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on Payment Systems and Financial Technology |
| By: | Patrick T. Harker |
| Abstract: | In his opening remarks at the Eighth Annual Fintech Conference, Philadelphia Fed President and CEO Patrick T. Harker spoke to the “always evolving” fintech landscape and the importance of “understand[ing] the full discussion” by inviting “all views into these conversations, so we can assure ourselves of actual progress that works for those of us in this room and also for consumers.” Harker noted that the conference extends beyond conversations about new technological developments in fintech, such as instant payment systems, stating that attendees “are not just talking about the changes in technologies but we’re also being forced to contend with the need to change the regulatory environment, as well.” Harker encouraged attendees to collaborate and discuss methods “that provide both an operational benefit to the financial system and a tangible benefit to the end-use consumers beyond convenience.” |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpsp:99023 |
| By: | Gustavo A. Del Angel (Department of Economics, CIDE) |
| Abstract: | Este artículo argumenta que las funciones del sistema financiero, y por extensión la inclusión financiera, son elementos relevantes en los procesos de movilidad social, principalmente movilidad social intergeneracional, ya sea movilidad ascendente o prevenir movilidad descendente. El argumento central de este artículo es que el sistema financiero puede contribuir de forma concreta a la movilidad social ascendente a través de dos canales. El primero, permite generar inversión en capital humano a través de ahorro, acumulación de activos y formación de un patrimonio. El segundo, es un ingrediente necesario para el emprendimiento, principalmente a través de financiamiento y de la formación de un patrimonio para realizar inversiones productivas. Este análisis permite vincular distintas áreas de investigación, la movilidad social, cuyos antecedentes provienen de la sociología y en el que la economía ha incursionado, y los estudios recientes de inclusión financiera. Esto nos permite crear un puente entre campos y disciplinas. Este trabajo provee evidencia empírica cuantitativa con un ejercicio descriptivo. Utilizando la encuesta ESRU EMOVI de México, se presenta evidencia para ese país de una relación positiva entre uso de servicios financieros y mayor movilidad social intergeneracional. Esto es, hijos de padres con acceso a los servicios financieros, tuvieron mayor movilidad social ascendente. |
| Keywords: | financial inclusion, social mobility, development, financial system |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte643 |
| By: | Xinyu Li |
| Abstract: | This paper explores how ad platforms can utilize Bayesian persuasion within blockchain-based auction systems to strategically influence advertiser behavior despite increased transparency. By integrating game-theoretic models with machine learning techniques and the principles of blockchain technology, we analyze the role of strategic information disclosure in ad auctions. Our findings demonstrate that even in environments with inherent transparency, ad platforms can design signals to affect advertisers' beliefs and bidding strategies. A detailed case study illustrates how machine learning can predict advertiser responses to different signals, leading to optimized signaling strategies that increase expected revenue. The study contributes to the literature by extending Bayesian persuasion models to transparent systems and providing practical insights for auction design in the digital advertising industry. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.07392 |
| By: | Martine Warren; Bill Laur; Ted Garanzotis; Sebastian Hernandez |
| Abstract: | Research into a hypothetical Digital Canadian Dollar has largely focused on public policy, financial technology innovations and public opinion. In this study, we explore the consumer value proposition of a hypothetical Digital Canadian Dollar, considerations for its adoption and the users who would benefit most from this potential new payment method. We employ a design-thinking consultation methodology, allowing participants to interact with research prototypes of increasing complexity to reveal user preferences, constraints, and adoption influences. Qualitative insights are corroborated using quantitative, large-population surveys and contrasted with results from a Bank of Canada open online public consultation. We find that most participants would support the issuance of a hypothetical Digital Canadian Dollar, and we identify the segments most likely to be early adopters. However, broad early adoption is unlikely given that available payment methods meet the needs of most users. Financially vulnerable segments often have the most to gain from this new payment method but are most resistant to adoption. Important considerations for appeal and adoption potential include universal merchant acceptance, low costs, easy access, simplified online payments, shared payment features, budgeting tools, and customizable security and privacy settings. Participants cited these features far more often than offline functionality and the ability to make anonymous payments. Our results also show that cash remains an important method of payment and that certain groups may strongly resist a Digital Dollar if they conflate its launch with the end of cash issuance. We find a hypothetical Digital Canadian Dollar requires the support of an information campaign to be understood, valued and adopted. |
