Professional Documents
Culture Documents
Chapter 1
1.1 Introduction
1
https://www.pwc.com/us/en/financial-services/fintech.html
2
http://www.ryerson.ca/career/specialevents/fintech/
3
https://newsroom.accenture.com/news/global-fintech-investment-growth-continues-in-2016-driven-by-
europe-and-asia-accenture-study-finds.htm
companies in Indonesia are, Crowdo, Investree (Lending) Bareksa, DuitPintar.com
(Aggregator), Go-Pay, Doku (Payment), and Kitabisa.com, Ethis (Crowdfunding).
Even though with the past pace of the digitalization with 132.7 million internet
users Indonesia, FinTech already have a strong infrastructure to grow in Indonesia, it is not
simultaneously in line with its awareness and adoption. A survey conducted by DailySocial
with majority of respondents of millennial generation (43.34%) stated that 71.66% of the
respondent think that FinTech is an unknown word and only 18.46% respondents said
they already used a FinTech service. And for those who knows the term, its meaning is
ambiguous, could be because of the novelty and tremendous rapid rise of the FinTech
industry. We argue that exploring the terms FinTech in millennial generation will aid the
practitioners of FinTech in identifying the opportunities and challenges related to the
phenomenon and ultimately be able to create the effective marketing strategy.
2.1 Theory
2.1.1 Financial Technology
The growth of technology adoption has thrived globally and influenced Indonesia
as a developing country to see this as a job opportunity. E-commerce has grown very
rapidly in Indonesia and now the rise of Fintech (Financial Technology) is following its
succeed.
Ranging from new digital payment systems and digital or electronic currencies to
online investment/finance platforms and data analytics, these developments, collectively
called FinTech, are already having an impact on traditional financial markets and services
(Brummer & Gorfine 2014). Financial Technologies (FinTechs) are a global phenomenon,
born at the intersection between financial firms and technology providers, attempting to
leverage on digital technology and advanced analytics to unbundle financial services and
harness economies of scale by targeting long-tail consumers (Sironi, 2016).
Like other digital services, FinTechs have different classifications. The financial
services offered by FinTechs depend on the specific segment focus (payment, trading,
mortgage lending and personal finance management) (Caria, 2017, pp1).
Furthermore, Brummer & Gorfie stated that, for current purposes, FinTechs are
including:
1. Digital and electronic currencies: there are more than 200 digital currencies
(independent, non-fiat currencies) in existence, 12 of which have market
capitalizations of greater than $5million. From bitcoin to litecoin, digital currencies
are driving financial disintermediation and offering new peer-to-peer channels for
routing payments, even for international remittances.
2. Digital payment systems: Along with the peer-to-peer models noted above, digital
payment systems continue to evolve and transform the way consumers and
businesses interact.
3. Online finance and investment platforms: Online finance and investment platforms
are increasingly challenging the providers of traditional financial services with
efficient, low-cost, and user-friendly products and platforms. Companies such as
Wealthfront, Betterment, and Acorns, for example, are creating automated financial
advisory platforms targeting millennials in a new approach to wealth management.
4. Big data analytics: Massive data aggregation and analytics are increasingly
allowing financial platforms and service providers to offer innovative and low-cost
products and services. Proprietary credit risk models, for example, have
dramatically reduced the amount of time individuals and small businesses have to
wait to access credit, and have expanded the range of potential peer-to-peer
investment opportunities, including through Lending Club and Prosper.
2.1.2.2 Financial Technology Product
2.1.3 Millennial
Like Generation X, millennials grew up with computers; they also experienced the
rapid adoption of the Internet, cell phone, and other mobile devices. They are a highly
networked, connected generation and tend to be completely immersed in technology
(Sandeen, 2008) [pdf slides].
2.1.4 Perception
3.2 Sources
Our target is millennial or Gen-X in Indonesia that have used or have not used
FinTech products. Researcher need to gain information from millennial perception of
FinTech information.
3.3 Methodology
Because the perception is complex and need deep understanding, the researchers
feel that qualitative method is a powerful tool to explore those complexities (Clifton and
Handy, 2001), since they allow a grasp of the individuals own explanations of behavior
and attitudes. Qualitative method also produces an in-depth understanding (Cooper and
Schindler, 2008).
The primary means of the data collection is the Focus Group Discussion. The term
focus group was first coined by R. K. Merton in his 1056 book, The Focused Interview.
