Financial Technology Services Research Articles

The Effect of Perceived Usefulness and Perceived Easiness towards Behavioral Intention to Use Fintech by Indonesian MSMEs

The research aimed to test how are Micro Small Medium Enterprise (MSMEs) acceptance towards financial technology fintech). The number of MSME that using fintech is still need to be maximized. MSMEs were chosen as research object due to their numerous contribution in gross domestic product (GDP). Therefore, it was considered important to understand MSME’s notion to use fintech in their business operation, which is wellknown that financial technology could give a lot of services which may improve MSMEs performance. The research adopted the technology acceptance model (TAM) theory to determine the effect of the variable perceived of usefulness and perceived ease of use on behavioral intention to use fintech services by MSME entrepreneurs. Technology acceptance model had been the most widely applied model to measure and analyze a technology's use and acceptance. The descriptive quantitative research was applied. The analysis using multiple linear regression tests on 60 respondents. Respondents were managers of MSMEs who use financial technology services in their business operations in any form. Classical assumption testing was carried out to meet the requirements of multiple linear regression analysis. The data met the criteria for multiple linear regression. The results reveal that perceived of usefulness and perceived ease of use variables simultaneously affect the behavioral intention to use financial technology services. Partially, perceived of usefulness affects behavioral intention to use, as well as the perceived ease of use affects behavioral intention to use financial technology services.

Avoiding uncertainty by measuring the impact of perceived risk on the intention to use financial artificial intelligence services

The moderating role of influencer endorsement and perceived monetary benefits on the relationship between perceived risk and financial artificial intelligence services was explored in this study. Data were obtained through questionnaires distributed to 200 respondents who were selected using a purposive sampling method. The respondents were customers receiving financial artificial intelligence services in Jordan. Analysis was performed using a structural equation modeling approach run by Smart-partial least squares (PLS) 3.2.9 involving data from 138 returned questionnaires. The results show a negative impact of perceived risk on financial artificial intelligence services, and a moderation effect of influencer endorsement and perceived monetary benefits on the relationship between perceived risk and financial artificial intelligence services. The findings can assist companies in their strategies of decreasing perceived risks that individuals could be encouraged to utilize business intelligence applications, for instance, financial technology services.

Moderating the role of the perceived security and endorsement on the relationship between per-ceived risk and intention to use the artificial intelligence in financial services

Advancement of banking and financial investment has led to the rapid expansion of services automation. The consistent increase of Artificial Intelligence (AI) usage in investment management implies the impending popularity of technology-based service. This study examined influencer endorsement and perceived security benefits as moderators to the relationship between perceived risk and financial AI services. Questionnaires were disseminated to 300 respondents who were customers with experience of using financial AI services in Jordan, and they were chosen through purposive sampling method. Structural equation modeling run using Smart-partial least squares (PLS 3.3.6) was employed in analyzing the data obtained from 220 completed questionnaires. The results show that perceived risk negatively affects financial AI services, while influencer endorsement and perceived security moderate the relationship between perceived risk and financial AI services. This study provides insight to companies on how to reduce perceived risk to encourage people to use business intelligence applications, as in the use of financial technology services.

Factors influence ease of use on Fintech adoption: Mediating by the role of attachment anxiety under Covid-19 pandemic

In recent times, Fintech has developed rapidly along with the development of technology. The Covid-19 lockdown has created a huge opportunity in terms of increasing the number of users, and users’ experience. Previous studies have shown a number of factors affecting the use of financial technology services. However, what are the factors that are caused by the Covid-19 epidemic, and the ability to enhance competitive advantage and retain users is still lacking. Data were collected in Vietnam, comprising 247 respondents, and the SEM model was used to predict the effects. This study shows that users' users’ beliefs, security and privacy, web design of Fintech services, customer value, and attachment anxiety during prolonged lockdown without a feasible solution to date increase intention to adopt Fintech. Both theoretical and practical applications were discussed in this study.

How does the Fintech services delivery affect customer satisfaction: A scenario of Jordanian banking sector

AbstractThe availability of financial technology services, accessibility, ease of use and performance, transaction costs, and service security of Fintech have a positive and significant effect on banks' customer satisfaction. Effective financial technology services assist and preserve customers, who increase the revenues generated by the banks and economic growth.

Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services

Objective – The objective of this study is to determine the process that takes place in the employment of financial technology in the financial services industry. It is of utmost important that FinTech firms and commercial banks understand the predictors that can influence their consumers’ decision to adopt FinTech services and to increase loyalty toward their services. Methodology/Technique – An online survey was used in the present research to explore factors that can influence commercial bank users’ intention to use FinTech services in Malaysia. The data for the current study was gathered from bank users who aged at least 18 years old and resided in Malacca, Malaysia who accessed FinTech services via smartphone. This research also employed the convenient sampling in distributing online questionnaires to 400 respondents who had successfully completed and returned the questionnaires. Findings – The empirical findings illustrate that trust, social influence, cyber-security risks and privacy risks are the most influential determinants that affect bank customers’ behavioural intention to use FinTech services in Malaysia. Novelty – This research contributes to the theory of TAM, UTAUT and TPB by proposing a direct effect of trust, social influence, cyber-security risks and privacy risks on the adoption of FinTech services. The findings of the current study will be beneficial to policymakers, specifically financial institutions and FinTech firms as they will be informed on workable means to increase the quality of FinTech applications/websites. This can yield greater intentions to adopt FinTech. Stakeholders should play their important role in noticing and considering the influential factors that can impact the consumers’ behavioural intention for using technologies in their policies to fulfil the users’ needs. Type of Paper: Empirical JEL Classification: G02, G21 Keywords: Trust; Social Influence; Cyber-Security Risks; Privacy Risks; Behavioural Intention to Use Reference to this paper should be made as follows: Peong, K.K; Peong, K.P; Tan K.Y. (2021). Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services, Journal of Finance and Banking Review, 5(4): 10 – 27. https://doi.org/10.35609/jfbr.2021.5.4(2)

Sharia Cooperatives' Productive Waqf Management Model Through Financial Technology Services in Bandung City Area to Promote The People's Economy

Waqf continues to develop as a pillar of people's economic power, from the conventional land waqf concept of social and educational facilities to the modern enough stage, now known as cash waqf money, cash waqf linked sukuk (CWLS) and fintech linked to the waqf fundraising process. The aim of this study is to provide an understanding of the legal status of waqf producers, through the use of fintech applications in the context of Law No. 41 of 2004 on Waqf and Law No. 11 of 2008 on Electronic Information and Transactions, and through a processing methodology to find an economic empowerment model for people with productive waqf assets. The study uses a methodology which refers to qualitative legal research. Research findings concluded that Fintech apps are not properly regulated by Waqf of the ITE Law, but are still permitted to be used in the management of cash waqf as long as they are not in breach of the law in force. In the management of waqf, Nazhir shall be liable and may be prosecuted in the event of a loss of waqf properties due to its negligence. Sharía Cooperatives registered as cash waqf nazhir and in cooperation with Bandung City Fintech companies are owned by BMT ITQAN only where they are financed by itqanmobile and involve the Fintceh platform kitawakaf.com with the help of the House Financing Assembly empowerment program for BMT member SMEs with waqf funds and the waqf management models

Determinan Individu Mengadopsi Layanan E-Payment (Studi Pada Millenials Di Kabupaten Gresik)

Background – The development and use of financial technology services, especially in payment transactions (digital e-payments), are also influenced by the millennial generation who are now the majority generation of the population in Indonesia (Susenas, 2017). In its development, financial technology also continues to require innovation and development in the financial system so that it can be accepted by each individual user. So that research related to what factors are of interest to millennial individuals is important to do. Purpose – This study identifies the faktors that interest individuals in the millennial generation using e-payment services with the Innovation Diffusion Theory framework. Design/ Methodology/ Approach - The sample in this study were 159 users of e-payment services aged 20 years to 40 years who live or have activities in Gresik Regency and use e-payment applications obtained by convenience sampling technique. This research includes exploratory research. The method used in this research is faktor analysis. Result and Discussion - The results of the research and analysis that have been carried out as a whole, in determining the most dominant faktors can be seen in the total variance results in the total variance table explained, the economic benefit faktor which is the dominant faktor with a variance value of 40.550%, the payment instrument faktor with a variance value of 5,894%, information faktor with a variance value of 5,369%, technical, economic and social faktors with a variance value of 4,942% and the utility faktor which is the last faktor with a variance value of 4,676%. Conclusion – The most influential factors that lead to E-payment Adoption decisions sequentially are: economic benefit factor which is the strongest influencing factor, then the payment instrument factor is a strong influencing factor, in the third position there is the Information factor, in the fourth position is technical, social and economic factors. The utility factor which is the last factor that has a strong enough effect. Research Implication - The public can find out the things that cause them to adopt e-payments. The majority of respondents agreed that they get economic benefits when using e-payment in transactions for using financial services and make the respondents interested in adopting e-payment, therefore companies that provide e-payment must maintain the quality of the e-payment application

