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on Payment Systems and Financial Technology |
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Issue of 2021‒04‒05
seventeen papers chosen by |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Peter Agyemang-Mintah (Abu Dhabi, United Arab Emirate); Rexon T. Nting (London, UK) |
| Abstract: | This study investigates how the rule of law (i.e. law) modulates demand- and supply-side drivers of mobile money to influence mobile money innovations (i.e. mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money) in developing countries. The following findings from Tobit regressions are established. First, from the demand-side linkages, law modulates: (i) bank accounts and automated teller machine (ATM) penetration for negative interactive relationships with mobile money innovations and (ii) bank sector concentration for a positive interactive relationship with mobile money accounts. Second, from supply-side linkages, law interacts with: (i) mobile subscriptions for a negative relationship with the mobile phone used to send money; (ii) mobile connectivity coverage for a negative nexus on the mobile phone used to receive money and (iii) mobile connectivity performance for a negative influence on the mobile phone used to send/receive money. Policy implications are discussed in the light of enhancing the rule of law as well as improving mobile phone subscription, connectivity and performance dynamics. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| JEL: | D10 D14 D31 D60 O30 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/021&r=all |
| By: | Purva Khera; Stephanie Y Ng; Sumiko Ogawa; Ratna Sahay |
| Abstract: | Adoption of technology in the financial services industry (i.e. fintech) has been accelerating in recent years. To systematically and comprehensively assess the extent and progress over time in financial inclusion enabled by technology, we develop a novel digital financial inclusion index. This index is based on payments data covering 52 developing countries for 2014 and 2017, taking into account both access and usage dimentions of digital financial services (DFSs). This index is then combined with the traditional measures of financial inclusion in the literature and aggregated into an overall index of financial inlusion. There are two key findings: first, the adoption of fintech has been a key driver of financial inclusion. Second, there is wide variation across countries and regions, with the greatest progress recorded in Africa and Asia and the Pacific regions. This index should offer a useful analytical tool for researchers and policy makers. |
| Date: | 2021–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/090&r=all |
| By: | Tiphaine Henry (Orange Labs [Paris] - Telecom Orange, INF - Département Informatique - IMT - Institut Mines-Télécom [Paris] - TSP - Télécom SudParis, IP Paris - Institut Polytechnique de Paris, ACMES-SAMOVAR - Algorithmes, Composants, Modèles Et Services pour l'informatique répartie - SAMOVAR - Services répartis, Architectures, MOdélisation, Validation, Administration des Réseaux - IMT - Institut Mines-Télécom [Paris] - TSP - Télécom SudParis); Nassim Laga (Orange Labs [Paris] - Telecom Orange); Julien Hatin (Orange Labs [Paris] - Telecom Orange); Walid Gaaloul (INF - Département Informatique - IMT - Institut Mines-Télécom [Paris] - TSP - Télécom SudParis, IP Paris - Institut Polytechnique de Paris, ACMES-SAMOVAR - Algorithmes, Composants, Modèles Et Services pour l'informatique répartie - SAMOVAR - Services répartis, Architectures, MOdélisation, Validation, Administration des Réseaux - IMT - Institut Mines-Télécom [Paris] - TSP - Télécom SudParis); Imed Boughzala (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - UEVE - Université d'Évry-Val-d'Essonne, TIM - Département Technologies, Information & Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School) |
| Abstract: | Cross-collaboration processes are decentralized by nature and their centralized monitoring can trigger mistrust. Nevertheless, a decentralized monitoring facility such as a blockchain-based and Internet-of-Things-aware (IoT-aware) business process management system can reduce this pitfall. However, concerns related to usability, privacy, and performance, hamper the wide adoption of these systems. To better understand the challenges at stake, this paper reviews the use of blockchain and IoT devices in cross-collaboration processes. This survey sheds some light on standard uses such as model engineering or permissioned blockchains which help adopt cross-collaboration business process management systems. Moreover, with respect to process design, two schools of thought coexist, addressing both constrained and loosely processes. Furthermore, a focus on data-centric processes appears to get some momentum, as many industries go digital. Finally, this survey underlines the need to orient future research towards a more flexible, scalable, and data-aware blockchain-based business process management system. |
| Keywords: | Business process management system,IoT,Blockchain,Cross collaboration |
| Date: | 2021–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03107913&r=all |
