Financial Technology Sector Research Articles

INFLUENCE OF STRATEGIC DIRECTION ON THE PERFORMANCE OF FINTECH FIRMS IN NAIROBI CITY COUNTY, KENYA

This study investigated the influence of strategic direction on the performance of financial technology (FINTECH) firms in Nairobi City County, Kenya. The research was grounded in strategic leadership theory and employed a predictive research design. The target population consisted of 154 senior and middle-level managers from 22 FINTECH firms, with a sample size of 111 respondents determined using the Taro Yamane formula. Data was collected using structured questionnaires, achieving a response rate of 82.88%. Descriptive statistics revealed that firms excel in adapting strategic direction to changing circumstances (M = 4.80, SD = 0.399) and establishing clear strategic direction (M = 4.43, SD = 0.731), but face challenges in setting clear and measurable goals (M = 1.18, SD = 0.390). In the inferential analysis, multiple linear regression revealed that strategic direction has a statistically significant positive influence on FINTECH firm performance (β = 0.890, t = 11.797, p < .05). The coefficient of determination (R² = 0.685) indicated that 68.5% of the variance in organizational performance could be explained by the strategic factors studied. The study concludes that effective strategic direction is fundamental to FINTECH firm success in Kenya's dynamic financial technology sector, validating the theoretical frameworks that emphasize strategic leadership's role in organizational performance. The research recommends that FINTECH firms implement comprehensive strategic management frameworks that balance structured goal-setting processes with adaptive capabilities, while regulatory bodies develop supportive policies that encourage strategic innovation while maintaining industry stability. This research contributes to both the theoretical understanding of strategic management in the FINTECH sector and provides practical insights for industry leaders navigating complex market conditions.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0735/a.php" alt="Hit counter" /></p>

Trust in Government, Electronic Taxation, and the Adoption of Fintech

Mobile money (MoMo) services have become an integral part of the banking system in developing countries. Research is needed to understand the implications of taxing this financial technology sector and inform public policy. The current MoMo tax literature is limited by its focus on personal factors while neglecting institutional factors. The present study develops an integrated model of individuals’ attitudes toward MoMo tax payments and their intentions to use MoMo services while paying related MoMo taxes. To test the model, we analyze survey data collected from 892 participants across 16 regions of Ghana using structural equation modeling. Our findings indicate that perceived trust in government and perceived tax burden are significant determinants of attitudes toward MoMo tax payment, while perceived tax burden is influenced by perceived trust in government. Similarly, perceived tax burden mediates the effect of perceived trust in government on attitudes toward MoMo tax payments. Furthermore, the perceived usefulness of MoMo services is determined by perceived ease of use of MoMo services, whereas MoMo services use/tax payment intentions are determined by perceived trust in government, attitudes toward MoMo tax payments, and perceived usefulness of MoMo services. Finally, perceived usefulness of MoMo services mediates the effects of perceived ease of use on MoMo services and MoMo service use/tax payment intentions. We discuss explanations for these findings and provide practical, theoretical, and research implications.

Navigating the Regulatory Labyrinth: Compliance Dilemmas and Lead User Innovation in the Fintech Sector

Abstract This research article deals with the lead user innovation difficulties in the Kenyan financial technology sector, specifying the regulatory compliance challenges. The flourishing of fintech firms in diverse aspects and sectors have faced numerous dilemmas, particularly in intellectual property, privacy and consumer safety regulations which may lead to lack of adherence. The consequences of non-compliance can be severe, including legal penalties and reputational damage. Despite the importance of innovation in fintech companies, the dilemmas innovators face in navigating regulatory compliance is not yet fully investigated. This research adopts and employs a sequential mixed-method approach that allows complex connection of lead users and regulators in terms of compliance. Survey data from 321 lead users and in-depth interviews with 36 lead users and five regulators revealed a range of compliance challenges. Intellectual property laws scored the least adherence, with the plethora of regulations and overseeing bodies contributing to increased non-compliance. The outcomes highlight the pressing compliance issues faced by lead users and underscore the potential of regulatory bodies to bolster adherence. The outcomes indicate the need for a different approach to regulatory compliance by lead users. This paper underscores the necessity of cooperative engagement between innovators and regulators to effectively maneuver through the dynamic compliance landscape of the financial technology industry.