Determinan Individu Mengadopsi Layanan E-Payment (Studi Pada Millenials Di Kabupaten Gresik)

Background – The development and use of financial technology services, especially in payment transactions (digital e-payments), are also influenced by the millennial generation who are now the majority generation of the population in Indonesia (Susenas, 2017). In its development, financial technology also continues to require innovation and development in the financial system so that it can be accepted by each individual user. So that research related to what factors are of interest to millennial individuals is important to do. Purpose – This study identifies the faktors that interest individuals in the millennial generation using e-payment services with the Innovation Diffusion Theory framework. Design/ Methodology/ Approach - The sample in this study were 159 users of e-payment services aged 20 years to 40 years who live or have activities in Gresik Regency and use e-payment applications obtained by convenience sampling technique. This research includes exploratory research. The method used in this research is faktor analysis. Result and Discussion - The results of the research and analysis that have been carried out as a whole, in determining the most dominant faktors can be seen in the total variance results in the total variance table explained, the economic benefit faktor which is the dominant faktor with a variance value of 40.550%, the payment instrument faktor with a variance value of 5,894%, information faktor with a variance value of 5,369%, technical, economic and social faktors with a variance value of 4,942% and the utility faktor which is the last faktor with a variance value of 4,676%. Conclusion – The most influential factors that lead to E-payment Adoption decisions sequentially are: economic benefit factor which is the strongest influencing factor, then the payment instrument factor is a strong influencing factor, in the third position there is the Information factor, in the fourth position is technical, social and economic factors. The utility factor which is the last factor that has a strong enough effect. Research Implication - The public can find out the things that cause them to adopt e-payments. The majority of respondents agreed that they get economic benefits when using e-payment in transactions for using financial services and make the respondents interested in adopting e-payment, therefore companies that provide e-payment must maintain the quality of the e-payment application

The role of financial technology to increase financial inclusion in Indonesia

The growth of digital technologies has changed the way of doing financial transactions. Even though the transaction value for financial technology in 2018 grew by 24%, the financial inclusion rate in Indonesia is still low, with 64% unbanked. The aim of the study was to analyze the factors of the growing digital technology that influence customer decisions in choosing financial technology services using customer knowledge as the intervening variable. The growing digital technology is measured using social networking, regulatory services, and financial service facilities variables. The sample of this research focused on the microsegment customers located in Java Island. Statistical data are analyzed using Algorithm PLS. Results show that customer decision in choosing financial technology services was strongly influenced by customer knowledge. Customer knowledge was formed from information gathered from the social network, the formal assurance by the government, the financial service facilities, and financial inclusivity. The study recommends a need to educate, promote, and provide adequate information to increase familiarity and literacy rate with regard to financial technology. The study also recommends an urgent clear government regulation to protect the interests of customers and industries.

Factors influencing attitudes and intention to adopt financial technology services among the end-users in Lagos State, Nigeria

Financial technology (Fintech) innovation has brought a dynamic change to the financial sector as new products and services are offered by conventional banks and other companies offering banking services through various online platforms. The attitudes of the end-users tend to play a great role in the adoption of any technology. This paper investigated the factors influencing the attitudes and intention of the end-users towards using Fintech services within the purview of an expanded technology acceptance model (TAM). The study was conducted on 467 end-users in Lagos State, Nigeria, using structural equation model analysis. The results revealed that perceived usefulness, perceived ease of use, service trust and social influence have positive and significant impact on users’ attitude towards Fintech service with path weights of 0.55, 0.63, 0.27 and 0.41, respectively, at 1% level of significance. In addition to this, users’ attitude towards Fintech services is positively significant in influencing the adoption of Fintech service with path weight of 0.85 at 1% level of significance. The study suggests that more investment is made in Fintech innovations and that banks sensitize the general public using social media, TV and radio stations. Further, proper regulatory measures by the relevant regulatory agency must be implemented to instil confidence and trust in the end-users. This would boost the level of adoption of Fintech among the end-users in Nigeria.

