scholarly journals Financial Technology and Disruptive Innovation in Business

2020 ◽  
Vol 11 (4) ◽  
pp. 29-43
Author(s):  
Muhammad Anshari ◽  
Mohammad Nabil Almunawar ◽  
Masairol Masri
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Case Analysis ◽  
Disruptive Innovation ◽  
Comparative Assessment ◽  
Local Market ◽  
Financial Products ◽  
Smart Mobile ◽  
User Friendly ◽  
Financial Technology

Financial technology (FinTech) expands financial services to many people that are currently lacking access where customers enjoy using banking products and services provided by non-banking providers. FinTech changes the way people pay, send money, borrow, lend, and invest. FinTech enables financial solutions and innovative business models resulting the fusion of finance and smart mobile technology. The emergence of FinTech-related products causes major disruptions in financial services. Though it is yet far from replacing current financial services, it offers financial products and services by non-financial sectors into automation, user-friendly, efficient, and transparent just like banking and financial sectors. The paper discusses its concept, characteristics, and some case studies of local FinTech in Indonesia. In addition, the study deployed text mining analysis to find out the correlation and patterns of FinTech's characteristics. Then the case analysis highlights a comparative assessment between local FinTech in Indonesia versus global FinTech players within local market-based completion. The findings suggest that local FinTech organizations can be resilient competing with an international FinTech players.

scholarly journals Digitalization of Financial Services in Albania Under Restricted Measures Covid-19

2020 ◽  
Vol 3 (2) ◽  
pp. 17
Author(s):  
Rezana Balla
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Legal Framework ◽  
Financial Industry ◽  
Technology Innovations ◽  
Markets And Institutions ◽  
New Business ◽  
Job Challenges ◽  
Digital Transactions ◽  
Financial Technology

Under the restricted measures due to the global pandemic Covid-19, like all other services, financial services had difficulties in performing their financial activities. These difficulties are stronger at countries where financial services are denied for a long time. Financial services denial is an issue that has affected not only Albania but small Balkan countries as well. The reasons for this denial are many, but among them we can distinguish the lack of credit experience, as one of the common reasons to be excluded in these countries from the development of the financial sector. Currently, one of the reasons for the financial denial is the emergency created by Covid-19, where physical distancing and other measures taken by governments to restrict movement and services make financial service impossible. Thus, one of the most effective ways to perform financial services remotely is financial technology. Financial technology refers to the possibilities of financial innovation through technology that can result in new business models, applications, processes, or products with an effectiveness related to financial markets and institutions and the provision of financial services. This paper aims to present the challenges of the legal framework and regulatory institutions, to provide recommendations for its improvement, to enable the development of financial technology in the financial market in Albania. The paper address issues such as the Bank of Albania's consideration on the Directive (EU) 2015/2366 On Payment Services (PSD II). What benefits or challenges would its implementation bring? How is the financial industry projected after the implementation of PSD II? What are the biggest job challenges with payment institutions that have not been to the market before or that bring technology innovations? The paper addresses the issue of money laundering through online digital transactions as well.

Policies and Innovations of Financial Technology Business Models in the Digital Economy Era on the E-Business Ecosystem in Indonesia

2022 ◽  
pp. 22-42
Author(s):  
Ahmad Budi Setiawan ◽  
Amri Dunan ◽  
Bambang Mudjianto
Keyword(s):  
Business Model ◽  
Financial Services ◽  
Business Models ◽  
Rapid Development ◽  
Group Discussions ◽  
Business Ecosystem ◽  
Utilization Of Technology ◽  
The Government ◽  
Financial Transactions ◽  
Financial Technology

The rapid development of technology and information systems continues to give birth to various innovations, especially those related to financial technology to meet the various needs of the community, including access to financial services and processing of financial transactions. Financial technology (FinTech) is the implementation and utilization of technology to improve financial and banking services. The development of financial technology in Indonesia itself is growing rapidly, along with the development of existing technology. FinTech is developed by utilizing the latest software, internet, and computing technologies. Based on this, this study examines the development of innovation and policies for the fintech business model in the e-business ecosystem in Indonesia. This research is a qualitative research with data collection methods through focus group discussions, in-depth interviews, and literature studies. This chapter recommends that the government develop and make policies for fintech business model innovation in the e-business ecosystem in Indonesia.

Digitalisation of the Global FinTech Industry

2020 ◽  
pp. 431-449 ◽  
Author(s):  
Muhammad Waleed Butt ◽  
Usman Javed Butt
Keyword(s):  
Developing Countries ◽  
Digital Media ◽  
Financial Services ◽  
Business Models ◽  
Banking Industry ◽  
Digital Technologies ◽  
Value Proposition ◽  
Goods And Services ◽  
Digital Disruption ◽  
Financial Technology

