Financial Technology Companies Research Articles

Greenwashing in the FinTech sector: the role of the EU Corporate Sustainability Reporting Directive (CSRD)

FinTech companies, along with other financial institutions, face increasing pressure to take the lead in promoting a more environmentally sustainable future. The EU lately incorporated Corporate Sustainability Reporting Directive (CSRD) which offers both possibilities and challenges. This study examines the most recent modifications to Environmental, Social, and Governance (ESG) standards, identifying potential shifts that could affect FinTech firms. The problem of "greenwashing," a tactic used by businesses to misrepresent themselves as environmentally conscious, is especially concerning. Through literature analysis, this study attempts to explain terms related to greenwashing. While greenwashing instances were revealed so far within the confines of traditional banking, this study ventures beyond, including FinTech firms. FinTech companies are the focus of analysis because they are expected to play a significant role in the increased regulatory scrutiny starting in 2024. The paper addresses the opportunities and challenges that financial technology companies may face as they navigate this complex field. Relevant stakeholders looking for deep insights into the relationship between financial technology and environmental responsibility will find great value in the research's conclusions. This paper adds to an ongoing conversation on sustainability and regulation, enhancing the discussion of ethical financial activities.

Value Creation Models of the Collaboration between MSMEs and Financial Technology Companies towards Innovation and Revenue Growth (A Study on Culinary MSMEs in Jakarta, Surabaya, and Medan - Indonesia)

This research examines the relationship and impact of value creation models from the collaboration between Micro, Small, and Medium Enterprises (MSMEs) and Financial Technology (Fintech) companies on innovation and revenue growth within MSMEs. Fintech revolutionizes the financial sector with digital solutions for various business processes, benefiting MSMEs by addressing financing, electronic payments, cash management challenges and other business matters. This study focus on value creations through MSME-fintech collaboration and their effects on innovation and revenue growth in MSME, while previous studies highlight fintech's advantages. The research questions include: (1) What value creations arise from the collaboration? (2) How do these value creations impact innovation and revenue growth in MSMEs? A structural equation model (SEM) using partial least square (PLS) methodology analyses the relationships and impacts of the value creation models. Data were collected from 178 culinary sector MSMEs in Jakarta, Surabaya, and Medan, Indonesia. Three of the five identified value creation models—new customer base, new value chain efficiency, and new customer value—significantly influence incremental innovation from MSME-fintech collaboration. Incremental innovation significantly boosts MSME revenue growth. Multi-group analysis shows micro enterprises have the highest revenue growth impact at 54.8%, compared to 47.0% for small enterprises, 51.5% for medium enterprises, and 50.5% for the overall MSME group. Specific value creation models foster incremental innovation, enhancing MSME revenue growth. This study provides insights into optimizing fintech collaborations for MSME financial outcomes and contributes to understanding the fintech-MSME dynamic, offering a foundation for future research.

The Factor Influencing the Adoption of Fintech in Investment Among Malaysians: A Unified Theory of Acceptance and Use of Technology (UTAUT) Perspectives

Technology has proven to be one of the stronger management and administration platforms for solving all of the conventional problems, including digital financial service management. Besides, it has proven to be the more potent distribution channel, not only for the movement of goods and services but also for digital investment. Nowadays, technology delved deep into the unicorns from the consumer’s Internet segment, which encompasses all business to customers’ Internet and Financial Technology companies. Both have emerged in banking, insurance/takaful, investment, asset management, and foreign exchange, among others, to track their activities in providing financial services. However, investment services also need to be given attention, especially when it comes to human intervention with the use of FinTech. The objective of this paper is to examine the influence of adoption factors for FinTech on investment. The objective will examine FinTech's potential in reducing costs, enhancing human resource efficiency, increasing customer satisfaction, and increasing investment returns. This study is based on the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. This study helps participants in the future of the financial services industry leverage their organizational goals towards a hub of financial and non-financial digital ecosystems as technology advances. The comprehensive development of FinTech is essential to the investment management capabilities of all parties, such as value aggregators, advisors, and competitive access facilitators, in the increasingly challenging field of digital technologies. The combination of effective and systematic investment services could be combined with internal capabilities in FinTech across the investment landscape for external innovations, service providers, and advice facilitators.