Indonesian Consumers’ Intention of Adopting Islamic Financial Technology Services

With the rise of Halal Lifestyle in the digital era, Islamic Financial Technology (henceforth FinTech) has increasingly become impactful to economic growth. Islamic FinTech companies are in a dire need to figure out factors that influence the adoption and acceptance of the technology to promote their business. Addressing the issue, this study examines consumers’ intention of using Islamic Fintech services. An online survey was employed to elicit the required data from 75 Indonesian consumers of Islamic FinTech services. The results of data analysis by means of SEM-PLS depicted that perceived usefulness and interpersonal influence were two key factors driving the consumers to use Islamic FinTech services. The results further revealed that compatibility positively influenced perceived usefulness and perceived ease of use, which in turn, affected the consumers’ attitude. Moreover, it was also noted that attitude and internet self-efficacy as perceived behavioral control in decomposition of theory of planned behavior had no significant impact on consumers’ intention. The results of this study theoretically provide a basic model of consumers’ intention in the context of Islamic FinTech. At the same time, FinTech industry users can use the results of the present study as references to come up with appropriate strategy to deal with the market needs.

The Factors that Influence the Community Preference Using Financial Technology Services in Sharia Financial Institutions

This research aims to investigate the factors that influence community preference in using financial technology services in sharia financial institutions. This research uses a descriptive quantitative method through multi-linear regression analysis. The respondents of the research are Rembang people who use sharia fintech services with 1,171 respondents. The sample is selected through incidental sampling. The results show that perceived ease, perceived benefit, and attitude influence the community preference using financial technology services in sharia financial institutions.

Determinants of adoption and continuance intentions toward Internet-only banks

PurposeThe purpose of this study is to investigate the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit–risk framework and network externality theory. It also examines the difference in the determinants between pre- and postadoption stages of innovation.Design/methodology/approachThe proposed research model was tested by using online survey data collected from a South Korean sample, which was divided into two subgroups of 321 nonadopters and 351 existing users.FindingsIn both pre- and postadoption stages, the number of services provided and trust had a significant positive impact on consumers' behavioral intentions, while security risks had a negative impact. Critical mass in the preadoption stage and convenience and economic efficiency in the postadoption stage had positive effects on consumer's adoption intention and continuance intention, respectively.Practical implicationsInternet-only banks must reduce the security risks for consumers and increase their trust. In addition, to facilitate the adoption of nonadopters, focus should be on securing a critical mass; on the other hand, to promote the continued use of existing users, the focus should be on enhancing benefits such as convenience and economic efficiency.Originality/valueThe results of this study confirm the influence of network externalities on consumers' adoption and use of financial technology services and show differences in consumer decision-making according to the innovation diffusion process.

ETIKA DAN PRIVASI LAYANAN JASA TEKNOLOGI FINANSIAL (FINTECH) Studi Fenomenologi Pada Korban Pelanggaran Privasi Tekfin

Digitalization not only help people to make life easier, but also brought data risk. Data became a commodity in industry 4.0 that made ethic and privacy issue for financial technology (fintech). Rapid technology development unequal with regulation development, Indonesia still use stock exchange’s law which not covered all financial technology aspect like cyber security. This research was made to discover privacy violation that happened to two key informants and three informants who support this research to figure the case through phenomenology. The result is fintech user was lack of knowledge about privacy and threat that might be happened about data they give to fintech organization. To cite this article (7 th APA style): Sanjaya, R. & Irwansyah (2019). Etika dan Privasi Layanan Jasa Teknologi Finansial: Studi Fenomenologi pada Korban Pelanggaran Privasi [Ethics and Privacy regarding the Financial Technology Services]. Journal Communication Spectrum, 9 (1), 14-29. http://dx.doi.org/10.36782/jcs.v9i1.1873

Mobile payments in India: the privacy factor

PurposeThe purpose of this paper is to understand Indian consumers’ intention to use mobile payments by examining their adoption readiness (AR) in the larger context of their technology readiness (TR) and their privacy concerns (PCs).Design/methodology/approachA four-city, three language, paper and pencil survey yielded a sample of 600 respondents from India. Data were analyzed using structural equations modeling.FindingsThis study finds that AR positively mediates the relationship between TR and intention to adopt (IA) mobile payments. More importantly, PCs negatively moderate the relationship between AR and IA.Research limitations/implicationsResults will vary depending on country and other variables outside the scope of this study such as perceived risk, trust, etc. The sample was large but mainly comprised males, between 18 and 35 years of age.Practical implicationsThe cash shortage due to a recent demonetization move in India had spurred mobile payment adoption but usage and retention remained low. Many other banking self-service technologies had not been successful and digitization was critical for easing payments and potentially paving the way for mobile banking. However, using mobile phones for financial transactions raises PCs that attenuate the positive impact of AR. Also, understanding overall attitudes with TR is important in a rapidly digitizing country with relatively novice users.Social implicationsAdoption of mobile payment technology can help address social and economic challenges in India, such as financial inclusion, corruption and tax evasion. Given the increasing awareness of privacy issues in India, mobile payment adoption, which already faces acquisition and retention challenges, will likely to face greater resistance in the future.Originality/valueThe findings add to the literature on emerging markets and marketing of technology products by identifying the critical role of privacy in the adoption of financial technology services. Moreover, the authors demonstrate that given the rapid introduction of technology in India, consumers’ overarching TR has to be considered along with AR for mobile payments. Thus, the authors offer a tripartite, customer–technology–transaction view of the mobile payment adoption process in India.