| By: | Boliang Lin; Ruixi Lin |
| Abstract: | In this paper, we reveal the depreciation mechanism of representative money (banknotes) from the perspective of logistics warehousing costs. Although it has long been the dream of economists to stabilize the buying power of the monetary units, the goal we have honest money always broken since the central bank depreciate the currency without limit. From the point of view of modern logistics, the key functions of money are the store of value and low logistics (circulation and warehouse) cost. Although commodity money (such as gold and silver) has the advantages of a wealth store, its disadvantage is the high logistics cost. In comparison to commodity money, credit currency and digital currency cannot protect wealth from loss over a long period while their logistics costs are negligible. We proved that there is not such honest money from the perspective of logistics costs, which is both the store of value like precious metal and without logistics costs in circulation like digital currency. The reason hidden in the back of the depreciation of banknotes is the black hole of storage charge of the anchor overtime after digitizing commodity money. Accordingly, it is not difficult to infer the inevitable collapse of the Bretton woods system. Therefore, we introduce a brand-new currency named honest devalued stable-coin and built a attenuation model of intrinsic value of the honest money based on the change mechanism of storage cost of anchor assets, like gold, which will lay the theoretical foundation for a stable monetary system. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.11772&r=all |
| By: | Dacre, Nicholas; Senyo, PK; Reynolds, David |
| Abstract: | Engineering managers are progressively tasked with leveraging digital technologies and innovations which have yet to be fully developed, to seek out opportunities and challenges in complex project contexts. However, there is a disparity between knowledge gained from engineering development programmes, and the rapidly changing landscape of modern project practice, which requires professionals to effectively engage and deploy relevant agile digital skills in practice. For example, complex engineering projects increasingly employ dynamic digital technologies such as Artificial Intelligence (AI), Big Data, Augmented and Virtual Reality (AR / VR), 3D Printing, and Digital Twins, which require managers to quickly adapt to changing constraints through agile digital skills. Therefore, this paper seeks to focus on exploring the role of engineering project management programmes in developing knowledge and agile digital skills relevant for future project practice. Through an outline review of project management development programmes, this research paper suggests that their inherent value for engineering project managers, is largely dependent on a combination of applied research, engagement, and agile digital skills development for future practice. |
| Date: | 2019–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:4b2gs&r=all |
| By: | Mukhopadhyay, Boidurjo; Chatwin, Chris |
| Abstract: | In recognition of the importance and expansion of the gig economy, largely in developed and BRICs economies, along with the growing literature surrounding it, this research contributes towards an empirical and conceptual understanding of how employee motivation and retention are managed by the mobile app-based, multiple payment platformenabled, car-pooling Chinese giant DiDi. Both the exponential usage and evidently a diversified range of services offered by Didi has not only transformed the Chinese perception of using cabs, over their personal vehicle, in the 1.4 billion demographics but also invites emerging research in learning the tools for employee retention of a company that has a high regional scale of operations across all provinces in China. While the company employs over a million people at various contractual levels, the objective of this paper is to evaluate how levels of employee motivation, in a gig economy setting, largely affects employee effort and performance of DiDi drivers working long hours in major Chinese cities. The objective of this research is to qualitatively investigate the nature and effectiveness of Didi as a customer customiser using a thematic analysis and a conceptual framework, while also adding contextual knowledge on how a relatively new transport company retain employees in a leading BRICS economy, that is embedded with many faces of the gig economy. |
| Keywords: | gig economy,employee motivation,China,employee performance,ERG theory,Expectancy Theory, innovation,DiDi,mobile app-based enterprises,Emerging Economy,Platform Economy |
| JEL: | D86 J41 L14 L86 M51 M52 M54 M55 O30 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:805&r=all |
| By: | Umanailo, M Chairul Basrun (Universitas Iqra Buru) |
