Challenges and Trends of Financial Technology (Fintech): A Systematic Literature Review

Abstract

Digital transformation creates challenges in all industries and business sectors. The development of digital transformation has also clearly triggered the emergence of fintech (financial technology) initiatives, which are recognized as some of the most important innovations in the financial industry. These initiatives are developing rapidly, driven in part by the sharing economy, regulations, and information technology. However, research in the field of fintech remains in its infancy. Fintech offers several services, such as funding, payment (including electronic wallets), e-aggregators, e-trading, and e-insurance, and cryptocurrencies such as Bitcoin. This provides an opportunity to more closely examine fintech’s research challenges and trends. This study aims to (1) determine the state of the art of financial technology research; (2) identify gaps in the financial technology research field; and (3) identify challenges and trends for future research potential. The novel proposal in this study includes theoretical contributions regarding financial technology. Using the systematic literature review approach of Kitchenham, in addition to thematic analysis, meta-analysis and observation to validate the quality of literature and analysis, the results of this study provide a theoretical basis fintech research from an information systems perspective, including the formulation of fintech technology concepts and their development.

Detection of fintech P2P lending issues in Indonesia

“…Peer-to-peer (P2P) lending is a field of study in various financial technology researches, but studies on this topic are developing. P2P Lending is a new business model that brings together borrowers and lenders on a single platform (Suryono et al, 2020). P2P Lending is operated digitally through a platform with demand requests which the investment committee evaluates before the investment is made (Pişkin and Kuş, 2019).…”

“…3.57 trillion (up 18.85% from year to year) (OJK, 2020b). However, along with P2P Lending platforms' growth registered with the OJK, the Investment Alert Task Force has also found thousands of illegal platforms that have emerged from year to year (Suryono et al, 2020). For this reason, the Indonesian state was chosen to investigate this phenomenon to implement Fintech P2P lending practices following applicable policy rules and under the supervision of regulators.…”

“…In the financial services industry, especially regarding digital transformation in this sector, it is necessary to make adjustments to regulations and policies because of the fast pace of technological innovation that cannot leave behind these regulations (Suryono et al, 2020). Even though it has been written in a statutory law or government decree, stakeholders such as the Financial Services Authority, the Investment Alert Task Force, the Ministry of Communication and Information Technology must manage and provide space for sector growth.…”

A Flourishing Fintech Ecosystem: Conceptualization and Governing Issues in Malaysia

“…Previous literature raises many concerns regarding regulatory issues within Fintech (Bollaert et al, 2021;Degerli, 2019;Omarova, 2020;Suryono et al, 2020). Iman (2020) stated that the various intersection between functionalities, consumers, technological platforms, and emerging business models in rising Fintech firms gave regulators challenges to produce a proper regulatory framework for Fintech.…”

Fintech as a transformation driver of global financial markets

“…New flexible business models are emerging and evolving, enabling them to operate in new market niches. P2P services, for example, have become the most important form of new relationships created by the fintech industry development [12]. New solutions help significantly reduce the cost of attracting and servicing clients, assess and prevent existing and new risks, find new sources of income, etc.…”