Behavioral Intentions to Employ Financial Technology (Fintech) Services among Commercial Banks' Customers: Empirical Evidence in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 146-146
Author(s):  
Kwee Kim Peong ◽  
Kwee Peng Peong ◽  
Kui Yean Tan
Keyword(s):  
Financial Services ◽  
Finance Industry ◽  
Speed Of Information Processing ◽  
Customer Interface ◽  
Start Up ◽  
The Social ◽  
Automated Technology ◽  
Global Coverage ◽  
Privacy Risks ◽  
Financial Technology

Most recently, the revolution of technology has threatened the current doctrines in labour and the economy (Belanche, Casalo & Flavian, 2019) of a nation. The presence of technology and automation plays a significant role in the financial services market worldwide for shaping the social environment and the economic (Darmansyah, Fianto, Hendratmi & Aziz, 2020). The rationale behind this is that automated technology penetration grows at a 20 per cent rate annually (Belanche et al., 2019) as the speed of information processing, and connectivity are enhanced and expanded in both back-office processes and at the customer interface (Gomber, Koch & Siering, 2017; Gupta & Xia, 2018). The growth of mobile broadband global coverage has grown remarkably in developed markets at 86.7 per 100 inhabitants subscription, whereas, emerging markets have a high subscription of merely 39.1 per 100 inhabitants (Gupta & Xia, 2018). For instance, the growth of broadband penetration in Malaysia with 91.2 per cent coverage in populated areas and 58 per cent in road networks in 2016 is 81.5 per cent higher as compared to 55.6 per cent in 2010 (Economic Planning Unit, 2017). Hence, it anticipates that almost half of current occupations would be replaced with technologies in the next 20 years (Belanche et al., 2019). In the finance industry, financial technology (FinTech) is a key strategy for financial start-up firms and banks (Belanche et al., 2019) particularly in the pre-digital economy (Chanias, Myers & Hess, 2019). Keywords: Social Influence, Trust, Privacy Risks, CyberSecurity Risks, Behavioural Intention to Use

scholarly journals The Development of Digital Economy in Indonesia

2020 ◽  
Author(s):  
Regina Joanita
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Digital Economy ◽  
Banking Services ◽  
Start Up ◽  
Rapid Changes ◽  
Strategic Role ◽  
Medium Enterprises ◽  
Selection Of ◽  
Financial Technology

Industrial Era 4.0 changed the entire chain and management of all branches of industry with various technologies. All financial-based services are developing rapidly in Indonesia marked by the emergence of many start-up companies. Rapid changes to digital banking and financial technology show that technology can play a strategic role in providing financial services that can be accessed quickly. The availability of digital banking services and products is highly valued by customers, both individuals and business people, especially in Micro, Small and Medium Enterprises (MSME). The large selection of digital banking products is certainly intended to motivate customers to love and be loyal customers and become part of the modern lifestyle. The presence of the digital economy is a new opportunity as well as a serious threat to the banking industry that is churning into digital banking in order to retain customers and attract new customers from millennials.

Understanding FinTech and Decentralized Finance (DeFi) for Financial Inclusion

2022 ◽  
pp. 1-13
Author(s):  
Andrei Dragos Popescu
Keyword(s):  
Social Problem ◽  
Financial Services ◽  
Paradigm Shift ◽  
Financial Inclusion ◽  
Underserved Population ◽  
Finance Industry ◽  
Long Period ◽  
Financial Exclusion ◽  
Cycle Of Poverty ◽  
Financial Technology

For a very long period of time, financial inclusion researchers have been addressing the barriers that prevent unprivileged people from accessing and using financial services. Financial exclusion is an underlying social problem that dates from the creation of the first financial system. Without the access to the banking and financial infrastructures, the unbanked are perpetuating a vicious cycle of poverty. Blockchain is leading this transformation of allowing unbanked and underbanked people to have access and interact with the finance industry. The promise of a digital economy is starting to take shape, as financial technology (FinTech) companies are evolving the concept of democratization of access. Decentralized finance (DeFi) is expanding the possibilities of financial technology by creating an ecosystem based on transparency, accessibility, and efficiency. We are witnessing a paradigm shift for most of the financial services which are remodeling the accessibility and usability of these services, addressing the excluded and underserved population.

scholarly journals PENGAWASAN BANK INDONESIA ATAS KERAHASIAAN DAN KEAMANAN DATA/INFORMASI KONSUMEN FINANCIAL TECHNOLOGY PADA SEKTOR MOBILE PAYMENT

JURISDICTIE ◽  
2020 ◽  
Vol 11 (1) ◽  
pp. 16
Author(s):  
Dwi Fidhayanti
Keyword(s):  
Financial Services ◽  
Personal Data ◽  
Mobile Payment ◽  
Normative Study ◽  
Information Transparency ◽  
Services Sector ◽  
Start Up ◽  
Consumer Data ◽  
Financial Technology ◽  
Payment Gateway