| Abstract: | The history of the industrial revolution starts from industry 1.0 to 4.0, increasing digitalization of manufacturing supporting factors such as increased data, computing power and connectivity, analytics, business capabilities and intelligence, changing human-machine interactions, and improving digital changes to the physical world, such as robotics and 3D printing. This paper describes how the basic principle of industry 4.0 is the amalgamation of machines, workflows and systems by implementing an intelligent network along the production chain and process to control each other independently. The research findings show that transparency of information is the ability of information systems to create cyber knowledge by enriching digital models with data sensors including data analysis and information provision. There is an aid system to support humans by combining and taking information consciously to make informed decisions and solve proximity problems in a short time. |
| Date: | 2021–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:wc5nu&r=all |
| By: | Kässi, Otto; Lehdonvirta, Vili; Stephany, Fabian |
| Abstract: | An unknown number of people around the world are earning income by working through online labour platforms such as Upwork and Amazon Mechanical Turk. We combine data collected from various sources to build a data-driven assessment of the number of such online workers (also known as online freelancers) globally. Our headline estimate is that there are 163 million freelancer profiles registered on online labour platforms globally. Approximately 19 million of them have obtained work through the platform at least once, and 5 million have completed at least 10 projects or earned at least $1000. These numbers suggest a substantial growth from 2015 in registered worker accounts, but much less growth in amount of work completed by workers. Our results indicate that online freelancing represents a non-trivial segment of labour today, but one that is spread thinly across countries and sectors. |
| Date: | 2021–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:78nge&r=all |
| By: | Otto K\"assi; Vili Lehdonvirta; Fabian Stephany |
| Abstract: | An unknown number of people around the world are earning income by working through online labour platforms such as Upwork and Amazon Mechanical Turk. We combine data collected from various sources to build a data-driven assessment of the number of such online workers (also known as online freelancers) globally. Our headline estimate is that there are 163 million freelancer profiles registered on online labour platforms globally. Approximately 19 million of them have obtained work through the platform at least once, and 5 million have completed at least 10 projects or earned at least $1000. These numbers suggest a substantial growth from 2015 in registered worker accounts, but much less growth in amount of work completed by workers. Our results indicate that online freelancing represents a non-trivial segment of labour today, but one that is spread thinly across countries and sectors. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.12648&r=all |
| By: | Jenn, Alan |
| Abstract: | With recent policies such as the Clean Miles Standard in California and Lyft’s announcement to reach 100% electric vehicles (EVs) by 2030, the electrification of vehicles on ride-hailing platforms is inevitable. The impacts of this transition are not well-studied. This work attempts to examine the infrastructure deployment necessary to meet demand from electric vehicles being driven on Uber and Lyft platforms using empirical trip data from the two services. The Widespread Infrastructure for Ride-hail EV Deployment (WIRED) model was developed to examine a set of case studies for charger installation in San Diego, Los Angeles, and the San Francisco Bay Area. A set of sensitivity scenarios was also conducted to measure the tradeoff between explicit costs of infrastructure versus weighting factors for valuing the time for drivers to travel to a charger (from where they are providing rides) and valuing the rate of charging (to minimize the amount of time that drivers have to wait to charge their vehicle). There are several notable findings from the study: 1) DC fast charging infrastructure is the dominant charger type necessary to meet ride-hailing demand, 2) shifting to overnight charging behavior that places less emphasis on daytime public charging can significantly reduce costs, and 3) the necessary ratio of chargers is approximately 10 times higher for EVs in Uber and Lyft compared to chargers for the general EV owning public. |
| Keywords: | Engineering, Social and Behavioral Sciences, Electric vehicles, charging infrastructure, transportation network companies, Clean Miles Standard |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6vk0h1mj&r=all |
| By: | John (Jianqiu) Bai; Erik Brynjolfsson; Wang Jin; Sebastian Steffen; Chi Wan |
