International Journal of Electronic Banking (7 papers in press)
Fraud detection and verification system for online transactions: a brief overview
by Nidhika Chauhan, Prikshit Tekta
Abstract: Conducting transactions online is a general user behaviour nowadays with an alarming increase rate. It is completely hassle-free and becoming a habit of the users. Its most common example can be seen on various e-commerce platforms, where an increasing number of users are multiplying the number of transactions daily. With such a large network of online transactions, it is expected to have certain loopholes rendering such platforms to frauds and glitches. Therefore, in this paper, we will be discussing a fraud detection and verification system targeting online transactions mainly e-commerce. The paper stipulates certain techniques that can be used to
authenticate any online transaction and if found fraudulent, it is followed by a
verification mechanism that more or less helps to validate the authenticity of
the transaction. The aspects laid down in this paper can no doubt be further scrutinised to build a robust fraud detection system, but certainly, they form a
basis towards building a viable fraud detection system.
Keywords: fraud detection; online transactions; verification; detection; secure system; fraud verification; fraud; online; e-commerce; transaction.
Online Payment Services and Individuals Behavior: New evidence from the MENAP
by Fadi Shihadeh
Abstract: This study aims to analyze the relationship between individuals characteristics and the use of online payment services in daily life in the Middle East, North Africa, Afghanistan and Pakistan (MENAP). The data of this study were collected from the World Bank's Global Findex Database 2014. In this study, the use of online payment services is linked with these users' education level, age, gender, and income level. The analysis reveals that the use of online payment tools in the MENAP region is still at the minimum. The results also indicate that people with higher education are more familiar with using online services than people with less education. Therefore, this study recommends that policymakers in the region could work together with financial-services companies, such as banks, to provide electronic tools that are lower cost and easier to use so as to enhance the use of online banking in the MENAP. These tools could promote online payment methods through the use of electronic cards, ATMs, and online payment systems, thus official financial institutions could direct the online services according to individuals behavior . Future research could focus on the relationship between the use of online payment systems and the performance of financial intermediaries; it could also study the influence of using online payment services and firms profitability in the region. Also, there is a need to investigate the relationship between the 2020 COVID 19 pandemic and using online-banking services in daily life in the MENAP, and whether a lack of accessible online financial services is impeding economic stability in the region during a time of crisis.
Keywords: online banking; MENAP; financial services; financial inclusion.
Mobile Financial Services as a Determinant of Financial Performances of Commercial Banks in Bangladesh
by Shahedul Alam Khan, Md. Hafizur Rahman Khan
Abstract: Mobile financial services are financial services offered through mobile devices. This study ascertained whether mobile financial services make any significant differentiation in the financial performance of commercial banks in Bangladesh. This study was conducted on 29 commercial banks of Bangladesh with financial data from 2016, 2017, and 2018 fiscal years. To test the hypotheses, the independent sample t-test was used. This study concluded that the interest expense to interest income ratios, investment income to investment assets ratio, net interest margin, liquid assets as opposed to loan return on assets, return on earning assets, and return on equity were significantly better in banks offering mobile financial services. However, Net profit margin, interest yields, loan (gross) to total deposit ratio of banks did not significantly contrast between banks with and without mobile financial services. Banks with mobile financial services significantly improve efficiency, liquidity, and profitability based performance when compared with banks without similar services.
Keywords: Mobile Banking; E-Banking; Automation; Financial Performance; Profitability; Liquidity; Efficiency; Commercial Bank; Bangladesh.
Al-Karji approach in his book Al-Kafi Fe Al-Hessab
by Mohammad Al-Shoqran
Abstract: This investigation provides an analytical and descriptive study of the research approach of the outstanding scientist Al-Karji, through the analysis of the content of his famous book Al-Kafi Fe Al-Hessab, as an evidence of the role of Arab and Muslim Scientists in the development of several sciences and in helping the humanity, within the framework of the history and philosophy of science. This paper revealed that Al- Karji is the one the scientists who combine between the science and scientific approach. The researchers also explained the significant contribution of Al- Karji to scientific research and his leadership in this field. This paper concluded the need to revive the heritage of the Arab and Muslim scientists who had a great role in the elevation of humanity throughout the centuries.
Keywords: philosophy of science; method; scientific research; induction.