| Keywords: | Accessibility; Bank notes; Central bank research; Digital currencies and fintech |
| JEL: | C9 D12 E42 E58 O3 O33 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:24-16 |
| By: | Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Verwendung neuer Technologien und IKT-Beschäftigung in österreichischen Unternehmen Ein Überblick This publication is available in German language only. For a brief English summary see further below. Dieser Bericht vermittelt einen Überblick über Erhebungen zur Verwendung von Informations- und Kommunikationstechnologien (IKT) sowie zur Anwendung neuer Technologien auf Firmenebene. Konkret werden die Ergebnisse der IKTU-Erhebungen der Statistik Austria für die Jahre 2015-2022 ausgewertet und zusammengefasst. Der Bericht gibt Aufschluss darüber, wie viele Unternehmen neue Technologien verwenden, welche Probleme dem Einsatz neuer Technologien entgegenstehen und warum manche Unternehmen auf den Einsatz neuer Technologien verzichten. Der in der Erhebung untersuchte Technologieeinsatz umfasst beispielsweise die Verwendung von Computern und Internet, die Kommunikation über Internet und soziale Medien, die Verwendung von Robotik, 3D-Druck und künstlicher Intelligenz sowie den Einsatz von E-Business, Big-Data-Analysen und Cloud-Services. Außerdem werden Aspekte wie die Beschäftigung von IKT-Spezialist innen sowie das Angebot von IKT Schulungen in unterschiedlichen Firmengruppen beleuchtet. Use of new technologies and ICT employment in Austrian companies An overview This report provides an overview of surveys on the use of information and communication technologies (ICT) and the use of new technologies at company level. Specifically, the results of the ICT surveys conducted by Statistics Austria for the years 2015-2022 are analysed and summarised. The report provides information on how many companies use new technologies, what problems prevent the use of new technologies and why some companies refrain from using new technologies. The use of technology examined in the survey includes, for example, the use of computers and internet, communication via the internet and social media, the use of robotics, 3D printing and artificial intelligence as well as the use of e-business, big data analyses and cloud services. Aspects such as the employment of ICT specialists and the provision of ICT training in various groups of companies are also highlighted. Analyse der österreichischen IKT-Landschaft https //ict-and-microdata.wiiw.io |
| Keywords: | Informations- und Kommunikationstechnologie, neue Technologien, Firmenanalyse |
| JEL: | O33 O5 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wii:spaper:statr:12 |
| By: | Henri-Louis Vedie |
| Abstract: | Cette étude est consacrée à la faillite de FTX, considérée comme la deuxième plateforme mondiale d’échanges des cryptomonnaies, derrière Binance, avant l’annonce de sa faillite en novembre 2022. Annonce qui va être un véritable coup de tonnerre, les ébranlant très sérieusement. Après avoir rappelé l’indispensable à connaitre des cryptomonnaies et de leurs plateformes d’échange, l’étude rappelle l’historique d’une faillite arrivant au pire moment, avec des cours du bitcoin qui s’effondrent depuis octobre 2021, fragilisant encore davantage des plateformes d’échange déjà sous surveillance. Elle met aussi en évidence la personnalité contrastée de celui qui l’a créée, Samuel Banking-Fried, insistant sur l’ampleur d’une faillite où tout va se jouer en une semaine. Faillite facilitée par les asymétries d’informations qui caractérisent ce marché et par l’opportunisme de ses acteurs qui les utilisent. Ce que révèle l’existence d’une caisse noire de la chaine de Ponzi FT X /Alameda Research /. Cette faillite conforte le caractère hautement spéculatif des cryptomonnaies, les éloignant chaque jour davantage de ce qu’elles aspiraient à être : une cryptomonnaie refuge attractive pour les banques centrales. Cette faillite, enfin, souligne l’urgence de la régulation, si on ne veut que cela se renouvelle. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_27-23 |
| By: | Mima Sefrina |
