American Journal of Finance and Business Management

Microservices Architecture for High-Volume Finance Compliance Applications

2025-11-16T16:56:07+00:00

Aim: Financial institutions are under increasing pressure to process large volumes of regulatory and compliance data with high speed, accuracy, and auditability. Traditional monolithic systems often struggle to meet these demands due to scalability limitations and rigid architecture. This paper proposes a microservice-based architecture tailored for high-volume finance compliance applications.

Methods: The research employs a design that integrates event-driven architecture, containerized microservices, and workflow orchestration. Validation was performed using live reporting data and controlled test environments to evaluate the system’s scalability, fault tolerance and transparency. Core architectural elements include bounded-context services for data ingestion, validation, aggregation, and submission, integrated with streaming platforms such as Kafka for real-time data flow, and workflow engines to enforce deadlines, retries, and human approvals. The design embeds observability, audit completeness, and zero-trust security controls to ensure compliance with evolving regulatory requirements such as Basel IV and IFRS updates.

Results: Performance benchmarks and case studies demonstrate the feasibility of handling millions of daily process instances and thousands of concurrent workflows with low latency, while also reducing manual interventions and improving SLA adherence.

Conclusion: The findings suggest that microservices, when combined with event streaming and robust orchestration, provide a sustainable path toward agility, compliance, and cost efficiency in the finance sector.

Recommendations: The study recommends that financial institutions adopt event-driven microservices and workflow orchestration tools such as Camunda 8 to enhance regulatory reporting efficiency.

Influence of Loan Approval Practice on Financial Performance of Commercial Banks in Kisii County, Kenya

2025-06-14T12:06:29+00:00

Aim: This study examined how specific digital loan approval practices such as automated credit scoring, digital customer onboarding, electronic Know Your Customer (e-KYC) procedures and the use of mobile and online banking platforms impact the financial performance of commercial banks in Kisii County.

Methods: A descriptive survey design was employed. Stratified random sampling was used to select a sample size of 107 employees. Closed-ended questionnaires were used in collecting primary data from 107 employees across 16 banks. Annual reports were extracted from the Central Bank of Kenya (CBK). Financial performance data was triangulated from the responses given from 2016 to 2020. The study used descriptive and inferential statistics, including multiple and hierarchical regression analysis.

Results: The results revealed a significant negative relationship between loan approval practices and financial performance. This indicating that inefficient or overly strict approval processes contributed to lower financial outcomes for the banks.

Recommendation: The study recommended strengthening digital loan approval processes by enhancing the integration of credit rating assessments and credit bureau checks. Improvements to technological infrastructure are needed to ensure smooth access to updated credit data, addressing concerns about transparency and fairness.

Leveraging Technology for Fiscal Governance: The Moderating Role of Financial Information Systems on Internal Control and Revenue Collection in the LREB Counties in Kenya

2025-10-30T06:14:30+00:00

Aim: This study aims to analyse how internal control activities (ICA) on revenue collection within the Lake Region Economic Bloc (LREB) counties in Kenya.

Methods: Grounded in Contingency, Agency, and Task-Technology Fit theories, the research employs a panel design utilizing secondary data from all 14 LREB counties for the period 2015 to 2024. A panel regression analysis was applied to evaluate the relationships.

Results: Based on a panel analysis, both internal control activities (ICA) and Financial Information Systems (FIS) had highly significant positive effects on revenue collection efficiency (ln(RGDP)), with coefficients of β=0.058 (p<0.001) and β=0.067 (p<0.001), respectively. Crucially, their interaction term (ICA × FIS) was also positive and significant (β=0.016, p=0.001), demonstrating that FIS acts as a positive moderator.

Conclusion: The study concludes that revenue collection efficiency in LREB counties is maximized when financial information systems are implemented in conjunction with strong internal controls, providing empirical support for the Task-Technology Fit theory.

Recommendation: This study recommends that LREB counties should implement robust Financial Information Systems and internal control activities concurrently, as their synergistic interaction generates a greater positive effect than either measure alone.

A Critical Review of Budget Control Strategies for Effective Financial Management in Organizations

2025-06-11T12:14:16+00:00

Aim: Budgeting is widely used to control organizational finances because it allows for better focus on resource management, costs, and goal alignment in terms of financial performance. This paper critically evaluates key budget control strategies such as zero-based budgeting, flexible budgeting, and rolling budgets, to assess their effectiveness in enhancing financial performance within organizations.

Methods: Using a narrative literature review approach, this study synthesizes insights from peer-reviewed financial management literature published between 2010 and 2023 to assess the advantages, challenges, and practical applications of each budgeting method.

Results: The review finds that zero-based budgeting promotes cost discipline by requiring justification for all expenses; however, it is often resource-intensive and time-consuming. Flexible budgeting enhances adaptability by allowing adjustments based on actual activity levels; however, it poses challenges in terms of forecasting accuracy. Rolling budgets support continuous planning and alignment with evolving business environments though it heavily depends on real-time data and robust technological infrastructure.

Conclusion: The study concludes that in a volatile economic environment, organizations must continuously evaluate and adapt their budgeting strategies. Agile methods such as rolling budgets, when integrated with predictive analytics and supported by stakeholder collaboration, can significantly improve financial control and strategic responsiveness.

Recommendation: It is recommended that financial managers adopt a hybrid budgeting framework tailored to their organizational context while prioritizing cross-functional involvement and data-driven decision-making.