FinTech Phenomenon Research Articles

Issues of assessing the FinTech impact on the financial sector's structure

Subject. This article examines the areas of penetration of FinTech and the impact of the expansion of FinTech and BigTech companies on the structure of the financial sector. Objectives. The article aims to analyze the processes of the emergence of the FinTech phenomenon and its growing penetration into all spheres of finance, identify the consequences of these processes for the structure of the financial sector, as well as formulate the principles for the formation of a balanced structure of the financial sector in the context of its ongoing digitalization. Methods. For the study, I used the systems approach, comparative intermarket analysis, impact analysis of the technological component of economic development at the macro level. Results. The article reveals the main forms and manifestations of the impact of digitalization on the structure of the financial sector and the main activities and types of services of FinTech companies. The article also formulates the principles for the formation of a balanced competitive structure of the financial sector. Relevance. The results of the study can be used by the Bank of Russia and other national financial market regulators to improve approaches to building a modern competitive balanced financial structure.

Exploring the Transformative Impact of Fintech on Banking, Finance and Insurance Industries

This comprehensive research study explores the transformative impact of financial technology (fintech) on the banking, finance and insurance sectors. The study develops a conceptual framework that examines the various dimensions of fintech's influence, including technological advancements, digital financial services, emerging AI technologies, automation trends, financial inclusion, and the regulatory environment. Through a rigorous analysis of both secondary and primary data, the research provides valuable insights into user adoption and behaviour patterns towards fintech services, as well as the sector-specific challenges and opportunities presented by this disruptive force. The key findings of the study highlight the democratizing impact of fintech, where innovative technology platforms are enabling the execution of financial operations that were previously exclusive to traditional financial institutions. This shift is driving a fundamental transformation in the way banking, finance, and insurance services are delivered and consumed. The research also delves into the application of emerging technologies, such as artificial intelligence and blockchain, and their transformative potential in improving operational efficiency, enhancing risk management practices, and enabling more personalized financial services. The study's proposed conceptual framework serves as a valuable tool for industry leaders, policymakers, and practitioners to navigate the rapidly evolving fintech landscape and make informed strategic decisions with effect to convenience of consumers in the adoption of advancements in fintech services. The research recommendations address the need for balanced regulations that support fintech advancements while ensuring consumer protection and financial stability. By providing practical insights and a comprehensive understanding of the fintech phenomenon, this study aims to guide the banking, finance and insurance industries in adapting to the disruptive forces of financial technology. Keywords: Fintech Revolution; Artificial Intelligence, Blockchain, Banking, Finance, Insurance, Transformative Impact; Proposed Framework, User Adoption and Behaviour, Conceptual framework, Technological advancements, Financial inclusion, Regulatory environment, Democratization of financial services, Operational efficiency, Risk management, Personalized financial services, Industry transformation, Strategic decision-making, Practical insights, Disruptive innovation.

E-Wallet Security Readiness: A Survey

The repercussions of the 2008 financial crisis, growing regulation, and the digital revolution are just a few of the reasons that have caused major changes in the banking and financial sectors in recent years. The fintech phenomenon has emerged as a result of this change, completely altering the way financial services are provided and used. The development of E-wallet security is a key component of this change. The goal of this thorough review is to investigate how E-wallet security has developed, looking at the difficulties, innovations, and potential directions in online transaction security. The article gives a general review of fintech, e-wallets, and electronic payment systems while highlighting the significance of security precautions in safeguarding private financial data. The survey also identifies the risks—such as device, network, platform, and service risks—that come with digital payments. In order to guarantee the security of digital payment systems, it also covers the importance of strong security measures, encryption, data protection, and user awareness. Recommendations for strengthening online payment security and guarding against unwanted access to personal accounts are included in the survey's conclusion.

