Selecting the Fintech Strategy for Supply Chain Finance: A Hybrid Decision Approach for Banks

Abstract

Many banks are eager to adopt technology solutions to enhance operational efficiency in managing supply chain finance, which involves various participants and complex financial activities. Previous research either focuses on the technology aspect or the optimization of a supply chain; there is little specific guidance on how banks can form a holistic model to evaluate their Fintech strategy for supply chain finance. By using an integrated approach, this study adopted the decision- making trial and evaluation laboratory (DEMATEL) and several analytical methods to construct a hybrid decision model for banks. We concluded four plausible Fintech strategies from previous research and highlighted the advantages of the blockchain-based strategy. We used a domestic bank in Taiwan as a case study during the evaluation phase and implemented crisp and confidence-based fuzzy assessments. The result indicates that the blockchain-based leading strategy would be ideal for this bank. The hybrid decision model also unveils the complicated relationships among those evaluation factors, which sheds light on banks pursuing their innovation in financial services. The findings contribute to banks developing their Fintech-based supply chain financing business, and the supply chain participants may also benefit from securing efficient loans to expedite their operations.

Predicting the Intention to Adopt Innovation in Supply Chain Finance

“…Bringing hypothesis 8, INN (Innovation) positively influences innovation use behavior; it supports our empirical results according to Kao et al (2022), where numerous financial institutions are keen on embracing technological solutions to bolster operational efficiency in managing SCF. This intricate process involves multiple participants and encompasses many complex financial activities.…”

“…In addition, numerous financial institutions are keen on embracing technological solutions to bolster operational efficiency in managing SCF. This intricate process involves multiple participants and encompasses many complex financial activities (Kao et al, 2022). Regarding future research, Sharma et al (2023) considered that FinTech addresses some challenges regarding platform-driven SCF in the ecosystem context.…”

FinTech revolution in mineral management: Exploring the nexus between technology adoption and sustainable Resource utilization in an industry 4.0 context

“…Researchers hoped their findings would help governments and industry practitioners promote FinTech expansion. Kao et al [ 39 ] created a hybrid decision model for financial institutions to facilitate technological adoption in supply chain financing. The research compared several Fintech approaches and emphasized the benefits of blockchain-based alternatives.…”

A Blockchain-Based Continuous Micropayment Scheme Using Lockable Signature

“…Hao Lei et al [35] suggested a multinode payment channel method based on the payment channel, reducing information transmission cost and enhancing blockchain scalability. Kao Y.C et al [36] proposed that the leading strategy based on blockchain is the best choice for banking financial services. Using an integrated approach, this study constructs a mixed decision model for banks using the decision experiment and evaluation laboratory and multiple analytical methods.…”