<p>Widespread use of Internet and smartphones in Indonesia triggers fintech transactions. Law Number 11 Year 2008 concearning Information and Electronic Transactions Article 26 Paragraph (1) explains that unless otherwise stipulated by statutory regulations, the use of any information through electronic media concerning a personal’s data must be carried out with the concent of the person concerned. However, it is prone to crime by breaking into the security systems of fintech. This study aims to determine the regulation of consumer data confidentiality and security of financial technology in the mobile payment sector and Bank Indonesia’s supervision on that matter. This is a normative study with legislative and conceptual approaches. Regulation on the Consumer Data/Information Confidentiality and Security of Financial Technology in Mobile Payment Sector is made by authorized institutions i.e. Bank Indonesia as regulators and supervisors in payment system and OJK (Financial Services Authority) in managing fintech categorized as non-bank institutions. Bank Indonesia has issued Regulation Number 7/6/PBI/2005 concerning provisions on Information Transparency of Bank Product and the Use of Customer’s Personal Data. Meanwhile, OJK manages data security based on Article 2 Letter d of the OJK Regulation Number 1/POJK.07/2013 concerning Consumer Protection of Financial Services Sector. Bank Indonesia supervises directly through Bank Indonesia Fintech office by holding “meet the start up” to consult and share about fintech. Policy wise, Bank Indonesia issued regulation concerning payment transaction processing, APU/PPT for non-banks, Bank Indonesia Regulations on Fintech and Regulatory Sandboxes and regulations on National Payment Gateway (NPG).</p><p>Meluasnya penggunaan Internet dan smartphone di Indonesia membuat tingginya transaksi fintech. Undang-Undang Nomor 11 Tahun 2008 Tentang Informasi dan Transaksi Elektronik Pasal 26 ayat (1) menjelaskan bahwa kecuali ditentukan lain oleh Peraturan perundang-undangan, penggunaan setiap informasi melalui media elektronik yang menyangkut data pribadi seseorang harus dilakukan atas persetujuan orang yang bersangkutan. Namun, penggunaan teknologi rentan terhadap kejahatan dengan membobol sistem keamanan fintech. Penelitian ini bertujuan untuk mengetahui pengaturan atas kerahasiaan dan keamanan data konsumen pada sektor mobile payment dan pengawasan Bank Indonesia atas hal tersebut. Penelitian ini normatif dengan pendekatan perUndang-Undangan dan konseptual. Pengaturan atas Kerahasiaan dan Keamanan Data/Informasi Konsumen Financial Technology pada Sektor Mobile Payment dilakukan oleh lembaga berwenang; Bank Indonesia sebagai pengatur dan pengawas sistem pembayaran dan Otoritas Jasa Keuangan (OJK) dalam pengaturan fintech yang dikategorikan sebagai lembaga non bank. Bank Indonesia mengeluarkan aturan Nomor 7/6/PBI/2005 Tentang Ketentuan Transparasi Informasi Produk Bank dan Penggunaan Data Pribadi Nasabah. Sedangkan, OJK mengatur keamanan data konsumen pada pasal 2 Huruf d Peraturan OJK Nomor 1/POJK.07/2013 Tentang Perlindungan Konsumen Sektor Jasa Keuangan. Bank Indonesia mengawas secara langsung melalui Bank Indonesia Fintech office dengan kegiatan meet the start up untuk melakukan konsultasi dan berbagi tentang fintech. Dalam hal kebijakan, Bank Indonesia mengeluarkan Peraturan Bank Indonesia tentang pemrosesan transaksi pembayaran, Regulasi APU/PPT untuk non Bank, Peraturan Bank Indonesia tentang Teknologi Finansial dan Regulatory Sandbox dan peraturan tentang National Payment Gateway (NPG).</p>

scholarly journals Fintech In Malaysia: An Appraisal to the Need of Shariah-Compliant Regulation

2020 ◽  
Vol 28 (4) ◽  
Author(s):  
Muhammad Ilyas Ab Razak ◽  
Nur Akma Mohd Dali ◽  
Guru Dhillon ◽  
Azwina Wati Abdull Manaf
Keyword(s):  
Financial Services ◽  
Industrial Revolution ◽  
Islamic Finance ◽  
Related Activity ◽  
Traditional Practice ◽  
Finance Industry ◽  
Fourth Industrial Revolution ◽  
Potential Risks ◽  
Financial Behaviour ◽  
Financial Technology

