The Application Boundaries and Risk Management of AI in Financial Transactions: An Empirical Study

Chapter 13 - Stochastic programming models for strategic and tactical asset allocation—A study from Norwegian life insurance

Abstract: The integration of blockchain into smart cities represents a paradigm shift in how urban environments are conceptualized, governed, and sustained. This book, Blockchain in Smart Cities: Tools for Building Connected Urban Environments, provides a comprehensive analysis of blockchain as an enabling technology for resilient, transparent, and citizen-centric urban ecosystems. It examines the historical trajectory of smart cities, the foundational principles of blockchain, and their convergence in transforming critical infrastructures such as energy, mobility, healthcare, and governance. Through a multidimensional framework, the book explores blockchain’s potential to enhance transparency in public services, ensure secure property registries, and facilitate urban token economies. At the same time, it addresses pressing challenges such as scalability, cybersecurity, regulatory uncertainty, and social acceptance. Comparative global case studies—from Estonia’s e-governance to Dubai’s blockchain strategy—offer empirical insights into successes and limitations, highlighting the necessity of context-sensitive implementation. By synthesizing technological, economic, legal, and ethical perspectives, the book positions blockchain not merely as a digital tool but as an institutional innovation shaping the future of connected urban environments. It concludes with strategic policy recommendations and a roadmap for future research, underscoring blockchain’s transformative potential in building sustainable, inclusive, and adaptive cities for the 21st century and beyond. Keywords Blockchain, Smart Cities, Urban Innovation, Digital Governance, Token Economies, Smart Contracts, Decentralized Finance (DeFi), Urban Infrastructure, Sustainability, Cybersecurity, Internet of Things (IoT), Artificial Intelligence (AI), Urban Planning, Circular Economy, Decentralized Autonomous Governance, Urban Resilience, Digital Transformation, Comparative Case Studies

Background Asset management organizations have integrated new technologies before, but this trend is expected to reach its peak in the coming years. Investors using technical instruments buy financial products from asset management companies (AMCs). Thus, AMC is working diligently to enhance its operations and processes, enabling investors to have seamless transaction experiences across its various platforms through simplified procedures and efficient management. Objectives This study examines the performance drivers of AMCs, more specifically, how fundamental components contribute to business excellence by improving firm procedures and operations and creating new investor experiences. Methods/Approach The report uses data from 387 asset management professionals from 10 businesses. In India, 10 prominent AMCs provided 387 valid replies to a work survey. The analysis was conducted using the PLS-SEM approach. Results The findings indicate that Industry 4.0, business process management, and Lean Six Sigma facilitate operational excellence and are key drivers of achieving business excellence in asset management firms in India. Conclusions Organizations can achieve business excellence by applying concepts from Industry 4.0, business process management, Lean Six Sigma, and operational excellence. This is among the few empirical studies examining the enablers of business excellence in Indian AMCs.

The increasing integration of telecommunications with financial services has brought about significant advancements in the accessibility and efficiency of financial transactions. However, this convergence has also led to a rise in fraudulent activities, posing substantial risks to both service providers and users. The application of machine learning (ML) in detecting fraud within telecommunication-based financial transactions offers a promising solution to these challenges. This abstract explores the potential of ML techniques to enhance the detection and prevention of fraud in this domain. Machine learning algorithms, particularly those specializing in anomaly detection, pattern recognition, and predictive modeling, are well-suited to identifying fraudulent activities in real-time. These algorithms can analyze vast amounts of transaction data to detect irregularities that may indicate fraud, such as unusual transaction patterns, deviations from normal behavior, and other red flags that traditional rule-based systems might overlook. By continuously learning from new data, ML models can adapt to emerging fraud tactics, making them highly effective in a rapidly evolving threat landscape. Furthermore, the integration of ML with big data analytics allows for the processing and analysis of large-scale transactional data, enhancing the accuracy and speed of fraud detection. Techniques such as supervised learning, unsupervised learning, and reinforcement learning are particularly effective in categorizing transaction types and identifying potential frauds with minimal human intervention. The use of ML also enables the automation of fraud detection processes, reducing operational costs and increasing the efficiency of fraud management systems. This abstract highlights the critical role of machine learning in enhancing the security of telecommunication-based financial transactions. The ability of ML to detect and prevent fraud in real-time not only mitigates risks but also improves trust and reliability in telecommunication financial services. As fraudsters continue to develop sophisticated methods, the ongoing refinement of ML algorithms will be essential in maintaining robust defenses against financial fraud in the telecommunication sector. Keywords: ML, Detecting, Fraud, Telecommunication-Based, Financial Transactions.

