Finance and Financial Management Commons^™

Rethinking The Regulatory Sandbox For Financial Innovation: An Assessment Of The Uk And Singapore, Christopher Chen

Research Collection Yong Pung How School Of Law

After the UK launched the first regulatory sandbox regime in 2016, the approach was quickly transplanted to numerous other countries as a means of promoting innovation, improving competition and enhancing financial inclusion. However, it remains unclear whether the approach can effectively achieve the relevant policy goals and thus justify the differential regulatory treatment. This chapter provides a broad overview of the regulatory sandbox regime and examines its potential benefits and problems. The chapter then provides some empirical evidence by analyzing the sandboxes awarded in the UK and Singapore between 2016 and 2018 with the aim of identifying what the businesses …

An Ai Approach To Measuring Financial Risk, Lining Yu, Wolfgang Karl Hardle, Lukas Borke, Thijs Benschop

Sim Kee Boon Institute for Financial Economics

AI artificial intelligence brings about new quantitative techniques to assess the state of an economy. Here, we describe a new measure for systemic risk: the Financial Risk Meter (FRM). This measure is based on the penalization parameter (λ" role="presentation" style="box-sizing: border-box; display: inline; font-style: normal; font-weight: normal; line-height: normal; font-size: 18px; text-indent: 0px; text-align: left; text-transform: none; letter-spacing: normal; word-spacing: normal; overflow-wrap: normal; white-space: nowrap; float: none; direction: ltr; max-width: none; max-height: none; min-width: 0px; min-height: 0px; border: 0px; padding: 0px; margin: 0px; position: relative;">λλ) of a linear quantile lasso regression. The FRM is calculated by taking the average …

From Bitcoin To Blockchain, And Back Again, Danielle Szetho, Rene Michau

Asian Management Insights

In the context of the current FinTech revolution, it remains to be seen how the wealth of knowledge on new technologies and business models in the area of finance can effectively and efficiently drive change and seize the new opportunities being created in the vast and fast-paced world of digital and crypto-assets.

The Fintech Revolution, Robert J. Kauffman

MITB Thought Leadership Series

The traditional dominance of established big-hitters in financial services is at an end. The market for many types of financial transaction is being disrupted by small businesses, start-ups and entrepreneurs. They are quicker off the mark in both spotting gaps in the market and developing state-of-the-art systems to respond to customer needs.

Gilgit-Baltistan At The Cross Road Of China-Pakistan Economic Corridor (Cpec), Zulfiqar Ali Khan

MSJ Capstone Projects

This capstone project focused on the in-depth analysis of the role and impact of this multi-billion-dollar project on the politically deprived region of Gilgit-Baltistan. This region is the gateway to CPEC as it is the only region of Pakistan that shares border with China. The geographical ties, tributary and trade relationship and even family relationships between Gilgit-Baltistan and the Xinjiang region of China dates back centuries before the creation of Pakistan and the post revolution China.

The project has been designed and implemented in a way that GB’s role is to provide the services of road and some other services …

Security Token Offerings: The Next Big Thing?, Singapore Management University

Perspectives@SMU

CUHK expert shares insights on whether Security Token Offerings will be the next trend in cryptocurrency community

The Rhetoric Of Blockchain Technology, Mira Kohli

Renée Crown University Honors Thesis Projects - All

The purpose of this honor’s thesis is to consider the rhetoric about blockchain technology. It is recognizable that blockchain technology does not share a common definition, method, or general understanding; this absence or opacity influences its use in institutions and industries. To advance my thesis about the rhetoric of blockchain, I developed a framework to analyze and critique blockchain technology use. Then, I applied this framework to two articles that discuss the adaptation of blockchain in the financial industry. My findings were that advocates for the technology are influencing its intended use. The rhetoric surrounding the technology is why the …

Surecash: Promoting Financial Inclusion In Bangladesh, Aurobindo Ghosh, Lipika Bhattacharya

Asian Management Insights

The street scene of honking cycle rickshaws, jaywalking pedestrians and precariously tilting buses in crowded Dhaka was an easy distraction. It was December 2017 when Matteo Chiampo, an advisor to the Consultative Group to Assist the Poor (CGAP),1 was writing an advisory report on the future growth strategy for SureCash, a mobile financial services (MFS) company in Bangladesh. Brainstorming for questions, and not answers, was something he had not tried before. Nevertheless, Chiampo tried to focus on the questions he had on his mind—questions that he believed would give novel and transformative insights on the way forward.

