scholarly journals International financial fraud: economic and psychological aspects, classification and ways of minimization

2021 ◽  
Vol 189 (5-6(1)) ◽  
pp. 15-25
Author(s):  
Elena Gryazeva ◽  
◽  
Olga Mayorova ◽  
Natalia Malchikova ◽  
Maria Nemkova ◽  
...  
Keyword(s):  
Public Relations ◽  
Financial Services ◽  
Information Technologies ◽  
Business Processes ◽  
Banking Sector ◽  
Global Scale ◽  
Economic Behavior ◽  
Financial Fraud ◽  
Negative Experience ◽  
Corporate Fraud

The active use of the latest information technologies and non-cash payment forms has led to an increase in various types of fraud in the financial sector. Moreover, virtually all spheres of public relations now fall under the risk of fraudulent schemes, starting from financial credit and insurance and ending with foreign economic activity and the Internet. In addition, some other economic factors contribute to the significant spread of fraudulent schemes in modern conditions: a wide variety of new financial instruments (types of money, securities, financial services); rapid growth in financial transactions; leveling barriers to the unhindered movement of money, goods, and services in the process of globalization, which provokes an increase in transnational financial crime. Therefore, in search of tools to preserve existing and generate potential income, especially trusting investors fall into the traps of scammers. With the development of the current economic institutionalism, the principle of rationality in human economic behavior was no longer considered absolute, therefore, representatives of the institutional theory noted the irrational nature of human behavior, including in the field of economics and finance. Modern reality and economic practice are clear evidence of the truthfulness of this thesis. After all, despite the constant warnings of the mass media and other sources regarding various fraudulent schemes, as well as (paradoxically) often their own negative experience, citizens continue to invest in various kinds of fraudulent schemes. According to experts, the main reason is that «people will always strive for «easy» money, and it is unlikely that this desire will ever disappear» (Bruton, 2015). In this paper, we study the possibilities of preventing financial fraud on an international scale. In the context of the complexity of modern business processes, one of the most urgent problems has become the problem of activating the manifestations of corporate fraud. On average, companies lose about 5% of their profits due to corporate fraud, and the annual losses from such economic crimes amount to about USD 4 trillion on a global scale. In Russia, this figure reaches 15% (and we are talking only about losses made public by companies). The lion’s share of fraudulent schemes falls on the banking sector. The implementation of fraudulent schemes in the banking sector has certain features, in particular: fraudulent actions cause damage not only to banks and their depositors, but also negatively affect the stability of the financial system as a whole; such crimes are characterized by high latency, since managers, fearing for the business reputation of their bank, only in isolated cases turn to law enforcement agencies with appropriate statements; identifying the facts of financial fraud is very difficult since fraudsters (often not without the help of bank managers) hide their actions in every possible way and take measures to launder funds obtained by criminal means.

scholarly journals Transformation of digitalization system of business processes at VTB Bank, PJSC

2021 ◽  
Vol 2021 (2) ◽  
pp. 70-79
Author(s):  
Viktoria Valerievna Mandron ◽  
Nikita Sergeevich Budaev ◽  
Alice Aleksandrovna Pototskaya ◽  
Tatiana Nikolaevna Sidorina
Keyword(s):  
Financial Services ◽  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Financial Institution ◽  
Block Diagram ◽  
It Architecture ◽  
The People ◽  
Technological Platform

The article is focused on the increasing role of modern information technologies in banking sector. Today, the informatization process includes not only developing a safe and modern infrastructure, networks, data processing centers, but also creating the so-called digital economy on the basis of this infrastructure, which will bring new sources of income to the state and the people. The banking sector of the Russian Federation is most actively involved in the process of solving this problem. The development of automated business processes in VTB Bank (PJSC) is considered in detail. There is presented an overview of the bank's information technologies in such key areas as artificial intelligence, big data analysis, machine learning, virtual and augmented reality, optical recognition, robotics, robotization of process, blockchain, and chat bots. The dynamics of the main indicators of a financial institution activity is analyzed, an assessment of indicators characterizing the dynamics of changes in capital, net profit and profitability of the bank is presented. It has been stated that the strategic directions for the development of business processes in VTB Bank (PJSC) are constructing an advanced operational and technological platform, increasing the level of digitalization of the banking business, leadership in the financial services market in a number of ecosystems, developing a highly productive organization and culture, as well as growing the customer-centricity of business models. The block diagram of the VTB Bank transformation for 2020–2022 and the target version of the IT architecture of the bank have been illustrated. Changes in the IT architecture are one of the stages of the bank's digital transformation strategy. According to the objectives of the strategy of VTB Bank (PJSC), 100% of financial services should become available to customers online.

