What are the current trends and developments in the green finance industry?5 answersThe green finance industry is experiencing significant growth and evolution. Research indicates a rising global concern for environmental issues, leading to the development of innovative financial products like green bonds and stocks. Green bonds, in particular, are gaining traction as a key mechanism for financing environmental projects, with the market showing promising growth potential. However, while green bonds aim to promote sustainability, there are concerns about potential negative social impacts, such as land disputes in regions like Bahia, Brazil, where clean energy projects are being financed through green bonds. The industry is also witnessing the emergence of new financial instruments and mechanisms, such as green loans, to support sustainable development initiatives globally. Overall, the green finance sector is on an upward trajectory, with a focus on aligning financial investments with environmental goals and promoting a greener economy.
What are the most important research gaps in finance?4 answersThere are several important research gaps in finance. One gap is the lack of a coherent research agenda and the scanty connection between research in the field. Another gap is the occurrence of false discoveries in financial research, which is exacerbated by the non-stationary nature of financial systems and the inability to conduct controlled experiments. Additionally, there is a gap between the research conducted in academic finance and the needs of chief financial officers (CFOs) in terms of topics such as the influence of tax laws on financial decision-making and cash flow planning and forecasting. Lastly, there is a need for further research in the application of financial theories to large project management, particularly in the area of performance measurement.
What are the main problems in Green Finance?4 answersThe main problems in Green Finance include the potential for perverse incentives that may lead to social conflicts and land grabbing in the name of clean energy production. There is also a large funding gap and insufficient attention to ecological and biodiversity protection by financial institutions and institutional investors. The lack of incentives from the government and stakeholders is a challenge in implementing green investment. Additionally, the absence of binding legal texts and finance green standards limits the effectiveness of green finance in controlling climate change. Inconsistencies in sustainability and policies contribute to the green investment financing gap, and governments need to intervene with appropriate policies and regulations to promote sustainable development.
What are fintech adoption gaps?5 answersFintech adoption gaps refer to the disparities between the adoption of financial technology (Fintech) and its actual usefulness in various contexts. These gaps exist despite the high adoption of Fintech in Africa. The academic literature on Fintech has seen a considerable increase in recent years, but research tends to be disconnected and lacks a coherent research agenda. This indicates that there are significant research gaps and unanswered questions in the field, which need to be addressed for Fintech to become an established academic discipline. Scholars have also expressed doubts about the continued use of Fintech, highlighting the need to understand the factors influencing its adoption, such as risk and convenience. Additionally, the adoption of Fintech by small businesses in emerging markets, like India, remains largely unexplored.
What are the gaps in Fintech, Techfin and Regtech has not made any improvement?5 answersFintech, Techfin, and Regtech have identified several gaps and areas for improvement. The specific legal regimes for Fintech, known as RegTech, have made the implementation of Fintech more difficult due to a lack of confidence in new technologies and inadequate regulation. In Indonesia, the regulations and infrastructure for Fintech lending are still manual and need comprehensive regulation and monitoring mechanisms, especially in terms of financial service stability, consumer protection, and data protection. The integration of artificial intelligence into Fintech applications has brought significant benefits but also poses financial risks due to deficiencies in regulation and supervision. RegTech aims to address these deficiencies and minimize financial risks by finding technological solutions that regulate Fintech without hindering its potential. Additionally, GDPR compliance software solutions lack interoperability features and evidence to support their validity, highlighting the need for RegTech approaches to improve compliance.
What are the research gap of fintech and financial health of small and medium-sized enterprises?5 answersFintech research has seen a considerable increase in academic literature over the last five years, but there are still significant research gaps and unanswered questions that need to be addressed for it to become an established academic discipline. One of the research gaps is the impact of fintech on the financial health of small and medium-sized enterprises (SMEs). The research shows that fintech innovation has a multifaceted impact on SMEs, helping them develop in many aspects but also increasing investment risk and creating a serious monopoly. However, the disadvantages also present opportunities for fintech development, suggesting that efforts should be made to solve problems and provide better market conditions for SMEs. Another study finds that fintech can significantly ease the financing constraints of SMEs, with a 1% increase in fintech leading to a decrease in financing constraints by 0.0767%. Fintech achieves this by alleviating financial industry concentration and information asymmetry, with marketization and free competition further enhancing its impact.