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on Payment Systems and Financial Technology |
| By: | Ozili, Peterson K |
| Abstract: | Digital innovations are emerging to solve known problems using new digital tools or technologies. Digital innovations also have wide application for financial inclusion. Private sector agents are using digital innovations to increase financial inclusion in remarkable ways. This chapter explores the recent digital innovations that are changing the financial inclusion landscape toward digital financial inclusion. The study used the discourse analysis methodology. It was found that digital innovations, such as central bank digital currency (CBDC), cryptocurrency, embedded finance, artificial intelligence, wallet as a service (WaaS), Fintech, Bigtech, and decentralized finance (DeFi), are helping to accelerate digital financial inclusion in many parts of the world. Each of these digital innovations serve a specific purpose, and they contribute to accelerating digital financial inclusion in unique ways, even though they all pose some risks that can be mitigated with careful and purposeful regulation. |
| Keywords: | Digital innovation; Financial inclusion; CBDC; Cryptocurrency; Embedded finance; Artificial intelligence; Wallet as a service; Fintech; Bigtech; DeFi. |
| JEL: | G21 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121848 |
| By: | Youming Liu; Francisco Rivadeneyra; Edona Reshidi; Oleksandr Shcherbakov; André Stenzel |
| Abstract: | For an intermediated central bank digital currency (CBDC) to be successful, central banks will need to develop sustainable economic models where intermediaries and end users derive value and central banks achieve their policy goals. This note presents a framework for analyzing different economic models of CBDC ecosystems. We analyze the trade-offs of three main CBDC ecosystem models, each with different levels of central bank involvement in activities of the ecosystem and the usage of different policy levers. The policy levers considered in the framework are control over intermediary access to the CBDC network, prices and quality standards. Our analysis suggests that a central bank provision of network infrastructure enables direct control over intermediary access requirements, prices and quality standards upstream. Providing a central bank digital wallet increases development costs but allows the central bank to set quality standards downstream and to promote competition. Delegating the network service to a regulated entity reduces costs for the central bank but may limit its strategic autonomy to control upstream pricing and intermediary access. Our analysis also suggests several areas of future research: central bank pricing models, intermediary revenue models, and quality and privacy standards. |
| Keywords: | Central bank research; Digital currencies and fintech; Financial services |
| JEL: | E5 E58 E6 E61 L5 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:24-13 |
| By: | Bosch Jover, Oriol; Sturgis, Patrick; Kuha, Jouni; Revilla, Melanie |
| Abstract: | In the digital age, understanding people’s online behaviours is vital. Digital trace data has emerged as a popular alternative to surveys, many times hailed as the gold standard. This study critically assesses the use of web tracking data to study online media exposure. Specifically, we focus on a critical error source of this type of data, tracking undercoverage: researchers’ failure to capture data from all the devices and browsers that individuals utilize to go online. Using data from Spain, Portugal, and Italy, we explore undercoverage in commercial online panels and simulate biases in online media exposure estimates. The paper shows that tracking undercoverage is highly prevalent when using commercial panels, with more than 70% of participants affected. In addition, the primary determinant of undercoverage is the type and number of devices employed for internet access, rather than individual characteristics and attitudes. Additionally, through a simulation study, it demonstrates that web tracking estimates, both univariate and multivariate, are often substantially biased due to tracking undercoverage. This shows evidence that web tracking data might be, effectively, biased. Methodologically, the paper showcases how survey questions can be used as auxiliary 15 information to identify and simulate web tracking errors. |
| JEL: | C1 |
| Date: | 2024–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124537 |
| By: | Deghnouche Latra (University of Algiers 3 : Université d' Alger 3) |
| Abstract: | This paper explores the role of human capital in economic growth in the MENA region. This research proposes empirical approaches using panel data from 2007 to 2019, and employs appropriate econometric techniques. This work argues that investment in human capital is considered a crucial factor in influencing economic success. It is found that human capital has an influence on economic growth; however, this influence may not be as large which can limit a country's growth potential in the MENA region. |
| Keywords: | Human capital Economic growth MENA region Education Health Investment JEL Classification Codes: O15, I25, J24, O55, O53, O54, Human capital, Economic growth, MENA region, Education, Health, Investment JEL Classification Codes: O15, Digital Currency Cryptocurrency Bitcoin Internet Mining. JEL Classification Codes: D24 D41 M19 M39. Digital Currencies DEGHNOUCHE Latra, Digital Currency, Cryptocurrency, Bitcoin, Internet, Mining. JEL Classification Codes: D24, D41, M19, M39. Digital Currencies DEGHNOUCHE Latra |
