|
on Payment Systems and Financial Technology |
| By: | Maixe-Altes, J. Carles; Mourelle, Estefanía |
| Abstract: | This work investigates the relationships between the retail payment system, monetary aggregates and economic activity in Spain. This approach is taken from a new perspective: that of the transformations that have been favored by ICT in the payment system. The methodology used is based on cointegration analysis and the estimation of error correction models. Likewise, an indicator of cashless transactions is proposed in order to illustrate whether a particular society can be classified as “cashless”. We use the Johansen procedure to unveil long-run relationships that are integrated in the real sector, the monetary system and the value of cashless transactions. We prove the relevant (and direct) impact of changes in the monetary system and national income on the value of cashless transactions. Using error correction models, we observe that the most important short-run relationships in terms of the value of cashless transactions are those related to the real sector of the economy, while with regard to monetary variables, the relevance is focused on the more liquid sectors. The empirical results evidence the intensive progress of the cashless society in Spain, where the banking sector, the regulatory changes and ICT development have played a key role. |
| Keywords: | Cashless payments, money supply, ICT |
| JEL: | E42 E51 G20 N2 |
| Date: | 2016–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72590&r=pay |
| By: | Manoj B. Vanara |
| Abstract: | Customer satisfaction is defined as the way that customer usually view or feel about certain services and products. Internet Broadband services providers are of paramount importance in the developing economy of India. Many Internet Broadband service providers are offering various services in the market. Customer satisfaction with regards to Broadband services is resulting from the evaluation of service provided by an ISP to an individual in relation to expectations. This study is mainly focused to understand the Consumer satisfaction with regards to of BSNL Broadband services in Ahmedabad. The outcomes of this survey can be used by the BSNL, for understanding the customers satisfaction in respect to Broadband services and add value to their customers to increase their market share and Brand Image. This paper also attempts to understand the brand awareness, competitive strength of the company and problems faced by the customers, which helps the company to take appropriate measures to solve the problems. The Primary data was collected through survey method and was analyzed with the help of various statistical tools to draw meaningful conclusion. Key words: Customer satisfaction, Broadband |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2016-06-09&r=pay |
| By: | Chiu, Jonathan; Wong, Tsz-Nga |
| Abstract: | Recent years have witnessed the advances of e-money systems such as Bitcoin, PayPal and various forms of stored-value cards. This paper adopts a mechanism design approach to identify some essential features of different payment systems that implement the optimal resource allocation. We find that, compared to cash, e-money technologies allowing limited participation, limited transferability and non-zero-sum transfers can help mitigate fundamental frictions and enhance social welfare, if they satisfy conditions in terms of parameters such as trade frequency and bargaining powers. An optimally designed e-money system exhibits realistic arrangements including non-linear pricing, cross-subsidization and positive interchange fees even when the technologies incur no costs. Regulations such as a cap on interchange fees (à la the Dodd-Frank Act) can distort the optimal mechanism and reduce welfare. |
| Keywords: | Money, Electronic money, Mechanism design, Search and matching, Efficiency, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwecf:5205&r=pay |
| By: | Ross D. King |
| Abstract: | Money is a technology for promoting economic prosperity. Over history money has become increasingly abstract, it used to be hardware, gold coins and the like, now it is mostly software, data structures located in banks. Here I propose the logical conclusion of the abstraction of money: to use as money the most general form of information - computer programs. The key advantage that using programs for money (program-money) adds to the technology of money is agency. Program-money is active and thereby can fully participate in economics as economic agents. I describe the three basic technologies required to implement program-money: computational languages/logics to unambiguously describe the actions and interactions of program-money; computational cryptography to ensure that only the correct actions and interactions are performed; and a distributed computational environment in which the money can execute. I demonstrate that most of the technology for program-money has already been developed. The adoption of program-money transfers responsibility from human economic agents to money itself and has great potential economic advantages over the current passive form of money. For example in microeconomics, adding agency to money will simplify the exchange of ownership, ensure money is only used legally, automate the negotiation and forming of contracts, etc. Similar advantages occur in macroeconomics, where for example the control of the money supply could be transferred from central banks to money. It is also possible to envisage money that is not owned by any external human agent or corporation. One motivation for this is to force economic systems to behave more rationally and/or more like a specific economic theory, thereby increasing the success of economic forecasting. |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1608.00878&r=pay |
| By: | Robert Garlick; Kate Orkin; Simon Quinn |