The digitalisation of global financial technology and marketing is central for the success of many banking organisations across the globe. Digital disruption is a change that occurs when new emerging digital technologies and business models affect the value proposition of existing goods and services for low end demanding customers or for new market customers. Digital banking or online or virtual banking is leading to the digitization of all the traditional banking activities, products, process, or services. It is needless to state that mere adaptation of digital media to comply with trends does not guarantee success. The digital trends in the banking industry has seen banks focusing on digitalization core processes, increasing awareness, financial inclusions, and undertaking sustainable practices. FinTech (i.e., financial technology) is competing with traditional financial methods in the delivery of financial services and reaching the unbanked segment of society, particularly in developing countries. There is a strong need to understand drivers and trends in the FinTech industry.

scholarly journals Financial Technology as Payment Methods in the Digital Era

2021 ◽  
Vol 1 (1) ◽  
pp. 9-16
Author(s):  
I Budiarti ◽  
F Hibatulloh ◽  
M Salman
Keyword(s):  
Technological Innovation ◽  
Financial Services ◽  
Business Models ◽  
Industrial Revolution ◽  
Payment System ◽  
Advantages And Disadvantages ◽  
Payment Methods ◽  
Digital Era ◽  
The Impact ◽  
Financial Technology

FinTech is defined as technological innovation in financial services that can produce business models, applications, processes, or products with material effects related to financial services provision. This study aims to analyze the impact of developing a digital payment system and prevent inflation due to a large amount of cash in circulation. The method used in this study is qualitative. Fintech technology is very beneficial for the community, especially in industrial revolution 4.0, where this digital payment system has advantages and disadvantages. The advantages are efficiency and safety, while the disadvantages are higher interest costs. This digital payment system can minimize inflation due to the large amount of money circulating in society.

scholarly journals The Existence of Regulatory Sandbox to Encourage the Growth of Financial Technology in Indonesia

FIAT JUSTISIA ◽  
2019 ◽  
Vol 13 (3) ◽  
pp. 271 ◽  
Author(s):  
Recca Ayu Hapsari ◽  
Maroni Maroni ◽  
Indah Satria ◽  
Nenni Dwi Ariyani
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Point Of View ◽  
Regulatory Regime ◽  
Services Sector ◽  
Financial Innovations ◽  
Financial Services Sector ◽  
Board Of Governors ◽  
Financial Technology ◽  
Testing Room

Bank Indonesia created an appropriate regulatory regime to drive the pace of innovation carried out by Financial Technology Providers while still applying the principles of consumer protection, risk management and prudence. One of the efforts made by Bank Indonesia was by issuing provisions concerning a regulatory sandbox for Financial Technology Providers along with their products, services, technology and/or business models in a Board of Governors Member Regulation No 19/14/PADG/2017 on the Limited Technology Testing Room (Regulatory Sandbox) Financial Technology. Meanwhile, the Financial Services Authority also issued regulation regarding the Regulatory Sandbox for Financial Technology Organizers in Financial Services Authority Regulation No. 13 / POJK.02/2018 on the Digital Financial Innovations in the Financial Services Sector. The main point of view to be analysed is the existence of regulatory sandbox approach held by Bank Indonesia and the Financial Services Authority as an effort to encourage the growth of Financial Technology in Indonesia.

scholarly journals Collaboration of digital payment usage decision in COVID-19 pandemic situation: Evidence from Indonesia

2021 ◽  
Vol 5 (4) ◽  
pp. 557-568
Author(s):  
John Tampil Purba ◽  
Sylvia Samuel ◽  
Sidik Budiono
Keyword(s):  
Mobile Phones ◽  
Digital Technology ◽  
Financial Services ◽  
Large Scale ◽  
Business Opportunities ◽  
New Business ◽  
Technology Applications ◽  
Surrounding Areas ◽  
Smart Mobile ◽  
Financial Technology

This study aims to provide an attempt by raising a framework for assessing the digital technology perspective in the application of Financial Technology by consumers, especially in the era of the Covid19 pandemic in 2020 in Indonesia. Digital technology in Fintech in collaboration with online transportation is utilized by quite a few big firms in Indonesia to meet the needs of consumers during strict, large-scale restrictions but not lockdown. This paper mainly acknowledged the problem related to digitizing solid digital technology which prioritizes technology 4.0. Digital technology applications, especially among the millennial generation regarding the accessibility, pace and value of financial services are increasingly in demand. This research spent 5.5 months with millennial respondents who are accustomed to using everyday technology applications in Jakarta, Depok and Tangerang and surrounding areas. The method of analyzing data in a quantitative way to find findings is complemented by discussion. The findings prove that; All variables have positive strong effect on driving the choice of digital FinTech technology in ordering food and others to survive during the pandemic of COVID-19. The existence of digital-based technology applications related to the internet, big data, smart mobile phones, safe and comfortable technology power has motivated consumers to use them. In conclusion, there are several new business opportunities open to newcomers in the digital financial sector and other accessories using information systems and information ecosystems.

scholarly journals The Appleization of finance: Charting incumbent finance’s embrace of FinTech

2018 ◽  
Vol 4 (2) ◽  
pp. 159-80
Author(s):  
Reijer Hendrikse ◽  
David Bassens ◽  
Michiel Van Meeteren
Keyword(s):  
Data Mining ◽  
Information And Communication Technologies ◽  
Business Model ◽  
Financial Services ◽  
Business Models ◽  
Communication Technologies ◽  
Data Driven ◽  
Financial Industry ◽  
Information And Communication ◽  
Financial Technology