scholarly journals FINANCIAL FRAUD IN COMMERCIAL BANKS OF UKRAINE. WAYS OF CONTROL IN THE FIELD OF CASHLESS OPERATIONS

2021 ◽  
Author(s):  
Irina Godniuk ◽  
◽  
Inna Shubenko ◽  
Angeliia Volska ◽  
◽  
...  
Keyword(s):  
Public Relations ◽  
Commercial Banks ◽  
Information Technologies ◽  
Banking Sector ◽  
Social Engineering ◽  
The State ◽  
Financial Fraud ◽  
Financial Security ◽  
Role Of The State ◽  
Banking Institutions

The development of non-cash forms of payment, the introduction of bank cards, Internet resources in the field of payments, is a characteristic feature of everyday life. In 2020–2021, due to quarantine measures, Ukrainians increasingly began to choose non-cash payments, payments and online purchases. The active use of the latest information technologies has led to the growth of various manifestations of fraud in the field of public relations, ranging from financial and credit and ending with foreign economic activity and the Internet. Financial fraud, which is a system of relations in the field of money circulation and financial obligations, the purpose of which is to misappropriate the financial resources of banks and/or their customers by deceiving or abusing the trust or position of citizens/employees of banking institutions. The imperfect legal system contributes to the fact that the state continues to actively implement various fraudulent schemes. It has been established that the main type of fraud in the banking sector is payment card fraud. The most common types of fraudulent transactions with bank cards are considered. Based on the analysis of the consequences of cyber-fraud, which occur in the use of payment instruments by banks, it is determined that the most vulnerable place is the client himself, who under the influence of various methods of social engineering becomes the object of fraud. Based on statistical data, the dynamics of the number and structure of crimes related to financial fraud in Ukraine is analyzed and the high level of their latency is emphasized. Emphasis is placed on the important role of the state in overcoming this negative phenomenon. Ensuring the effective functioning of commercial banks, the proper level of their financial security is impossible without the formation and implementation of an effective system for detecting and preventing financial fraud in banking institutions. Analyzing the modern security system, simple rules for using software and electronic payment systems, which are used all over the world, have been introduced. There are also ways to combat financial fraud in general and bank card transactions in particular, which has a positive effect on improving the financial security of a commercial bank.

scholarly journals The Determinants of the use of Mobile Banking in Africa

2018 ◽  
Vol 1 (1) ◽  
pp. p245
Author(s):  
Alain T. SAWADOGO ◽  
Ndilengar MBATINA Nodji
Keyword(s):  
Financial Services ◽  
Information Technologies ◽  
Banking Sector ◽  
Credit Cards ◽  
Mobile Banking ◽  
Vending Machines ◽  
Main Variable ◽  
Qualitative Nature ◽  
Regulatory Measures ◽  
Globalising World

Since a few years, the banking sector in Africa has been transformed. The main factors that explain this transformation include the deleting of the regulatory measures of financial services, the effects of the globalising world and in particular the evolution of information technologies. It is now possible to offer alternative channels of distribution of services such as ATM and vending machines, credit cards and the mobile phone. The operators in the banking sector argue that the mobile bank would provide new opportunities for profits, cost reductions and a delivery of better services for customers. The objective of this paper is to analyse the determinants of the use of mobile banking in Burkina Faso. Taking into account the main variable of a qualitative nature, we used the logit model to perform the different estimates. Apart from the quality variables, gender, age, locality, it is that all the variables are significant to the thresholds of 1%, 5% and 10%.

Determinants of cross selling through mobile apps in Indian Banks – A Factor Analysis Approach

2021 ◽  
Vol 23 (10) ◽  
pp. 161-173
Author(s):  
Dr. Urvashi Shrivastava ◽  
◽  
Dr. Minal Shah ◽  
Keyword(s):  
Financial Services ◽  
Business Processes ◽  
Banking Sector ◽  
Mobile Apps ◽  
New Physics ◽  
Competitive Dynamics ◽  
Mobile Banking ◽  
Competitive Edge ◽  
World Economic ◽  
Indian Banks

With the release of world economic forums report on “New physics of financial services”, the financial ecosystem of India will adapt to digital transformation and artificial intelligence. This will change the competitive dynamics and operating models of Indian Banking Sector creating opportunities to procure and secure customers. The steadiest path to address the challenge is Cross selling. From reduced customer acquisition cost to increase in the wallet share, the economics and financials of cross selling are very compelling and hence have become the strategic priority for Indian banking sector. Banks are placing greater emphasis on providing improved services to their clients, upgrading their expertise to augment customer’s overall experience thereby earning competitive edge. The banking complexity that spans multiple lines of products, diverse serviceable areas and distinct technologies and business processes must be coordinated using mobile banking apps to deliver effective cross-sell programs which the present study proposes.

