Financial Technology and Disruptive Innovation in Business (original) (raw)
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Disruptive Technology: The Phenomenon of FinTech towards Conventional Banking in Indonesia
IOP Conference Series: Materials Science and Engineering, 2018
The purpose of the study was too disruptive technology. The rapid changes in technology due to the innovation has brought an impacts in changes on human lifestyle. Technology simplifies and accelerates human being in doing its activity. The development of digital technology (disruptive technology) has an impact on all aspects of human life. The purpose of this research is to see the phenomenon of the conventional banking in Indonesia to make changes in its business processes in order to compete with Fintechs Company that is growing rapidly. This research method looks at the phenomenon on conventional banking in Indonesia by looking at the impact of technology and digital. The first phenomenon is the rapid development in the world currently occur in the digital economy, one of which is a digital-based financial service known as financial technology (FinTech). The second phenomenon is digital technology has been able to change the behavior of Indonesian people in all aspects of life, such as electronic books, electronic newspapers, online sales and public transportation (taxis and motorcycles). The third phenomenon is FinTechs services in Indonesia include Payment channel system, Digital Banking, Online/Digital Insurance, Peer-to-peer (P2P) Lending and Crow funding. Banks should be able to balance the development of this digital technology by providing new products that are close to customer's wishes. There is a gap that has not been served by banks in Indonesia that resulted in the emergence of potential benefits that can be taken by Startup Company (pioneer) FinTech in providing services and banking products. Banking in Indonesia can synergize with start-up companies (pioneer) FinTech by changing its business process by doing Business Process Reengineering (BPR).
FinTech as The Emerging Technologies in Banking Industry: Past, Present, and Future
2021
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 carrie...
Financial Technology (FinTech) and its Role in Supporting the Financial and Banking Services Sector
International Journal of Academic Research in Business and Social Sciences, 2021
Fintech is a business and banking company that translates to financial technology. It is the technology used and applied in the financial services sector including its involvement in mobile payments, money transfer, loans, fundraising and asset and property management. Fintech investment has grown exponentially recently in the world and is likely to continue to increase, given that Fintech is not only related to the financial services sector, but all companies that deal with the financial services industry and Fintech startups are usually smart and capable of causing disruption.. The big impacts that organizations can have. Conventional finance can innovate very quickly. Fintech is described as those products and services that rely on technology to improve the quality of traditional financial services. They are quick and easy. In most cases, these services and products are developed by startup companies, which seek to improve retail and corporate banking in cooperation or competition with existing financial service providers. This paper seeks to shed light on the concept and importance of financial technology and how banks and financial technology companies benefit from the existing cooperation between them for the benefit of both parties.
Fintech and Bank: Past, Present, and Future
Jurnal Teknik Komputer
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 mo...
Promjena arhitekture financijskog sustava pod utjecajem tržišta fintech-a
Management : Journal of Contemporary Management Issues, 2023
In the past seven decades, especially since the Global Financial Crisis, the financial system's architecture has changed significantly around the world. New financial market entrants, such as fintech start-up companies, offer financial products and services more efficiently than established financial institutions (especially banks and insurance companies), bypassing the regulatory requirements established intermediaries must comply with. Despite the heterogeneity in the fintech concept, we use this term to consider innovations in financial products and services based on emerging information and communication technologies (i.e., information technology and mobile connectivity) as solutions that are changing the financial structure worldwide. Although the share of new participants in the financial system is rather small compared to the incumbents, fintech innovations are continuously advancing (e.g., crowdfunding, marketplace lending, cryptocurrencies, copy trading, robo-advice, insurtech, etc.), and their share is growing fast. This paper provides an overview of the fintech market and its impact (actual and potential) on the financial system's architecture based on a comprehensive review of the theoretical and empirical literature..