| Abstract: | The rapid development of the digital economy in ASEAN offers broad economic and societal opportunities but also accentuates disparities between urban and rural areas, large enterprises and SMEs, and various segments of the population. While inclusiveness has been a priority on ASEAN's agenda, there is room for improvement. The concept of an inclusive digital economy in ASEAN should extend beyond broadband connectivity and necessitates a precise definition through quantifiable measures. Identifying the key elements of exclusion and inclusion as a strategic approach to effectively address inclusiveness issues is essential to understand the barriers hindering the achievement of an inclusive digital economy. There is also a need to identify specific populations, understand their characteristics, and address their needs for inclusion in the digital economy. A robust, region-specific data system that is accessible to the public is critical. In ASEAN, an inclusive digital economy underscores the need to address digital skills, gender inequality, digital finance, and the empowerment of MSMEs as key economic drivers in ASEAN. |
| Keywords: | Inclusive, ASEAN, Inclusive Digital Economy, Digital Economy, MSMEs, Broadband Connectivity, Digital Finance, Gender Disparities, Digital Skills, Internet Speed, Urban and Rural Divide, Digital Divide, Broadband Affordability |
| JEL: | O20 O38 |
| Date: | 2024–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-33 |
| By: | Di Lizia, Adam (Department of Economics, University of Warwick) |
| Abstract: | How does social influence affect consumer ratings? Using a dataset from the popular Steam gaming platform I investigate how quality judgements depend on pre-existing consumer assessments. In 2019, Steam introduced a new review system which decreased the exposure of users to previous ratings. Firstly, I find that user ratings are dependent on average ratings. A 10 percent increase in average rating increases the probability a review is positive by 5.4% before the policy change, but only by 2.8% after. The result is not due to selection, and is robust to a wide range of alternative specifications. Secondly, the effect is heavily asymmetric: individual reviewers are more negative when exposed to a lower average rating, but do not respond to a higher one. This negativity compounds and inflates the gap between lower rated and higher rated games. Overall, these social influence effects are driven by less experienced users on the platform. Finally, using estimates of owner data, I run a structural model of game choice. A 1% increase in rating is equivalent to a 2.5 dollar price reduction. This suggests social influence has large implications for buyers and sellers. |
| Keywords: | JEL Classification: |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:714 |
| By: | Andrey Urusov (Vega Institute Foundation; Faculty of Applied Mathematics Physics and Information Technologies Chuvash State University); Rostislav Berezovskiy (Vega Institute Foundation; International Laboratory of Stochastic Analysis and its Applications HSE University); Yury Yanovich (Skolkovo Institute of Science and Technology; Faculty of Computer Science HSE University) |
| Abstract: | Decentralized finance (DeFi) has revolutionized the financial landscape, with protocols like Uniswap offering innovative automated market-making mechanisms. This article explores the development of a backtesting framework specifically tailored for concentrated liquidity market makers (CLMM). The focus is on leveraging the liquidity distribution approximated using a parametric model, to estimate the rewards within liquidity pools. The article details the design, implementation, and insights derived from this novel approach to backtesting within the context of Uniswap V3. The developed backtester was successfully utilized to assess reward levels across several pools using historical data from 2023 (pools Uniswap v3 for pairs of altcoins, stablecoins and USDC/ETH with different fee levels). Moreover, the error in modeling the level of rewards for the period under review for each pool was less than 1\%. This demonstrated the effectiveness of the backtester in quantifying liquidity pool rewards and its potential in estimating LP's revenues as part of the pool rewards, as focus of our next research. The backtester serves as a tool to simulate trading strategies and liquidity provision scenarios, providing a quantitative assessment of potential returns for liquidity providers (LP). By incorporating statistical tools to mirror CLMM pool liquidity dynamics, this framework can be further leveraged for strategy enhancement and risk evaluation for LPs operating within decentralized exchanges. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.09983 |
| By: | Liang, Pauline (Stanford U); Sampaio, Matheus (Northwestern U); Sarkisyan, Sergey (Ohio State U) |