Explaining bitcoin ownership in Canada: Trends from 2016 to 2021

AbstractThis paper studies the dynamics of bitcoin ownership from 2016 to 2021, using the Bank of Canada's Bitcoin Omnibus Surveys. The estimated rate of bitcoin ownership jumped to 13% in 2021, up from the 5% observed in the previous three years. On one hand, this increase reflected broader economic trends related to increased savings and investment of Canadians during the COVID‐19 pandemic, along with financial technology companies providing accessible and user‐friendly platforms for buying bitcoin. Looking deeper, we use econometric models to quantify several specific ways in which bitcoin became more mainstream as an investment in 2021. Finally, we investigate the high cash holdings of bitcoin owners across time.

The Importance of Corporate Culture, Governance Structure, and Laws and Regulations in the Fintech Ecosystem

With rapid technological development, technologies such as artificial intelligence, blockchain, cryptocurrency and mobile payment are constantly promoting changes in the traditional financial industry and deriving the emerging ecosystem of financial technology. This article mainly discusses how corporate culture, governance structure, laws and regulations in the financial technology ecosystem affect financial technology companies to maintain a certain competitiveness in the relevant ecosystem. Among them, a strong cultural atmosphere can help fintech companies stabilize their position in the system, and a stable governance structure can help fintech companies and enterprises avoid risks and make correct strategic decisions, thereby promoting the development of the entire fintech industry. Laws and regulations are mainly reflected in fintech companies' compliance with financial regulations in different regions, such as anti-money laundering, anti-terrorist financing, and the protection of customer data and privacy, thereby enhancing customers' trust in fintech companies. These three aspects jointly stabilize the position of financial technology companies in the financial technology ecosystem and promote the continuous development of the financial technology ecosystem.

Transformation of Islamic Economics: Opening Halal Opportunities Amid the Dynamics of Society 5.0

Various correlated variables affect the transformation of the Islamic economics in the context of society 5.0. These variables include halal supervision and certification, public awareness of sharia principles, product and service innovation, collaboration between Islamic financial institutions and technology companies, and integration of advanced technology. New product and service innovations, such as sukuk bonds and Islamic mutual funds, also contribute greatly to the transformation of the Islamic economics. On the other hand, the integration of technologies such as fintech and blockchain has increased accessibility and transparency in Islamic financial services, and increased public awareness of the benefits of the Islamic economics has increased demand for Islamic goods and services. Technology companies and Islamic financial institutions work together to produce innovations in Islamic financial services, while technologies such as blockchain ensure authenticity and transparency in the halal industry. Understanding these components is important in transforming the Islamic economics towards a more inclusive, sustainable and ethical economic system in a 5.0 society.

Development Prospects of Modern Banking

Relevance. The increasing competition between financial institutions and technology companies requires the active implementation of innovative developments in current activities. Artificial intelligence is becoming an everyday fact of presence in communications between business partners and customers, generating new formats of interaction. "Smart" technologies based on artificial intelligence are able to take on certain mechanical functions related to the verification and verification of contract terms, which can significantly speed up formal procedures and reduce the likelihood of operational errors. Innovative solutions for the fulfillment of contractual obligations based on the signing of smart contracts in various business areas contribute to the use of such in banking, where communication is constantly taking place according to standard banking procedures.Purpose. The purpose of the work is to reveal the peculiarity of the use of a smart contract in the banking business for its scaling.Objectives. The following tasks were set and consistently solved in the article: to study the features and nature of the emergence of smart contracts in the business environment, to analyze the existing practice of using this tool, to formulate the principles of transformation of contracting processes with the introduction of "smart" technologies into traditional banking business.Methodology. The methods of generalization, systematization, analogy, graphical and logical analysis, and idea generation were used in the work.Results. The paper examines the properties of an innovative digital banking business contracting tool, highlights its main characteristics and grounds for application, and considers the mechanism of its implementation in the blockchain environment.Conclusions. The article examines the directions of the future development of banking in the domestic banking sector and draws conclusions about the further development of "smart" technologies in the context of increasing competition between banking and technology companies. The expansion of banking business in the online space is impossible without the use of advanced solutions in the field of customer service, which leads to the emergence and development of the practice of intellectualization of traditional contract processes.