International Journal of Emerging Issues in Islamic Studies, 2021
Technology has become the part of today’s people life. Then, it is actually close to the application of it. Absolutely, it has example; such as the electricity for having more sophisticated in financial technology (Fin-Tech). The simplicity and speed of this technology have led people to adopt it in everyday’s life. One of the innovations in developing business and the economy, especially in the banking sector, is currently to develop Fintech (Financial Technology) which is able to facilitate all types of buying and selling transactions, investments and fundraising. Next, the purpose of this study is to explain and provide an understanding of the technical, procedures and benefits of the application, it is called Sharia FinTech. Then, it is also to contribute to the literature on the capacity of the latest technological and non-technological innovations. The research method used is descriptive research method with a qualitative approach. It is to describe and explore the phenomena i...
Needs Analysis of Fintech in Financial Services toward Industry-4.0 Era in Indonesia
Journal of International Conference Proceedings, 2019
This paper presents the needs analysis of fintech whose existence has changed the payment system in society. This research method is descriptive analytic to emphasize the aspect of indepth understanding of the problems. The purpose and benefits are to examine the dynamics of the development of fintech needs in Indonesia. This study found that fintech in Indonesia has grown in various sectors, such as start-up, lending, personal finance, and retail investment. Finally, that the needs of fintech in Financial Services should be supported by regulations and internet infrastructure, to make it more developed financial transactions toward Industry-4.0.
The Evolution of Financial Technology in Indonesia
Startupreneur Business Digital (SABDA Journal), 2023
Financial technology has its origins in industrialized nations with well-established infrastructure, cutting-edge technology, and a more digitally-oriented populace. Fintech has had trouble entering poor countries and enhancing their financial inclusion, even if this is not the case for emerging nations. This study attempts to identify global fintech best practices and examine how they could enhance the economic well-being of those living in poor nations. We categorized the issues into three categories: a lack of infrastructure, a society that is less digital, and an unorganized and informal culture. Then we looked at Microfinancing, Crowdfunding, Digital payment system as the three fintech's that best embody the three categories. The development of financial technology began in industrialized countries with advanced infrastructure, cutting-edge technology, and a population that was more accustomed to using digital devices. Even while this is not the case for rising countries, fintech has difficulty reaching poor countries and improving their financial inclusion. This study looks for global fintech best practices and considers how they could improve the economic security of people in developing countries. We divided the problems into three groups: a dearth of infrastructure, a society that uses less technology, and an unstructured and disorganized culture. The three fintech's that most closely represent the three categories were then examined: Micro Financing, Crowdfunding, Digital payment system.
FINANCIAL TECHNOLOGY (FIN-TECH): OPPORTUNITIES AND CHALLENGES
ZENITH
Fintech, a portmanteau of 'financial technology,' is used describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. The present study is conducted to investigate the use of Fintech facilities the fast pace of change in fintech makes assessing the potential impact on banks and their business models challenging. An awareness level scale and an operation level scale are administered about simple transaction activities. It shows the importance of open innovation methods including accusation of assets partnership, alliances and accelerator in the Fin Tech space. It highlights the importance of new environment and investing technology. It exposes that while capital and customer base are the main advantages of incumbents, cutting-edge technologies and flexibility are main advantages of Fin Tech. It emphasizes the importance of “Banking as a Service”notion with respect to new regulations. Finding of the study are helpful for consumers and bank to improve their Fintech facilities and usage of Fintech.
Indonesian Fintech Business: New Innovations or Foster and Collaborate in Business Ecosystems
There are many innovative products fail to reach minimum critical mass adopter and cease to exist. New financial technology products are not an exception because the current financial technology to facilitate transactions, whether payment, investment, and insurance still function remarkably well. Since new financial technology products have features to better serve low to middle-level customers in the form of higher convenience level and lower costs than the current financial technology products, the initiatives to ensure their success is imperative. Thus, the purpose of this study is to present propositions based on a literature review to encourage companies to simultaneously have two competencies, first competencies in new product development and second, competencies to foster and collaborate with other companies in within and across business ecosystems. The implications of this paper are companies with higher competencies to foster and collaborate with other companies, even though they start with relatively basic innovative product, have higher probability to reach minimum critical mass of adopter and higher probability to become leader in their business ecosystem and government need to maintain their active role to foster collaboration within and across business ecosystem.