| Abstract: | We examine the impact of digital payments on the transmission of monetary policy by leveraging administrative data on Brazil's Pix, a digital payment system. We find that Pix adoption diminished banks' market power, making them more responsive to changes in policy rates. We estimate a dynamic banking model in which digital payments amplify deposit demand elasticity. Our counterfactual results reveal that digital payments intensify the monetary transmission by reducing banks' market power-banks respond more to policy rate changes, and loans decrease more after monetary policy hikes. We find that digital payments impact monetary transmission primarily through the deposit channel. |
| JEL: | E42 E52 G21 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:ohidic:2024-14 |
| By: | Christian de Boissieu |
| Abstract: | Faced with the rise of cryptocurrencies, central banks are responding by launching their digital currencies. The purpose of this Policy Brief is to provide an update on the preparation of central bank digital currencies (CBDs) by monetary authorities, a process that concerns all emerging, developing, and more advanced countries. It is also about analyzing the conditions and some of the consequences (for banks, for financial inclusion, for the conduct of monetary policy...) of such a financial innovation, systematically distinguishing between wholesale and retail CBDCs. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbtrad:pb_19_23 |
| By: | Cyril Chambefort (Université Jean Monnet Saint-Etienne, CNRS, Université Lumière Lyon 2, emlyon business school, GATE, 69007, Lyon, France); Magali Chaudey (Université Jean Monnet Saint-Etienne, CNRS, Université Lumière Lyon 2, emlyon business school, GATE, 69007, Lyon, France) |
| Abstract: | The paper studies DAOs (Decentralized Autonomous Organizations), which are based on blockchain technology, emphasizing that they rely on a complex, multi-level trust framework that extends beyond purely technological trust. We define DAOs as digital blockchain-based organizations powered by open virtual networks of contributors. Their coordination and management are decentralized, without any central control. This structure allows peers to work autonomously on a token-based system of on-chain coordination, where rules are self-executed using smart-contracts and off-chain coordination mechanisms. The study of DAOs reveals the emergence of a particular form of trust, “trust in code”. Our contribution is threefold: First, we provide an empirical study of Uniswap DAO, the largest decentralized finance network. Secondly, we demonstrate that a complementarity exists in the notion of trust production in such networks, which includes trust in technology, but also personal trust developed outside the blockchain. Finally, the study of this particular network, combining multi-level trust, leads us to explore approaches in terms of social capital. Our description of the Uniswap network suggests that it both requires and enables the accumulation of social capital, in its relational, structural, and cognitive dimensions. |
| Keywords: | Blockchain, Smart-contract, DAO (Decentralised Autonomous Organisation), Uniswap, Trust |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2416 |
| By: | Abdelaziz, Fatma; Abay, Kibrom A. |
| Abstract: | Digital innovations hold significant potential to address multiple forms of market failures. However, their adoption remains low and heterogenous across Africa. Smallholder farmers face significant barriers in accessing essential information, limiting their ability to seize market opportunities and enhance profitability. While numerous digital tools have been developed for farmers in the region, most are still in pilot phases. The landscape of digital agricultural innovations in Egypt, the focus of this study, presents a similar outlook, whereby the Egyptian market has an array of innovative digital study, presents a similar outlook, whereby the Egyptian market has an array of innovative digital agricultural tools that offer different services to farmers (including digital advisory agricultural and market services). Several demand and supply-side factors contribute to the low adoption of these digital innovations and their disparities among smallholder farmers in Africa and Egypt. On the supply side, the most important challenges include inadequate public and private investment in complementary infra-structure, unsustainable business models, and a misalignment in the pace of innovation. The most important demand-side challenges include lack of digital literacy, insufficient context-specific needs assessments, digital divide, and accessibility, usability, and user trust. User confidence and trust in digital tools is another important but understudied topic.. However, we lack empirically grounded evidence on alternative supply and demand-side interventions to enhance the adoption and scaling of digital innovations in various contexts, including Egypt. |
| Keywords: | agricultural technology; digital agriculture; digital innovation; smallholders; Africa; Eastern Africa; Northern Africa; Egypt |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:prnote:152495 |
| By: | Seyedeh Fatemeh Mottaghi; Bertram Steininger |