| Abstract: | High-frequency data is useful to measure volatility, reduce recall bias, and measure dynamic treatment effects. We conduct the first experimental evaluation of high-frequency phone surveys in a developing country or with microenterprises. We randomly assign microenterprise owners to monthly in-person, weekly inperson, or weekly phone interviews. We find high-frequency phone surveys are useful and accurate. Phone and in-person surveys yield similar measurements, with few large or significant differences in reported outcome means or distributions. Neither interview frequency nor medium affects reported outcomes in a common in-person endline. Phone surveys reduce costs without increasing permanent attrition from the panel. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2016-14&r=pay |
| By: | Sprenger, Julia |
| Abstract: | The current study examines individual decision making in the fi eld of personal finance. How do people arrive at a financial decision? A laboratory experiment investigates the way external information is integrated into the decision making process. The objective is to explore the link between financial literacy and information acquisition behavior. The results show that participants with low financial literacy generally try to compensate for their low decision-specific knowledge with a higher demand for external information but give up this strategy when the information environment is restricted to impersonal information. For female participants, low financial literacy increases demand for advice. These findings reveal that a low knowledge base in finance can translate into low engagement in information search which might further increase the risk of low decision quality. The study links these findings to the debate on consumer empowerment and discusses implications for the financial services industry. |
| Keywords: | financial literacy,information acquisition,decision making,experiment |
| JEL: | C91 G02 D83 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:626&r=pay |
| By: | Héctor Pérez Saiz; Gabriel Xerri |
| Abstract: | The recent financial crisis has led to the development of new regulations to control risk in designated payment systems, and the implementation of new credit risk management standards is one of the key issues. In this paper, we study various credit risk management schemes for the Canadian retail payment system (ACSS) that are designed to cover the exposure of a defaulting member. We consider schemes that use a collateral pool calculated using a rolling time window. Our simulations show that the size of the window has a very significant effect on the average level of collateral and its variability day to day, creating an interesting trade-off. Collateral levels and variability may be important for ACSS participants because they could affect the opportunity costs of pledging collateral, and also the costs of managing it over time. Our results contribute to understanding the practical implementation of risk management schemes in the current and future generations of payment systems in Canada. |
| Keywords: | Econometric and statistical methods, Financial stability, Payment clearing and settlement systems |
| JEL: | G21 G23 C58 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:16-16&r=pay |
| By: | Yolanda Blasco-Martel (Universitat de Barcelona \cf0 Author-Email: yolandablasco@ub.edu) |
| Abstract: | Research on banking systems has token as a frame of reference the English banking system. Precisely because the English banking system was early, it had opportunities to explore certain control mechanisms that favored the extension of the bill of bank. One such mechanism was known as Palmer Rule, a rule stating that a well-managed bank should keep in its cash box one third of its responsibilities. This rule allowed maintaining the convertibility of notes, giving confidence to customers and encouraging the spread paper money. In Spain it has been discussed about the convertibility of the note in the last quarter of the nineteenth century. This work includes to the discussion the Palmer rule, crucial to understanding why the ticket of the Bank of Spain ceased to be convertible de facto in the late nineteenth century, although the inconvertibility is not legally established until 1946. |
| Keywords: | Palmer rule, Convertibility, Banking history, Banking rules, Spain |
| JEL: | N14 N24 E42 E58 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:1614&r=pay |
| By: | Danila, Marius |
| Abstract: | As of today any official or informal communication with respect to Europe’s economic future is most of the time accompanied by a unique keyword: „uncertainty”; several factors are at the same time being mentioned: global economy trends, fossil fuels price, Brexit, refugee crisis. With respect to the European financial industry a fundamental factor generates short and medium term uncertainty – the fact that, 8 years since the beginnings of the global financial crisis, the European financial sector, especially the banking industry, is still in transition. Despite the optimism shown by many European officials, the continental banking system is facing an impressive list of challenges. This analysis tries to put into spotlight some of the most important such challenges together with identifying appropriate ways of mitigation. |
| Keywords: | European banking, European Central Bank, non performing loans, asset quality, FinTech, interest rates |
| JEL: | E43 E44 F33 G15 |
| Date: | 2016–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72768&r=pay |
| By: | Abramov Alexander (RANEPA) |
| Abstract: | The year 2015 saw a continuation of the longest slump in the history of Russia's stock market, which had started in May 2008. In 1997–1998, after the RTS Index had dropped by 91.3%, and the MICEX Index - by 73.0%, from their pre-crisis highs over a period that lasted slightly more than a year, they both managed to recover their former quotes in 58 and 8 months respectively. Now, as of February 2016, after their plummet during the acute phase of the 2008 crisis, both these stock indices have never recovered: the MICEX Index over the period of 88 months, and the RTS Index – 85 months. |
| Keywords: | Russian economy, financial markets, financial institutions |
| JEL: | G01 G12 G18 G21 G24 G28 G32 G33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2016-265&r=pay |