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The purpose of this paper is to identify the traditional practices in the modern banking system (MBS) and examine the effects of these on employee response, customer reactions and customer loyalty, in the context of public sector banks in India. The study also investigates the effects on customers of employees’ use of traditional banking practices in the MBS.

A total of 460 usable responses were gathered from customers of seven public sector banks in Bhopal (MP), India. The study scales were refined and validated by exploratory factor analysis and confirmatory factor analysis.

The results indicated that the MBS utilising traditional practices (MBSTP) significantly influences unfavourable employee responses, customer reactions and loyalty. In addition, employee responses in MBSTP motivate and generate unfavourable reactions of customers, which further influence their loyalty adversely towards public sector banks.

The identified traditional practices with MBS are expected to bring clarity to the issue of employee response, customer reaction and loyalty. This would help the management of banks.

The results of the analysis indicated that public sector banking services are facing the internal challenges by its own service processes and employees’ behavioural intentions.

The purpose of this study is to investigate the effects of electronic banking (e-banking) on the profitability of banks is an important subject. Although there are many studies in this area, the effect of using different e-banking instruments, such as internet banking, telephone banking, ATM and POS, was not investigated comprehensively, using a system dynamics approach. To fill this gap, the present study tried to develop an analytical model with a systematic approach through identifying the effects of different areas of e-banking services in a financial institution.

The income and cost of each transaction via different e-banking services were identified and the incomes and costs, number of transactions and other model variables were predicted for the next period using a single-layer neural network (perceptron). The proposed model was designed based on the system dynamics approach. Then, rates and auxiliary variables were introduced to the model based on the prediction data. Finally, the model was validated and different scenarios were examined.

Results showed that increased investment on e-banking can increase online customers, thereby boosting the bank’s incomes through raising transaction fees and acquiring additional resources. On the other hand, the need for physical branches and associated costs reduces with increasing the tendency of traditional customers toward using e-banking services. Simulation results showed that although the expansion of e-banking carries a huge financial burden on the bank, the costs reduce and profitability significantly increases with time.

This study can be used by senior managers of the bank throughout e-banking planning. This is because it systematically addressed the effects of e-banking expansion on different (banking) areas. The present study may also encourage researchers to conduct more extensive studies.

The chapter studies the role of Financial Technology (FinTech) in disrupting the existing traditional banking system. It identifies FinTech’s evolution in Asia across Deposits & lending, Capital Raising, Investment Management, Market provisioning, Payments, and Insurance. This technology revolution allows us to have a banking system based on values that serve customers better, reduce risk to the society and improve returns for the shareholders. Data on unbanked population, smartphone penetration, and Internet penetration has led to retail side innovations such as Mobile Wallets, P2P Payments, and Real-time Payments in the most of Asia (except China). A total of 49% of Global Investments in FinTech are in Asia and the Chinese dragon alone accounts for 46%. India is witnessing a strong amount of FinTech deals in 2017 and it is being driven by payment and lending solutions. ASEAN FinTech industry is dominated by m-wallets and online payments; this is followed by retail investment and financial comparison. The chapter dives into the challenges Asian banks are facing because of this disruption. Now more than ever, is the important role governments and central banks of each nation play to assess the path these start-ups are headed on and this will unfold the landscape of banking in Asia a few years down the lane.

The paper explores the precarious balance between modernizing monetary systems by means of digital currencies (either issued by the central bank itself or independently) and safeguarding financial stability as also ensured by tangible payment (and saving) instruments like paper money.

Which aspects of modern payment systems could contribute to improve the way of functioning of today's globalized economy? And, which might even threaten the above-mentioned instable equilibrium? This survey paper aims, precisely, at giving some preliminary answers to a complex – therefore, ongoing – debate at scientific as well as banking and political levels.

The coexistence of State's money (i.e. “legal tender”) and cryptocurrencies can have a disciplining effect on central banks. Nevertheless, there are still high risks connected to the introduction of central bank digital currency, which should be by far not considered to be a perfect substitute of current cash. At the same time, cryptocurrencies issued by central banks might be exposed to the drawbacks of cryptocurrencies without benefiting from correspondingly strong advantages. A well-governed two-tier system to be achieved through innovation in payment infrastructures might be, in turn, more preferable. Regulated competition by new players combined with “traditional” deposits and central bank elements remains essential, although central banks should embrace the technologies underlying cryptocurrencies, because risk payment service providers could move to other currency areas considered to be more appealing for buyers and sellers.

We do not see specific limitations besides the fact that the following is for sure a broad field of scientific research to be covered, which is at the same time at the origin of ongoing developments and findings. Originality and implications of the paper are, instead, not only represented by its conclusions (which highlight the role of traditional payment instruments and stress why the concept of “money” still has to have specific features) but also by its approach of recent literature's review combined with equally strong logical-analytical insights.

In the light of these considerations, even the role of traditional payment systems like paper money is by far not outdated or cannot be – at this point, at least – replaced by central bank digital currencies (whose features based on dematerialization despite being issued and guaranteed by a public authority are very different).