| Abstract: | Based on real estate token data, we investigate the long-term relationships between real estate tokens, other real estate investment vehicles, and asset classes (i.e. equities, bonds). Employing not only the conventional cointegration method but also a sophisticated analysis employing COINtensity VECM, specifically tailored for examining complex and dynamic relationships within financial markets. Our findings show the quantitative dynamics of how this novel investment vehicle interfaces with established assets. This research strives to offer fresh perspectives into the transforming investment landscape of traditional assets coexisting with tokenized real estate assets, emphasizing the potential impact and role of real estate tokens in the evolving financial environment. |
| Keywords: | blockchain; Cointegration; Real Estate Tokens; VECM |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-096 |
| By: | Henri-Louis Vedie |
| Abstract: | En 2023, et selon le think tank américain « Atlantic Council », 114 pays ont engagé une réflexion sur La Monnaie numérique de banque centrale (MNBC). Cette réflexion concerne la MNBC de gros, visant à repenser l’interbancarité et la MNBC de détail, celle que la Chine développe avec un succès certain depuis 2014 avec son e yuan, réservé aujourd’hui au seul marché intérieur chinois, en attendant mieux. L’objet de ce Policy Brief est, tout d’abord, de rappeler que les MNBC ne sont ni une monnaie électronique ni un crypto actif, mais une monnaie plurielle. Il se propose, ensuite, et à partir de données du Fonds monétaire international (FMI) et de la Banque des règlements internationaux (BRI), de procéder à une approche, globale et statistique, du nombre de banques centrales et de pays concernés. Enfin, cette approche est complétée par l’exploitation spatiale de données précisant les pays concernés, leurs banques centrales respectives, leur préférence pour une MNBC de gros et/ ou de détail etc. L’approche globale et statistique montre que : si les MNBC progressent en nombre, de façon spectaculaire entre 2018-2022, 80 % des banques sondées sont toujours au stade d’étude de faisabilité ou de la recherche, et qu’elles sont très majoritairement concernées par des MNBC de détail. L’approche spatiale, regroupant 49 pays, confirme cet engouement et cette préférence. Elle montre également un écosystème MNBC diversifié et guère homogène. Ce qui explique pourquoi, si la révolution monétaire est bien en marche, cette marche est des plus contrastées. Elle confirme enfin un temps d’avance pour un pays, la Chine, et pour un continent, l’Asie. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_22-24 |
| By: | Jeanne Mouton (Université Côte d'Azur, CNRS, GREDEG, France; European Commission); Benoit Rottembourg (Inria, Regalia) |
| Abstract: | In a global context where competition authorities are investigating and sanctioning Amazon's marketplace for practices of self-preferencing at the expense of their business users and consumers (Italian AGCM 2021, EU Commission 2022, UK CMA 2024, US FTC on-going since 2023), we observe a trend of imposing remedies on dominant players in digital markets. In addition, the Digital Market Act, shifting from an ex-post enforcement approach to ex-ante obligations on designated gatekeepers, is strengthening auditing power over these gatekeepers, which risk heavier penalties in the event of non-compliance. Therefore, competition authorities and regulators need tools to audit the compliance of these dominant players in the e-commerce sector over the obligations and remedies they are imposing on dynamic, and personalized algorithms. Most of these algorithms embed Machine-Learning components, introducing opacity and potentially biases in the decision-making process. The aim of the paper is to explore the benefits of using black-box auditing techniques to provide insights into the behavior of these online algorithms. We anchor our research in the literature of product prominence from vertically integrated players, of choice ranking, and of the specific literature related to Amazon search ranking, automatic pricing and Buy Box 's algorithms. Through a study of the pricing and ranking of several thousand products on Amazon, from 2017 to 2023, we illustrate the potential of surrogate models. While our dataset only covers some categories on Amazon.fr, the large number of competitions allowed us to demonstrate, with a 94% accuracy, that the variable is Amazon, or variables correlated to it, had a positive effect on winning Buy Box before mid-2022, and that this positive effect has decreased after mid-2022. In our research, the machine learnings models revealed a significantly higher degree of accuracy and sensitivity compared to a logistic regression, opening the discussion on the added value and role of surrogate models based on machine learning techniques in guiding the auditor, as well as raising the question of their probative value in the regulatory context. |