FinTech and Pakistan’s Banking Industry: An Exploratory Study

Technological development in the financial sector has influenced different segments of consumers differently. In the last decade, like other industries, driven by technological adaptation, the banking industry has also undergone regulatory changes and has, therefore, influenced how consumers interact with traditional financial services. FinTech has contributed to some of this transformation. Numerous new startups are already transforming the financial technology sector by creating cutting-edge financial services and products for consumers. This study provides a better understanding of the current position and FinTech implementation strategy in Pakistan's commercial banking sector. It also investigates the barriers to adopting Fintech and its impact on the banking sector. Twelve in-depth interviews were conducted with the assistant manager, operations manager, and bank branch manager as part of the qualitative study. These interviews provided insights into the current situation of the banking industry to Fintech. The factors reported in this study are Challenges and Barriers to the adoption of Fintech. Factors are Lack of Budget, Lack of Rules and Regulations, Cybercrimes, and Hacking. Requirements for the adoption of Fintech factors are E-commerce activities, SBP Role, Training, and Advanced ICT Infrastructure. The impact of Fintech on Pakistan's banking sector is efficiency, innovation, competitiveness, and customer service. The study contributes to the knowledge of practice-related stakeholders, offering valuable insights into Fintech and its effects on the banking industry in Pakistan. The study thus offers valuable insights for policy managers who are engaged with promoting Fintech in Pakistan's banking sector to offer better services to customers and upgrade industry practices.

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.

Fin-tech indicators, mineral resources and green productivity: Role of human development and globalization in BRICS region

Fin-tech facilitates capital allocation for sustainable mineral extraction, fostering green productivity. Fin-tech platforms empower communities to invest in renewable, driving eco-friendly practices in mineral-rich areas. Despite its significant importance, the influence of fin-tech and mineral resources is relatively under-explored, particularly in the BRICS region, mainly due to the unavailability of inclusive fintech indicators. This study initially constructs fintech index based on financial development and digitalization indicators. Although it does not purely reflect fintech, however, it is a good proxy for the readiness of fintech. Later, this study explores the nonlinear dynamics of fintech and mineral resources after controlling the impact of human development and globalisation on the green productivity of the BRICS countries from 1990 to 2021. Nonlinear Autoregressive Distributed Lag (NARDL) model is employed after the preliminary examination of the data series. The bound test of the cointegration approach is used to establish the long-run equilibrium relationship between the variables. Wald test affirms the asymmetries/non-linearities in financial technology and mineral resources. The long-run outcomes of NARDL reveal positive and negative shocks in financial technology and mineral resources cause to influence green productivity differently. Positive shock in fin-tech (mineral rent) leads to a 0.251% (0.437) increase (decreased) in green productivity, while negative shows a reduction (increases) by 0.308% (114%). Human development and globalisation positively impact green productivity in the long and short run. The error correction term is negative and significant, implying that the applied model settles 46.1% of asymmetric discrepancies annually. The study emphasises enhancing the financial technology sector in the BRICS countries.

BRICS as a driving force of changes in the world monetary and financial system aimed at the transition to settlements in national currencies

Aim. To determine the place and development potential of BRICS (interstate association of Brazil, Russia, India, China, South Africa) in the global monetary and financial system.Objectives. To analyze the BRICS contribution to the world economy; to assess the role of the BRICS currencies in the modern monetary and financial system; to identify areas for strengthening the role of the BRICS in the monetary and financial system; to assess the BRICS actions aimed at reducing its dependence on world currencies in favor of national currencies; to characterize the obstacles to integration and strengthening the role of the BRICS.Methods. With the help of general methods of scientific knowledge, graphic and tabular analysis the state at the present stage and the potential of BRICS development in the world economy and monetary and financial system are considered.Results. In the 15 years since the BRICS were established, the contribution to the world economy of the member countries has increased significantly, while their role in the global currency market remains not so significant. At the same time, since its establishment, one of the most important objectives of the BRICS has been to reform the existing global monetary and financial system, via strengthening the role of the association and shifting from global currencies to the national currencies of the member countries.Conclusions. Over the past few years, the BRICS countries have taken a number of measures aimed at de-dollarization, both at the level of individual countries and at the level of the association. In particular, the countries have made no secret of their intention to create a payment system based on digital currencies that is autonomous from the Western financial infrastructure, which would undoubtedly facilitate a faster transition to settlements in national currencies. Despite the difficulties for the monetary and financial integration of the BRICS countries, BRICS has great potential to influence the global monetary and financial system due to its growing economic power and the prompt development of the financial technology sector in recent years.