Factors affecting country fintech: an European analysis

Purpose- FinTech represents all innovation related to how businesses seek to improve the process, delivery, and use of financial services and it is not a mere technological phenomenon. Considering that the various innovations in the financial and technological fields require the use of explanatory indices, the aim of this work is to propose an analysis of the factors that influence the degree of adoption of Fintech in the European countries. Methodology- We use a correlation model in order to highlight the first results on the relationship between the degree of Fintech at a geographical level and some explanatory variables. The final sample consists of 28 European countries that have all variables requested in the analyisis. Specifically, the level of Fintech is measured by The Global Fintech Index developed by Findexable, while the factors that influence the Fintech come from dataset of International Monetary Fund (IMF): the number of ATMs, number of commercial bank branches, while the intensity of outstanding deposits with commercial banks and outstanding loans from commercial banks is lower Findings- Regarding the analysis of the year 2021, our result indicates preliminarily that Fintech is negatively affected by the number of ATMs, number of commercial bank branches, while the intensity of outstanding deposits with commercial banks and outstanding loans from commercial banks is lower. This findings are consistent with this assumption: one of the driver of the Fintech is the digitalization. Conclusion- The result of our model indicates that the degree of Fintech at a geographical leve seems to be linked to explanatory variables that are related to the banking world. This represents a useful information to academic, practitioners and policymakers. In fact, according to literature, Fintech has an effect on financial system and financial stability. Therefore the explanation of Fintech phenomenon and its measurement represent a crucial point. Future extensions of research could consider additional measures of Fintech and a focus on the most representative explanatory variables. Keywords: Fintech, financial system, banks, banking, digitalization. JEL Codes: G20, G29, 030

Lending activity efficiency. A comparison between fintech firms and the banking sector

The FinTech phenomenon is undoubtedly increasingly changing the morphology of the global financial system, as well as the existing competitive levers in particular sectors, including lending. The aim of this study is to offer a comparative analysis of the level of efficiency exhibited by FinTech firms operating in this sector with that of banks, which have traditionally carried out this activity. We measure efficiency levels by implementing the Stochastic Data Envelopment Analysis (SDEA). The study, referred to 2021, analyses a data set composed of all the Italian FinTech firms engaged in the lending business and all the Italian banks. We find higher efficiency levels for banks compared to FinTech firms. The results are certainly interesting both at corporate level and for regulatory purposes.

PATTERNS OF ISLAMIC FINTECH IMPLEMENTATION: PROBLEMS AND IMPLICATIONS FOR MICRO, SMALL AND MEDIUM ENTERPRISES

The development of fintech or financial technology is increasingly developing over time, this has caused public interest, especially micro, small and medium enterprises (MSMEs) to be interested in using it. Fintech is a phenomenon due to an innovation that introduces practicality, convenience, and economical costs. Similar to Sharia fintech which is currently being intensified by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) together with the Financial Services Authority (OJK), the MUI issued a sharia-based product offer from sharia business startups to MSME players. On the other hand, this fintech phenomenon has problems in its application to MSMEs. The method used in this research is a qualitative approach, where a study is descriptive. The results of this study are that Islamic fintech can be a solution, especially for MSME actors by facilitating financial services, fintech is an innovation that aims to provide convenience, speed, and convenience in providing financial assistance. Fintech industry players need to educate the public about legal products and services to protect society from fraud and financial crime. The financial services authority (OJK) will assist regulators in developing and overseeing sharia fintech services. In Islamic fintech, several applications provide MSME financial management service offerings in business whose aim is to increase efficiency in terms of customer service.

What determines FinTech success?—A taxonomy-based analysis of FinTech success factors

Value creation in the financial services sector has been fundamentally transformed by digitally born financial technology (FinTech) companies. FinTech companies synthesize information systems with financial services. Given its disruptive power, the FinTech phenomenon has received great attention in academic research, practice, and media. Still, limited systematic research provides a structure and holistic view of FinTechs’ success. Aiming to enhance understanding of the factors enabling FinTech success, we classify success factors across extant scientific literature on distinct FinTech business model archetypes. Our analysis reveals that the “cost–benefit dynamic of the innovation,” “technology adoption,” “security, privacy, and transparency,” “user trust,” “user-perceived quality,” and “industry rivalry” are crucial factors for FinTech success and can be seen as “grand challenges” for the FinTech ecosystem. In addition, we validate and discuss our findings with real-world examples from the FinTech industry and two interviews with stakeholders from the FinTech ecosystem. Our study contributes to the knowledge of FinTechs by providing a classification system of success factors for practitioners and researchers.