| Date: | 2024–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04678421 |
| By: | Matheus C. Sampaio; Jose Renato Haas Ornelas |
| Abstract: | In this paper, we employ an instrument and individual-level banking data in Brazil to examine the effects of a novel payment technology, Pix, on the utilization of other payment technologies and its impact on the banking sector. We find evidence that Pix increases the usage of the four most common payment technologies in Brazil among individuals and firms. Furthermore, our empirical evidence suggests that Pix contributes to an increase in the number of bank accounts, their usage, and access to credit, benefiting different types of banks. The findings indicate that the implementation of new payment technologies yields advantages not only for firms and individuals but also for the broader banking and payment industry. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:600 |
| By: | Heitmayer, Maxi |
| Abstract: | Since the advent of social media, capturing and holding the attention of people has become paramount for the success of products, political messages and even research. The economics of attention is often seen as part of the market economy. We argue that a larger societal transformation is underway, which will see attention become the defining currency that moves individuals, exchanges, and many other elements of society. This paper connects the attention economy to the institutional foundations of modernity. It then discusses how attention can be accumulated and exchanged like a currency and proposes a dual-stream model distinguishing between calcified and flow attention. Based on this model, we investigate recent developments facilitating the use of attention as a currency, and their potential impact on our daily lives more generally. We conclude by providing an outlook and concrete questions for future research to understand where the economics of attention economy is heading. |
| Keywords: | attention economy; social media; systems theory; OUP deal |
| JEL: | J1 |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124333 |
| By: | Gonzalo Bohorquez; John Cartlidge |
| Abstract: | We propose that a tree-like hierarchical structure represents a simple and effective way to model the emergent behaviour of financial markets, especially markets where there exists a pronounced intersection between social media influences and investor behaviour. To explore this hypothesis, we introduce an agent-based model of financial markets, where trading agents are embedded in a hierarchical network of communities, and communities influence the strategies and opinions of traders. Empirical analysis of the model shows that its behaviour conforms to several stylized facts observed in real financial markets; and the model is able to realistically simulate the effects that social media-driven phenomena, such as echo chambers and pump-and-dump schemes, have on financial markets. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.00742 |
| By: | Bastian von Beschwitz |
| Abstract: | The international role of the Chinese renminbi has received increased attention recently as Chinese authorities push for increased international usage of the renminbi and Western sanctions on Russia potentially increase renminbi attractiveness. Some newspaper article headlines even imply that the renminbi is about to rival the U.S. dollar as the world's dominant international currency. |
| Date: | 2024–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-08-30-3 |
| By: | Vincent Meisner; Pascal Pillath |
| Abstract: | We design the profit-maximizing mechanism to sell an excludable and non-rival good with network effects. Buyers have heterogeneous private values that depend on how many others also consume the good. We characterize an algorithm that implements the optimal allocation in dominant strategies. We apply our insights to digital content creation, and we are able to rationalize features seen in monetization schemes in this industry such as voluntary contributions, community subsidies, and exclusivity bids. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.15196 |
| By: | Makoza, Frank |
| Abstract: | Agriculture subsidy programs increase participation of rural households in food security and nutrition improvement in Malawi. Digital technologies e.g. mobile application (App) and biometrical identification, electronic database have been integrated in implementation of Affordable inputs program (AIP) to support effectiveness and efficient delivery of the program. This paper analysed the effect of mobile network quality on the use of e-AIP redemption benefits app in AIP. The study analysed secondary data using content analysis. The findings showed that network availability was the main cause of network glitches that affected the use of mobile application for redeeming agricultural inputs. The network glitches created further challenges to the agricultural inputs subsidy beneficiaries and stakeholders. The include loss to time, promotion of corruption and late processing of transactions affecting overall goal of supporting food security. The study suggest areas of further research and recommendations for the telecommunications regulator to improve on measuring mobile network performance to include quality of user experience. |