| Keywords: | algorithms, ranking algorithms, digital markets, online marketplace, competition law, audit, machine learning |
| JEL: | K21 L41 L51 L81 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-27 |
| By: | Altangadas Altankhuyag; Björn-Martin Kurzrock |
| Abstract: | The increasing dominance of big tech companies has resulted in a surge of digital platformisation across various industries, including real estate. According to the annual PropTech Germany study, as an example, around 33% of PropTechs reported using a platform as their fundamental technology and business model in 2023. In 2021, the share was even 69%. The real estate sector in the DACH region has few dominant platform structures, particularly in the B2B market.The platform economy has the potential for significant disruption across sectors. Its characteristics can lead to oligopolistic market structures, especially if indirect network effects are used and a critical mass of users is reached by solving the chicken-and-egg problem. Academic research has examined individual success factors of digital platforms. However, this research has often been limited to qualitative analyses.This paper aims to fill a research gap in the literature by using extensive datasets to identify the success factors of digital platforms. The study focuses on examining individual characteristics of platform features that are still lacking in the scientific community, using a quantitative approach. Two different panel datasets from the Proptech industry in the DACH region will be analysed. The first stage involves developing hypotheses about the factors that contribute to success and identifying different clusters of digital platforms within the real estate industry. This will be done analytically, based on the first panel dataset and relevant literature. The second panel dataset will then be used to test these hypotheses quantitatively by incorporating individual characteristics of platform features. Results will be derived for the DACH region. The methodological design and suggestions will also be relevant for further international studies.This working paper is designed for the ERES PhD sessions. The discussion will focus on the study's initial empirical results and methodological design. |
| Keywords: | Digital Transformation; Platform economy; proptech; Success Factors |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-190 |
| By: | Dwipam Katariya; Juan Manuel Origgi; Yage Wang; Thomas Caputo |
| Abstract: | Users engage with financial services companies through multiple channels, often interacting with mobile applications, web platforms, call centers, and physical locations to service their accounts. The resulting interactions are recorded at heterogeneous temporal resolutions across these domains. This multi-channel data can be combined and encoded to create a comprehensive representation of the customer's journey for accurate intent prediction. This demands sequential learning solutions. NMT transformers achieve state-of-the-art sequential representation learning by encoding context and decoding for the next best action to represent long-range dependencies. However, three major challenges exist while combining multi-domain sequences within an encode-decoder transformers architecture for intent prediction applications: a) aligning sequences with different sampling rates b) learning temporal dynamics across multi-variate, multi-domain sequences c) combining dynamic and static sequences. We propose an encoder-decoder transformer model to address these challenges for contextual and sequential intent prediction in financial servicing applications. Our experiments show significant improvement over the existing tabular method. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.12825 |
| By: | Heng Chen; Daneal O’Habib; Hongyu Xiao |
| Abstract: | This paper introduces a subjective measure of cash accessibility in Canada, complementing existing distance-based metrics developed by Chen, O’Habib and Xiao (2023). Analyzing data from the 2023 Methods-of-Payment Survey, this study explores how Canadians perceive their ease of accessing cash from automated banking machines (ABMs) and financial institution branches. The results reveal strong alignment between subjective perceptions and distance-based metrics, with most Canadians reporting easy access to cash sources. Those who reported lower perceived cash accessibility need to travel longer distances and tend to be young, university-educated, low-income, unemployed or cashless. |
| Keywords: | Financial services; Regional economic developments |
| JEL: | O1 J15 R51 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:24-24 |
| By: | Lars Hornuf; Maximilian Meiler |
