Data science, intelligence and future analysis
Manijeh Ramsheh; mohammad hasan maleki; narges sarlak; monireh falahat bangdeh
Abstract
Fintech and its entrepreneurial opportunities have the ability to play an effective role in the development of the financial industry. Therefore, it is necessary to make a correct and effective policy in this area to identify its probable future. This study is exploratory in terms of purpose and practical ...
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Fintech and its entrepreneurial opportunities have the ability to play an effective role in the development of the financial industry. Therefore, it is necessary to make a correct and effective policy in this area to identify its probable future. This study is exploratory in terms of purpose and practical in terms of orientation. Interviews and questionnaires were used to collect data. 28 drivers were extracted by reviewing the background and interviewing experts. In order to screen the propellants, expert questionnaire and fuzzy Delphi method were used. Then the propellants screened were ranked through the priority assessment questionnaire and the developed COPRAS technique. The two drivers of the development of smart contracts in the financial industry and the tendency of financial institutions towards open innovation had the highest priority and were used to write research scenarios. Based on these two drivers, 4 scenarios of the era of pristine opportunities, the era of conservative managers, the era of dilapidated infrastructure and the ice age were developed. Then, using the MABAC technique, the scenario of the age of dilapidated infrastructures was selected as the possible scenario of the research. Research proposals were proposed based on priority drivers and possible scenarios. Government support, providing sufficient funds in order to create the necessary infrastructure for the development of smart contracts by banks or establishing a cooperative relationship between banks and financial institutions, fair legislation, development of regtechs, creating compatibility between current systems with new technologies were the most important practical proposals of the study.IntroductionThe financial industry includes a set of institutions and organizations that allocate credit and equip resources. The development of economic activities requires investment, and investment also requires the provision of financial resources, which is an important task for the financial industry. Therefore, the development of the financial industry is the driver of economic development. Therefore, the increasing need for new technologies to improve performance and increase efficiency in the financial industry is strongly felt. One of the working models affecting the financial industry is fintech (Qaemi & et al., 2017). Fintech is a field that uses innovative technologies to provide all services of the financial industry with greater speed and transparency and lower cost while maintaining security and quality (Zavolokina et al., 2016). According to reports, global fintech investments have grown from $9 billion in 2010 to $25 billion in 2016. Fintech's market share this year was not even 1%, but it is expected to increase to 35% by 2023 (Koshesh Kordsholi & et al., 2021). In Iran, one of the priorities of the sixth development plan is the issue of financing and expansion of financial instruments, which the financial and banking actors have encouraged to support fintech startups in order to realize innovation and expand their services (Qaemi & et al., 2017). But the fact is that fintech in Iran is behind the rest of the world. In iran, due to several problems, including legal challenges, technology problems, financing, etc., fintech businesses are not growing and there are many entrepreneurial opportunities in this field that have not been addressed. Thus, the current research seeks to answer the following questions:What are the key drivers affecting the future of fintech entrepreneurial opportunities in Iran?What is the degree of priority of the key drivers affecting the future of fintech entrepreneurial opportunities in Iran?What are the plausible future scenarios of fintech entrepreneurial opportunities in Iran?What is the possible future scenario of fintech entrepreneurial opportunities in Iran?Literature ReviewFintech can be considered as any innovative idea that improves financial services processes by providing technological solutions according to different business situations) Suryono & et al., 2020). Fintech startups are looking for new approaches to business models, improving customer experience and new approaches that lead to service changes and are trying to enter financial systems and challenge traditional financial institutions (Gomber et al., 2018). If the context and the possibility of growth and application of entrepreneurial opportunities hidden in the field of fintech, which are in their maturity stage, are provided; It will follow the increasing economic progress of the countries.Uncertainty about the future of organizations prompts managers to look for new tools and methods to determine future situations and create the future. Future research is a systematic way to look at the long-term future in any field and draw it, the main purpose of which is to know the new structures, mechanisms, opportunities and processes and to determine the sectors that have more efficiency. Understanding and applying futurist theories and methods enables individuals and groups to more usefully anticipate the future and shape it to a greater extent based on their preferences (Dator et al., 2019).MethodologyIn this research, four quantitative methods, fuzzy Delphi, entropy, developed COPRAS and MABAC technique were used. Also, to develop believable research scenarios, the qualitative method of the consultation workshop was used. The theoretical community of this research is 10 members of the academic staff of the university, fintech experts, managers of