Defining Service Quality of BRI Merchant Application Using Importance Performance Analysis

The COVID-19 pandemic has changed people's habits worldwide, accelerating the adoption of cashless payment transactions, especially in Indonesia. This situation allows Financial Technology companies and Conventional Banks to increase competition. This thesis focuses on the Digital Payments Industry in Indonesia, emphasizing the Merchant Acceptance Business, which has a crucial role as a catalyst for Cashless Payments. This research is based on previous studies regarding service quality, business model canvas, and the importance of performance analysis of the BRI Merchant Application. This research aims to define a service quality strategy for BRI merchant applications through a critical performance analysis approach. The study found that the quality of BRI merchant application services consists of changing merchant data, adding EDC, Checking transactions, reconciling Payments, filing complaints, and monitoring complaints.

Financial inclusion and the contested infrastructures of cash transfer payments in South Africa

Across much of the South, digital technologies are increasingly central to the expansion of state social protection systems. Supported by major development agencies, many of these distributive technologies are developed and implemented by financial technology companies with the specific aim of accelerating financial inclusion. While researchers have documented the influence of these financial actors and logics over social policy, we know less about how these interventions are transforming the experience of receiving social protection. Based on qualitative and observational research with social grant recipients in South Africa, this research demonstrates how digital and financial technologies produce confusion, informational opacities and new forms of exclusion among grant recipients. It suggests that the increasingly prominent role of financial technologies in the delivery of social protection undermines state capacity and further entrenches the influence of neoliberal logics over social policy. Finally, the article suggests that these technologies may be transforming the nature of social citizenship in South Africa, undermining efforts to advance universal and redistributive social protection policies.

Enhancing Financial Technology Operations: A Comprehensive Evaluation Using COBIT 2019 Framework

This research aims to enhance information technology (IT) governance in a financial technology company by focusing on peer-to-peer lending services. The main challenges faced by the company involve a lack of system design details, leading to post-implementation imperfections and negative impacts on business process performance, including unnecessary delays and adjustments. The lack of transparency in system evaluation is also a hindrance caused by incomplete recording of test results. Therefore, this research aims to address these challenges by utilizing the COBIT 2019 framework. The study employs a qualitative approach, utilizing data obtained through interviews and literature studies supported by the COBIT Tool Kit. The analysis is conducted on three main objectives: security management, solution identification, and IT change management, to identify disparities between the current status and desired targets. The analysis results highlight the need for improvements in specific aspects, including the lack of system design details, more precise information in the change process, and deficiencies in recording test results. Recommendations for improvement involve the development of more detailed guidelines for system design, enhanced documentation of changes, and improvements in testing instructions and result reporting. Additionally, recommendations focus on enhancing capabilities through proactive evaluation, refining security plans, developing more adaptive solution acquisition strategies, and improving testing practices. Thus, this research underscores the importance of strategic improvements within the IT and Information Systems governance framework to shape a more effective and transparent operational environment in Financial Technology companies.

Preventive Legal Protection Against Leaks Consumer Data by Company Negligence Financial Technology

Various financial technology companies are currently using standard agreements. Withthe rise of standard agreements, business actors began to include exoneration clausesto release all forms of responsibility for losses suffered by consumers. One of thecompanies that has included the exoneration clause is Koinworks in Article 5 of theKoinworks Terms & Conditions. Based on this statement, the authors conducted thisresearch using two problem formulations, namely what are the legal consequences ofapplying the exoneration clause in standard agreements made by financial technologybusiness actors when viewed from Article 1320 of the Civil Code? And how aboutpreventive legal protection against leakage of consumer data by the negligence offinancial technology companies? To be able to answer the formulation of the problem,the authors use normative juridical research methods with a statutory approach. Theresults of the study show that the legal consequences of applying the exonerationclause in standard agreements made by Financial Technology business actors whenviewed from Article 1320 of the Civil Code, it can be concluded that the exonerationclause can be null and void by law. Then, preventive legal protection needs to becarried out by optimizing supervision by the Financial Services Authority, such astaking action against companies that have violated statutory provisions before theoccurrence of disputes or problems.
 Keywords: Legal Protection; Data Leakage; Financial Technology Companies

Illegal Electronic Investments in Trade Robot Missions According to the Criminal Law in Indonesia