| Abstract: | Digital technologies may make some tasks, jobs and firms more resilient to unanticipated shocks. We extract data from over 200 million U.S. job postings to construct an index for firms' resilience to the Covid-19 pandemic by assessing the work-from-home (WFH) feasibility of their labor demand. Using a difference-in-differences framework, we find that public firms with high pre-pandemic WFH index values had significantly higher sales, net incomes, and stock returns than their peers during the pandemic. Our results indicate that firms with higher digital resilience, as measured through our pre-pandemic WFH index, performed significantly better in general, and in non-essential industries in particular, where WFH feasibility was necessary to continue operation. The ability to use digital technologies to work remotely also mattered more in non-high-tech industries than in high-tech ones. Lastly, we find evidence that firms with lower pre-pandemic WFH feasibility attempted to catch up to their more resilient competitors via greater software investment. This is consistent with a complementarity between digital technologies and WFH practices. Our study's results are robust to a variety of empirical specifications and provide a first look at how WFH practices improved resilience to a major, unanticipated social and economic shock. |
| JEL: | D23 J21 L0 L25 O0 O33 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28588&r=all |
| By: | Yongqiang Meng (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, TJU - Tianjin University); Dehua Shen (TJU - Tianjin University); Xiong Xiong (TJU - Tianjin University); Jørgen Vitting Andersen (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the relations between multiple measures of investor sentiment and the returns, volatility, trading volume, and liquidity. Using both data outside and inside market, we find that the Bullishness from socio-finance model are significant related to future realized volatility and trading volume, similar to Tweet, which is thought to capture information of well-informed investors in Bitcoin market. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03048777&r=all |
| By: | Aleksy Klimowicz (Faculty of Economic Sciences, University of Warsaw); Krzysztof Spirzewski (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | Numerous applications of AI are found in the banking sector. Starting from front-office, enhancing customer recognition and personalized services, continuing in middle-office with automated fraud-detection systems, ending with back-office and internal processes automatization. In this paper we provide comprehensive information on the phenomenon of peer-to-peer lending in the modern view of alternative finance and crowdfunding from several perspectives. The aim of this research is to explore the phenomenon of peer-to-peer lending market model. We apply and check the suitability and effectiveness of credit scorecards in the marketplace lending along with determining the appropriate cut-off point. We conducted this research by exploring recent studies and open-source data on marketplace lending. The scorecard development is based on the P2P loans open dataset that contains repayments record along with both hard and soft features of each loan. The quantitative part consists of applying a machine learning algorithm in building a credit scorecard, namely logistic regression. |
| Keywords: | artificial intelligence, peer-to-peer lending, credit risk assessment, credit scorecards, logistic regression, machine learning |
| JEL: | G21 C25 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2021-04&r=all |
| By: | Tedds, Lindsay M.; Cameron, Anna; Khanal, Mukesh; Crisan, Daria |
| Abstract: | Over the past decade, home-sharing has evolved from fringe activity to encompass a booming short-term rental (STR) market of global scale. This rise has not been without criticism, as Airbnb and other STR platforms have been charged with exacerbating over-tourism, gentrification, and housing issues and engaging in anti-competitive behaviour. On the other hand, the STR market has produced benefits, sparking new activity in local economies and innovation in the travel accommodation sector. In this paper, we explore the nature, evolution, and impact of platform-mediated home-sharing to arrive at a sophisticated conceptualization of the STR market and its complications. We then use this understanding to demonstrate the ways in which existing regulatory approaches—built upon traditional ideas of market composition and dynamics—are inadequate for managing the novel STR market. In particular, we argue that attempts at regulation have been hindered in three ways: first, by a lack of attention to the diversity and complexity of the STR market; second, by a failure to conceive of STR markets as three-sided and involving the active participation of platforms; and third, by a tendency to characterize various forms of market activity as regulatory violations, when the concept of regulatory fractures—instances in which new modes of activity do not map well onto existing frameworks, disrupting regulatory effectiveness—is more apt. Ultimately, we contend that the effective management of the STR market hinges on the ability policymakers to both reconceive of the STR market and the activity that plays out within it, as well as re-imagine and innovate beyond traditional regulatory approaches. We conclude by considering ways in which regulators might begin to do so, including through a discussion of the potential of co-regulatory approaches. |
| Keywords: | Short-term Rental, Market Failure, Regulatory Fracture, Market Participation, Innovative Disruption, Competition, Community Impact |