| Abstract: | We examine the technological and socioenvironmental factors influencing the adoption of humanoid service robots in Austrian, German, and Swiss banks. We integrate the technology acceptance model and the technology–organization–environment framework, and employ structural equation modeling to analyze data from the top management of 106 banks. We find that the relative advantage of the innovation, top management support, competitive pressure, and customer acceptance drive the perceived usefulness of humanoid service robots. Moreover, customer acceptance significantly enhances perceived ease of use by the bank. Together, perceived usefulness and perceived ease of use significantly increase banks’ intention to adopt humanoid service robots. However, the actual adoption rate of humanoid service robots in banks remains low, indicating the presence of underlying barriers to adoption such as lack of organizational readiness, technical limitations, and regulatory concerns, which are especially relevant for smaller banks with limited resources. Furthermore, some banks perceive humanoid service robots as fascinating novelties rather than essential operational tools. As a result, banks are actively exploring alternatives such as digital avatars, chatbots, and voice bots for certain tasks while continuing to prioritize human-to-human interactions for non-online customer services. |
| Keywords: | humanoid service robots, technology adoption, banking industry |
| JEL: | L84 O32 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11366 |
| By: | Timothy DeStefano; Nick Johnstone; Richard Kneller; Jonathan Timmis |
| Abstract: | The arrival of cloud computing provides firms a new way to access digital technologies as digital services. Yet, capital incentive policies present in every OECD country are still targeted towards investments in information technology (IT) capital. If cloud services are partial substitutes for IT investments, the presence of capital incentive policies may unintentionally discourage the adoption of cloud and technologies that rely on the cloud, such as artificial intelligence (AI) and big data analytics. This paper exploits a tax incentive in the UK for capital investment as a quasi-natural experiment to examine the impact on firm adoption of cloud computing, big data analytics and AI. The empirical results find that the policy increased investment in IT capital as would be expected; but it slowed firm adoption of cloud, big data and AI. Matched employer-employee data shows that the policy also led firms to reduce their demand for workers that perform data analytics, but not other types of workers. |
| Keywords: | capital incentives, firms, cloud computing, artificial intelligence |
| JEL: | J21 J24 L20 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11369 |
| By: | Mehdi Hosseini Chagahi; Niloufar Delfan; Saeed Mohammadi Dashtaki; Behzad Moshiri; Md. Jalil Piran |
| Abstract: | Detecting credit card fraud (CCF) holds significant importance due to its role in safeguarding consumers from unauthorized transactions that have the potential to result in financial detriment and negative impacts on their credit rating. It aids financial institutions in upholding the reliability of their payment mechanisms and circumventing the expensive procedure of compensating for deceitful transactions. The utilization of Artificial Intelligence methodologies demonstrated remarkable efficacy in the identification of credit card fraud instances. Within this study, we present a unique attention-based ensemble model. This model is enhanced by adding an attention layer for integration of first layer classifiers' predictions and a selection layer for choosing the best integrated value. The attention layer is implemented with two aggregation operators: dependent ordered weighted averaging (DOWA) and induced ordered weighted averaging (IOWA). The performance of the IOWA operator is very close to the learning algorithm in neural networks which is based on the gradient descent optimization method, and performing the DOWA operator is based on weakening the classifiers that make outlier predictions compared to other learners. Both operators have a sufficient level of complexity for the recognition of complex patterns. Accuracy and diversity are the two criteria we use for selecting the classifiers whose predictions are to be integrated by the two aggregation operators. Using a bootstrap forest, we identify the 13 most significant features of the dataset that contribute the most to CCF detection and use them to feed the proposed model. Exhibiting its efficacy, the ensemble model attains an accuracy of 99.95% with an area under the curve (AUC) of 1. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.09069 |
| By: | Daniel Liebau |