The Impact Of Fintech Innovations And Financial Standards On Bank Performance: Evidence From Selected Commercial Banks In Asean, Kiyono Hasaka

Dissertations and Theses Collection (Open Access)

In the rapidly evolving financial
technology (fintech) landscape, there has been an increase in the number of the
industry research papers and articles on fintech adoption and innovations. However,
there are relatively few empirical studies that provide a quantitative analysis
of the effects of fintech and financial standards on bank performance using
financial indicators. This dissertation attempts to fill this research gap by
identifying and analysing the impact of commercial banks’ adoption of mobile
banking technologies on bank financial performance in five countries that adopted
financial standards in the Association of Southeast Asian Nations (ASEAN). Using
the longitudinal panel data …

Picking Flowers In An Ico Garden, Fam Guo Teng, Paul R. Griffin, Andrew Koh

Research Collection School Of Computing and Information Systems

The rise of Initial Coin Offerings (ICO) in recent times and their potential for investment opportunities have investors spending a lot of time researching ICOs or having to follow the crowd. This paper aims to explore four broad factors of ICOs: identity, credibility, investor sentiment, and price movement to develop a framework that is useful in determining ICO quality. Research is shown using data sources including public forums, chat groups, web sites, white papers as well as smart contract details. Finally, a system, based on the framework, is proposed that can be used to detect and regulate ICO activities and …

Improving Vix Futures Forecasts Using Machine Learning Methods, James Hosker, Slobodan Djurdjevic, Hieu Nguyen, Robert Slater

SMU Data Science Review

The problem of forecasting market volatility is a difficult task for most fund managers. Volatility forecasts are used for risk management, alpha (risk) trading, and the reduction of trading friction. Improving the forecasts of future market volatility assists fund managers in adding or reducing risk in their portfolios as well as in increasing hedges to protect their portfolios in anticipation of a market sell-off event. Our analysis compares three existing financial models that forecast future market volatility using the Chicago Board Options Exchange Volatility Index (VIX) to six machine/deep learning supervised regression methods. This analysis determines which models provide best …

Strategic Alliances Between Banks And Fintechs For Digital Innovation: Motives To Collaborate And Types Of Interaction, Milan Frederik Klus, Todor Stefan Lohwasser, Friedrich Holotiuk, Jürgen Moormann

The Journal of Entrepreneurial Finance

In times of digitalization, established firms operating in the financial services sector increasingly form alliances with start-up companies to satisfy the customers´ demand for rapid innovation and cope with the growing dynamics of markets. Technology-enabled innovation challenges traditional business models of incumbent institutions (e.g., banks) and requires them to adapt swiftly to the needs of the digital age. However, young firms providing technological solutions for the financial services industry (fintechs) also face difficulties, such as meeting regulatory requirements and winning the trust of potential customers. To compensate for these shortcomings and to exploit synergies, banks and fintechs are increasingly pooling …

An Examination Of The Stock Market's Effect On Economic Inequality, Nicholas Golina

Williams Honors College, Honors Research Projects

The economic literature on economic inequality has shown that it can negatively impact aggregate demand because it indicates a higher concentration of wealth in the hands of the top 10% as opposed to the poor and middle class, who are more likely to consume. The literature has identified many factors that can lead to increasing inequality. The stock market could be one of those factors since it can either create an upward redistributive effect towards the top 10% or redistributive effect towards the middle class. This paper tested the effect of the stock market on inequality. This study contributes to …

Sustainable Digital Finance In Asia: Creating Environmental Impact Through Bank Transformation, Ryan Knowles Merrill, Simon J.D. Schillebeeckx, Sofie Blakstad

Research Collection Lee Kong Chian School Of Business

Data is arguably the most valuable resource in the digital economy. Used effectively and responsibly it has the potential to serve as a driving force in creating a more sustainable world. The potential is especially potent in the financial sector given its central place in the financial system, and its access to and use of data.Using technologies such as blockchain, artificial intelligence (AI), mobile technology, internet of things (IoT), and the cloud, data can be captured by sensors in the environment and structured to integrate sustainability into existing financial products and services. These can be creatively combined into entirely new …

