Fintech Transformation: An Analysis of Era 5.0 Technology in Digital Finance Applications
Keywords:
Fintech Transformation, Era 5.0 TechnologyAbstract
The rapid evolution of financial technology (fintech) is reshaping the financial landscape, driven by technological advancements. Era 5.0 technology, characterized by the convergence of artificial intelligence (AI), the Internet of Things (IoT), and big data analytics, is transforming digital finance applications. This paper comprehensively analyzes how Era 5.0 technology revolutionizes fintech, focusing on its impact on digital finance applications. Leveraging AI and machine learning, fintech applications are becoming more intelligent and personalized, enhancing user experiences and improving financial decision-making. IoT integration in financial services enables seamless and secure transactions, while big data analytics provides deeper insights into customer behavior and market trends. However, adopting Era 5.0 technology in fintech poses challenges, including data security and privacy concerns, regulatory compliance, and the need for continuous innovation to remain competitive. Despite these challenges, the opportunities presented by Era 5.0 technology in fintech are vast, with the potential to revolutionize financial services and drive global financial inclusion.
Downloads
References
Abbasi, T., & Weigand, H. (2017). The Impact of Digital Financial Services on Firm’s Performance: a Literature Review. Journal of Economics and Management, 3(5), 1–15. http://arxiv.org/abs/1705.10294
Agarwal, I., & Gowda, K. R. (2020). The effect of airline service quality on customer satisfaction and loyalty in India. Materials Today: Proceedings, 37(Part 2), 1341–1348. https://doi.org/10.1016/j.matpr.2020.06.557
Akhter, F., Waqas, M., & Sohaib, S. (2022). Factors Affecting the Adoption of Fintech Services for Bank Clients. Journal of Social Sciences and Humanities, 61(1), 45–67. https://doi.org/10.46568/jssh.v61i1.597
Alifi, A., & Agung, W. D. (2023). Sharia Fintech Growth in Industry Revolution 5.0–Alami Sharia Study Case. El-Arbah: Jurnal Ekonomi, Bisnis Dan …, 7(2), 77–87. https://uia.e-journal.id/alarbah/article/view/2513%0Ahttps://uia.e-journal.id/alarbah/article/download/2513/1570
Alkhazaleh, A. M. K., & Haddad, H. (2021). How does the Fintech services delivery affect customer satisfaction: A scenario of Jordanian banking sector. Strategic Change, 30(4), 405–413. https://doi.org/10.1002/jsc.2434
Alsmadi, A. A., Al_hazimeh, A. M. d., Al-Afeef, M. A., Al-Smadi, A. W., Rifai, F., & Al-Okaily, M. (2023). Banking Services Transformation and Financial Technology Role. Information Sciences Letters, 12(1), 315–324. https://doi.org/10.18576/isl/120126
Alt, R., Beck, R., & Smits, M. T. (2018). FinTech and the transformation of the financial industry. Electronic Markets, 28(3), 235–243. https://doi.org/10.1007/s12525-018-0310-9
Alwi, S., Alpandi, R. M., Mohd Salleh, M. N., Basir, I. N., & Ariff, F. F. M. (2019). An empirical study on the customers’ satisfaction on fintech mobile payment services in malaysia. International Journal of Advanced Science and Technology, 28(16), 390–400.
Anagnostopoulos, I. (2018). Fintech and regtech: Impact on regulators and banks. Journal of Economics and Business, 100, 7–25. https://doi.org/10.1016/j.jeconbus.2018.07.003
Ashrafi, D. M., Dovash, R. H., & Kabir, M. R. (2022). Determinants of Fintech Service Continuance Behavior: Moderating Role of Transaction Security and Trust. Journal of Global Business and Technology, 18(2), 35–59.
Barbu, C. M., Florea, D. L., Dabija, D. C., & Barbu, M. C. R. (2021). Customer experience in fintech. Journal of Theoretical and Applied Electronic Commerce Research, 16(5), 1415–1433. https://doi.org/10.3390/jtaer16050080
Barroso, M., & Laborda, J. (2022). Digital transformation and the emergence of the Fintech sector: Systematic literature review. Digital Business, 2(2), 100028. https://doi.org/10.1016/j.digbus.2022.100028
Brus, S. (2020). Transformation of The financial Services Industry Under the Influence of Fintech: Global and Regional Dimensions. Economy under the Conditions of Modern Transformations, 0118, 34–46. https://doi.org/https://doi.org/10.15407/ econforecast.2020.03.034
Chemmanur, T. J., Imerman, M. B., Rajaiya, H., & Yu, Q. (2020). Recent Developments in the Fintech Industry. Journal of Financial Management, Markets and Institutions, 8(1), 1–31. https://doi.org/10.1142/S2282717X20400022
Deshpande, A. (2020). AI / ML applications and the potential transformation of Fintech and Finserv sectors. Digital Transformation-Potentials Challenges, 3(11), 123–146.