Revolutionizing Indonesia's financial landscape: The impact of information technology on the growth of financial technology start-ups

The revolutionary development of information technology has affected all aspects of human life, including finance, and has played a pivotal role in transforming financial transactions and creating new opportunities. This study aims to identify the revolutionary impact of information technology on the financial sector, especially in encouraging the birth of financial technology start-ups. The study was conducted qualitatively by collecting data from various relevant sources. The results of the study show that information technology has changed the way financial transactions are conducted, enabled the adoption of new financial innovations, and created new opportunities for financial technology start-ups in Indonesia. The increased accessibility, efficiency, and security provided by information technology have accelerated the growth of financial technology start-ups in Indonesia. The implication of this study is the need for support from the government and other stakeholders in creating a conducive environment for the growth of the financial technology sector in Indonesia.

Financial technology and its role in promoting digital services in Islamic banks

This study examines the role of financial technology in promoting digital services in Islamic banks. Research has indicated that the financial sector has undergone dramatic transformations as a result of technological advances. This has also significantly affected Islamic banks, seeking to provide privileged and appropriate services in accordance with Islamic origins and values. Financial technology is a set of technical innovations aimed at improving and streamlining financial processes and providing efficient and rapid financial services. The financial technology sector has experienced significant growth and adoption, leading to radical changes in the way financial services are provided. The Islamic banks have subsequently seen an increasing trend towards providing financial technology to enhance their digital services through the development of mobile phone applications, online banking services and innovative electronic payment services

Financial Technology (Fintech) and Cybersecurity: A Systematic Literature Review.

This research aims to identify the threats posed by cybercrime to the fintech sector, as well as the preventative measures taken by the industry in the form of cybersecurity. This study employs a systematic literature review approach to analyzing previously published publications on cybercrime and cybersecurity in the financial technology industry. The survey found that cybercrime issues in the fintech industry include lax cybercrime rules, theft of data and information, and infringement of intellectual property. Proactive measures strengthened legislation, and establishing a trustworthy cybersecurity framework or system may all be used to combat cybercrime in the fintech industry.
 This study's findings may serve as a resource for academics, practitioners, regulators, and fintech players interested in learning more about the evolution of cybercrime and cybersecurity in the financial technology sector. While this study does an excellent job of summarizing and expanding upon the research findings in each chosen article, it needs to analyze the connections between the pieces. Broadening the scope of the article under evaluation, using other literature review techniques, or doing more empirical research are all viable options for recommending additional studies to corroborate the findings of the current one.

Fintech and Digital Transformation: Accelerating Innovation in Financial Services

This paper focuses on the progress made in the field of financial technology as a result of digital development. The study highlights several major areas of financial technology and analyzes its risk level and future prospects. The research indicates that the areas of online payment and P2P lending are advancing successfully, and their respective legal and regulatory systems are relatively well-established. However, the development of Robo-Advisor and Blockchain faces significant challenges due to uncertainty and a lack of clarity regarding regulatory frameworks. The emergence of ChatGPT has disrupted the traditional understanding of Robo-Advisor, presenting new opportunities for development. On the other hand, the development of products based on blockchain technology poses a great risk as it is challenging to accurately determine their intrinsic value. Overall, digital development has greatly impacted the financial technology industry, and the study emphasizes the importance of understanding the risks associated with new technologies. The research recommends that regulators should work towards creating clear and comprehensive regulatory frameworks to promote responsible innovation in the financial technology sector.

The Role of Financial Literacy in Strengthening the Effect of Digital Platforms and Financial Technology Peer-to-Peer Lending on Capital Access and MSME Growth: An Empirical Study of MSMEs in DKI Jakarta

The financial technology sector in Indonesia, particularly in DKI Jakarta, has experienced significant growth due to improvements in the country's technological infrastructure. As of the end of 2022, the Financial Services Authority (OJK), the financial regulator in Indonesia, listed 102 Fintech companies operating in the country. This study employs a quantitative approach using Smart PLS statistics and a sample of 272 respondents to investigate the relationship between digital platforms, financial technology peer-to-peer lending, access to capital, and MSME growth, with a particular focus on the role of financial literacy for MSMEs in five areas of DKI Jakarta. The study's findings demonstrate a positive impact of financial technology, digital platforms, and peer-to-peer lending on MSME productivity, sales, and growth, which are further enhanced by financial literacy.

