Journal Markcount Finance

Cybersecurity Risks in Digital Finance: Regulatory and Ethical Challenges in Protecting Consumers

2025-10-18T20:23:10+07:00

The rapid growth of digital finance has transformed financial services by providing convenience, accessibility, and efficiency. However, this digital expansion also introduces significant cybersecurity risks, including data breaches, fraud, and unauthorized access, which threaten consumer protection and trust. Regulatory frameworks and ethical guidelines are critical to mitigating these risks, yet the evolving nature of technology presents ongoing challenges for policymakers and financial institutions. This study investigates cybersecurity risks in digital finance and examines the regulatory and ethical measures implemented to protect consumers. A qualitative research design was employed, combining systematic literature review with analysis of case studies involving cybersecurity incidents and regulatory responses in the financial sector. Data were analyzed thematically to identify patterns in risk exposure, regulatory effectiveness, and ethical considerations. Findings indicate that despite regulatory initiatives, gaps persist in data protection, enforcement, and alignment with emerging technologies, leaving consumers vulnerable to financial and informational harm. Ethical challenges include balancing innovation with responsibility, transparency in data use, and accountability for breaches. The study concludes that comprehensive, adaptive regulatory frameworks coupled with strong ethical standards are essential to safeguard consumers in digital finance. Collaboration among regulators, financial institutions, and technology providers is crucial to anticipate risks, ensure compliance, and foster trust in the digital financial ecosystem.

Green Sukuk as a Sustainable Financing Instrument: Evidence from Indonesia and Malaysia

2025-10-28T12:08:38+07:00

Green Sukuk represents a strategic innovation in Islamic finance that aligns environmental sustainability with Sharia-compliant investment principles. The increasing global urgency to address climate change has driven Muslim-majority nations such as Indonesia and Malaysia to pioneer the issuance of Green Sukuk as a dual-purpose instrument financing sustainable projects while promoting ethical investment behavior. The purpose of this study is to analyze the effectiveness of Green Sukuk in supporting national sustainable development goals and to evaluate its role in strengthening green financial ecosystems. The research employs a mixed-method approach combining document analysis, market data review, and expert interviews from both countries’ financial authorities. The results show that Green Sukuk issuance has significantly contributed to renewable energy and climate-resilient infrastructure projects, enhancing investors’ confidence through transparent reporting and Sharia compliance. Comparative findings reveal that Indonesia focuses on sovereign sustainability frameworks, whereas Malaysia emphasizes private sector innovation and regulatory facilitation. The study concludes that Green Sukuk offers a viable model for integrating environmental, social, and governance (ESG) objectives into Islamic finance, advancing both ethical and ecological accountability.

Artificial Intelligence for Predictive Risk Management in Islamic Banking: Opportunities and Ethical Challenges

2025-10-28T11:55:35+07:00

The integration of Artificial Intelligence (AI) into Islamic banking introduces transformative possibilities for predictive risk management while simultaneously raising crucial ethical concerns. This study explores how AI-driven analytics can enhance the accuracy of risk prediction, compliance efficiency, and Sharia-based decision-making processes in Islamic financial institutions. The purpose of this research is to analyze both the technological opportunities and the ethical challenges that accompany AI applications in Islamic banking risk management. Using a qualitative descriptive approach supported by literature analysis and expert interviews, the study investigates AI’s role in mitigating financing risks, improving operational transparency, and ensuring adherence to maqasid al-shariah principles. The findings reveal that AI facilitates efficient monitoring of risk indicators and supports data-driven decisions aligned with Islamic ethics. However, ethical issues such as algorithmic bias, data privacy, and the loss of human judgment remain significant concerns. The study concludes that successful AI adoption in Islamic banking requires a balanced framework integrating technological advancement with ethical governance rooted in Islamic moral values.