Dewi, P. M., & Kurniawan, I. D. (2022). Development of Financial Technology Investment in Indonesia Increasing Public Interest Industrial Revolution 5.0. Jurnal Hukum Replik, 10(2), 1689–1699. https://revistas.ufrj.br/index.php/rce/article/download/1659/1508%0Ahttp://hipatiapress.com/hpjournals/index.php/qre/article/view/1348%5Cnhttp://www.tandfonline.com/doi/abs/10.1080/09500799708666915%5Cnhttps://mckinseyonsociety.com/downloads/reports/Educati
Firmansyah, E. A., Masri, M., Anshari, M., & Besar, M. H. A. (2022). Factors Affecting Fintech Adoption: A Systematic Literature Review. FinTech, 2(1), 21–33. https://doi.org/10.3390/fintech2010002
Franco-Riquelme, J. N., & Rubalcaba, L. (2021). Innovation and sdgs through social media analysis: Messages from fintech firms. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030165
Golubev, A., & Ryabov, O. (2020). Transformation of traditional financial companies into FinTech. ACM International Conference Proceeding Series. https://doi.org/10.1145/3446434.3446543
Gong, Z. (2023). Research on the Impact and Development of Fintech on Banks. BCP Business & Management, 47, 62–69. https://doi.org/10.54691/bcpbm.v47i.5170
Hamdani, N. A., Herlianti, A. O., & Amin, A. S. (2019). Society 5.0: Feasibilities and challenges of the implementation of fintech in small and medium industries. Journal of Physics: Conference Series, 1402(7), 5–10. https://doi.org/10.1088/1742-6596/1402/7/077053
Haotian, H., Dong, Y., & Li, Y. (2021). The Analyse of Financial Technology Industry and Case Study of Some Typical Companies. ACM International Conference Proceeding Series, 323–332. https://doi.org/10.1145/3450148.3450186
Hassan, M. A., Shukur, Z., Hasan, M. K., & Al-Khaleefa, A. S. (2020). A review on electronic payments security. Symmetry, 12(8), 1–24. https://doi.org/10.3390/sym12081344
Hernández, E., Öztürk, M., Sittón, I., & Rodríguez, S. (2019). Data protection on fintech platforms. Communications in Computer and Information Science, 1047, 223–233. https://doi.org/10.1007/978-3-030-24299-2_19
Huang, Y., Zhang, L., Li, Z., Qiu, H., Sun, T., & Wang, X. (2020). Fintech Credit Risk Assessment for SMEs: Evidence from China. IMF Working Papers, 20(193). https://doi.org/10.5089/9781513557618.001
Hwang, Y., Park, S., & Shin, N. (2021). Sustainable development of a mobile payment security environment using fintech solutions. Sustainability (Switzerland), 13(15), 1–15. https://doi.org/10.3390/su13158375
Jagtiani, J., & John, K. (2018). Fintech: The Impact on Consumers and Regulatory Responses. Journal of Economics and Business, 100, 1–6. https://doi.org/10.1016/j.jeconbus.2018.11.002
Jinasena, D. N., Spanaki, K., Papadopoulos, T., & Balta, M. E. (2023). Success and Failure Retrospectives of FinTech Projects: A Case Study Approach. Information Systems Frontiers, 25, 259–274. https://doi.org/10.1007/s10796-020-10079-4
Kang, J. (2018). Mobile payment in Fintech environment: trends, security challenges, and services. Human-Centric Computing and Information Sciences, 8(1). https://doi.org/10.1186/s13673-018-0155-4
Khan, H. U., Sohail, M., Nazir, S., Hussain, T., Shah, B., & Ali, F. (2023). Role of authentication factors in Fin-tech mobile transaction security. Journal of Big Data, 10(1). https://doi.org/10.1186/s40537-023-00807-3
Kurniawan, S., Purnama, A., Santoso, B. D. J., Herawaty, L., Listiana, M., & Sari, O. D. P. (2024). Development of Msme S With Financial Technology in the Society Era 5 . 0 : Digital Financial Literacy , Digital Wallet , Digital Accounting. Riau International Conference on Economic Business and Accounting (RICEBA), 1(1), 11–20.