No matter which form it might assume is what differentiates economic from barter transactions. This conclusion is by far not tautological or self-evident since the notion of money has historically been a great object of scientific discussion. In the light of increasingly modern payment instruments, there is no question that money and the effectiveness of related monetary policies have to be also explored from a social perspective according to different monetary scenarios, ranging from central bank digital currencies to private currencies and cash restrictions/abolition.

The originality/value of the following article is represented by the fact that it (1) refers to some of the most relevant and recent contributions to this research field, (2) moves from payment systems in general to their newest trends like cryptocurrencies, cash restrictions (or, even, abolition proposals) and monetary policy while (3) combining all elements to reach a common picture. The paper aims at being a comprehensive contribution dealing with "money" in its broadest but also newest sense.

The development of banking in Africa followed the demand of exchange networks from traditional indigenous economies to colonial exchange with the European world. The establishment of European banking institutions reflected the needs of the capitalist economy introduced by colonialism. The banking management of late nineteenth century and early twentieth century European banks adhered to the interests of shareholders. This chapter shows the emergence of well-managed banks in Africa, but after decolonization the political economy of African independence resulted in state capturing of financial institutions in most African countries. The South African banking system developed in close adherence to the British model. State-owned post-independence banks in Africa failed to deliver the development envisaged. The chapter shows the adverse impact of global economic developments on Africa, resulting in high debt levels. Structural adjustment of African economies and new market-oriented policies allowed the development of locally owned private banking institutions. The high-cost structure of the formal banking system from the dominant South African banks incentivised the mobile money innovation, an arena where African entrepreneurs lead global markets. Financial inclusion remains low in Africa.

This study aims to identify the key factors driving consumer adoption attention toward FinTech services in a bank-based financial system to lay a firm ground for further policy recommendations to promote the dual development of FinTech and the banking industry in Vietnam as well as other emerging economies similar banking system.

A technology acceptance model with a data set of 387 observations collected from a thorough research design is used and proceeded with probit regression.

The paper finds that existing bank users are holding a high intention to approach FinTech services regardless of involved costs and time, suggesting a traditional banking system to open up the collaboration channel with FinTech firms in prospective business areas. The findings also reveal an interestingly important position of consumers’ latent needs in inclining consumers to use FinTech services in Vietnam.

In this study, the variable measurement is not comprehensive as the authors use a single question for each variable. Second, most of the respondents reside in two big cities of the country, which are currently witnessing the rising presence of FinTech companies. So, if the future penetration of FinTech firms reaches out of these big cities, a better research sample with a diversified geographic trait should be considered.

This study’s findings draw out valuable recommendations to bankers and especially policymakers to stimulate the future penetration of FinTech firms along with assuring and strengthening the important position of the banking sector in the economy.

This paper’s novelty lies in several aspects. First, this study provides a broad view of the market potentials for FinTech firms from the demand side on a wide range of FinTech services rather than focusing only on payment services as presented in previous studies. Besides, the paper also discovers a new factor attributing to the adoption intention of the FinTech end-users, the users’ latent needs. Third, these empirical results carry a considerable contribution to the limited literature on this topic in Vietnam. And, most importantly, this study’s findings significantly prove the noticeable contribution of consumers’ preference to the indisputable development of FinTech. This afterwards helps to shape viable governmental regulations to facilitate effective market penetration strategies of FinTech in accordance with nurturing the future strategic development of a bank-based financial system under the emergence of FinTech. Of which, the authors call for clear and official moves of the governmental bodies in facilitating the collaboration between FinTech and the banking system coupled with enhancing measures of customer protection in the financial field in Vietnam. The findings and the regulatory implications for our country could be a vital source and replicated for other emerging economies’ cases with similar traits of the financial system.

With the continuing development of the financial technology revolution, a better understanding of bank deposits variability has become necessary for bank management and policymakers, especially central banks. This is because the novel innovations of cryptocurrencies operate beyond the realm of the banking system, which may impact the performance of banks and their deposits variability. This study aims to investigate the long- and short-run effects of cryptocurrencies’ market capitalization development on the banks’ deposit variability in the Gulf Cooperation Council (GCC) region.

In this study, the Johansen–Juselius (1990) cointegration test with vector error correction model was applied to examine the long-run relationships, while the Engle and Granger (1987) and the Granger (1969) causality tests were used to detect causal relationships in the short term.

The findings of Johansen–Juselius cointegration test indicate that the banks’ deposits variability in all six states of the Gulf region share negative long-run equilibrium association with the development of global cryptocurrencies market capitalization, but with different statistically significant levels. For the short-run analysis, the study found that the development of cryptocurrencies market capitalization has significant unidirectional causal effects on bank deposits variabilities in only four states, namely, UAE, Qatar, Kuwait and Bahrain. The findings of the study therefore suggest that to eradicate the effects of cryptocurrencies industry and its threats to the banking industry, banks in GCC region are encouraged to either consider cryptocurrencies as an alternative investment asset for their portfolio investment diversification strategies or adopt the blockchain technology in their operation system to facilitate their customers with low transaction cost, high level of security and ease of use and real-time settlement.

