine whether there is financial exclusion and the degree of financial exclusion for the rural residents. The empirical results show that the significant factors influencing the financial exclusion in digital finance include the personal characteristics of the rural residents, the understanding of digital finance, digital financial infrastructure, the development of digital finance, and the social environment. Therefore, we think the precise orientation and distinction for the excluded group in the rural area, according to age, education, income, and other influencing factors could be helpful for making policies to eliminate financial exclusion and increase the inclusiveness of the financial industry.

The emergence of a decentralized peer-to-peer platform that matches lending and borrowing without collateral requirements has called the bank lending and balance-sheet channels for monetary transmission into question. Via a standard New Keynesian macroeconomic model expanded with two-sided platform and group identity, we put forward a novel platform density channel of monetary transmission, which could overshadow the conventional channels. An increase in policy rate, for instance, would instigate a shift toward platform borrowing. Increasing borrowers’ density attracts participation in platform deposits, which in turn further enhances borrowers’ benefit of joining the platform, making liquidity available at decreasing platform loan rates. Business investment and hence the inflation rate gets lifted despite monetary tightening. The implication of platform density channel diminishes, however, when platform borrowings complement bank borrowings, and pose nontrivial risk of default.

The advent of the metaverse has ushered in a new era of digital interaction, commerce, and finance. As users increasingly immerse themselves in virtual spaces, the need for robust digital identities becomes paramount. This study investigates the intricate interplay of privacy, security, and user authentication within the context of digital identities in the metaverse, with a particular focus on virtual financial systems. Employing a cross-case analysis method within the qualitative research paradigm, the study extensively examines real-world instances to extract valuable insights, identify challenges, and propose potential solutions in navigating this dynamic landscape. This approach allows for a comprehensive examination of overarching patterns and trends across case studies, revealing persistent challenges in digital identity management. The study delves into the complexities of pseudonymity in virtual engagement, emphasizing the crucial balance required for user trust and accountability. Furthermore, it uncovers commonalities in successful implementations, spotlighting the transformative role of blockchain technology, exemplified by IBM Blockchain World Wire, and the growing trend of biometric authentication, as seen in the FIDO use case. The successful cases examined demonstrate that a user-friendly experience and scalability are integral to the adoption of advanced security technologies. Industry leaders should take note of the global trends in digital transactions, emphasizing efficiency, transparency and cross-border security. Additionally, the study offers forward-looking insights with implications for future research and practice, advocating for continued exploration of the nuanced dynamics between user privacy, trust-building mechanisms and accountability in the ever-evolving metaverse landscape.

This study investigates the role of automated controls and streamlined compliance in managing risk in digital finance institutions. Through a mixed-methods approach, combining quantitative analysis and qualitative insights from leading Indian digital finance companies (CRED, ZEST MONEY and PHONE PAY), the research examines the effectiveness of advanced technologies in enhancing risk management practices. The study found strong positive correlations between the adoption of automated controls and key performance metrics, including the fraud detection rate (0.68), regulatory reporting accuracy (0.72), and overall risk management effectiveness (0.75). Regression analysis revealed that automated control implementation was the strongest predictor of risk management effectiveness. A comparative analysis of different digital finance models highlights the varying challenges and benefits of implementing these technologies. This study proposes a holistic, future-proof framework that integrates AI, machine learning and blockchain for real-time risk monitoring, automated regulatory reporting and dynamic compliance management. This framework addresses the limitations of the current fragmented approaches and offers a scalable solution that is adaptable to evolving regulatory landscapes. The findings of this study have significant implications for practitioners and policymakers, emphasizing the need for investment in strong automated systems and adaptive regulatory frameworks. While acknowledging the limitations in sample size and longitudinal scope, this research provides a foundation for future studies and offers practical insights for enhancing risk management in the rapidly evolving digital finance sector. The study concludes that effective integration of automated controls and streamlined compliance is crucial for ensuring the resilience, integrity and sustainable growth of the digital finance ecosystem.

This article utilizes panel data from 31 Chinese provinces during the time span from 2011 to 2020 to evaluate the effect of digital finance on the real economy from the perspective of green innovation. Empirical models show that digital finance can accelerate growth in the real economy. Specifically, the influence of digital finance on the real economy is more pronounced in areas with high financial development. Further analysis shows that green innovation plays the role of the mechanism through which digital finance promotes real economic growth. This article’s findings demonstrate that the government can foster the profound incorporation of digital finance into the real economy.

This chapter reviews scientific work conducted in support of the policy-making processes of the European Commission in reforming the financial sector. It first discusses how the introduction of new prudential requirements, resolution, and supervision tools in the aftermath of the Global Financial Crisis has allowed for a considerable reduction in the risk of systemic crises. This chapter also discusses how further benefits could come from further harmonization of resolution and insolvency frameworks, as well as from the completion of the Banking Union, including the introduction of a European Deposit Insurance Scheme, and of a European Safe Asset. Finally, this chapter briefly overviews more recent research underpinning policy efforts to enhance financial resilience toward the risks linked to climate change and the green transition, as well as to the impacts of the digital transformation.