The Impact of FinTech Merge Operation on Financial Performance: Evidence from a Banking International Sample

The FinTech phenomenon has recently had a significant impact on the financial sector, opening up new potential for cost-saving measures and providing increasingly sophisticated financial services. On the other hand, FinTech has helped new players—typically technology companies—enter the financial sector and financial intermediation. Financial institutions have started cooperative and merging operations. As a result, to incorporate the new technology created in the market into their business model. This study aims to determine whether banks engaged in a FinTech merger experience improved financial performance. The research hypothesis is tested using an international sample composed of 106 financial intermediaries that implemented FinTech mergers from 2010 to 2018. The methodology employed is the Propensity-Score-Matching (PSM) technique which provides empirical results using a control group of 8,886 financial firms, with a total of 79,974 observations. The results demonstrate how a FinTech merger enhances intermediaries' financial performance. This evidence highlights the strategic value of FinTech fusion in the modern financial system. This study offers important insights for future research on the topic, as it contributes to combining two distinct outfits of literature, FinTech and M&A, into one that has been little addressed in the financial sector.

Predicting Fintech Innovation Adoption: the Mediator Role of Social Norms and Attitudes

Digital innovation is challenging the traditional way of offering financial services to companies; the so-called Fintech phenomenon refers to startups that use the latest technologies to offer innovative financial services. Within the framework of the Theory of Planned Behavior (TPB) and the Theory of Reasoned Action (TRA), the primary purpose of this paper is to develop a causal-predictive analysis of the relationship between Subjective Norms, Attitudes, and Perceived Behavioral Control with the Intention to Use and Behavioral Use of the Fintech services by companies. Partial Least Squares Structural Equation Modeling methodology was used with data collected from a survey of 300 companies. Our findings support the TRA and TPB models and confirm their robustness in predicting companies’ intention and use of Fintech services. Financial technology innovators must understand the processes involved in users’ adoption to design sound strategies that increase the viability of their services. Studying the antecedents of behavioral intention to adopt Fintech services can greatly help understand the pace of adoption, allowing these players to attract and retain customers better. This study contributes to the literature by formulating and validating TPB to predict Fintech adoption, and its findings provide useful information for banks and Fintech companies and lead to an improvement in organizational performance management in formulating marketing strategies.

The Impact of Financial Technology on Banking Profitability

This study aims to explain the impact of financial technology (Fintech) on banking profitability and examine differences in banking profitability along with the growth of Fintech. The test is carried out using an event study, while Profitability is measured using financial ratios, namely ROA, ROE, and BOPO. The data used in this study is 2012-2017 in state-owned banks with the highest total assets that have fintech services (Bank Mandiri, BRI, BNI, BCA, DANAMON, CIMB, OCBC, BTPN, BUKOPIN, and Bank PERMATA).The methodology used is a descriptive quantitative approach by conducting different tests and to explain the relationship between these variables, multiple linear r egression tests are used. Different tests are carried out to see whether banking profitability is disrupted by the fintech phenomenon or not. Quantitative analysis is carried out by examining related problems. The conclusion that can be drawn is that innovations that occur in banking through the fintech phenomenon are not as a distraction but as an opportunity to develop fintech services and increase banking profitability.