Le, T. T., Mai, H. N., & Phan, D. T. (2021). Fintech Innovations: The Impact of Mobile Banking Apps on Bank Performance in Vietnam. International Journal of Research and Review, 8(4), 391–401. https://doi.org/10.52403/ijrr.20210446
Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35–46. https://doi.org/10.1016/j.bushor.2017.09.003
Lim, S. H., Kim, D. J., Hur, Y., & Park, K. (2019). An Empirical Study of the Impacts of Perceived Security and Knowledge on Continuous Intention to Use Mobile Fintech Payment Services. International Journal of Human-Computer Interaction, 35(10), 886–898. https://doi.org/10.1080/10447318.2018.1507132
Luo, S., Sun, Y., Yang, F., & Zhou, G. (2022). Does fintech innovation promote enterprise transformation? Evidence from China. Technology in Society, 68, 101821. https://doi.org/10.1016/j.techsoc.2021.101821
Moshirian, F., Susantono, B., & Yu, R. (2019). Challenges and Opportunities Associate with Financial Technology in the 21st Century. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3337918
Osburg, T. (2017). Sustainability in a Digital World Needs Trust. In CSR, Sustainability, Ethics and Governance. https://doi.org/10.1007/978-3-319-54603-2_1
Pilishvili, A. S. (2020). The Impact of Digital Technology on the Development Strategy of a Financial Corporation. 119(Etcmtp 2019), 71–74. https://doi.org/10.2991/aebmr.k.200201.015
Rabbani, M. R., Lutfi, A., Ashraf, M. A., Nawaz, N., & Ahmad Watto, W. (2023). Role of artificial intelligence in moderating the innovative financial process of the banking sector: a research based on structural equation modeling. Frontiers in Environmental Science, 10(January), 1–16. https://doi.org/10.3389/fenvs.2022.978691
Ratna, S., Saide, S., Putri, A. M., Indrajit, R. E., & Muwardi, D. (2023). Digital transformation in tourism and hospitality industry : a literature review of blockchain , financial technology , and knowledge management. EuroMed Journal of Business. https://doi.org/https://doi.org/10.1108
Saini, A., & Gard, V. (2023). Transformation for Sustainable Business and Management Practices: Exploring the Spectrum of Industry 5.0. Emerald Publishing Limited, 5(1), 1689–1699. https://revistas.ufrj.br/index.php/rce/article/download/1659/1508%0Ahttp://hipatiapress.com/hpjournals/index.php/qre/article/view/1348%5Cnhttp://www.tandfonline.com/doi/abs/10.1080/09500799708666915%5Cnhttps://mckinseyonsociety.com/downloads/reports/Educati
Saini, A. K. (2023). The Fintech Revolution and Future of Banking and Financial Institutions: A Quantitative Investigation. PsychologyandEducation, 55(1), 428–436. https://doi.org/10.48047/pne.2018.55.1.53
Saxunova, D., & Le Roux, C. L. (2021). Digital Transformation of World Finance. Intech Open, 1(2), 13. http://dx.doi.org/10.1039/C7RA00172J%0Ahttps://www.intechopen.com/books/advanced-biometric-technologies/liveness-detection-in-biometrics%0Ahttp://dx.doi.org/10.1016/j.colsurfa.2011.12.014
Shahbandi, M. (2021). Financial Technologies for Accepting Transactions Using Block Chain Technology and Crypto Currency in Digital Marketing. International Business & Economics Studies, 3(4), 23–39. https://doi.org/10.22158/ibes.v3n4p23
Siek, M., & Sutanto, A. (2019). Impact Analysis of Fintech on Banking Industry. Proceedings of 2019 International Conference on Information Management and Technology, ICIMTech 2019, 1(August), 356–361. https://doi.org/10.1109/ICIMTech.2019.8843778
Srinivasan, K., & Rajarajeswari, S. (2021). Financial Technology in Indian Finance Market. SSRN Electronic Journal, 2(2), 206–211. https://doi.org/10.2139/ssrn.3845245
Supriadi, A., Judijanto, L., Rizani, A., & Amin, A. (2023). Economic Transformation Of Indonesia In The Era Of Digital 5.0: Challenges And Opportunities. International Journal of Economic Literature, 1(November), 122–135.
Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (Fintech): A systematic literature review. Information (Switzerland), 11(12), 1–20. https://doi.org/10.3390/info11120590
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833. https://doi.org/10.1016/j.jfi.2019.100833
Turki, M., Hamdan, A., Cummings, R. T., Sarea, A., Karolak, M., & Anasweh, M. (2020). The regulatory technology “RegTech” and money laundering prevention in Islamic and conventional banking industry. Heliyon, 6(10), e04949. https://doi.org/10.1016/j.heliyon.2020.e04949
Wajuba P.F, L., Seno Aji, T., S.P, P., & Hanifa, N. (2024). Analysis of the Effect of Financial Literacy On the Use of Financial Technology in the Society 5.0 Era. KnE Social Sciences, 2024, 80–90. https://doi.org/10.18502/kss.v9i4.15060
Wang, Y., Xiuping, S., & Zhang, Q. (2021). Can fintech improve the efficiency of commercial banks? —An analysis based on big data. Research in International Business and Finance, 55, 101338. https://doi.org/10.1016/j.ribaf.2020.101338
Wiharto, S. (2024). Digital Economic Business Opportunities in the Era of Society 5 . 0 In Indonesia from an Islamic Perspective. International Journal of Arts and Social Science, 7(1), 263–271.
Yathiraju, N., & Dash, B. (2023). Big Data and Metaverse Revolutionizing the Futuristic Fintech Industry. International Journal of Computer Science & Information Technology, 15(1), 1–13. https://doi.org/10.5121/ijcsit.2023.15101
Zavolokina, L., Dolata, M., & Schwabe, G. (2017). FinTech transformation: How IT-enabled innovations shape the financial sector. Lecture Notes in Business Information Processing, 276, 75–88. https://doi.org/10.1007/978-3-319-52764-2_6
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Juniawan M Putra, Erlina Puspitaloka Mahadewi, Reza Fahlevi, Arnastya Iswara Sanantagraha, Ahmad Sopyan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
