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China's internet payment penetration rates
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Financial technology (FinTech) has been receiving much attention lately. And, although the development of FinTech is still in early stages, many believe that it will define and shape the future of the financial services industry, and at the same time, increase participation by those who have until recently been under- or unserved. Given the intense...
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... to Alibaba's IPO prospectus, as of June 2014, there were 600 million registered Alipay users, 188 million mobile app users (MAUs) and U.S.$71 billion mobile GMV, accounting for 87.2% of total mobile retail GMV in China [Alibaba Group (2014)]. Alipay dominates internet payments in China (Figure 1). ...
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... Tendo em vista o aparecimento dos modelos de startups financeiras, não existe ainda concordância sobre sua definição mais adequada, mas as análises a respeito as descrevem como um fenômeno empresarial na indústria de serviços financeiros que eleva o potencial das tecnologias digitais nestas áreas. As fintechs são consideradas como a nova geração de empresas que está revolucionando a indústria financeira, trazendo inovações incrementais ou disruptivas no contexto da indústria de serviços financeiros, impulsionadas pelo desenvolvimento da tecnologia da informação, cuja resultante são os novos modelos que atuam em fases intra ou inter organizacionais de negócios, de produtos e da organização de serviços, processos e sistemas (Arner et al., 2015;Lee;Teo, 2015;Sia et al., 2016;Puschmann, 2017;Kerényi, et al., 2018;Huelsen, 2023). O surgimento de tecnologias digitais móveis pervasivas impulsionaram a mudança no papel da tecnologia, que ultrapassou a simples função no processo de automação, em direção à possibilidade de novos modelos de negócios (Fichman et al., 2014;Iansiti, Lakhani, 2020). ...
... Tendo em vista o aparecimento dos modelos de startups financeiras, não existe ainda concordância sobre sua definição mais adequada, mas as análises a respeito as descrevem como um fenômeno empresarial na indústria de serviços financeiros que eleva o potencial das tecnologias digitais nestas áreas. As fintechs são consideradas como a nova geração de empresas que está revolucionando a indústria financeira, trazendo inovações incrementais ou disruptivas no contexto da indústria de serviços financeiros, impulsionadas pelo desenvolvimento da tecnologia da informação, cuja resultante são os novos modelos que atuam em fases intra ou inter organizacionais de negócios, de produtos e da organização de serviços, processos e sistemas (Arner et al., 2015;Lee;Teo, 2015;Sia et al., 2016;Puschmann, 2017;Kerényi, et al., 2018;Huelsen, 2023). O surgimento de tecnologias digitais móveis pervasivas impulsionaram a mudança no papel da tecnologia, que ultrapassou a simples função no processo de automação, em direção à possibilidade de novos modelos de negócios (Fichman et al., 2014;Iansiti, Lakhani, 2020). ...
This article analyzes the evolution of capitalism under the logic of the data economy, the result of the transition to a paradigm dominated by knowledge, technology and design. The data economy, driven by Artificial Intelligence technologies, opens up possibilities for digital businesses. The impact of digitalization, technology on business models and global socioeconomic dynamics are discussed, with special emphasis on the role of Big Techs. A broad bibliographical review, from a multidisciplinary perspective, allows us to analyze how hyperconnectivity and emerging technologies are restructuring interactions and production processes, transferring the centrality of capital from the physical to the immaterial. The article also addresses the ethical and regulatory implications of this scenario, highlighting the need for effective techno-regulation. In the context of Brazil, a fertile environment for startups and fintechs can be identified, although limited by structural challenges, highlighting the importance of public policies that promote innovation and technological education. It concludes with a reflection on the need for more solid and equitable data governance, aligning technological advancement with the protection of rights.
... On the other hand, Lee and Teo (2015); Vasiljeva and Lukanova (2016); Demirguc-Kunt et al. (2018) and Utami et al. (2021) define FinTech as an industry geared towards arranging and organizing financial services for individuals and industries with the aim of providing customer-oriented solutions in the most efficient way and at the lowest possible cost, through innovation and technology 1 . As innovative ideas that improve financial services operations by proposing technical solutions according to different business situations, while the ideas can also lead to new business models or even new businesses (Leong and Sung 2018). ...
This research aims to analyze the impact of the increasing development of financial technology on the auditing profession. To achieve this goal, it defined financial technology as the use of technological innovation in the financial sector using the online market as a place to provide solutions to various financial problems experienced by digital customers through the development of strategic models, processes, applications, or innovative products. The auditing profession faces great challenges; the changes brought about by fourth industrial revolution are not limited to technology only, but have extended to include the need to redesign some of the concepts that constitute the basic building blocks of accounting and auditing; like the concept of value. The changing face of the business environment may shift professional services from focusing on assurance services to focusing on non-assurance services. The research concluded that financial technology innovations enhance the use of the real time audit approach and the emergence of audit applications. The research also concluded that there is an update in the professional assurance services currently provided by the auditor. The role of the auditor emerged in assurance management's assertions regarding the effectiveness of internal control over information technology, management's disclosures regarding the application of artificial intelligence tools, auditing fair value estimates and accounting estimates prepared using artificial intelligence tools, management's disclosures about cybersecurity risks, and cyber security risks management. Finally, the research concluded that new professional services have emerged, including auditing smart contracts, Trust assurance service in blockchains system, the function of the central administrator, and the function of arbitration in disputes. However, to achieve the future vision of professional assurance services for the auditor, the profession needs to overcome a number of challenges. First, it is to bridge the gap between the approach and method of real time audit and current auditing standards. Second, high investment to create tools to automate the audit.