BackgroundCommunity-oriented nursing care is an important model of nursing care. Counseling and Nursing Care Service Centers (CNCSCs) have been providing these private services to the Iranian community for nearly two decades. Resource management, cost-benefit analysis and affordability are important steps in providing these services. The present study was conducted to explore the challenges of financial transactions between CNCSCs and their clients.MethodsThis study has a qualitative design and was conducted on a total of 30 participants, consisting of CNCSC managers, staff, physicians and clients who were selected through purposive theoretical sampling. Data were collected through in-depth interviews and direct observations and were analyzed using conventional qualitative content analysis.ResultsThe analysis of the data led to the extraction of three main categories, including the flaunted atmosphere due to direct financial transaction, instability in determining tariffs for nursing services and the use of strategies for cost-effective services and client satisfaction.ConclusionTo increase affordability and satisfaction and expand private community-based nursing.Services, appropriate financial policies should be designed and applied that can lead to transparent and simple financial transactions with the clients by way of indirect monetary exchanges. These policies should be designed in a systematic manner with integrity, facilitate inter-sectorial cooperation in the health sector and be cost-effective for the clients, insurance companies and the health system.

The Bucharest Stock Exchange (BVB) represents the benchmark for the development of financial markets in Romania. Its efficiency can be measured by the range of financial products made available to investors, as well as by the efficiency, speed, and diversity of trading channels. This paper aims to analyze the impact of using bonds, stocks, and Exchange Traded Funds (ETFs) on key market indicators such as liquidity, volatility, and transparency. The analysis technique employed is based on the VOSviewer software, exploring the relationships between key determinants of performance and competitiveness, such as transaction efficiency, investor participation levels, and transparency.

PurposeThe purpose of this paper is to examine asset management in three cities. It is informed by polyphony as a theoretical perspective and draws on the fact‐building process to explore the practice of asset management in these study settings.Design/methodology/approachA comparative case study approach was adopted to have a broader understanding of the levels of complexity in the study of polyphony in asset management. With this aim, the three Scottish cities were analysed presenting a spectrum of city types.FindingsThe paper finds evidence of polyphony. The three cases show different degrees of controversies and achievements, providing a highly variegated picture of the effectiveness in pursuing an asset management policy.Originality/valuePolyphony recognises the many voices of actors present in organisations. This perspective on asset management is an important, but relatively neglected facet of this aspect of city management. The paper provides an insight in this, showing the potential for the multiple voices of the many different actors within local government, all of whom may have distinct views on asset utilisation.

Asset management is a key sector of the Italian financial system, and its corporate governance (CG) is a key issue. This article investigates CG of Italian asset management companies (AMCs) by observing a sample of banking and independent AMCs from 2006 to 2010. The purpose of our research is to establish whether the governance structure of Italian AMCs influences products and profitability. We use the seemingly unrelated regression methodology. We find that the CG system may affect mutual fund categories offered by Italian AMCs. Moreover, the mutual funds category may contribute to AMC profitability. Our results have interesting operating implications concerning the Italian asset management market, characterised by a potential conflict of interest. A better CG structure of asset managers could contribute to improving their performances and reducing commissions charged to clients.

All sectors are facing an increasing competitive situation, therefore economic analyzes are increasing in importance in asset management. The market dynamics tends to a continuous improvement. The objectives of profitability and life cycle costs have a significant influence on the strategy of assets and strategic decisions in the organization, so it is important to analyze capex and opex to be able to define the strategies to take. What happens when we are in a medium or small company? Generally, the answer to this is that asset management only takes place on large companies. In this research, the application of an international standard model, such as ISO 55000 in asset management, for medium and small companies, becomes relevant. This standard covers a whole concept of control, monitoring and improvement, which explains what should be done. The application of a management model based on the standard allows meeting specific requirements and characteristics. Our conclusion is that any entity, regardless of its size should establish a strategy in its asset management and ISO 55000 could help them in developing that strategy.

Effective asset inventory is crucial for asset management, allowing organizations to optimize asset use, prevent loss, and ensure readiness. PT. Chandra Asri faces challenges in IT asset management, including incomplete and inconsistent data, hindering operational efficiency. This qualitative study examines the current state of IT asset management at PT. Chandra Asri and highlights the potential benefits and challenges of implementing advanced technologies like RFID, barcodes, and cloud-based systems. Case studies from various sectors demonstrate significant improvements in operational efficiency, cost reduction, and customer satisfaction with these technologies. This research offers valuable insights for practitioners, policymakers, and academics in developing better asset inventory strategies.

