Financial Technology and Disruptive Innovation in Business: Concept and Application

Financial Technology and Disruptive Innovation in Business: Concept and Application

Muhammad Anshari, Mohammad Nabil Almunawar, Masairol Masri
Copyright: © 2020 |Pages: 15
DOI: 10.4018/IJABIM.2020100103
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Abstract

Financial technology (FinTech) expands financial services to many people that are currently lacking access where customers enjoy using banking products and services provided by non-banking providers. FinTech changes the way people pay, send money, borrow, lend, and invest. FinTech enables financial solutions and innovative business models resulting the fusion of finance and smart mobile technology. The emergence of FinTech-related products causes major disruptions in financial services. Though it is yet far from replacing current financial services, it offers financial products and services by non-financial sectors into automation, user-friendly, efficient, and transparent just like banking and financial sectors. The paper discusses its concept, characteristics, and some case studies of local FinTech in Indonesia. In addition, the study deployed text mining analysis to find out the correlation and patterns of FinTech's characteristics. Then the case analysis highlights a comparative assessment between local FinTech in Indonesia versus global FinTech players within local market-based completion. The findings suggest that local FinTech organizations can be resilient competing with an international FinTech players.
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2. Literature Reviews

Financial technology (Fintech) is known for its services in finance, to help with any technological needs. It is widely used in in different range of field – either in big cooperation like banking sector to an independent small start-up business. Currently, there is no concurrence in defining what Fintech exactly is. But many different authors have made attempts to define Fintech according to their own understandings drawn from their conveyed studies and surveys. The general description of financial technology is providing financial service by making use of software and modern technology where it initially applies to consumer trade.

Figure 1.

Tracking history of FinTech

IJABIM.2020100103.f01

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