... Penciptaan ekosistem yang berkelanjutan dalam pertanian ini memerlukan kolaborasi yang erat antara pembiayaan hijau, digitalisasi, dan literasi keuangan (Erlanitasari et al., 2019;Mondejar et al., 2021;Siddik et al., 2023). Dengan pemahaman yang kuat tentang cara mengelola sumber daya finansial dan teknologi yang bijaksana, petani akan dapat meningkatkan produktivitas pertanian sambil menjaga lingkungan yang sehat (Cen & He, 2018;Lee & Teo, 2015;Siddik et al., 2023). Inisiatif ini juga dapat mendukung pertumbuhan ekonomi yang berkelanjutan di daerah pedesaan, meningkatkan kesejahteraan petani, dan mengurangi dampak negatif terhadap lingkungan Streimikis & Saraji, 2022 ...
As an agrarian country, agriculture is the pivotal sector that drives sustainable development and a green economy in Indonesia and its regions. This study builds a model of Data Envelopment Analysis to measure Indonesia's green productivity which is focused on the agricultural sector. The green lending potential of rural banks (BPR and BPRS) and digitalization are then proposed as driving factors for green productivity, by involving the intermediary role of financial literacy. The study was set in panel data using 154 regencies on Sumatra Island for the period 2018 to 2020. The study found that green productivity on the Sumatra Island was not yet optimal nor efficient with the lowest level of productivity occurring in 2021 as the peak year of the COVID-19 pandemic. The findings further reveal that green lending has significant potential in increasing green productivity. Similar findings were also shown regarding the significant influence of digitalization on green productivity in both Sharia and conventional regional banking settings. Moreover, this study also proves the intermediary role of financial literacy. Specifically, at a high level of financial literacy, green lending of BPRS is most considered an attractive and profitable option in supporting green productivity. Thus, this study implies that governments and banks should integrate green lending and digitalization across various levels of financial literacy.
... The result of the examination portrays that the impression of value of Fintech benefits decidedly influences the aim of clients to utilize Fin-tech Services. The results are also steady with the earlier studies of [5,18,24,30]. It shows that Simple usage of Fin-tech services gives a sign that an innovation is planned not to make it hard for the wearer, however, the utilization of innovation makes it simpler for somebody to complete their work. ...
... By and large, fintech, in general, is a novel and troublesome technical service offered by present-day nonfinancial establishments (D. K. C. Lee & Teo, 2015). Fintech also alludes to utilizing IT, such as mobile technologies, data analytics, and cloud technology, to boost services and management efficiency and extend financial assistance (Hu et al., 2019;Y. ...
Studies illustrate progress in financial technology in Pakistan; nevertheless, the uncertain obstacle that prevents clients from adopting financial technology remains unclear. The research on the perceived risk, particularly in using financial technology in Pakistan, is limited. Therefore, this research bridges this gap. Two hundred ten members partook in this exploration. We have used the structural equation modeling approach to probe the acquired information and hypothesis. Empirical results show that three of eight perceived risk factors: performance risk, financial risk, and overall risk, have a substantial adverse effect on the intention to utilize financial technology. The highest impact was performance risk, followed by financial risk and overall risk. Whereas the other five risks: social risk, time risk, security risk, legal risk, and psychological risk, statistically have no substantial adverse effect on intent to utilize financial technology. The outcomes help experts better conceptualize and diminish hazard boundaries in planning for the disturbance of financial technology (fintech). Experts are likewise encouraged to focus on fintech’s operational aptitudes and utilitarian framework execution in fintech administrations.
... The literature on FinTech business models considers them to be the synthesis of the products/services they provide (Lee and Shin, 2018;Liu et al., 2020), while others recognize that more attributes should be considered (e.g., Lee and Teo, 2015). Thus, further research regarding the attributes and characteristics of FinTech in different settings is needed (Iman, 2020). ...
... Literature provides various definitions of fintech. In their research, Sweeney (2015) and Lee and Teo (2015) described fintech as a financial product or service created from innovative and disruptive technology development. In another study conducted by Freedman (2006), fintech is related to a system that models, assesses, and processes financial products, such as obligations, stock, contracts, and digital money. ...