FINANCIAL TECHNOLOGY AND SHARIA COMPLIANCE REGULATIONS IN ISLAMIC BANKING IN INDONESIA

Purpose: The purpose of this study is to analyze the FinTech phenomenon and compliance with sharia regulations in Islamic banking in Indonesia. Use of research as information for regulators, Islamic banking, and other stakeholders in compiling compliance regulations as an element of supervision and optimal strategy to improve the quality of FinTech in Indonesian Islamic banking.Method: This research is a qualitative case study with literature studies related to the phenomenon of Sharia FinTech and Islamic regulations in Islamic banking in Indonesia.Results: The results of Yudaruddin's research (2022) stated that the better the economic conditions, the higher the potential for FinTech growth. Meanwhile, the results of Muryanto's research (2022) stated that apart from focusing on FinTech, Islamic banking is also required to maintain compliance with regulations, sharia principles, operational standards for sharia FinTech governance, and the Sharia Supervisory Board.Implication: With the existence of technology and the digital world, it will make easier life for human activities which can be accessed through any telecommunication media, anywhere, easy to use, and speeds up the process (Yudaruddin, 2022) . One of the outputs from the digital world is financial technology (FinTech). The development of FinTech can also be felt in Islamic finance where Islamic FinTech transactions in Indonesia in 2020 reached $2.9 billion in transaction volume and are the fifth largest transaction volume globally (Darmansyah et al., 2020; Muryanto, 2022; and Yudaruddin, 2022).Originality: This study looks directly at the FinTech phenomenon and compliance with sharia regulations in Islamic Banking in Indonesia which will be able to make good corporate governance of Indonesia Islamic Banking. Considering that there are not too many study at FinTech and sharia compliance in Indonesia Islamic Banks.

Financial Innovation for Financial Inclusion: Mapping Potential Access to Finance

The importance of access to finance as a significant problem for business development is considered one of the measures representing the level of financial inclusion. Developing financial innovations, such as crowdfunding, mobile payments, AI-based credit scoring systems, and even blockchain technologies has an immense potential to increase financial inclusion, increase access to finance for individuals and businesses, enabling the unscored or unbanked population to become active members of financial markets. Studies have shown the positive impact of financial technology on individuals' financial inclusion and access to finance, but the development of the Fintech phenomenon does not itself imply improved access to finance for businesses. The spread and adoption of Fintech are taken as evidence of financial innovation This research aims to explore the expected interaction between financial innovation and financial inclusion in selected European countries.
 The data from the Global Fintech Ranking and Survey on the access to finance of enterprises (SAFE) is used in this study, examining them by comparing countries by their Fintech rankings and respective rank position obtained by measuring the importance of access to finance as a problem in business development.
 The analysis of 29 European countries indicates that theoretically defined expectations are met in most cases: access to finance is not an important problem for the companies from the countries that are ranked higher in the Fintech rating report. But part of the sampled countries deviates from this trend. These findings indicate that besides financial innovation other factors also may determine the financial inclusion of the companies.

APAKAH METODE PEMBAYARAN PAYLATER AMAN?

The fintech phenomenon in Indonesia continues to develop, one of the innovations is the service from an attractive fintech, namely pay later. Pay later which is a credit installment with a full digital service where the document submission is done online. This study aims to determine the trust and security in reusing the pay later feature on the marketplace. The object of this research is Pay later users who are located in Denpasar. The number of samples in this study was 50 respondents. The technique used is purposive sampling. The results showed that the variables of trust and security partially affect reuse. The trust variable has a positive and significant effect on the reuse of the pay later feature in the marketplace. Security has a positive and significant effect on reusing the pay later feature on the marketplace. The results of this study are expected to be useful for all Pay later users who use the Pay later feature as a reference in investigating the factors that influence the reuse of the Pay later feature.

Wpływ rozwoju FinTech na stacjonarne oddziały instytucji bankowych w Polsce

The rapidly advancing digitisation and modernisation of information technologies are an impulse to use innovative solutions proposed by the broadly understood financial sector. The presented work presents the development of the banking system in Poland, the perspective of the FinTech phenomenon, with focus on operating bank branches in Poland, as well as innovative solutions. The aim of the article is to analyse the impact of FinTech development on traditional branches of banking institutions in Poland. The authors look at today's behavior of bank account holders with regard to everyday activities, such as withdrawing cash. At the same time they make suggestions as to the reason for the presented results, in order to clearly formulate the final conclusions. The authors also discuss areas analogous to the main topic, such as cashless payment methods, with a closer analysis of their real impact on the banking structure. The main source of information for this article are results obtained from the authors' own research. The considerations lead to the conclusion that in today's banking environment bank branches are somewhat unnecessary and unprofitable, and will slowly decrease in number year by year. The results of the study highlight the amazing BLIK phenomenon, which is increasingly replacing payment methods offered by banks.