The rise of financial technology (FinTech) engenders novel business models through integrating financial services and information and communication technologies (ICT). Digital currencies and payments, data mining, and other FinTech applications threaten to radically overhaul the financial sector. This article argues that, while we are becoming aware of how technology giants such as Apple Inc. are making inroads into financial services, we need to become more sensitive to how financial incumbents mimick ICT firms while aiming to neutralize the FinTech challenge. Practices from Silicon Valley are spilling over into ‘traditional’ finance through a process we dub Appleization. We illustrate how incumbents aim to remain indispensable amidst rapid digitization. Mimicking tech strategies, financial incumbents resort to transforming legacy ICT systems into integrated platforms, cultivating entrepreneurial ecosystems where startups are ‘free’ to compete whilst effectively being locked into the incumbent's orbit. We illustrate this by comparing Apple’s business features (locking-in developers, customers and state into a hybrid business model based on a synergy between hardware, software and data-driven platform components) with emerging practices in the financial industry. Our analogy suggests that the Appleization of finance might radically transform, yet not undercut the oligopolistic position of financial incumbents.

scholarly journals Fintech Development: The Trends and Consequences for the Financial Services Market

2021 ◽  
Vol 8 (523) ◽  
pp. 173-183
Author(s):  
A. Y. Semenog ◽  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Business Models ◽  
Service Providers ◽  
Security Systems ◽  
The Public ◽  
Financial Products ◽  
New Business ◽  
Cutting Out ◽  
Separate Product

The article is aimed at determining the consequences of digitalization and development of the fintech sector for the financial services market. According to the results of the analysis, a number of transformational trends for the financial services market are identified and characterized, among which the major ones: disintermediation in the financial services market – as a process of «cutting out» the classical financial institutions from the direct process of financial asset exchange; democratization of financial services processes – as a process of expanding the range of financial products; disaggregation of financial services – as a process of splitting financial services into separate financial products; increasing the inclusiveness of financial services, which provides better availability for different categories of customers; emergence of decentralized finances – as a concept and ecosystem of financial services, in which the provision of financial services and products is carried out directly without traditional financial intermediaries within the public open and decentralized blockchain network; development of automation and virtualization of financial services, which involves the widespread use of artificial intelligence technologies, algorithmic assessment of customer creditworthiness, autonomous risk management, automated trading on the exchange, the work of virtual assistants, robo-advisers and security systems against fraud; appearance of built-in financial products as part of services outside of the applications of financial institutions. The consequence of these trends is a reduction in the demand for financial services as a separate product of classical financial institutions; reducing the profits of traditional financial service providers; expansion of new business models of financial services provision in cooperation with technology companies; increasing the need to update the regulatory support of financial services processes, as well as the integration of mass financial products into the client offers of non-financial companies within a single ecosystem of products and services of a digital company.

scholarly journals Regulating Financial Services in an Era of Technological Disruption

2020 ◽  
Vol 36 (2) ◽  
pp. 1-24
Author(s):  
Louis De Koker ◽  
Nicholas Morris ◽  
Sue Jaffer
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Controlled Environment ◽  
Innovative Products ◽  
New Business ◽  
Vehicles Emissions ◽  
Financial Regulatory ◽  
New Business Models ◽  
Financial Technology ◽  
Regulatory Challenges

Financial regulators are challenged to respond to the innovation opportunities presented by financial technology (fintech). Current rules are not necessarily sufficient or effective to adequately regulate new business models and new products relating to innovations such as crypto assets or digital financial services. Regulators that fail to respond in a timely manner may drive innovation offshore and deprive their markets and consumers of appropriate, new services. To respond to new financial innovation, regulators have been establishing innovation hubs and regulatory sandboxes. Innovation hubs enable them to engage innovators more effectively. Sandboxes allow the products to be tested in a controlled environment and enable to regulator to consider whether existing laws are appropriate to regulate such products and, of not, what measures may be required. Sandboxes are however resource intensive and they hold a number of risks. Financial regulators are, of course, not alone in having to address the regulatory challenges of innovation. This article therefore also considers other non-financial regulatory experiences of innovative products and services, namely automated vehicles; emissions trading in China; and Uber and its clones, to consider whether those experiences hold lessons for financial regulators.

Leveraging Technologies to Redefine Business: Technology Perspective

2018 ◽  
Vol 1 (3) ◽  
pp. 1-3
Author(s):  
B. Vijaya Lakshmi ◽  
B. Ravi Kumar
Keyword(s):  
Digital Technology ◽  
Financial Services ◽  
New Technology ◽  
Big Data Analytics ◽  
Financial Services Industry ◽  
Financial Products ◽  
Services Industry ◽  
Business Technology ◽  
Financial Technology

The disruptors in the financial services industry are rewriting the rules, banks used to perform operations traditionally. The financial services industry known for conservative and resistant to change has been challenged by financial technology (fintech) companies that compete by combining digital technology, social media, and big data analytics to replace traditional models with financial products and services enabled by new technology. The present study is an attempt to portray the Role of Fin Techs, Challenges etc.

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