Purpose: Most fintech users will be the generation Z; thus, understanding the generation Z is essential. This study is aimed to explore the relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also examines fintech risk influence on generation Z’s intention to continuance to use fintech. Theoretical framework: Previous studies (Darmiasih & Setiawan, 2020; Leon & Diana, 2020; Putritama, 2019; Ryu, 2018) analyzed the relationship between risk and fintech use continuance by excluding the generation Z perspective from the study. This study fills the research gap by focusing on Generation Z. Design/methodology/approach: This study adopts a quantitative approach. This study distributes online questionnaires to Generation Z in Indonesia. This study utilized the Partial Least Square approach to answer the research question using 199 responses earned from the country survey. The analysis is assisted by SmartPLS 3.2.8 software. Findings: The analysis result showed a positive relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also found a negative relationship between fintech risk and Generation Z’s intention to continuance to use fintech among Generation Z Research, Practical & Social implications: This study gives a new insight into the fintech industry in anticipating future failure in the business. Originality/value: This study finding provides a new perspective (Generation Z) on fintech use and risk investigation, which was rarely conducted in the previous studies most publications.
... Literature provides various definitions of fintech. In their research, Sweeney (2015) and Lee and Teo (2015) described fintech as a financial product or service created from innovative and disruptive technology development. In another study conducted by Freedman (2006), fintech is related to a system that models, assesses, and processes financial products, such as obligations, stock, contracts, and digital money. ...
Purpose: Most fintech users will be the generation Z; thus, understanding the generation Z is essential. This study is aimed to explore the relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also examines fintech risk influence on generation Z’s intention to continuance to use fintech. Theoretical framework: Previous studies (Darmiasih & Setiawan, 2020; Leon & Diana, 2020; Putritama, 2019; Ryu, 2018) analyzed the relationship between risk and fintech use continuance by excluding the generation Z perspective from the study. This study fills the research gap by focusing on Generation Z. Design/methodology/approach: This study adopts a quantitative approach. This study distributes online questionnaires to Generation Z in Indonesia. This study utilized the Partial Least Square approach to answer the research question using 199 responses earned from the country survey. The analysis is assisted by SmartPLS 3.2.8 software. Findings: The analysis result showed a positive relationship between financial risk, legal risk, security risk, and operational risk with risk in using fintech. This study also found a negative relationship between fintech risk and Generation Z’s intention to continuance to use fintech among Generation Z Research, Practical & Social implications: This study gives a new insight into the fintech industry in anticipating future failure in the business. Originality/value: This study finding provides a new perspective (Generation Z) on fintech use and risk investigation, which was rarely conducted in the previous studies most publications.
... According to (Lee and Teo, 2015), FinTech is defined through five components: less profit margins, less number assets, expandability, innovative thinking, and simple compliance. The Financial Stability Board (FSB) 2017 of the United States (US) defined FinTech as technological innovations in various economic business models, applications, processes, or products. ...
Blockchain Technology (BT) is rapidly becoming one of the most promising emerging economy innovations. Financial Technology (FinTech) has been disrupted by blockchain, and its market size is growing by the day. Payments are closely related to banking, and blockchain has become very famous in the banking industry. This study aims to analyse the factors influencing behavioural intention to adopt blockchain in FinTech. Total 13 factors were extracted from the literature, and later relations among these variables were analysed using Interpretive Structural Modelling (ISM). The study's conceptual model was built and validated by academic experts working in blockchain. Later, MICMAC analysis was performed to study these variables' driving and dependence power. Blockchain has various challenges as well as opportunities but due to its advantages its implementation is recommended for FinTech. As per our results, the implementation of blockchain in FinTech is required as it promotes data privacy and traceability and involves more trust than traditional means.
... Consistent with the symmetric and asymmetric assessment, a positive and statistically significant connection is found between financial Innovation and SMEs' contribution in the long and short run. Our finding is supported by the existing literature such as (Qamruzzaman and Jianguo, 2019;Effiom and Edet, 2022;Ahmed-Ishmel et al., 2018;Lee and Teo, 2015;Oyelola et al., 2013). According to Chou (2007), the efficiency of financial intermediation is improved when there is a proliferation of financial products and services made possible by technological advancements in the sector. ...
The economic contribution of small and medium enterprises (SMEs) has been well appreciated and documented in the literature. On the other hand, another domain of studies has concentrated on discovering the key determinants of SMEs' growth and survival. The motivation of the study is to gauge the nexus between financial innovation, technological innovation, clean energy, environmental degradation, and SME performance in Bangladesh for the period 1991-2019. The study has implemented Autoregressive Distributed Lagged (ARDL), Nonlinear ARDL, and the Toda-Yamamoto causality test. Referring to output derived with ARDL, a study has exposed a positive and statistically significant link between explanatory variables, that is, financial innovation, technological innovation, and clean energy consumption and SMEs' contribution to GDP both in the long-run and short-run. At the same time, environmental degradation has been revealed to be adversely connected to SME performance. The results of the standard Wald test have established an asymmetric association between explained and explanatory variables in the long-run and short run. In terms of the directional causality test, the study disclosed bidirectional causal effects running between clean energy and SMEs performance [CEßàSME], foreign direct investment, and SMEs performance [FDIßàSME]. Based on the study findings, the policy suggestions have been introduced in light of future development in SMEs in Bangladesh.