| JEL: | H79 R19 |
| Date: | 2021–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106712&r=all |
| By: | Nicolas Jacquemet (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexander James (University of Alaska [Anchorage]); Stéphane Luchini (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); James Murphy (University of Alaska [Anchorage]); Jason Shogren (UW - University of Wyoming) |
| Abstract: | This study explores whether an oath to honesty can reduce both shirking and lying among crowd-sourced internet workers. Using a classic coin-flip experiment, we first confirm that a substantial majority of Mechanical Turk workers both shirk and lie when reporting the number of heads flipped. We then demonstrate that lying can be reduced by first asking each worker to swear voluntarily on his or her honor to tell the truth in subsequent economic decisions. Even in this online, purely anonymous environment, the oath significantly reduced the percent of subjects telling "big" lies (by roughly 27%), but did not affect shirking. We also explore whether a truth-telling oath can be used as a screening device if implemented after decisions have been made. Conditional on flipping response, MTurk shirkers and workers who lied were significantly less likely to agree to an ex-post honesty oath. Our results suggest oaths may help elicit more truthful behavior, even in online crowd-sourced environments |
| Keywords: | Experimental Economics,Honesty,Solemn Oath,Mechanical Turk,Lying,Shirking |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03131518&r=all |
| By: | Bruno Sultanum |
| Abstract: | The volatility of crypto currencies hinders their ability to be media of exchange or stores of value, leading to the implementation of exchange-rate pegs in an attempt to stabilize these currencies. This strategy has been used by crypto currencies such as US Dollar Tether, Steem Backed Dollar and TrueUSD; and was previously adopted in countries such as Brazil, Mexico and Argentina. However, an exchangerate peg is vulnerable to speculative attacks if it is not 100% backed by reserves, as discussed in Obstfeld (1996). Using insights from the bank-run literature, Routledge and Zetlin-Jones (2018) build on Green and Lin (2003) and propose a model of speculative attacks. They show that adjustments to the exchange rate can prevent speculative attacks in equilibrium. They also show how to implement such contracts using blockchain technology. In this discussion paper, I provide a cautionary tale. I show also in a version of Green and Lin (2003) that the information content in the blockchain prevents agents from attaining all the gains from risk sharing— highlighting the downsides of too much public information. |
| Keywords: | Blockchain; Currencies; Information |
| Date: | 2021–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedrwp:90439&r=all |
| By: | Newland, Carlos (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise); Rosiello, Juan Carlos (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise); Salinas, Roberto (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise) |
| Abstract: | The technological progress in our modern societies has witnessed the emergence of persons who deploy different means of communication across social networks, seeking to generate an impact among their audiences. These efforts in social media communications attempt to alter consumption preferences and patterns, political choices, as well as reinforce or modify opinions of all sorts and stripes. Individuals who attain greater relevance due to effects they trigger on third parties are characterized as influencers, and one of their preferred means of communication are online platforms or social media. Among them, Twitter stands out as the most conducive space for debates on ideas, political parties, or public policies. This social media platform is a microblogging service that allows a person to send short messages (up to 280 characters) that are displayed on a user’s individual page, and that are replicated on their followers’ pages. In this paper, we aim to identify the most important influencers in Latin America, the United States and Spain, who use this social media network to debate issues primarily related to economics and economic policy. On this subject, there is a very strong discussion about the role that the government should play in economic life, the pros and cons of greater regulation, the problem of income distribution, the impact of inflation, and the nature of free markets and capitalism. We will first describe the methodology we employed, in order to then proceed to illustrate a ranking of the ten most relevant influencers, in terms of number of followers, from Argentina, Brazil, Colombia, Chile, Mexico, Spain, and the United States. We then explore their profiles and present an analysis of the economic issues debated on the relevant Twitter accounts on a per country basis. Finally, based on this analysis, we present a hypothesis on the positioning of influencers in economic matters. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:jhisae:0175&r=all |