The implementation of financial technology (Fintech) in the Islamic finance industry has created a totally new phenomenon of banking and financial behaviour for the stakeholders, particularly in Malaysia. As part of the financial revolution, the Islamic finance sector ought to embrace Fintech to diversify the services/products offered as the digitalisation process is taking place in the Fourth Industrial Revolution era. In order to safeguard the assimilation of the technology into the existing traditional practice of Islamic finance, Shariah-compliant regulation is, therefore, necessary for governing the potential risks associated throughout the process of financial activities. Hence, this paper intends to analyse the need for Shariah-compliant regulation to govern Fintech-related activity in the Islamic finance industry. The article emphasises the need from several aspects such as the non-comprehensiveness of the Islamic Financial Services Act (IFSA) 2013; the increasing rate of financial inclusion and; the qualifications of the Shariah Advisory Council’s (SAC) members in Malaysia. It also provides recommendations through the introduction of subsidiary legislation pursuant to IFSA; production of regulatory sandbox framework especially for Islamic Fintech firms; and emphasis on the importance of SAC members possessing knowledge in technological aspect in order to ensure the need for Shariah-compliant regulation in the Islamic finance industry is properly satisfied.

scholarly journals Análisis jurídico a la iniciativa de Ley para regular las instituciones de tecnología financiera y sus efectos en México

2019 ◽  
pp. 14-23
Author(s):  
Salvador Francisco RUIZ-MEDRANO ◽  
Martha Leticia GUEVARA-SANGINÉS
Keyword(s):  
Financial Services ◽  
New Technologies ◽  
Primary Objective ◽  
Legal Analysis ◽  
The Social ◽  
Short Period ◽  
Business Dynamics ◽  
True Meaning ◽  
The Law ◽  
Financial Technology

On October 10, 2018, the decree initiative to issue the Law to Regulate Financial Technology Institutions was presented to the Senate. The purpose of this Law is to grant legal support to financial services within the new technologies, the analysis of this Law becomes crucial to understand the new economic and business dynamics in our country. Goals. The primary objective is to unravel the authentic ratio legis of this new Law from a literal interpretation and attached to legal formalism. The method used for this dissertation is composed of a logical-legal analysis of deductive type to find the true meaning that the legislator intends to give it and its motivations to create this regulation. It is expected that this analysis will contribute to a better understanding of the Law and its contributions in the social and economic aspects that will lead to a relatively short period of time.

A market-based rationale for the privacy paradox

2021 ◽  
pp. 016344372110158
Author(s):  
Opeyemi Akanbi
Keyword(s):  
Social Media ◽  
Market Structures ◽  
Media Companies ◽  
The Social ◽  
Social Media Platforms ◽  
Privacy Paradox ◽  
The Individual ◽  
Privacy Risks ◽  
Social Collective

Moving beyond the current focus on the individual as the unit of analysis in the privacy paradox, this article examines the misalignment between privacy attitudes and online behaviors at the level of society as a collective. I draw on Facebook’s market performance to show how despite concerns about privacy, market structures drive user, advertiser and investor behaviors to continue to reward corporate owners of social media platforms. In this market-oriented analysis, I introduce the metaphor of elasticity to capture the responsiveness of demand for social media to the data (price) charged by social media companies. Overall, this article positions social media as inelastic, relative to privacy costs; highlights the role of the social collective in the privacy crises; and ultimately underscores the need for structural interventions in addressing privacy risks.

scholarly journals Financial technology and the future of banking

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Daniel Broby
Keyword(s):  
Financial Services ◽  
Empirical Investigation ◽  
Analytical Framework ◽  
Shadow Banking ◽  
Customer Acquisition ◽  
Market Participants ◽  
Digital World ◽  
The Future ◽  
Technology Applications ◽  
Financial Technology

AbstractThis paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how financial intermediation will be impacted by innovative financial technology applications. It further reviews the options that established banks will have to consider in order to mitigate the threat to their profitability. Deposit taking and lending are considered in the context of the challenge made from shadow banking and the all-digital banks. The paper contributes to an understanding of the future of banking, providing a framework for scholarly empirical investigation. In the discussion, four possible strategies are proposed for market participants, (1) customer retention, (2) customer acquisition, (3) banking as a service and (4) social media payment platforms. It is concluded that, in an increasingly digital world, trust will remain at the core of banking. That said, liquidity transformation will still have an important role to play. The nature of banking and financial services, however, will change dramatically.