Investor Psychology and Sentiment Analysis in Cryptocurrency Markets: A Behavioral Finance Approach

2025-10-28T12:16:23+07:00

The volatility of cryptocurrency markets has attracted growing attention from scholars seeking to understand how psychological and emotional factors shape investor behavior. Behavioral finance provides a theoretical foundation to explain deviations from rational decision-making, particularly in environments driven by speculation, social influence, and technological uncertainty. This study aims to examine the relationship between investor sentiment, psychological bias, and market dynamics within cryptocurrency trading using a behavioral finance approach. The research employs a mixed-method design, combining quantitative sentiment analysis of social media data (Twitter, Reddit, and Telegram) with econometric modeling of market indicators such as trading volume, volatility, and price momentum. The results indicate a strong correlation between positive sentiment and short-term price surges, while fear and loss aversion significantly contribute to panic selling and extreme volatility. Investor psychology, particularly herd behavior and overconfidence, is shown to amplify market cycles beyond fundamental valuations. The findings confirm that behavioral variables exert a measurable and systematic influence on cryptocurrency market movements. The study concludes that integrating psychological and sentiment metrics into financial modeling enhances predictive accuracy and provides critical insights for investors and policymakers seeking stability in digital asset markets.

Circular Economy Financial Practices: Financing Models for Sustainable Business Innovation

2025-10-18T20:19:04+07:00

The transition to a circular economy requires innovative financial practices to support sustainable business models and reduce environmental impact. Traditional financing mechanisms often focus on linear growth, emphasizing short-term profitability over long-term sustainability, which limits the adoption of circular practices. Circular economy financing aims to provide capital, incentives, and risk mitigation strategies that enable businesses to implement resource-efficient, regenerative, and waste-minimizing processes. This study investigates financial models that facilitate circular economy adoption, including green bonds, impact investing, leasing schemes, and public-private partnerships. A qualitative research design was employed, combining systematic literature review with case study analysis of firms implementing circular strategies across manufacturing, energy, and service sectors. Data were analyzed thematically to identify patterns in financing approaches, success factors, and barriers. Findings indicate that tailored financing mechanisms, such as performance-based loans and blended finance models, effectively support circular business innovations by aligning financial incentives with environmental and social outcomes. Access to specialized capital, stakeholder engagement, and regulatory support were critical enablers, while high perceived risk and limited awareness constrained adoption. The study concludes that integrating innovative financial practices into circular economy initiatives can drive sustainable business transformation, enhance competitiveness, and reduce environmental footprint.

Global Tax Transparency and Fairness: Implications for Multinational Corporations in the Digital Economy

2025-12-18T18:00:36+07:00

The expansion of the digital economy has intensified long-standing challenges in international taxation, particularly regarding tax transparency and fairness for multinational corporations operating across borders. Traditional tax frameworks struggle to address profit shifting and value creation driven by intangible assets and digital business models, prompting the development of global transparency initiatives. This study aims to examine the implications of global tax transparency and fairness frameworks for multinational corporations in the digital economy, with a focus on how enhanced disclosure affects corporate behavior and tax outcomes. A qualitative–comparative research design is employed, drawing on secondary data from international tax reports, corporate disclosures, and policy documents, complemented by sectoral comparison and an illustrative case study of a digital multinational corporation. The findings show that global transparency initiatives have increased reporting compliance and improved visibility of profit allocation and effective tax rates, particularly in high-income jurisdictions. However, significant disparities in tax outcomes persist across countries, driven by differences in regulatory capacity, enforcement strength, and the continued centrality of intangible assets in digital business models. The study concludes that tax transparency functions as a necessary but insufficient condition for achieving tax fairness in the digital economy. Its novelty lies in integrating tax justice and institutional legitimacy perspectives with empirical analysis of digital multinational corporations, highlighting the gap between formal transparency and substantive fairness and underscoring the need for coordinated reforms beyond disclosure requirements alone.

Ethical AI in Financial Decision-Making: Balancing Innovation, Regulation, and Social Justice

2025-12-05T12:53:10+07:00

The integration of Artificial Intelligence (AI) in financial decision-making has revolutionized the sector, offering unprecedented speed and efficiency. However, the increasing reliance on AI systems has raised concerns regarding ethical implications, particularly in terms of fairness, transparency, and accountability. This study explores the intersection of ethical AI, financial decision-making, and social justice, emphasizing the need to balance technological innovation with regulatory oversight and societal impact. The research aims to assess how AI-driven financial decisions align with ethical principles and the role of regulation in ensuring equitable outcomes. A mixed-methods approach was employed, combining a qualitative review of existing literature on AI ethics in finance with quantitative analysis of AI algorithms in decision-making processes within financial institutions. The findings suggest that while AI has the potential to enhance financial decision-making, there is a significant gap in the ethical regulation of AI systems. The study identifies key challenges in ensuring transparency and fairness, particularly in automated lending and investment decisions. It concludes that a comprehensive regulatory framework is essential for balancing innovation with ethical standards, ensuring that AI serves the public good while mitigating the risk of biased decision-making. The findings underscore the importance of social justice considerations in the deployment of AI in financial systems.