Data Protection in Financial Technology Services: Indonesian Legal Perspective

The banking sector has facing a new competitor, namely Financial Technology (Fin-tech). Fin-tech itself can be described as an industry composed of companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. In Indonesia, Fin-tech has been widely developed in the past 3 years. Fin-tech is facing a new challenge as a new service for financial consumer which adapts new way of living in modern digital technology era. Basically, Fin-tech is offering three main categories such as payment, personal finance and financing. In financing application there are peer to peer financing, social crowd funding and also loan marketplace. All of this kind application has some issues in legal framework and data protection due to the using of communication technologies such as internet, social networks, Smartphone, massive use of data with the Big Data, connected objects etc. The using of big data and those new technologies have created new opportunities for these sectors, these developments also raise significant data protection concerns. This paper will discuss two legal issues of Fin-tech, the legal aspect and the data protection

Data Protection in Financial Technology Services (A Study in Indonesian Legal Perspective)

The banking sector is facing a new competitor, namely Financial Technology (Fin-tech). Fin-tech itself can be described as an industry composed of companies using a new tech-nology and innovation with available resources in order to compete in the marketplace of tradi-tional financial institutions and intermediaries in the delivery of financial services. In Indonesia, Fin-tech has been widely developed since the past 3 years. Fin-tech faces a new challenge as a new service for financial consumer which adapts to new ways of living in modern digital tech-nology era. Basically, Fin-tech offers three main categories such as payment, personal finance, and financing. In financing application there are peer to peer financing, social crowd funding, and loan marketplace. All of these kinds of application have some issues in legal framework and data protection due to the use of communication technologies such as internet, social networks, Smartphone, massive use of data with the Big Data, connected objects, etc. The use of big data and those new technologies create new opportunities for these sectors, and this development also raises significant data protection concerns. This paper discusses two legal issues of Fin-tech, the legal aspect, and the data protection.

The Effect of Financial Technology Services on Banks Customers Satisfaction in Nigeria

This Research project sets out to examine the impact of financial technology services on bank’s customer satisfaction in Nigeria. The objective of this study is specifically to examine whether financial technology has improved bank’s customer satisfaction in Nigeria. The study adopted explanatory and casual research design. The population of the study comprised universities students in Nigeria out of which 5 universities were randomly selected. The primary data was collected through the administration of 250 structured questionnaires to the universities. Out of the 250 questionnaires administered, two hundred and forty-three (243) was properly filled and returned. SPSS (Statistical package of social sciences) was used to analyze and present the data collected. The result of the study revealed that accessibility of financial technology services, transaction cost, availability of technology service, operations of technology services and business effect bank’s customer satisfaction and finally convenience and security effect bank’s customer satisfaction. It can however be concluded that the quality of financial technology have a positive significant effect on bank’s customer satisfaction More so, the result from the questionnaires distributed showed that effective financial technology services helps to satisfy and retain customers and continual satisfaction leads to increase in the income generated by the banks.

Fintech and the future of securities services

Looking ahead, financial markets will continue to undergo profound changes, owing in no small part to the perpetual growth of knowledge sharing and globalisation that has helped to define the millennium years. For securities-services providers, the pace of this change will accelerate with increased consolidation, pervasive regulatory mandates, as well as greater technological innovation. Indeed, the rapid expansion of financial technology services — or fintech — will play a lead role in this ongoing evolution, as the emergence of newer, more disruptive vehicles such as blockchain streamline the business of custody, clearing, settlement and other post-trade operations as never before. Along the way, providers will find it necessary to have an increasingly multi-global as well as multi-local presence; meanwhile, resources like capital, li­quidity and collateral will continue to be closely monitored, compelling providers to be more selective while focusing on growth and market expertise. In an increasingly competitive and globalised environment, innovations such as blockchain’s decentralised master ledger could serve as a stepping stone to a far more streamlined securities-services business in the years to come.