Eagle Strategy Arithmetic Optimisation Algorithm with Optimal Deep Convolutional Forest Based FinTech Application for Hyper-automation

ABSTRACT Hyper automation is the group of approaches and software companies utilised to automate manual procedures. Financial Technology (FinTech) was processed as a distinctive classification that highly inspects the financial technology sector from a broader group of functions for enterprises with utilise of Information Technology (IT) application. Financial crisis prediction (FCP) is the most essential FinTech technique, defining institutions’ financial status. This study proposes an Eagle Strategy Arithmetic Optimisation Algorithm with Optimal Deep Convolutional Forest (ESAOA-ODCF) based FinTech Application for Hyperautomation. The ESAOA-ODCF technique has achieved exceptional performance with maximum accu y of 98.61%, and F score of 98.59%. Extensive experimental research revealed that the ESAOA-ODCF model beat more modern, cutting-edge approaches in terms of overall performance.

A Systematic Literature Review of the Risk Landscape in Fintech

The current study is primarily concerned with the developments in financial technology, or fintech, that have significantly altered traditional financial systems, focusing on several risk categories that have emerged in the financial technology sector’s digital ecosystem. This paper is a review of existing literature related to the risk landscape in fintech, particularly its publication trend, journal productivity, impact, affiliated organizations, and related themes. A bibliometric and content analysis of 84 articles collected through Scopus’ structured database is performed for a comprehensive review. It is revealed that financial technology development has decreased physical crime while simultaneously increasing cybercrime. Another challenge is the asymmetrical technology between financial markets and the relevant supervisors. These current issues necessitate the creation of an Act on Fintech to create a comprehensive legislative framework. The present study’s findings are helpful for academia and industry to aid their existing knowledge about fintech and associated risks, particularly its timeline, geographical spread, and development of coherent themes.

German FinTech Companies: A Market Overview and Volume Estimates

The FinTech market in Germany is a dynamic and growing field that is difficult to observe in its entirety. This report provides a hand-collected market overview of the FinTech market in Germany, as well as an application case in terms of volume estimates for the financing and asset management segments through December 2021. The data includes various verified characteristics of 978 unique companies that can be classified under the financial technology sector and operate in Germany. Each observation represents a company with 24 variables, including name, address, legal form, founders with corresponding LinkedIn accounts, registration number or company ID, assignment to FinTech segments and sub-segments, banking cooperation, URL address, local court, former name, operating status. We provide the description of the variables as well as a taxonomy to categorize FinTechs. The dataset contains both established companies and startups and presents valuable information for researchers, practitioners and also regulators.

Major Opportunities, Challenges, Financial Technological Implications of Fintech in Indian Context

India, which has a population of around 1.3 billion, is a growing market for fintech. India is an exciting global market for financial innovations due to the country's high percentage of unbanked and underbanked citizens. Fintech is viewed as a paradigm shifter and disruptive innovation that has the power to upend the established financial markets. In the previous five years, fintech has expanded quickly in India, and in the near future, more growth is anticipated. The essay begins by concentrating on the fundamental categories of financial technologies and their roles. It then goes on to analyze the potential and challenges these technologies present in the Indian corporate climate. This study looks at the specifics of the financial technology sector, the definition of FinTech, and possible classifications for the financial technology solutions used by businesses. FinTech, also referred to as financial technology. Typically, start-ups focused on challenging less softwaredependent businesses and financial processes are called financial technology companies. Fintech is not just for start-ups. The term "fintech" refers to a new area of financial services that has emerged in the twenty-first century. With the help of PwC's knowledge and expertise in this field, this research seeks to offer important insights into the development of the FinTech sector in India. PwC claims that Financial Services and Fintech are cooperating rather than competing as much. In its Global Fintech report, PwC examines the FinTech’s expanding impact on the financial services industry. With the help of PwC's knowledge and expertise in this field, this research intends to offer important insights into the development of the FinTech sector in India. It uses cutting-edge technologies to give customers and financial institutions a variety of contemporary tools to manage their accounts as it encompasses advancements in investment, retail banking, investment management, and even cryptocurrencies like bitcoin.

The Contribution of Venture Capital as an Innovative Mechanism for Financing Start-ups: Studying the Experience of the Kingdom of Saudi Arabia

This study aimed to know the extent of the contribution of venture capital as an innovative financing mechanism in financing startups by presenting the experience of the Kingdom of Saudi Arabia, where the most important concepts related to startups and venture capital were addressed, and for this, we relied on the Descriptive analytical method. The study found that venture capital is a good financing alternative for startups, especially in times of crisis, as it has experienced significant growth during the coronavirus crisis, and this is due to its connection to technology institutions that witnessed a significant expansion due to the circumstances imposed by this crisis, also, it contributes to financing the various stages of their life cycle, especially the early stage, in addition, this mechanism pays more attention to sectors with high growth potential such as the e-commerce sector and the financial technology sector.