Sustainable Finance and Digital Innovation: Synergies for Achieving SDGs in Emerging Economies

2025-12-15T16:19:56+07:00

Emerging economies face increasing pressure to accelerate progress toward the Sustainable Development Goals (SDGs) while confronting structural financing gaps and uneven technological capacity. Sustainable finance frameworks have expanded rapidly in these regions, yet their effectiveness depends increasingly on the integration of digital innovation capable of enhancing transparency, efficiency, and financial inclusion. This study aims to analyze the synergistic interaction between sustainable finance instruments and digital technologies, and to assess how such integration supports SDG achievement in emerging economies. A mixed-methods approach was employed, combining policy analysis, secondary financial data, and stakeholder interviews across selected emerging markets. Findings reveal that digital platforms—such as blockchain-based reporting, mobile financial services, and AI-driven risk assessment—significantly strengthen the governance and scalability of sustainable finance initiatives. The results further show that digital innovation enables more accurate impact measurement, broadens access to green financing, and improves capital mobilization for sustainability projects. The study concludes that the convergence of sustainable finance and digital innovation creates a transformative pathway for accelerating SDG progress, particularly in economies facing institutional constraints. Strengthened regulatory alignment and cross-sector collaboration are essential to maximize long-term developmental outcomes.

Islamic Fintech Platforms for Financial Inclusion: Case Study on Digital Banking in Rural Communities

2025-12-18T18:06:30+07:00

Financial inclusion remains a critical challenge in rural communities where geographical barriers, limited infrastructure, and socio-cultural factors restrict access to formal financial services. Islamic fintech platforms have emerged as an alternative digital solution that combines technological innovation with Sharia-compliant financial principles, offering potential pathways for inclusive finance. The objective of this study is to examine how Islamic fintech-based digital banking platforms contribute to financial inclusion in rural communities through an in-depth case study approach. A qualitative research design was employed, involving purposive sampling of rural digital banking users, community leaders, fintech service providers, and institutional stakeholders. Data were collected through semi-structured interviews, field observations, and document analysis, and were analyzed thematically to capture patterns of access, usage, trust, and perceived benefits. The findings reveal that Islamic digital banking platforms significantly improve account ownership, transaction frequency, access to savings and microfinance, and user confidence in formal financial institutions. Adoption is strongly influenced by Sharia compliance, digital literacy, proximity to agent networks, and endorsement from local religious and community institutions. The study concludes that Islamic fintech platforms function not only as technological tools but also as socially embedded financial instruments that align ethical values with digital innovation. The novelty of this research lies in its integration of Islamic economic theory with empirical rural fintech analysis, demonstrating how value-based digital banking can effectively advance financial inclusion in underserved rural contexts.

Blockchain-Based Smart Contracts in Microfinance: Enhancing Trust and Reducing Transaction Costs in Southeast Asia

2025-12-25T15:33:34+07:00

Microfinance plays a vital role in financial inclusion in Southeast Asia, yet persistent challenges such as high transaction costs, information asymmetry, and limited transparency continue to undermine institutional sustainability and borrower trust. This study aims to examine how blockchain-based smart contracts enhance trust and reduce transaction costs within microfinance institutions operating in Southeast Asia. A mixed-methods research design is employed, combining quantitative analysis of transaction cost indicators, loan processing efficiency, and repayment performance with qualitative insights from microfinance practitioners and borrowers. Data are collected from selected institutions implementing smart contract systems in Indonesia, Vietnam, and the Philippines. The results indicate significant reductions in administrative, monitoring, and enforcement costs alongside faster loan disbursement processes. Improved transparency and automated contract execution contribute to higher levels of borrower trust, fewer disputes, and stronger repayment discipline. The findings reveal a positive relationship between transaction cost reduction and trust enhancement, suggesting that operational efficiency reinforces institutional credibility. The study concludes that blockchain-based smart contracts function as socio-technical mechanisms that reshape governance structures in microfinance rather than serving solely as efficiency tools. The novelty of this research lies in its empirical demonstration that technological trust embedded in smart contracts can complement and partially replace relational trust, offering a context-sensitive framework for digital financial inclusion in Southeast Asia.