Building trust in Islamic finance products and services

2017 ◽  
Vol 12 (3) ◽  
pp. 356-372 ◽  
Author(s):  
Syed Nazim Ali
Keyword(s):  
Financial Services ◽  
Islamic Finance ◽  
Illustrative Case ◽  
Content Type ◽  
Finance Industry ◽  
The Past ◽  
Building Trust ◽  
Central Tenet ◽  
Stake Holder ◽  
Perceived Impact

Purpose With the increasing instances of malfeasance and frauds coming to light in the financial services industry, trust has become a key concern for customers. Fortunately, in the case of Islamic Finance, trust is a central tenet, and its importance can be seen through the emphasis of Amanah or trustworthiness that should be present in every financial transaction. However, it has been argued that the principle of trust has not been truly realized in Islamic Finance, or that there are still issues of distrust regarding anything which is obtrusively branded as “Islamic”. In this paper, the author will analyze the reasons for gaps between the expectations and reality of the finance industry today by looking at the main factors contributing to distrust among the different stakeholders and the perceived impact of the distrust on the industry and the general public. It then focuses on the past and ongoing efforts by academia to bridge these gaps between the different stake holder groups with the help of illustrative case studies as well as recommends future steps to be taken to ensure a stronger foundation of trust within the Islamic Finance community.

scholarly journals DOES FINTECH MATTER FOR INDONESIA’S ECONOMIC GROWTH?

2019 ◽  
Vol 22 (4) ◽  
pp. 437-456
Author(s):  
Seema Wati Narayan
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Trade Openness ◽  
First Year ◽  
Stock Market Development ◽  
Endogenous Growth Theory ◽  
Investment And Financing ◽  
Second Year ◽  
Financial Technology

This paper investigates the role of financial technology (FinTech) in propelling economic growth in Indonesia from 1998 to 2018. The FinTech industry employs a technology-based business model to provide financial services, including lending, payment, investment, and financing services. The study is motivated by endogenous growth theory, which seeks to explain technology as the most important driver of economic growth. The study finds that FinTech startups are positively correlated with Indonesia’s economic growth. FinTech firms in their first year are found to be disruptive, but they fail to have serious consequences on Indonesia’s economic growth; however, they seem to significantly encourage economic growth in their second year. These findings are derived after accounting for other important growth determinants, namely, capital per labor, foreign direct investment (FDI), stock market development, and trade openness.

scholarly journals Towards New Sharia Governance for Islamic Financial Institutions

2021 ◽  
Vol 18 (1) ◽  
pp. 39-58
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Finance Industry ◽  
Regulatory Authorities ◽  
Governance Model ◽  
Islamic Financial Institutions ◽  
Shariah Governance

Since its inception a few decades ago, the industry of Islamic banking and finance has been regulating itself in terms of Sharia governance. Although some regulatory authorities from within the industry, such as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB), the Islamic banking and finance industry remains to a great extent self-regulated. This is because none of the resolutions or the regulatory authorities' standards are binding on the Islamic financial institution except when the institution itself willingly chooses to bind itself by them. Few countries have enforced some Sharia-governance-related regulations on their Islamic banks. However, in most cases, these regulations do not go beyond the requirement to formulate some Sharia controlling bodies, which are practically left to the same operating banks. Furthermore, some of the few existing regulatory authorities' standards and resolutions are conflicted with other resolutions issued by Fiqh academies. The paper addresses those issues by highlighting the shortcomings and then proposing the necessary reforms to help reach effective Shariah governance that would protect the industry from within and help it achieve its goals. The paper concludes by proposing a Shariah governance model that should overcome the challenges addressed in the study.Pada awal berdiri, Lembaga Keuangan Syariah merupakan lembaga keuangan yang menerapkan Hukum Syariah secara mandiri dalam sistem operasionalnya. Ia tidak tunduk pada peraturan lembaga keuangan konvensional, sehingga dapat terus berkomiten dalam menerapkan Hukum Syariah secara benar. Selanjutnya, muncullah beberapa otoritas peraturan yang berasal dari pengembangan Lembaga Keuangan Syariah. Diantaranya adalah Islamic Financial Services Board (IFSB) dan Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Hal ini tidak menyimpang dari kerangka peraturan Hukum Syariah, sebab standar peraturan dan keputusan yang dikeluarkan ditujukan khusus untuk Lembaga Keuangan Syariah saja. Beberapa Negara telah menerapkan peraturan tata kelola Hukum Syariah pada Bank Syariah mereka. Namun dalam banyak kasus, peraturan yang diterapkan tidak mampu mengontrol Lembaga Keuangan Syariah tersebut secara penuh. Sehingga, secara praktis proses pengawasan diserahkan kepada lembaga keuangan yang beroperasi. Akan tetapi, beberapa standar dan keputusan yang dikeluarkan oleh sebagian pemangku kebijakan bertentangan dengan keputusan yang dikeluarkan oleh beberapa akademi Fiqh. Artikel ini ditulis untuk menyoroti permasalahan yang timbul pada tata kelola Lembaga Keuangan Syariah, khususnya kekurangan yang tampak pada sistem tata kelola. Kemudian, penulis akan mengajukan usulan tentang efektifitas tata kelola Lembaga Keuangan Syariah yang bebas dari permasalahan.

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