Online Dispute Resolution as an Alternative Model for Dispute Settlement in The Financial Technology Sector

Financial technology (fintech) is the use of technology in financial services in the digital economy era. Digital payments, peer-to-peer lending, and crowdfunding are examples of fintech that is growing rapidly in Indonesia. However, the high number of disputes in the fintech sector is an indication of the need for a dispute resolution mechanism that is fast, simple, and low-cost. In this regard, online dispute resolution (ODR) is present as an alternative dispute resolution model. ODR has many challenges, such as the existence of a legal vacuum (rechtsvacuum) regarding the ODR mechanism, internet disruption, and the weak protection of personal data in Indonesia.

ON THE DEVELOPMENT OF FINANCIAL TECHNOLOGY SECTOR IN UKRAINE AND WORLD

Annotation. The article examines the formation and development of fintech in general in the world and in Ukraine in particular. The goal is to highlight the specifics of Ukrainian financial technology sector development in order to ensure the necessary dynamics and increase the efficiency of its functioning. During the scientific research, the following methods were used: inductive and deductive analysis; a historical method for identifying fintech development stages; statistical methods for analyzing the fi ntech infrastructure of Ukrainian financial-credit market; confronting, comparison and synthesis to identify the specifics of fintech development in the domestic economy. The study summarizes the peculiarities of Ukrainian financial technology sector development. The stages of Fin Tech development in the world, from 1.0 to 3.5, are revealed and their main features are characterized. The first two stages covered respectively: 1866-1967 (identified as 1.0), marked by financial globalization and consisted of two periods pre-war, which was characterized by the development of infrastructure and post-war, which was marked by the process of using computer technology; and 1967-2008 (identified as 2.0) which was the development of traditional digital financial services, that is, further development of globalization of finance and digitalization, transition in 1967-1987 years of financial services from analog to digital dimensions. In general, the period is marked by: the launch of ATMs, SWIFT, automation of clearing services, more reliable payment systems are created, electronic trading of stocks begins, etc.; 2009 – our time, identified as 3.0, and response to the global financial crisis of 2008-2009 for the vast majority of countries, and stage 3,5 since 2015 in countries where there is an aspiration for economic development and financial intermediaries are present who carry out their activities exclusively online without available physical offices and compete with classic banks and non-bank financial organizations. Factors affecting the development of fintech in the world and Ukraine are determined. The current state of development of Fin Tech in our country is analyzed. It is proved that Ukraine corresponds to the stage of development of financial technologies at the level of 3.5; since in our country the factors of its development coincide with the countries that are recognized as being at this level, and the development itself took place first as an adaptation to changes in global financial markets in response to the crisis of 2008, and then as an action on the crisis of 2013-2014. Since 2015, Ukraine has entered a new stage of development of Fin Tech identified as 3.5. Keywords: financial technologies, sector of financial technologies, stage of development of financial technologies, factors of development of financial technologies, feature of development of financial technologies, globalization.

A roadmap for present focus and future trends of blockchain technology in the built environment

Blockchain technology has gained attention across the globe within the last 10 years and has taken centre stage in the financial technology sector. Even though innovation that applies to the construction industry is sometimes different from what is obtainable in other sectors, they share the same unique features. Therefore, this makes blockchain technology relevant to the built environment. This study aims to assess the research studies carried out on blockchain technology in the built environment domain in a bid to draw knowledge from the present focus of these studies while identifying research gaps for future studies. To achieve this, a scientometric review was carried out, and SCOPUS database was searched for studies related to blockchain technology in the built environment. The retrieved documents showed the first publication on this study area was made in 2017. Hence, this study covered research publications from 2017 to 2021. The findings revealed that most of these studies are not experimental as they only rely on literature from other sectors to draw conclusions for the built environment. The study further revealed that most of the publications in this domain are from the USA, Australia, India and the United Kingdom with only two publications from the African continent. This shows a research gap that can be explored from the African perspective. From the cluster analysis, research in this domain has focused primarily on blockchain technology components and only a few practical fields of its application. It was thus recommended that experimental and case study research should be carried out on its application in asset management and transfer, smart city development, land use, data/information management, cyber-physical systems, among others. Practically, the study highlighted blockchain technology usefulness in promoting social and economic sustainability of the built environment through its different applicabilities.