Financial technologies and digital finance emerge as new elements to support countries in their quest for green transformation and sustainable economic models. The green revolution is a complex process supported by policies and reforms that achieve a well-grounded institutional, financial, and economic framework. This chapter focuses on analysing China’s green revolution and the importance of prioritising technologies within the financial ecosystem to achieve energy and environmental sustainability. In particular, the country’s financial system, the innovations associated with the fintech sector, green digital finance, and particularly Beijing’s financial incentives through its state-dominated banking sector are critical to driving China’s green revolution. However, the scale of the required operations, infrastructure, and innovations is enormous, and financial support to empower the green economy will be crucial. China’s five largest state-owned commercial banks are poised to take a decisive role in realising the country’s ambitious plan of becoming a more environmentally friendly economy. It is expected that green finance should promote high-quality economic development through its positive impact on the ecology, generating economic efficiencies and achieving solid economic structures. Nevertheless, Chinese authorities face a daunting task in moving away from a heavily coal-dependent energy model that has become a predicament as political leaders are confronted with the reality of managing the ongoing energy crisis. Policy-makers must balance the new economic realities and their existing energy and economic models to ensure an appropriate balance between sustainability and political and economic interests. In order to progress towards China’s 2060 “carbonneutral” agenda and to shift towards a high-quality growth vision, the Chinese authorities must engage in a cautious and slow approach to change and transform so as to avoid destabilising the country’s economy.

The pandemic has triggered economies to rethink, rebuild, and transform into inclusive, environmentally friendly digital societies and businesses. A key enabler for the vision is technology, and women are driving the adoption of digital and green financial solutions to achieve economic and social goals. This chapter highlights how women are playing a greater role in protecting the environment, fighting climate change, and addressing financial inclusivity, all through digital finance. However, women are still under-represented, despite being more adversely affected by environmental issues and having less access to digital finance than men. This chapter provides recommendations for using digital financial technology to tackle environmental sustainability and gender equality at the same time.

The financial industry has undergone a digital transition over the past decades, with the emergence of FinTech, a portmanteau of “financial” and “technology.” This rapidly growing concept has transformed how individuals, businesses and institutions access financial services. It has reshaped the financial landscape through internet connectivity, spearheaded by internet giants. FinTech has disrupted traditional financial industries with a wide array of business applications, ranging from mobile payments to online insurance, digital financing and wealth management. Technologies in finance continue to evolve, with the application of blockchain, artificial intelligence (AI) and the Internet of Things (IoT) continuing to transform the landscape of the financial industry. Against this backdrop, this chapter provides a comprehensive overview of FinTech, offering valuable insights for future research. It begins with a summary of the definitions of FinTech, providing historical context and exploring the key drivers behind its evolutionary journey. The chapter also delves into the major segments of FinTech based on its core business functions while shedding light on the dynamic challenges and inherent risks associated with its rapid growth. This chapter not only serves as a reference for understanding the FinTech phenomenon but also contributes to discussions on its potential economic implications and offers insights into potential research directions in the evolving financial industry.

Concerning the issue of global climate change, an urgent response is required to decrease carbon emissions in alignment with the Paris Agreement (12 December 2015), particularly in achieving the Sustainable Development Goals (SDGs). Over the past few decades, the mining of cryptocurrencies has emerged as a significant contributor to carbon emissions due to the rapid growth of the cryptocurrency market, resulting in a substantial increase in the computational demands of mining machines and energy consumption associated with generating digital tokens. This chapter aims to investigate the impact of digital currency trading activities (digital finance) on climate change. To achieve this objective, this study employs the DCC-GARCH model using daily trading data of five major cryptocurrencies based on market capitalization (Bitcoin, Ethereum, Tether, BNB and Ripple) and global climate change (CO₂ emissions). Climate change data from five different sectors (power, ground transportation, residential, domestic aviation and international aviation) are used. The findings show that cryptocurrency mining (trading activity) leads to higher CO₂ emissions, particularly in the power sector, which, in turn, adversely impacts global climate change.

This chapter uses bibliometric analysis to analyze the digital finance literature during COVID-19, extracting 240 articles from the Scopus database published between 2020 and 2024. The analysis of publication trends reveals a steady increase from 11 articles in 2020 to 90 in 2023. Notably, the Journal of Open Innovation: Technology, Market, and Complexity emerges as a top-contributing source, sharing the first rank with 10 documents. Technological Forecasting and Social Change leads in citations, while Akpan et al. (2022) is the most-cited document. Rabbani leads with five documents. China dominates in country contributions, and the Agricultural University of Athens ranks highest among affiliations. We unveil collaboration networks and identify 12 significant themes in digital finance research during COVID-19, providing a comprehensive overview for future exploration.

