A paradigm shift in financial landscape: encouraging collaboration and innovation among Indonesian FinTech lending players. Issue 2 (18th January 2021)

• Record Type: Journal Article
• Authors: Utami, Ami Fitri; Ekaputra, Irwan Adi
• Is Part Of: Journal of science & technology policy management. Volume 12:Issue 2(2021)
• Page Start: 309
• Page End: 330
• Publication Date: 2021-01-18
• Subjects: Indonesia -- Digitalization -- Lending -- FinTech -- Industrial analysis; Science and state -- Periodicals; Science and state -- Developing countries -- Periodicals; Technology and state -- Periodicals; Technology and state -- Developing countries -- Periodicals; Research, Industrial -- Periodicals; Research, Industrial -- Developing countries -- Periodicals; Technological innovations -- Periodicals; Technological innovations -- Developing countries -- Periodicals; 509.1724
• DOI: 10.1108/JSTPM-03-2020-0064
• Languages: English
• ISSNs: 2053-4620

Abstract

Abstract : Purpose: This paper aims to examine about the nature and strategy of current competitive dynamics by FinTech lending Indonesia players. Design/methodology/approach: This paper uses both primary and secondary data. Interviews of several executives of a FinTech lending firm are done to gain direct insight of how the firms strategize their business operation. On the other hand, secondary data from internet search (e.g., OJK's Website, FinTech Lending firm's websites) are used to grasp the overview of the industrial landscape. Findings: The study confirms that differentiation, collaboration, compliance and strong internal resources (e.g. team and funding) are the most pivotal elements for FinTech lending success. The study also confirmed the FinTech lending industrial landscape as an emerging and fragmented industry. Research limitations/implications: This paper offers an original and detailed solution about how the FinTech lending company strategies may survive in a dynamic competition. The paper also shows the industrial analysis of the FinTech lending industry, which is rarely discussed in previous research. However, this study only focused on the lending sub-sector of FinTech, and the sample for primary data is highly limited (only three interviews). Practical implications: This paper proposes a strategy that can be conducted by FinTech lending companies to achieve their business goals, including business growth, profits and improve financial inclusion in Indonesia. This perspective can act as a means to create practical modus operandi for policymakers and practitioners, especially FinTech lending companies in Indonesia. Originality/value: This paper offers an original and detailed solution about how the FinTech lending company strategies may survive in adynamic competition. This study also provides a theoretical framework for use in further empirical research into the process of resource mobilization from FinTech lending Indonesia companies.