The empirical findings of the study will provide valuable input for policymakers, especially central banks and bank managements, to evaluate the current situation and the threats of the cryptocurrencies market growth and its effect on the banking industry’s performance, future survival and their deposits variability for better regulation and policy planning and investment strategies.

This is a pioneering study that empirically explores the phenomenon of bank deposits variability as a consequence of expansion in cryptocurrencies market capitalization, where the findings proved evidence of a drastic decline in banks’ deposits size due to the substantial growth in cryptocurrencies market capitalization.

The great recession of 2008–2009 busted the market bubble and highlighted the loopholes in the banking sector related to excessive leverage and inadequate capital. It has led to the increased rigidity of financial regulations, forcing banks to focus more on compliance rather than moving towards innovation. All these factors together led to the emergence of new players in the financial market in the name of financial technology (Fintech) companies. With the help of Fintech, banking operations are now being revolutionised and transformed into techno-friendly systems. They, hence, can promise to act as a game changer for the banking sector as a whole.

This chapter aims to understand different perspectives of Fintech and how it helps the banking sector to improve its operations. This chapter will also offer insight into various types of Fintech instruments used by the banking sector, collaboration between banks and Fintech, and the benefits of its application to the banking sector.

This chapter attempts to lay out a literature review on Fintech. It examines the implications of applying Fintech in the banking sector to revolutionise its traditional banking operations and achieve its pre-established targets. Different techniques banks use to match up with Fintech and adapt it easily in its organisational structure.

This chapter presents a list of challenges linked to the application of financial technology in the banking industry. The chapter will also address the difficulties of using Fintech and ways to deal with them.

While traditionally it was believed that shadow banking undercuts business from traditional commercial banks, the time has now arrived to examine the various innovative practices used by various shadow banks and non-banking finance companies (NBFCs) to explore various collaboration and competition possibilities. The parallel existence of the traditional and shadow banking systems creates a market environment where both the entities are inter-dependent for growth and development with their edge of advantages and snags. This study aims to investigate the development and growth of deposits in NBFCs and scheduled commercial banks (SCBs) and, through the adoption of innovative practices, highlights possible growth opportunities for both ahead.

This study uses yearly bank deposit data from 1998 to 2019. This study incorporates univariate autoregressive integrated moving average modeling to predict the future deposit growth of SCBs and NBFCs in India.

This study concludes that both the entities, i.e. NBFCs and SCBs, will experience deposit growth; however, the proportionate growth of deposits in SCBs will be higher than NBFCs.

This study concludes that the NBFCs will exhibit higher growth in the future. Thus, a strengthened regulatory framework will boost the growth of the NBFCs, providing a safe environment to the investor. Further, as this study primarily considers only deposit-taking NBFCs and commercial banks and a single variable – “deposit” to predict its future growth, it offers a scope for future research to consider and include other kinds of NBFCs like non-deposit taking NBFCs, housing finance companies, micro-finance Institutions and infrastructure finance companies.

A competently regulated financial system of an emerging economy confers tremendous growth opportunities to the financial institutions functioning in the system. Deposits are a significant parameter for the performance of the financial institution; thus, by keeping it as the underlying premise, this study forecasts the future growth in deposits for both the commercial banks and NBFCs. This forecasted growth in deposits for both entities, if analyzed and acted upon appropriately, can, apart from other opportunities for investment, be used to point at directional growth of the economy and the gross domestic product, considering that credit growth is a barometer for economic growth. The scope of this study is limited to NBFCs and SCBs of India and considers only a single variable, i.e. deposit for data analysis and growth forecasting.

This article sets out to draw on new empirical research to illustrate how the process of technological change is shaped by a combination of contextual elements that relate to the political and social history of Sudan. The developments in infrastructure, relationships with economically powerful industrialized countries, and the attitudes and perceptions of key decision makers are discussed

Primary data were collected from fieldwork conducted in Sudan for six months, and this was combined with secondary data that were collected from several conventional sources. The design adopted a dual methodological approach that comprised a combination of quantitative and qualitative techniques. This article draws mainly on the qualitative data set, although a summary is provided of some of the main results from the questionnaire survey.

The findings highlight the need for bank general managers and IT managers to collaborate in the establishment of IT strategies and in ensuring that there are sufficient staff and budgetary resources for successful implementation. There is also a need to develop comprehensive banking policies in Sudan in order to support the replacement of traditional manual methods of banking with more advanced computer‐based systems. Managing this process is not simply a technical issue, but a complex socio‐political challenge that requires management sensitivity to the context within which change is taking place.

Fieldwork in Sudan was constrained by both time and limited financial resources, and further frustrated by a number of unanticipated access difficulties. Some of the survey findings may have been affected by missing data, and some of the interview data may have been affected by translation from Arabic into English. However, the multi‐strategy research employed in this study did prove effective in generating useful data.

In the case of developing countries, the data sets and literature available are in short supply, and as such the findings contribute to this limited knowledge base in presenting new empirical evidence and analysis. The study highlights the importance of three broad categories – social‐political context, business economic and technological environment, and the historical and cultural climate of Sudan and the banking industry – in shaping the uptake and introduction of new technology in the Sudanese banking industry.