A scientific approach to financial and economic security based on the use of digital financial monitoring technologies in the growth of financial operations of shadow banking, which allows in the transition to a digital economy to reduce threats to financial and economic security by reducing the possibility of anonymous capital management using impersonal electronic transactions , including remote cross-border management of financial assets in offshore areas and low-tax jurisdictions that hide real participants and beneficiaries of financial transactions from state control. It is substantiated that the introduction of various digital technologies in the implementation of financial transactions makes it necessary to prioritize the control of operators that provide non-transparent maneuverability of operations related to shadow banking. This stimulates the growth of uncontrolled assets for official bodies, including the regulator, creating a basis for new risks and threats to the financial stability of the country's economy and requires strengthening the state's function to protect national interests and increase financial and economic security. The possibility and expediency of automated formation of a distributed group of online registers in which each transaction is controlled, confirmed and registered is determined. This creates a reliable history of transactions with automated identification of all participants in financial transactions based on the inclusion of shadow banking operations in distributed databases containing records of all transactions that cannot be changed or forged, which meets the requirements of automation of control activities. Conceptual provisions on protection of national interests of the country and the decision of a problem of criminalization of a society and liquidation of shadow economy on the basis of increase of transparency of financial operations within the limits of the existing dishonest practices realized by structures of shadow banking are formulated. The priority directions of financial and economic security in the conditions of shadow banking on the basis of formation of the cross-border information environment based on a digital transaction platform are defined by building uniform logic of processes of control activity, rules and coordination possibilities at functioning of the system of the control bodies carrying out monitoring and preventive actions. regarding shadow banking.

The financial market stress of 2008, triggered by the collapse of Lehman Brothers, underscored the critical need for efficient collateral management in financial transactions. This research focuses on developing and simulating a blockchain platform designed to automate the collateral value adjustment in securities lending transactions, where the key stakeholders include financial institutions, market participants, and regulatory bodies. The platform proposes innovative transaction flows and algorithms to manage collateral automatically, significantly making risk management more effective and reducing administrative costs. The study’s methodology includes 1) designing a blockchain platform for automated collateral management, 2) developing and testing collateral value adjustment algorithms, and 3) conducting case studies with real stock and bond price data to evaluate the platform’s effectiveness. A notable outcome of this research is the reduced credit risk and liquidity compared to traditional procedures, based on the benefit of collateral diversification enabled by the automated algorithms employing multiple tokens as collaterals. This research contributes to the field of transdisciplinary engineering by integrating financial and technological disciplines, particularly in leveraging blockchain technology for financial applications. Furthermore, the study reflects on broader societal impacts, such as improving the efficiency and security of financial transactions, potentially stabilizing market volatility, and offering insights for policy-making in sound and robust settlement systems.

The development of digital banking in Indonesia, especially mobile banking (M-Banking) services, has increased the efficiency of people's financial transactions. However, this convenience is accompanied by increasingly complex fraud risks, such as phishing, account hacking, and misuse of personal data. This research aims to analyze M-Banking fraud prevention strategies and the legal handling process for victims in Indonesia. The research method uses a normative approach by reviewing legal regulations, case studies, and recommendations from banking and cybersecurity authorities. Perkembangan perbankan digital di Indonesia, khususnya layanan mobile banking (M-Banking), telah meningkatkan efisiensi transaksi keuangan masyarakat. Namun, kemudahan ini diiringi risiko penipuan yang semakin kompleks, seperti phishing, peretasan akun, dan penyalahgunaan data pribadi. Penelitian ini bertujuan untuk menganalisis strategi pencegahan penipuan M-Banking dan proses penanganan hukum bagi korban di Indonesia. Metode penelitian menggunakan pendekatan normatif dengan mengkaji regulasi hukum, studi kasus, serta rekomendasi dari otoritas perbankan dan keamanan siber.

This study aims to examine the extent to which ease of use and security affect the interest in using a non-cash digital payment system based on the Quick Response Code Indonesian Standard (QRIS) among MSMEs in Jember Regency, viewed from the perspective of Maqashid Syariah. This study adopts a quantitative approach with an associative research type. The research sample consisted of 100 respondents selected by purposive sampling from the population of MSMEs using QRIS. Data analysis used multiple linear regression with the help of the SPSS version 25 program. The results showed that the ease of use variable (X1) had a positive and significant effect on the interest in using QRIS, as evidenced by a significance value of 0.000 <0.05 and a T value of 6.905. Likewise, the security variable (X2) showed a significant effect with a significance value of 0.000 and a t value of 3.946 and a level. Simultaneously, both variables had a significant effect on the interest in using QRIS, supported by the results of the F test of 76.963 with a significance value of 0.000. From the perspective of Maqashid Syariah, QRIS supports five main aspects, namely protection of religion (Hifz al-Din), life (Hifz al-Nafs), reason (Hifz al-‘Aql), property (Hifz al-Mal), and descendants (Hifz al-Nasl). QRIS is considered to be able to encourage efficiency, security, and transparency in financial transactions, while being in line with Islamic ethical values ​​and principles.

Currency recognition, or digitization, refers to the process of converting physical currency, such as banknotes and coins, into digital formats. This transformation enhances convenience, security, accessibility, and cost efficiency in financial transactions, which are essential in the modern economy. This paper introduces a Convolutional Neural Network (CNN) model designed for the recognition of Bhutanese paper currency. The model was trained on a dataset comprising various currency types and denominations, achieving a training accuracy of 91 percent and a testing accuracy of 80.5 percent. The architecture consists of three convolutional layers, followed by a dense layer for classification. The findings suggest that CNNs are effective for currency recognition, with the potential for improved accuracy through the expansion of the training dataset.