| Abstract: | This study explores the potential future impact of Decentralized Finance (DeFi) on the financial services industry and the competencies financial professionals will require in a decade from now, in 2034. Using a survey of 109 experts from industry, academia, and regulatory bodies, the research highlights growing confidence in DeFi's potential to reshape critical areas such as risk management and operations. Over 40% of respondents anticipate high levels of DeFi adoption by 2034, with industry practitioners expressing the greatest optimism. However, the study identifies critical issues that need to be addressed, particularly in the areas of data management & privacy, and security. These concerns, alongside regulatory challenges, underscore the need for financial institutions to prepare carefully. The findings also suggest that strategic competencies, sector-specific domain expertise, and technological skills will become increasingly vital. The insights offered are valuable for regulators, policymakers, and industry professionals, emphasizing the need for continuous upskilling to remain competitive in an evolving financial services landscape. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.14173 |
| By: | Meling, Tom (Ohio State U); Mogstad, Magne (U of Chicago); Vestre, Arnstein (U of Chicago) |
| Abstract: | We quantify the extent of crypto tax noncompliance and evasion, and assess the efficacy of alternative tax enforcement interventions. The context of the study is Norway. This context allows us to address key measurement challenges by combining de-anonymized crypto trading data with individual tax returns, survey data, and information from tax enforcement interventions. We find that crypto tax noncompliance is pervasive, even among investors trading on exchanges that share identifiable trading data with tax authorities. However, since most crypto investors owe little in crypto-related taxes, enforcement strategies need to be well-targeted or cheap for benefits to outweigh costs. |
| JEL: | G10 G50 H20 H26 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:ohidic:2024-13 |
| By: | Andrea Delle Foglie; Massimo Biasin |
| Abstract: | Smart Cities are urban areas that leverage technological solutions to enhance the management and efficiency of traditional networks for the benefit of their residents and businesses. This paper presents a systematic literature review based on the SPAR-4-SLR protocol, aimed at analyzing the literature and the progress in Smart Cities research. It specifically focuses on the impact of blockchain technology on the urban environment and its potential to contribute to the development of inclusive and sustainable communities, including financial systems with similar characteristics to serve these societies. The findings reveal a lack of research on practical applications of Distributed Ledger Technologies (DLTs) and blockchain in developing the financial ecosystem of Smart Cities. To address this gap, a future research agenda is proposed, highlighting several research questions that could be useful for academics and practitioners interested in exploring the development of Smart Cities' financial systems. It also highlights the potential of blockchain technology for the real estate market, which is a crucial component of urban organization in smart city constructions. Blockchain can provide a secure and transparent land registry system that reduces fraud, streamlines property transactions, and enhances land management. Therefore, research is needed to develop blockchain-based solutions for land registration, title verification, and property taxation in smart city governance. |
| Keywords: | Distributed Ledger Technologies; real estate; Smart Cities; Sustainable urban environment |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-209 |
| By: | Yoga Affandi (Bank Indonesia); Masagus M. Ridhwan (Bank Indonesia); Irwan Trinugroho (Universitas Sebelas Maret); Danny Hermawan (Bank Indonesia) |
| Abstract: | This study investigates the factors affecting digital adoption by ultra-micro, micro, and small enterprises (UMSEs) based on a survey of 5, 035 UMSEs in 17 major provinces in Indonesia. Utilizing the survey data, we also construct a digital adoption index that can be used to evaluate the regional adoption level variations. The result shows that several factors notably owner demographic characteristics, firm-specific factors, business environment, connectivity infrastructure quality, and culture are associated with the disparity in digital adoption by UMSEs. Our finding also shows a positive and significant correlation between digital adoption on business performance (sales growth). We further found strong evidence of the impact of digital adoption on the level of financial literacy of UMSEs’ owners. The latter result suggests that improving digital adoption among micro businesses (UMSEs) could be a lever to enhance their financial literacy. All in all, these findings suggest the vital role of digital transformation for micro-businesses in achieving growth and competitiveness in the global market, undoubtedly requiring robust support from policymakers. |
| Keywords: | Digital Adoption, Ultra-Micro, Micro and Small Enterprises, Firm Performance, Financial Literacy. |
| JEL: | L25 O33 R11 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp132023 |