The focus group is a panel of people (typically made up to 6 to 10 participants), led by a
trained moderator, who meet for 90 minutes to two hours. The facilitator or moderator uses
group dynamics principles to focus or guide the group in an exchange of ideas, feelings,
and experiences on a specific topic (Cooper and Schindler, 2008).
In order to gain more background information of the participants, they will be asked
to fill out a questionnaire before the start of the session comprises of their personal data,
bankability, and financial behavior.
After coding and categorization, we will find for the patterns that repetitively occur
within the transcripts. A technique used to increase confidence in the results was the use
of credibility checks (Willig, 2001) within the research team, to see whether the analysis
and interpretation of the data was credible.
List of References/Bibliography
Accenture. 2016. Global Fintech Investment Growth Continues in 2016 Driven by Europe
and Asia, Accenture Study Finds. https://newsroom.accenture.com/news/global-
fintech-investment-growth-continues-in-2016-driven-by-europe-and-asia-
accenture-study-finds.htm (23 Oktober 2017)
Bougie, Roger and Sekaran, Uma. 2009. Research Methods for Business: A Skill-Bulding
Approach. United Kingdom: John Wiley & Sons Ltd.
Brummer, C., Gorfine, D., 2014. FinTech: Building a 21st-Century Regulators Toolkit,
October 2014 (pp. 2-4). Center for Financial Markets: Milken Institute.
Caria, P., 2017. FinTech: an explorative study into the characteristic of their business
model. Working Paper.
Carlin, B., Olafsson, A., Pagel, M., 2017. FinTech Adoption Across Generations: financial
fitness in the information age. NBER Working Paper Series.
Chen, David Lee Kuo and Ernie GS Teo, 2015. Emergence of FinTech and the LASIC
principles, E&Y Journal of Financial Perspectives: FinTech. [online] Available at:
<https://www.gfsi.ey.com/the-journal-of-financial-perspectives.php> [Accessed
22 October 2017].
Clifton, K.J., Handy, S.L., 2001. Qualitative methods in travel behavior research. Paper
presented at the International Conference on Transport Survey Quality and
Innovation, Kruger National Park, South Africa.
Cooper, Daniel R. and Schindler, Pamela S., 2008. Business Research Methods. New York,
NY: The McGraw-Hill Companies, Inc.
DailySocial. 2016. Indonesia Fintech Report 2016. Jakarta: DailySocial.
Fazio. R., Zana. M., Cooper, J., 1976. Dissonance and Self-perception: An Integrative View
of Each Theorys Proper Domain of Application.
Miles, Jeremy and Gilbert, Paul. 2005. A Handbook of Research Methods for Clinical and
Health Psychology. Tucson, AZ: Oxford University Press.
Raneri, Mike. 2017. FinTech: Operating at The Intersection Between Financial Services
and Emerging Technology. https://www.pwc.com/us/en/financial-
services/fintech.html. (Accessed on: 23 October 2017)
Rennie, D.L., Phillips, J.R., & Quartaro, G.K, 1988. Grounded theory: A promising
approach to conceptualization in psychology? Canadian Psychology, 29, 139-150.
Sandeen, C., 2008. Boomers, Xers, and Millenials: Who are They and What Do They Really
Want from Continuing Higher Education? Los Angeles: University of California.
Sironi, P, 2016. FinTech Innovation. From Robo-Advisor to Goal Based Investing and
Gamification. UK: John Wiley & Sons, Ltd.
Willig, Carla, 2001. Introducing qualitative research in psychology. England: Open
University Press.
Zavolokina. L., Dolata. M., Schwabe. G., 2016. The FinTech phenomenon: antecedents of
Financial innovation perceived by the popular press. Zurich: University of Zurich.
Chen, David Lee Kuo and Ernie GS Teo, 2015. Emergence of FinTech and the LASIC
principles, E&Y Journal of Financial Perspectives: FinTech. [online] Available at:
<https://www.gfsi.ey.com/the-journal-of-financial-perspectives.php> [Accessed 22 October
2017].
Accenture. 2016. Global Fintech Investment Growth Continues in 2016 Driven by Europe and
Asia, Accenture Study Finds. https://newsroom.accenture.com/news/global-fintech-investment-
growth-continues-in-2016-driven-by-europe-and-asia-accenture-study-finds.htm (23 Oktober
2017)
DailySocial. 2016. Indonesia Fintech Report 2016. Jakarta: DailySocial.
Raneri, Mike. 2017. FinTech: Operating at The Intersection Between Financial Services and
Emerging Technology. https://www.pwc.com/us/en/financial-services/fintech.html. (23 October
2017)