Discussion Of The Potential Of Blockchain In Finance, Andrew Kincaid

Finance Undergraduate Honors Theses

This paper analyzes the current application of blockchain technology to demonstrate its disruptive potential has across different financial industries. This paper analyzes the potential difficulties that blockchain technology must face and overcome to realize this potential. Blockchain is currently in a stage in its development where there has not been enough research done to provide empirical answers to its benefits or added costs; however, there have been many early innovations that have helped propel blockchain forward. Blockchain in corporate finance is primarily used in corporate governance where blockchain has the ability to increase transparency and reduce possible corruption. Blockchain has …

Robo-Advisors And Wealth Management, Kok Fai Phoon, Cher Chiew Francis Koh

Research Collection Lee Kong Chian School Of Business

The recent rise of robo-advisors (RAs) has threatened the traditional fund and wealth management industry. RAs' assets under management (AUM) have risen manyfold through competitiveness on pricing, transparency and services and better expected returns linked to the use of quantitative finance and technology with less subjective human intervention. This article examines the postulation that RAs have an edge over traditional wealth managers. RAs can combine the judgement and computing resources of both human and machine, or bionic power, to provide alternative wealth management services to meet the diverse needs of private wealth clients. However, the authors expect traditional wealth managers …

Reflective Practice Series: Selected Instructional Models Using Synchronous Video Conferencing Software, Martin W. Sivula

MBA Faculty Conference Papers & Journal Articles

With the vast array of resources available to instructors, one would think that instruction and teaching would yield success for all learners. Now, well into the 21^st century has much changed in the classroom? Certainly, movable desks and chairs, advanced audio and visual equipment, and a plethora of all types of technologies which might be able to enhance training and education. Over the last several decades research on individualized instruction, cognitive science, educational psychology, and multimedia instruction (to name a few) have permeated the literature on instruction. With all the research and the vast array of studies on improving …

On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption And Transformation In Financial Services, Peter Gomber, Robert J. Kauffman, Chris Parker, Bruce W. Weber

Research Collection School Of Computing and Information Systems

Firms in the financial services industry have been faced with the dramatic and relatively recentemergence of new technology innovations, and process disruptions. The industry as a whole, and many newfintech start-ups are looking for new pathways to successful business models, the creation of enhanced customerexperience, and new approaches that result in services transformation. Industry and academic observers believethis to be more of a revolution than a set of less impactful changes, with financial services as a whole due formajor improvements in efficiency, in customer centricity and informedness. The long-standing dominance ofleading firms that are not able to figure out how …

Cryptocurrency: The Argument For Its Allocation Within The Traditional Investor's Portfolio, Nicholas Costanza

Finance Undergraduate Honors Theses

This research explores the significance of cryptocurrencies upon the “traditional” investor’s portfolio, particularly elaborating on the potential returns and advocating for its allocation within any balanced (or diversified) portfolio. Cryptocurrencies are a relatively new asset and are still considered to be extremely risky. They are characterized by ever-fluctuating prices, ongoing government regulation, and overall market skepticism. However, the potential of major cryptocurrencies (Bitcoin, Ripple, Ethereum, and Litecoin) to produce major returns cannot be easily ignored. This paper builds upon the research of those in academia, as well as highly respected investors. The hope is to outline both the pros and …

How Fintech Startups Succeed In Financial Inclusion To Bank The Unbanked, Miguel Soriano

Asian Management Insights

In the drive to bank the unbanked, digital technology may succeed where others could only dream.

Strategic Implications Of Blockchain, William R. Adams

Marriott Student Review

This thesis introduces blockchain, the underlying technology of cryptocurrencies such as Bitcoin, and discusses how best to conceptualize it relative to other technologies. Following an explanation of the fundamentals of blockchain, also known as the distributed ledger, I identify the characteristics of the technology. Building upon blockchain’s inherent strengths and limitations, I explore potential business applications of blockchain. Finally, I recommend that leaders continue to track the development and adoption of blockchain technology, even if they decide that implementing it does not align with their organization’s strategy at present.

Digital Banking: Overcoming Barriers To Entry, Alan Megargel

Dissertations and Theses Collection

This dissertation examines digital banking from the perspective of two types of industry participants; non-bank FinTech alternative [substitute] financial service providers whom are intent on disrupting the market, and [incumbent] traditional banks whom are urgently pursing digital strategies in order to counteract the FinTech threat. This study is motivated by five main research questions: (1) Are FinTech firms disrupting traditional banks, and if so, what are the modes of disruption? (2) Do tradition banks view FinTech firms as a threat, and if so, what are they doing about it? (3) What are the various digital banking strategies, and how are …

Glossary Of Business Evidence, Paul C. Boyd

MBA Faculty Conference Papers & Journal Articles

No abstract provided.