fintech businesses, experts of fintech associations and senior experts of the central bank in the regulatory field. The sampling method of the present study is judgmental and based on the expertise of individuals in the field of fintech. The steps of the current research are: 1) background review and interviews with experts to identify drivers affecting the future of fintech entrepreneurial opportunities in Iran; 2) Screening research drivers with the fuzzy Delphi technique; 3) prioritizing the final drives with the developed COPRAS method; 4) Compilation of plausible future scenarios of Iran's fintech entrepreneurship opportunities using a consultation workshop (participation of 7 experts); 5) Selecting a possible research scenario using the MABAC technique.ResultsAt first, 28 drivers were extracted through reviewing financial technology-oriented backgrounds and interviewing experts. Then, with the application of expert questionnaire and fuzzy Delphi technique, 15 drivers were removed from the calculations and 13 drivers were selected to extract the effect model of drivers. Based on the output of COPRAS technique, the drivers for the development of smart contracts in the financial industry are the tendency of financial institutions towards open innovation, the variety of financing methods and the attitude of the regulator towards fintechs, respectively, they have the most importance in terms of influencing the future of fintech entrepreneurial opportunities. The two drivers of smart contract development and the trend of financial institutions towards open innovation were used to map research scenarios. Considering that for each driver, two opposite situations can be set, four scenarios were developed, which are: the era of pristine opportunities, the era of conservative managers, the era of dilapidated infrastructure, and the ice age. In the following, MABAC technique was used to select the possible research scenario. The ranking of the research scenarios in terms of 3 selected indicators is such that the scenario of the age of dilapidated infrastructures is the most likely research scenario. The ice age scenarios, the conservative managers era scenario, and the pristine opportunities era scenario were ranked next.ConclusionThe trend of financial institutions towards open innovation in the scenario of the age of worn out infrastructure shows that the development of digital technologies has gradually created interest in the managers of this industry and has improved their attitude towards themselves. But the lack of development of smart contracts in the financial industry in this future has several reasons. Among the reasons for this lack of development, we can mention the lack of necessary infrastructure for the development of information technology, which is mainly due to the lack of support from the government and the relevant ministry and their lack of attention to the importance of learning information technology. In addition, banks should also provide the necessary funds in order to create the necessary infrastructure for the development of smart contracts, and if there is a heavy cost, establish a cooperative relationship between the banks and financial institutions of the country along with government support to reduce the cost and implement it in a tangible way. Another important discussion in this field is that fair regulation is necessary for the spread of smart contracts. Strengthening regtechs through science and technology parks and growth centers can also help. Another important reason for not developing smart contracts is the incompatibility of current systems with new technologies, which prompts managers of financial institutions to change the system and make them compatible. Lack of sufficient training for financial industry activists can also be another factor for this lack of development.Keywords: Future Study, Driver, Scenario Planning, Entrepreneurial Opportunities, Fintech
Management approaches in the field of smart
alireza rezanezhad kookhdan; peyman ghafari ashtiani; Mohammad Hasan Maleki; Majid Zanjirdar
Abstract
Traditional banking needs new fintech innovations and technologies to improve its processes and services. Various factors affect the cooperation of banks and fintechs, some of which are related to banks and others to the banking environment.The purpose of this study is to identify and analyze the strategic ...
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Traditional banking needs new fintech innovations and technologies to improve its processes and services. Various factors affect the cooperation of banks and fintechs, some of which are related to banks and others to the banking environment.The purpose of this study is to identify and analyze the strategic factors affecting the cooperation of banks and fintechs in Bank.The present study is applied in terms of orientation and has a quantitative nature in terms of methodology. Two methods of fuzzy Delphi and fuzzy dematel were used to analyze the data. The fuzzy Delphi method was used to screen the strategic factors of the research and the fuzzy dematel technique was used to identify the most effective factors. Two tools of interview and questionnaire were used to collect data. The research questionnaires were:Fuzzy Screening Questionnaire and effect analysis Questionnaire. Initially, through literature review and interviews with experts, 28 strategic factors were identified.These factors were screened by fuzzy Delphi technique.10 internal factors and eight external factors had a defuzzy number greater than 0.7 and were selected for analysis with fuzzy dematel.Analysis of internal factors with fuzzy dematel showed that the factors of the nature of the needs of the bank's customers,the future thinking of the bank's senior managers, the culture of risk-taking between managers and senior experts and the agility of the bank's structure and processes have the most net effect In relation to external factors, the factors of intensity of