Fintech: A Literature Review

This article analyzes the Fintech evolution. After describing the process of this phenomenon, some of the main definitions are provided both nationally and internationally. Finally, six main models of Fintech are analyzed.
 
 Through a systematic literature, 14 articles have been selected that deal with the phenomenon of Fintech.
 
 Six Fintech business models implemented by the ever growing number of Fintech startups have been identified, payment, wealth management, crowdfunding, loan, capital market and insurance services. Internationally, Fintech has already been defined by the International Monetary Fund (IMF), the World Bank Group (WBG), the Financial Stability Board (FSB), the Organization for Economic Cooperation and Development (OECD), the International Organization of Securities Commissions (IOSCO), the Bank for International Settlements (BIS). On a national level, on the other hand, Fintech has been analyzed by various countries, USA, United Kingdom, Singapore, China, Switzerland, China, Australia and the European Union.
 
 Fintech refers to a broad set of innovations - observable in the financial field in a broad sense - which are made possible by the use of new technologies both in the offer of services to end users and in the internal production processes of financial operators as well as in the design of market enterprises, without thereby compromising new possible configurations of intersectoral activities.
 
 Fintech appears to be representative of innovative methods - based on technology - of carrying out activities directly or indirectly connected to financial services rather than being a pre-defined industrial sector. Following the logic of the digital economy, Fintech contributes to designing an open and continuous network of modular services for businesses, individuals and banking, financial and insurance intermediaries, becoming a powerful acceleration force for the integration policies of the financial services markets in the EU.

FinTech as The Emerging Technologies in Banking Industry: Past, Present, and Future

In the last decade, it stated that the discourse and the role of Financial Technology (FinTech) as the emerging technology in the financial and banking industry attracted the attention of researchers, practitioners, regulators, and policymakers. Referring to the evolution of FinTech to date, FinTech influences business activities in the banking industry from the past, present, and future. In Indonesia, the opportunities and challenges for the emergence of financial technology in the banking industry are enormous. Therefore, analytical studies related to fintech in the banking industry in the past, present, and future are necessary. Based on these facts, this study aims to present a descriptive analysis of the emergence of FinTech which has had an impact on the banking industry in the past, present, and future, particularly in Indonesia, as a case study. This study uses a descriptive analysis research method and using qualitative method approaches. This descriptive analysis is carried out by critically analyzing various relevant scientific journals, the facts of the FinTech phenomenon in Indonesia, and documentation papers from banking institutions. This results analysis reveals what happened to FinTech as the emerging technology in the past, present, and future in the Banking Industry. The expected contribution of this study provides answers to opportunities and challenges related to FinTech and the banking industry in the past, present, and future in more depth.

Novel mechanisms of scalability of financial services in an emerging market context: Insights from Indonesian Fintech Ecosystem

Global Fintech phenomenon is driven by new technological innovations that attempt to unbundle and deconstruct conventional business models in the financial services sector. Existing research on platforms focus on platform leadership, governance, generativity and modularity, as well as their impact on agility and innovation. However, there are limited empirical studies, to explore the role of platform operators in providing scalable financial service delivery to a broader population. This study aims to enhance the understanding of an emerging Fintech landscape in Indonesia which is characterized by heterogeneous, dynamic and evolving network of organizations and the innovative mechanisms by which the scalability of financial services could be enhanced. Our study suggests that the mechanisms of platformization, decentralization, localization and democratization by Fintech platform operators positively impact the scalability of financial service delivery. This study has significant implications for policy makers especially in emerging markets who are seeking to scale, facilitate and govern the Fintech revolution, and for Fintech practitioners in the design of technology-enabled delivery of financial services.