| Keywords: | Affordable inputs subsidy, Mobile application, mobile network quality, Food security, Malawi |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:302572 |
| By: | Azzeddine Allioui (ESCA Ecole de Management, Morocco); Hanane Allioui (Ibn Tofail University, Morocco) |
| Abstract: | The article explores the challenges and success factors of digital transformation in family-owned enterprises, focusing on organizational theories, power dynamics, and the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) environment. It highlights the importance of adaptability, resource and competence orchestration, and the need for ongoing communication, cooperation, and staff training. The study also explores the role of technological surveillance, specialized digital consulting, and intelligence technology in digital ventures. It emphasizes the need for active participation, clear objectives, effective leadership, and ongoing oversight. The article concludes that success in the digital age requires strategic resource allocation, effective management of power dynamics, and an innovative organizational culture. |
| Keywords: | strategic management, family businesses, digital horizons, transformation |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0363 |
| By: | Agnès Helme-Guizon (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Jade Broyer (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Soffien Bataoui (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes); Mohamed-Ali Hakimi (University of Prince Mugrin) |
| Abstract: | In light of the impact of digitalization on healthcare, along with the scarcity of professionals and the escalating expenses associated with accessing care, digital tools such as chatbots (Woebot and Nuna) have been created to promote well-being through accessibility and continuous support, offering non-judgmental and cost-effective alternatives to professional care (Inkster et al., 2018; Lin et al., 2023). Among the factors that influence the effectiveness of these well-being chatbots, anthropomorphization-assigning human-like attributes, including gender-plays a critical role (Rapp et al., 2021). Previous studies have shown that gender stereotypes influence perceptions of chatbots. Female chatbots often appear more human and are better at meeting users' needs, potentially due to stereotypical associations of women with warmth and communal traits (Borau et al., 2021; Nass et al., 1994). These human attributes can enhance user interaction, leading to increased willingness to engage with the chatbot (Belanche et al., 2021). Despite extensive research in commercial settings, the impact of chatbot gender in non-commercial contexts, particularly well-being, remains underexplored (Borau et al., 2021).This study investigates how the gender of text-based chatbots affects users' perceptions of agency, communality, trust, and intention to use the chatbot for well-being purposes. It hypothesizes that female-gendered chatbots elicit more positive attitudes, greater trust, and higher intentions to use than male-gendered chatbots. Also, relying on the stereotype content model (SCM) (Fiske et al., 2007), the warmth and competence framework (Belanche et al, 2021;) and Novak and Hoffman's Assemblage Theory ( 2018), this research assumes that Female (male)-gendered chatbots are perceived more communal (agentic) than male-gendered chatbots. Agentic orientation involves instrumentality, dominance, and competence in the pursuit of individuating the self. Communal orientation involves cooperativeness, helpfulness, and trustworthiness. Finally, following Pitardi et al. (2022) or Zogaj et al. (2023), this research assumes that the congruence of chatbot and user genders leads to more favourable evaluations. MethodologyA total of 301 participants from the Prolific panel completed an online questionnaire, resulting in a final sample of 297 after excluding inconsistent responses. Participants were randomly assigned to interact with either a male-gendered or female-gendered chatbot. Gender was manipulated using names and avatars following Borau et al. (2021), ensuring correct gender assignment through pre-tests.Measures for agency and communality were adapted from Eyssel and Hegel (2012), while trust, attitude, and behavioral intentions were measured using scales from Pitardi and Mariott (2021), Borau et al. (2021), and Liu and Tao (2022), respectively. Data were analysed using SPSS (version 28). |
| Abstract: | De nombreux chatbots de bien-être sont disponibles sur le marché. Malgré le nombre croissant de publications, l'impact de leur genre reste peu étudié. La présente étude vise à examiner comment le genre des chatbots textuels influence la perception qu'ont les utilisateurs de l'agentivité et de la communalité des chatbots ainsi que la confiance et de l'intention d'utiliser le chatbot de bien-être. Dans le cadre d'une expérimentation basée sur un scénario, 297 participants ont été assignés de manière aléatoire à un chatbot genré masculin ou genré féminin. Les résultats ne montrent pas d'effet du genre sur l'agentivité ou la communalité, mais un effet positif important de l'agentivité et de la communalité sur la confiance, et de la confiance sur les attitudes et l'intention d'utiliser le chatbot. La présente étude permet d'affiner la compréhension de l'impact du genre sur les perceptions de l'agence et de la communalité d'un chatbot et fournit des recommandations pratiques pour assurer l'utilisation appropriée du genre du chatbot dans la poursuite de l'amélioration du bien-être des individus. |