Various financial technology companies are currently using standard agreements. With the rise of standard agreements, business actors began to include exoneration clauses to release all forms of responsibility for losses suffered by consumers. One of the companies that has included the exoneration clause is Koinworks in Article 5 of the Koinworks Terms & Conditions. Based on this statement, the authors conducted this research using two problem formulations, namely what are the legal consequences of applying the exoneration clause in standard agreements made by financial technology business actors when viewed from Article 1320 of the Civil Code? And how about preventive legal protection against leakage of consumer data by the negligence of financial technology companies? To be able to answer the formulation of the problem, the authors use normative juridical research methods with a statutory approach. The results of the study show that the legal consequences of applying the exoneration clause in standard agreements made by Financial Technology business actors when viewed from Article 1320 of the Civil Code, it can be concluded that the exoneration clause can be null and void by law. Then, preventive legal protection needs to be carried out by optimizing supervision by the Financial Services Authority, such as taking action against companies that have violated statutory provisions before the occurrence of disputes or problems.
 Keywords: Legal Protection; Data Leakage; Financial Technology Companies.

Evolution Trends and Market Impact Analysis of Fintech: Based on the Case Study of Williams

The development of financial technology is a double-edged sword, which not only breaks the traditional technical barriers between financial enterprises and technology companies but also makes finance and technology fully integrate together and release much economic vitality. But at the same time, the regulatory problems brought by financial technology and the uncertainty of the development of the industry have also produced a certain negative threat to the market. As a third-party payment company, Williams Company has made many pioneering efforts in the development of financial technology and has also made a series of achievements in the past years. Taking the development of this company as a case study, we will discuss the evolution trend of financial technology and the problems existing in the development process of financial technology, which will open our vision, strengthen supervision and promote scientific and technological progress. It is of obvious value.

数据驱动下互联网金融科技公司风险管理研究

数据驱动下互联网金融科技公司风险管理研究

Systemic Risk and Tail Risk of Fintech Firms During Covid 19: A Case of Southeast Asian Economy

The main goal of this research is to compare the tail risk faced by Thai financial technology firms with the systemic risk experienced by financial technology companies in Thailand. During the COVID-19 outbreak, it was also investigated how the effects of tail risk and systemic risk affected Thailand's financial technology businesses. During COVID-19, the number of individuals using financial applications online surged drastically, giving clear proof of the sector's stratospheric ascent. During the same time period, the number of people using cryptocurrency apps increased dramatically. This study is the inaugural examination of its kind, investigating the interplay between tail risk, systemic risk, and Fintech, utilizing data from a sample representative of the Thai economy. Our study primarily centers on the financial technology sector, with the data for Fintech companies being computed for the periods between December 2019 and February 2022. Fintech businesses in Thailand look through the theoretical lens provided by the extreme value theory when calculating the tail risk of their portfolios. The fall in the value of technology businesses has given rise to the idea of establishing a significant number of financial technology companies located in Thailand. A lengthier and more widespread dispersion is consistent with an exponential growth of fintech businesses in Thailand during the course of the COVID-19 time period. Some businesses within our sample exhibit notably short tails, indicating a heightened susceptibility to adverse events, particularly during the COVID-19 period. The results indicate that the global technology index during COVID-19 is reliant on the systemic risk posed by Fintech. It's possible that these outcomes might be attributed to the large growth in customer bases seen by FinTech businesses during COVID-19. Fintech companies in Thailand saw significant growth during the epidemic of swine flu. The current research is among the first of its type when it comes to grasping the issues of tail risk and systemic risk in fintech enterprises in Thailand. This development is highly beneficial for policymakers, financial experts, and academics, as it facilitates a deeper comprehension of these issues.

Cooperative Entrepreneurship: Future Back Thinking, Translation, and Digital Organizational Change in the Credit Union Space

In this essay, I examine cooperative entrepreneurship’s role in driving digital organizational change in a Southern California credit union that caters to a mobile university population. Drawing on Joseph Schumpeter’s interpretative approach to entrepreneurship, I highlight the pivotal role of an innovative CEO in combining a new technology, AI chatbots, with the credit union’s existing technologies to create a new means of production in a contact center: AICCs or Artificial Intelligence Contact Center Agents. I extend Schumpeter’s theory by showing both how future-back thinking can generate ideas for new methods of production, and how acts of translation can help align these methods with local organizational values, overcoming resistance to change. I suggest that such combinatorial activity can help credit unions to sustainably compete against a new breed of financial technology companies known as fintechs.