This chapter summarizes the current state of digital finance (DF) research and draws attention to some of the most important worldwide trends in this area. The study highlights the crucial significance of DF within contemporary financial systems, primarily observed in various applications such as FinTech, integrated finance, open banking, decentralized finance and digital currencies issued by central banks. Additionally, it examines the global factors that influence DF, including the need for effective and streamlined financial services, the utilization of digital technologies to achieve the United Nations Sustainable Development Goals, the promotion of financial inclusion through digital methods and the improvement of payment and settlement efficiency. Further, this chapter focuses on analyzing global advancements in DF, highlighting the significant impact of investments in the FinTech and mobile money sectors. Moreover, this chapter envisions a forthcoming era in the realm of DF characterized by a conducive setting enabling the delivery of a wide range of financial offerings and solutions customized to meet the specific requirements of individuals, all within a unified digital framework. The current study proposes potential directions for future research, highlighting the importance of investigating regulatory approaches that can adapt to the changing landscape of DF.

In this chapter, we explain the application of big data in banks through a systematic review, which is done by using the PRISMA method to research articles from the big data literature with the help of a theoretical framework on big data. A few parameters have been set for inclusion, such as selecting papers published from 2010 to the present. Several themes are generated from the findings of the reviewed studies. A Google Scholar search was conducted using the keywords “big data in business” to find articles for this review. The Google Scholar search covered the years 2010–2020. We quickly captured Google Scholar results using Zotero software. The review highlighted three main trends in banks regarding big data applications. First, fraud risk analysis can help banks detect fraud in financial transactions and safeguard them to survive in a competitive environment. Second, we discovered customer analysis using big data analytics. Banks have understood the value of utilizing digital technologies for client acquisition, retention and satisfaction. Finally, there are several facets of operational analysis, such as developing new business models, offering new products and services, increasing efficiency, and reducing costs in the banking sector. To enhance big data research in the banking sector, this study also has implications for researchers and future research agendas.

This book chapter delves into the complex dynamics between corporate governance and digital finance, thoroughly examining this intersection’s risks, rewards and policy ramifications. The story begins with a look back at the development of corporate governance and then traces the revolutionary effects of digital money on established institutions. We examine how the two worlds are converging, focusing on how technological advancements influence new approaches to money management. This section helps readers understand the difficulties policymakers confront in keeping up with the ever-shifting digital world as they attempt to modify existing regulatory frameworks. Regulatory flexibility, cybersecurity risks, openness and data governance are emerging as essential policy issues. Case studies shed light on practical implementations, offering assistance for businesses only beginning to incorporate digital finance into their management systems. As the digital finance era unfolds, the chapter explores future directions, anticipating trends that include decentralized governance models, enhanced cybersecurity measures, the integration of artificial intelligence (AI) and global standardization. Ethical considerations, sustainability and social responsibility are integral to governance. Insights gained from real-world experiences underscore the importance of adaptability, collaboration and ethical decision-making. The narrative concludes with a forward-looking perspective, positioning organizations to navigate the evolving landscape with resilience and innovation. The abstract encapsulates a holistic view of the chapter, offering readers a glimpse into the complexities and opportunities at the intersection of corporate governance and digital finance.

This chapter explores the intricate aspects and consequences associated with central bank digital currencies (CBDCs), which are an emerging subject of interest in both scholarly research and policy deliberations. The chapter presents the rationale for the introduction of CBDCs, which includes the goals of enhancing financial inclusion, improving the implementation of monetary policy and accelerating the development of digital payment systems. Furthermore, the chapter examines scholarly viewpoints on the possible consequences of CBDCs for monetary policy composition and economic stability. The chapter also highlights important areas that require future research, such as exploring an optimal CBDC design that effectively resolves competing objectives as well as conducting empirical analyses of the effects of CBDCs on financing costs and financial stability. Moreover, the chapter emphasizes the importance of conducting country- and region-specific case studies to fully comprehend the complex ramifications of CBDC layout in various social and economic circumstances.

Digital finance, supported by advanced technologies such as big data, artificial intelligence, cloud computing, and blockchain, is profoundly changing the financial industry and model and reshaping the financial landscape. The integration and development of digital finance technology with commercial banks has enhanced the technology level of commercial banks and improved their operation and management, thus weakening commercial banks’ risk-taking level. At the same time, the development of digital finance has also prompted commercial banks to use big data technology to establish a risk early warning system and improve their risk warning and prevention capabilities. In this paper, we construct a partial equilibrium model of commercial banks’ risk-taking behavior under the constraints of digital finance and deduce the transmission mechanism of “digital finance — management cost — bank risk-taking”. A fixed-effects model is built to empirically test 163 commercial banks in China from 2011 to 2018. The results show that: (1) digital finance significantly reduces the risk-taking level of commercial banks; (2) digital finance reduces the risk-taking level of commercial banks through the channels of the breadth of coverage, depth of use, degree of payment and settlement support services, degree of credit investigation support services, and degree of digital services; (3) the use of deep channels of digital finance has the most apparent effect on reducing the risk-taking level of commercial banks.