Artificial intelligence impact on banks clients and employees in an Asian developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nada Mallah Boustani
Keyword(s):  
Artificial Intelligence ◽  
Developing Country ◽  
Social Services ◽  
Financial Institutions ◽  
Financial Services ◽  
Banking Sector ◽  
Data Entry ◽  
Economic Behavior ◽  
Network Systems ◽  
Content Type

Purpose The purpose of this paper is to discuss the application of artificial intelligence (AI) in banking sector, its impact on banks employees and consumer behavior alike when buying financial services and the importance of (AI) for delivering social services in a western Asian developing country: Lebanon. The author tried to respond to the following problematics: Would AI be able to replace man power in customer service? and would AI change the job of the banker and render the bank more profitable? Design/methodology/approach The data collected and analyzed was used in a quantitative research-based models with the application of hypothesis regression models. The results obtained has helped despite the fact of its innovative framework, AI cannot replace the role of humans when it comes to client’s interactions with banks employees. Findings AI elevates the quality of banking transactions to an upper edge. Some of the technical banking jobs might be in jeopardy with AI, as the technology can be easily replaced with human resources, but when emotional intelligence is required for banks clients/employee’s relationship management, AI has been found with no ability to supersede. Research limitations/implications Researchers in the future can also compare large banks called alpha banks to smaller banks in the same developing country to further test the possibility of adopting innovation and change through AI in different sizes of banks with larger number of employees, financial resources and corporate clients. Practical implications Fears regarding impact on employment were detected, AI could render many banks’ jobs obsolete in the coming years, asserting that AI and robotics “reduce the need for staff in roles such as back office functions. Data suggests that the proliferation of AI could be accompanied by a rise in banking jobs. It may also be the case that only the most mundane jobs such as data entry will be sacrificed for machine superiority. While a rise in job numbers associated with higher AI-adoption rates seems ideal, some evidence suggests that most financial institutions are not yet fully confident in how to effectively apply the technology for the best results but at the same time seemed to be receptive to using AI and machine learning in their organization. Social implications This study was conducted and limited to one developing Asian country, it would be useful to stretch this study covering other countries in the region to dive into more diversified results that could trigger researchers to compare more the adoption of AI in Asian countries and evaluating its impact with respect to different countries size and/or level of development in addition to other demographics and criteria. Originality/value Financial institutions are increasingly using artificial neural network systems to detect fraud and charges that do not meet the standard. The AI is used to: organize transactions; keep accounts; invest in stocks; optimize portfolios, etc. Reducing the number of frauds and financial crimes in Lebanon by monitoring user behavior to detect abnormal changes or anomalies in addition to the possible rectification of human economic behavior in the Asian region, this could add a great value and high originality to the research.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

Management by values and goals: innovative development of public corporations

2020 ◽  
Vol 22 (4) ◽  
pp. 27-36
Author(s):  
OLGA A. TOLPEGINA ◽  
◽  
EKATERINA I. RUDENKO ◽  
Keyword(s):  
Information Technologies ◽  
Business Processes ◽  
Innovative Development ◽  
Digital Information ◽  
Small Companies ◽  
Public Corporations ◽  
New Business ◽  
Global Goal ◽  
Technical Innovations ◽  
Low Efficiency

The article proposes a methodology for assessing the innovative activity of a company, one of the areas of values of state corporations: «Innovation, innovative development, the ability to upgrade». To evaluate the effectiveness, the principle of decomposition of a global goal was used with its replacement for individual specific tasks according to the designated functional subsystems and objects (blocks) of assessment, which together give a generalized description of technological, technical innovations, their development and use, implementation of the latest digital information technologies, results intellectual research, the development of new business processes, management methods, organizational forms in business practice, as well as ability to sustainable renovation, improvement and prospects for innovative growth of the company and its sustainable renewal.The scoring methodology using the developed criteria boundaries of efficiency from ambitious to low efficiency and with assignment of significance scales by expert means involves the inclusion in each assessment block of six to fifteen traditional and composite author’s indicators, the complexity of which is determined by the complexity of the subject of the study and the described process. The methodology is universal in nature, can be used for large corporations and small companies according to a reduced set of indicators, it can be used in determining ratings.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

IMPROVING THE EFFICIENCY OF USING INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE BANKING SYSTEM

2021 ◽  
Vol 4 (4) ◽  
pp. 41-46
Author(s):  
Ra’no Parpieva ◽  
◽  
Nafisa Norboyeva ◽  
Adiba Turayeva
Keyword(s):  
Information And Communication Technologies ◽  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Modern Society ◽  
Communication Technologies ◽  
Payment Systems ◽  
Information And Communication ◽  
Effective Use ◽  
The Impact

This article will serve to select the system required for the effective use of information and communication technologies in the banking system and the impact of national payment systems in the banking sector on modern society, the effective use of new modern information technologies in the system.Study of foreign experience to select information and communication technologies that should be used in modern banks with information and communication technologies in the banking system, which have been used before.

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