An Intercultural Perspective on Construction of Corporate Identity of Chinese and American Enterprises —— Taking Fin-Tech Unicorns as an Example

Benefiting from the progression of science and technology, an increasing number of enterprises begin to delve into the construction of corporate identity through their official websites, regarded as an international door today. The researches about the building of corporate images takes a large amount of shareholdings in academic area. Notwithstanding, there are only few scholars studying the portray of the profile from an intercultural perspective with “About us” section in company websites as the data. With the help of the corpus analytic tool AntConc, this paper intends to discuss the common and distinctive corporate identities of Fin-Tech unicorns in China and the US respectively which are manifested in high-frequency vocabulary, key words, communication strategy and style. It is discovered that the common identities include international financial technology companies, payment services provider and caring about consumers. Apart from this, CF takes the mixture of proactive and reactive strategy in building its images and tends to be more impersonal and hierarchical in communication style. The proactive strategy and casual communication style constitute to the construction of UF’s identities. From the cultural perspective, CF expresses all of the cultural dimensions specific in China except that of masculinity and femininity and the situation of UF is the same with CF. CF should endeavor to narrow the cultural gap thorough applying effective intercultural communication strategies and keep in line with the local culture. In this way, CF might be able to grab the chances along with the advance of globalization.

Analyzing the Banking Sector- Fintech Companies Nexus in Jordan

This paper presents an analytical framework that describes the nexus between the banking sector and financial technology (fintech) companies. It explains existing trends, and by collaborating with banks, the importance of fintech companies grows daily. It examines the choices that established banks will have to explore to mitigate the profitability threat. At the onset of the fintech era, many analysts discussed its disruptive potential for the financial sector. However, we expect more future debates regarding collaboration between fintech businesses and banks. The other point that is significantly essential to debate about is financial inclusion. We pick Jordan as a case study since the local fintech sector is expanding, and it acts as a gateway for the broader MENA region. First and foremost, we attempt to assess the scientific literature that examines the major components of the fintech sector. The second section of the paper discusses the evolution of the sector and the critical aspects of the methodology employed, including statistical analyses. Our findings indicated that it is preferable to rely on qualitative assessment when valuing the relationship between banking and fintech because statistical analysis might produce inconsistent and incorrect conclusions. In Jordan, we discovered that both sectors interact with one another. The study offers scientific recommendations for the banking sector and fintech companies.

Knowledge Management and Data Analysis Techniques for Data-Driven Financial Companies

AbstractIn today’s fast-paced financial industry, knowledge management and data-driven decision making have become essential for the success of financial technology (FinTech) companies. Big data (BD) is a prevalent phenomenon that can be found across many industries, including finance. Despite its complexity and difficulty to comprehend, big data is a critical component of financial services enterprises and technology architectures. We examine BD from various aspects, considering data science (DS) techniques and methodologies that can be applied during the operation of an enterprise. Our aim is to provide an overview of knowledge management (KM) practices and data analysis (DA) strategies and techniques in the daily operations of financial companies. We address the role of knowledge management, data analytics in a financial institution. The paper demonstrates financial institutions’ enablement for new services resulting from technological advancements.

Consumer Characteristics Of Financing Company Service Users In Indonesia

Abstract: Finance Company is a non-banking financial services company engaged in financing and is registered and supervised by OJK. The current challenge is the decline in the number of receivables and is inversely proportional to Financial Technology companies. Restrictive policies during the Covid-19 pandemic have made people change their purchasing behavior of goods and services, including credit transactions. The decline in the number of consumers in finance companies must be anticipated so that the company can maintain its market. The purpose of this study is to analyze the characteristics of consumers who choose Finance Companies as an alternative to obtaining loans. The research was conducted in an area with the largest population of Finance Company users, namely Jabodetabek . Data collection using the Cluster Random Sampling method using G-Form with a total of 200 respondents. The results of the study explained characteristics such as gender, age, education, occupation, marital status, income, and region of residence. Managerial implications that can be considered for finance service companies are that companies can find out consumer characteristics and obtain information in order to reach more consumers so as to provide benefits for the company.