| Keywords: | chatbot, well-being, agency, communality, trust, Bien-être, Agentivité, Communalité, Confiance |
| Date: | 2024–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04683739 |
| By: | Nwaobi, Godwin |
| Abstract: | As Africa’s major oil exporter and factor driven stage country, Nigeria has made some progress in socioeconomic terms in recent years. However, large pockets of Nigeria’s population still live in poverty without adequate access to basic services. Currently, Nigeria is capturing just as small fraction of its potential for digital development as a viable policy response. While the country has the requisite development oriented strategies, policies and regulations in place; there is still gap in terms of implementation monitoring and evaluation. Therefore, accelerating digital transformation of Nigerian firms requires critical enablers to ensure that policy framework is kept up to date and has suitable long term anchors. In other word, while the capacity to innovate and strengthen regulatory frameworks for digital business in crucial in attracting digital investments; these frameworks will be less effective without strong digital infrastructure and digitally skilled labor force. Consequently, this paper argued that Nigerian government and development partners should continue to support all enterprise firms in their pursuit of digital transformation – led growth and development so that new discoveries can work for us all. Specifically, the adoption of UNI-POD and Technology Incubation Centers as dynamic institutions (of innovation and creativity) to facilitate digital transformation processes of all Nigerian enterprises is highly recommended. |
| Keywords: | Digitization, Nigeria, Firms, Enterprise, Incubation, Unipod, Economy, Technology, Polices, Industries, Digital, Innovation, Creativity, Growth, Development, Artificial Intelligence, Strategy, Readiness, Networks, Competitiveness, Pillars, Infrastructures, Skills Platforms, Services, Financial, transformation, centres |
| JEL: | D02 D04 D2 D20 E23 E24 J46 J51 L0 L2 L4 L50 L6 L80 M0 M1 Q0 Q1 Q2 Q3 Q4 Q5 |
| Date: | 2024–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121833 |
| By: | Mayana Pereira; Shane Greenstein; Raffaella Sadun; Prasanna Tambe; Lucia Ronchi Darre; Tammy Glazer; Allen Kim; Rahul Dodhia; Juan Lavista Ferres |
| Abstract: | We build and analyze new metrics of digital usage that leverage telemetry data collected by Microsoft during operating system updates across forty million Windows devices in U.S. households. These measures of US household digital usage are much more comprehensive than those made available through any existing commercial or government survey. We construct representations of devices in ZIP codes and find evidence of significant variation in usage reflecting an urban-rural divide. We also show the existence of substantial disparities in usage even within narrowly defined Metropolitan Statistical Areas. Income and education correlate with these observed differences. These effects are large and suggest digital literacy gaps that extend beyond the availability of essential IT infrastructure at the local level. These findings call for interventions beyond the traditional focus on infrastructure access and address usage and skills development. The indices are made publicly available to support future research. |
| JEL: | C43 L63 L86 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32932 |
| By: | Vatansever, Berra |
| Abstract: | The rapidly growing literature on informality has demonstrated its effects on various aspects of countries' economies. This paper aims to build upon the existing literature on banknote denominations and informality by examining the relation between the value of the largest banknote denominations in countries (expressed in US dollars) and their GDP per capita, inflation rate, percentage of people using credit cards, and central bank independence index using cross-country data from 104 countries. This paper uses different methodologies such as plain correlation and least squares regression in order to find the correlation between the aforementioned variables. The results indicate a negative correlation between informal sector size and the value of the largest banknote denomination, suggesting that countries with larger informal sectors tend to have lower-value banknotes. In conclusion, this paper suggests that the informal sector is one of the underlying factors that explain why governments are averse to new larger banknote denominations and how this is related to the correlation between the informal sector percentage and the value of the largest banknote denomination in USD. Adding onto this, the paper also compares and contrasts the results of the observations obtained with the current literature on informality and banknote denominations. |
| Keywords: | informality; banknote denominations; credit card usage; GDP Per Capita; Inflation Rate |
| JEL: | E40 O17 O57 |
| Date: | 2024–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121957 |