Contribution of Entrepreneurship to Economic Diversification in the Arab World
by Amer Al-Roubaie, Muneer Al Mubarak
Abstract: Purpose This paper highlights the contribution of entrepreneurship to economic diversification in the Arab world. Heavy dependence on international trade has made the economies of these countries vulnerable to changes in global markets. Economic diversification increases sectoral output and reduces the risk of market volatility. Designs/methodology/approach The relationship between Small & Medium Enterprises (SMEs) and economic diversification is drawn on previous research and literature. The paper uses international data to illustrate the contribution of SMEs to knowledge creation and productivity growth. Such analysis contributes to the development of SMEs in the Arab region. Findings In the new economy, entrepreneurship plays a key role in knowledge creation and innovation. SMEs contribute to the knowledge economy through investment in new productive and creative projects which increase sectoral output and promote diversification. In the Arab world, the contribution of SMEs to the national economy remains inadequate to create linkages and foster growth. Governments in the region should encourage private enterprises to participate in the economy by providing greater financial, technical and managerial incentives. Originality/value This paper contributes to the literature by identifying some of the factors that hinder the participation of SMEs in economic development of the Arab world. Across the region, public expenditure has been the main source of investment in the economy. SMEs could increase productivity through knowledge sharing, technology transfer, innovation diffusion and collaboration. However, governments should create suitable business environment to encourage local firms taking greater role in the new economy.
Keywords: Entrepreneurship; Economic diversification; SMEs; Knowledge; Innovation; Globalization.
Using data mining for prediction of retail banking customers churn behaviour
by Mahdiyeh Rezaei Chayjan, Tina Bagheri, Ahmad Kianian, Niloufar Ghafari Someh
Abstract: For every retail bank, the control over risks that originate from customer fluctuations is of great importance. These fluctuations can occur in the number of active customers or their level of activity. In recent years, Iran has faced many economic difficulties and it has become even more important for banks to be able to preserve their customers and especially the optimum balance for their accounts. The purpose of this paper gains liquidity the spectrum of accounts and deposits the most desired service. So, in this paper the standard CRISP-DM method has been used for data minings road map. In addition, this paper applied the churn prediction model and the enablement of customer categorisation on their churn risk. We demonstrate that customer churn may be affected by two additional important factors; namely, customers age and customers background. Thus, the younger age range corresponds to
the highest rate of shedding. Therefore, the highest amount of share among churners corresponds to customers not older than 32 years of age.
Keywords: customer churn; churn index; churn prediction; deposits; accounts; retail banking.
Consumer Adoption of Interactive Teller Machines: Evidence from the Arabian Gulf
by Mustafa Awwad, Hamed Shamma
Abstract: With the rise of technology, digital transformation, and automation, services organisations from all industry verticals are seeking strategies to ensure they maintain consumer loyalty towards their organisation, increase consumer wallet share, and offer a unified and seamless consumer experience throughout all their direct channel touchpoints, all while reducing operational cost and maintaining efficiencies. Banks have been actively executing branch transformation initiatives, utilising new technologies such as Interactive Teller Machines (ITMs), to offer around the clock banking services to their consumers at their time and location of convenience, eliminating the high operating costs of traditional branches. This study investigated the factors that influence banking consumers to adopt the Interactive Teller Machines (ITMs) in the Gulf region. Six variables identified from previous research and Subject Matter Expert (SME) opinions were combined to construct the proposed conceptual model. This study combined variables from research related to consumer adoption of digital e-banking services, effects of retail banking services staff on consumer adoption of services, and design of branches and how this effects consumer behaviour and attitudes toward the bank. A quantitative research was conducted where a questionnaire was distributed to banking consumers in the Gulf and responses were evaluated using Pearsons Correlation, hierarchical regression analysis, as well as other statistical analysis tools. The findings of the research suggest that convenience, security, and social influence were the factors that significantly impacted consumer intention to adopt the Interactive Teller Machine (ITM). When taking demographic moderating variables into consideration, placement of the Interactive Teller Machine (ITM) also had a significant impact on consumer intention to adopt it. Out of the above variables, social influence showed the strongest effect on the consumer intention to adopt the Interactive Teller Machine (ITM). Further analysis was conducted exploring effects of demographics on the different model variables.
Keywords: branch transformation; interactive teller machine; consumer intention to adopt interactive teller machine; bank branch; bank branch distribution; remote teller; bank consumer migration to alternative channels; digital transformation; digital banking.