The Fintech Phenomenon: Protection of Consumer Privacy Data in Online Lending

Abstract
 
 Financial technology innovation that occurs nowadays leads to accelerated changes in the financial sector. However, these developments are like double-edged swords, on the one hand they provide convenience for consumers, on the other hand pose risks for consumers related to the confidentiality of their personal data. Money lending business through Peer to Peer lending (P2P lending) system often results in consumers receiving threats when they are late making payments. This paper presents several cases that result in consumers experiencing personal data theft, receiving threats directed at relatives or acquaintances. Even committing fraud by taking money from borrowers or customers without following the regulations made by the Financial Services Authority (OJK). The research data is carried out in a qualitative normative way where the data is translated based on legal norms and uses legal theory that can explain and answer existing legal problems.
 
 Keywords: Consumer Protection, Peer to Peer lending (P2P lending), Private Data Protection
 
 Abstrak
 
 Inovasi teknologi keuangan yang terjadi saat ini mengarah pada akselerasi perubahan di sektor keuangan. Namun perkembangan tersebut ibarat pedang bermata dua, di satu sisi memberikan kemudahan bagi konsumen, di sisi lain menimbulkan risiko bagi konsumen terkait kerahasiaan data pribadinya. Bisnis money lending melalui sistem Peer to Peer lending (P2P lending) seringkali mengakibatkan konsumen mendapat ancaman ketika mereka terlambat melakukan pembayaran. Makalah ini menyajikan beberapa kasus yang mengakibatkan konsumen mengalami pencurian data pribadi, menerima ancaman yang ditujukan kepada kerabat atau kenalan. Bahkan melakukan penipuan dengan mengambil uang dari debitur atau nasabah tanpa mengikuti ketentuan Otoritas Jasa Keuangan (OJK). Data penelitian dilakukan secara normatif kualitatif dimana datanya diterjemahkan berdasarkan norma hukum dan menggunakan teori hukum yang dapat menjelaskan dan menjawab permasalahan hukum yang ada.
 Kata kunci: Peer to Peer lending (P2P lending), Perlindungan Konsumen, Perlindungan Data Pribadi
 
 Kata Kunci: Perlindungan Konsumen, Peer to Peer lending (P2P lending), Perlindungan Data Pribadi

Ecosystem dynamics: exploring the interplay within fintech entrepreneurial ecosystems

Scholars and practitioners continue to recognize the crucial role of entrepreneurial ecosystems (EEs) in creating a conducive environment for productive entrepreneurship. Although EEs are fundamentally interaction systems of hierarchically independent yet mutually dependent actors, few studies have investigated how interactions among ecosystem actors drive the entrepreneurial process. Seeking to address this gap, this paper explores how ecosystem actor interactions influence new ventures in the financial technology (fintech) EE of Singapore. Guided by an EE framework and the use of an exploratory-abductive approach, empirical data from semi-structured interviews is collected and analyzed. The findings reveal four categories representing both the relational perspective, which features interaction and intermediation dynamics, and the cultural perspective, which encompasses ecosystem development and regulatory dynamics. These categories help explain how and why opportunity identification and resource exploitation are accelerated or inhibited for entrepreneurs in fintech EEs. The present study provides valuable contributions to scholars and practitioners interested in EEs and contributes to the academic understanding of the emerging fintech phenomenon.

FINTECH AND BANK: PAST, PRESENT, AND FUTURE

Financial Technology has long been applied to the financial and banking sectors until the emergence of financial technology innovation called FinTech. Referring to the evolution of FinTech until now, FinTech influences the Bank's activities from the past, present, and future. Based on these facts, this research aims to present a descriptive analysis of FinTech and Bank in the past, present, and future, especially in Indonesia as a case study. This study uses a descriptive analysis research method and using qualitative method approaches. This descriptive analysis is carried out by critically reviewing various relevant scientific journals, the facts of the FinTech phenomenon in Indonesia, and documentation papers from banking institutions. The results of this analysis reveal what happened to FinTech and the Bank in the past, present, and future. The contributions from this study can provide insight and understanding related to FinTech and banks in the past, present, and future more in-depth.