SACM - United Kingdom

Permanent URI for this collectionhttps://drepo.sdl.edu.sa/handle/20.500.14154/9667

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    Essays on Digital Credit, Banking Business Models, and Bank Innovation
    (University of Southampton, 2024-11) Alfhaili, Faisal Abdulmohsen; Wolfe, Simon; Bakoush, Mohamed
    This thesis provides insights into financial technology development, and its interaction with banking institutions. To this end, three distinct research investigations are conducted. First, we examine the determinants of the global online lending market expansion, known as "digital credit". Next, we link the financial technology development with the banking sector through the examination of the role of banking business models in explaining the decision of banks to acquire fintech firms. Following this, we analyze the impact of bank-fintech collaboration through the equity investment channel on bank innovation capabilities. Through the use of several econometric methodologies, this thesis presents robust findings. First, we find that digital credit provided by fintech and bigtech firms complements the credit provided by incumbents. Second, we find that diversified and investment banking business models are more likely to conduct acquisitions of fintech firms than wholesale and traditional banking business models. We further show that the structure of a bank's business model may explain both the propensity of a bank to acquire a fintech firm with a particular specialization and the motivations behind such acquisitions. Finally, we present results indicating that banks' investments in fintech firms' funding rounds increase their financial innovation output. We document that this positive impact holds even when we restrict the participation of banks to only the initial investment. The results give rise to several important policy implications. We provide evidence demonstrating the positive impact of the advancement of financial institutions on digital credit volumes. As such, policymakers aiming to promote financial innovation in their jurisdiction should implement strategies that focus on developing the banking sector. Furthermore, our findings on the role of banking business models in banks' fintech acquisitions should inform policymakers about the significance of considering the intricate business model structures when formulating efficient and targeted policies to address the dynamics of bank-fintech partnerships. In addition, the results regarding the impact of bank-fintech equity investment on bank innovation suggest that when banks increase their participation in the funding rounds of fintech firms, it leads to a higher bank innovation output. Therefore, regulators aiming to foster financial innovation should ensure that the regulatory environment facilitates beneficial collaboration between banks and fintech firms, while simultaneously preserving the stability of financial markets.
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    Financial Inclusion, Bank Performance and Stability: A Comparative Analysis
    (Coventry University, 2023-12-10) Algarni, Kholoud; Elmasry, Ahmed
    This research attempts to study the impact of financial inclusion on banking stability and performance for many developing countries in MENA over a period that includes the global financial crisis. Financial inclusion has become one of the most active tools in achieving financial development and economic growth by having advanced level of access to financial services. The methodology adopted for this research study is the model of multidimensional index of financial inclusion to measure the inclusiveness of each type of bank, the determinants of financial inclusion, and the impact of the inclusion on bank performance and stability in MENA. By using 7,605 observations. The financial crisis 2008 and Arab spring are considered in our period calculations and analysis. The default risk Z-score, and credit risk can be measured as the bank’s probability of insolvency. The results of this research have shown that the countries index values tend to slightly higher in GCC rates than in MENA indices. Moreover, the findings show that high financial inclusion significantly appear with high- and middle-income countries. Besides, the finding illustrates that Age, Labour, high income, and high education have a significant relationship with financial inclusion, and awareness and favour access to financial services in MENA, MENA excluding GCC, and GCC. However, gender has no significant association with financial inclusion, and the religion has a negative association with most financial inclusion indices. However, the determinant of Infrastructure has a significant factor that play a crucial role in achieving financial inclusion. Additional to the higher level of financial inclusion leads to greater bank performance and stability. By taking in the account the financial crisis and Arab spring, we find the more significance post those events and not during them. These impacts are found when banks have higher market power and operate in countries with stronger WGI and institutional quality. Our consequences highlight that the financial services provide and policy makers, need to focus on some psychological elements that support financial confidence building, for example financial education for the adults, that can be applied in the education stage. Additionally, the significance of the inclusive financial system as a development goal and a crucial issue that should be prioritised by the financial institutions as such a policy drive is moral for banks in terms of their performance and stability. This thesis aims to construct financial inclusion index to illustrate better measures of financial inclusion and measuring the determinants of financial Inclusion. As well as the relationship between financial Inclusion and bank performance and stability. By constructing two Indices financial Inclusion Index (FII) and Fintech Inclusion Index (FintechII) with different dimensions with their indicators.
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    A Critical Analysis of The Use of Regulatory Technologies by the European Financial Sector
    (Saudi Digital Library, 2023-09-01) Alblowi, Abdullah; Martins, Clara
    This dissertation focuses on the Regtech phenomena from a legal perspective in the context of the EU. Building on the previous literature and examining existing legislation manly the EBA Regtech report and creating a deeper understanding of the inner workings of Regtech and its role of a compliance tool and the financial sector and it’s role in the future labeled as Regtech 3.0. this study will contain a descriptive narration on the concept of Regtech from historical, technical and technological perspective. Examining its rule as a compliance tool in the financial sector. Highlighting its market segmen and it’ rule on streaming AML and KYC and incorporated technologies and explore it’s benefits and advantages while examining it’s operational, legal, market risks. This dissertation analyze its current state the European Union and unregulated. Applying regulation theory to test the hypothetical impact on the Regtech industry. This dissertation argues that a pan European sandbox would facilitate a massive positive impact on the industry.
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    A study of the regulations and legal framework governing the fintech sector in the United Kingdom and in the United States and lessons from both frameworks to emerging markets concerning their fintech legal systems and the adoption of sandbox in Saudi Arabia.
    (Saudi Digital Library, 2023-11-01) Alshehri, Baraa; Durovic, Mateja
    As fintech firms are continuously innovative, and as they struggle to find out how standing regulations are applicable to them. Some regulators recognised the need for a unique framework to deal with such sector and that is to give an experimental space for Fintech firms where they can obtain waivers and exemptions from certain legal requirements that traditional financial institutions would normally adhere to. This is called a regulatory Sandbox. Other regulators cited fears of consumer protection risks as well as fears of excessive state intervention and have therefore refrained from adopting a sandbox. I argue that the risks imposed by having a sandbox could be theoretically mitigated to a reasonable minimum and can be outweighed by benefits to the sector as non-compliance costs could be avoided to an extent by having the regulator assistance in setting a tailored and clear path for the firm.
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