Cryptocurrency: A New Investment Opportunity?, David Kuo Chuen Lee, Li Guo, Yu Wang

Research Collection Lee Kong Chian School Of Business

Bitcoin was the first cryptocurrency to use blockchain and has been the market leader since the first bitcoin was mined in 2009. After the birth of Bitcoin with the genesis block, more than 1,000 altcoins and crypto-tokens have been created, with at least 919 trading actively on unregulated or registered exchanges. This entire class of cryptocurrencies and tokens has been classified by some tax authorities as having the same status as commodities. If cryptocurrency is viewed in the same class as commodities, how different is it in terms of its risk and return structure? This article sets out to help …

Singapore Approach To Develop And Regulate Fintech, Sai Fan Pei

Research Collection Lee Kong Chian School Of Business

This paper starts with a brief introduction of the recent organizational support established by The Monetary Authority of Singapore (MAS) to promote the fast developing FinTech (financial technology) sector. Basing on its existing “balanced” approach in promoting financial development and ensuring a safe and sound financial sector, and in sync with its objective to harness technology to improve the efficiency of the financial markets, the paper elaborates on the insights of MAS' policy intent in regulating the FinTech sector. The paper then focuses on MAS' proposed “Regulatory Sandbox” – an innovative regulatory framework which helps to strike a good balance …

Real-Time Inbound Marketing: A Use Case For Digital Banking, Alan Megargel, Venky Shankararaman, Srinivas K. Reddy

Research Collection School Of Computing and Information Systems

Over the years banks have been strategically using digital technologies to help transform various aspects of their business. In recent times, this strategy has evolved into one of digital augmentation of the bank’s processes, products and channels. This allows for reaching out to customers and partners through digital platforms, for example; the addition of mobile apps for customers to access and perform service transactions. Marketing continues to play a major role in supporting the expansion of business and increasing revenue for the bank. Marketing has evolved from mass direct targeting to more personalised, face-to-face and real-time targeting. In the digital …

What Bitcoin Is, And How It Can Change Commerce, Jeffrey Bukhari

Capstones

The use of the digital currency Bitcoin has spiked dramatically over the last several years. Spurred by interest from investors and those excited about its commercial and banking potential, the value of the cryptocurrency has seen its value greatly increase since its beginning in 2009.

This project explains the underlying technology behind Bitcoin, how Bitcoin is and will change commerce, and what potential lies ahead for the digital currency.

Reshaping The Financial Order, Christopher Dula, David Kuo Chuen Lee

Research Collection Lee Kong Chian School Of Business

The financial system, which governs and manages the practice of deposits, lending and payments, is in the throes of disruption following the shortcomings of the current regime. Despite US$11 trillion in quantitative easing since 2007, economic growth has been persistently sluggish. The money isn't going where it should be. In 2015, McKinsey reported that global debt had grown by US$57 trillion since 2007. The debt is becoming unsustainable, yet the global debt-to-income ratio continues to rise disproportionally to any deleveraging. The Fed's meandering signaling to nudge up interest rates beyond the near zero range raises concerns that private and even …

How To Enable Future Faster Payments? An Evaluation Of A Hybrid Payments Settlement Mechanism, Zhiling Guo, Yuanzhi Huang

Research Collection School Of Computing and Information Systems

In the era of Fintech innovation and e-commerce, faster settlement of massive retail transactions is crucial for business growth and financial system stability. However, speeding up payments settlement can create periodic liquidity shortfalls to banks which would incur high cost of funds in the settlement process. We propose a new hybrid settlement mechanism design that integrates features of real-time gross settlement, deferred net settlement, and central queue management structure. The hybrid mechanism is managed by an intermediary and is particularly suitable to settle large volume of small-value retail payments. We evaluate the mechanism using computer experiments and simulation. We find …

Adapting And Evolving To Grow In The High-Tech Industry, Singapore Management University

Perspectives@SMU

MatchMove started as a gaming platform; it’s now a flourishing enterprise payment solutions company