competition between banks, effective factors on the cooperation between banks and fintechs. IntroductionThe relationship with banks is not only beneficial for them but also brings threats and challenges. So, banks have resorted to using different strategies to deal with the possible threats of FinTechs, the most important of which is the formation of strategic partnerships. A strategic partnership is a cooperative arrangement between organizations, contributing to the competitive advantage of the parties. Some advantages of the strategic partnership between the banking system and FinTech are efficiency in speed, agility, cost, and attracting new customers. Some of the challenges faced by traditional banks are having complex structures, high level of formality, increasing operating costs, providing expensive and time-consuming banking services, lack of service innovation, and failure to meet customer expectations (Soltani and Tahmasebi Aghbolaghi, 2020). Through strategic partnerships with FinTechs, banks can overcome many of their inefficiencies.Most of the studies on banks and FinTechs have investigated the effects of financial innovations on the operational variables of banks, such as costs and performance. The challenges and opportunities of bank and FinTech partnerships have been evaluated by some studies. Moreover, some studies have extracted the patterns of bank and FinTech partnerships from the point of view of bank and fintech managers. Factors affecting the partnership between banks and FinTechs have been examined by a few studies. They obtained limited factors from the perspective of a few stakeholders. The strategic partnership between banks and FinTechs is affected by various factors, some of which are intra-organizational and some are extra-organizational. Accordingly, the study questions are as follows:What are the strategic factors affecting the partnership between banks and FinTechs?Which strategic factors have the most impact on the partnership between banks and FinTechs? Literature ReviewBy providing customer-oriented services, using Internet-based technologies, and facilitating the use of financial services, FinTechs have competed with traditional financial services (Suryono et al., 2021). FiTtechs offer more innovative, faster, and cheaper services than banks. On the other hand, banks have slower structures and processes than FinTechs. Many traditional institutions, such as banks, do not have a positive view of Fintechs (Romānova & Kudinska, 2016; Temelkov, 2018). However, the trend towards bank-FinTech partnerships has increased significantly recently (Buchak et al., 2018; Iman, 2019; Ky et al., 2019; Cole et al., 2019; Ya, 2020; Cheng & Qu, 2020; Saphyra & Zahra, 2021; Hoang et al., 2021). Banks and their managers have two important approaches to FinTechs. The first approach does not have a positive view of FinTechs, arguing that the risk of partnering with and investing in them is very high and that partnering with them can lead to various threats such as security risks. The second approach suggests that partnering with them, especially in research and development, can lead to the agility of banking structures and processes. Partnerships between banks and FinTechs can have various reasons, the main of which are reducing costs, increasing profitability, growing revenues, developing market share, reducing each other's risks, and providing optimal and unique services (Tahmasebi Aghbolaghi et al., 2021). Many studies have investigated the effects of FinTechs on banking indicators. Th These studies, which form an important part of the literature, aim to explain the effects and functions of FinTechs and their innovations in the banking sector. This relationship is accompanied by challenges such as regulatory (Buchak et al., 2018; Omarova, 2020), customer management (Suryono et al., 2020), security (Lee & Shin, 2018), integration and partnership (Phan et al., 2020), fee system (Koshesh Kordsholi et al., 2019), receiving international licenses (Payandeh et al., 2014; Koshesh Kordsholi et al., 2019), authentication and validation systems (Suryono et al., 2020), wallets (Agarwal & Zhang, 2020), and low financial literacy of users (Suryono et al., 2020). One of the most important challenges faced by FinTechs is the lack of effective and supportive laws. The laws enacted are mainly for the benefit of traditional institutions. They are mostly ambiguous and unpredictable. Banks and large financial institutions are reluctant to partner with FinTechs due to the ambiguity of laws and regulations. Materials and MethodsThis study was conducted to provide a framework for identifying and analyzing strategic factors affecting the partnership between banks and FinTechs. For this purpose, fuzzy Delphi and fuzzy DEMATEL techniques were used. These are quantitative techniques and use quantitative data for analysis. The fuzzy Delphi technique was used to screen the strategic factors of partnership between banks and FinTechs and the fuzzy DEMATEL technique was used to analyze the effectiveness of these factors. Since these techniques are quantitative, the study has multiple quantitative methodologies. Moreover, it is an applied study because of the benefit of its findings for the banking industry and FinTechs.The study was conducted in three steps. In the first step, the factors affecting the partnership between banks and FinTechs were extracted through a literature review and interviews with FinTech experts. In the next step, these factors were screened using the fuzzy Delphi technique. In the third step, the effectiveness of the screened factors was determined through the fuzzy DEMATEL technique. ConclusionThis study was conducted to identify and analyze the strategic factors affecting the partnership between banks and FinTechs. 28 factors were extracted through a literature review and expert interviews. 14 of the extracted factors were intra-organizational and the rest were extra-organizational. They were screened using the fuzzy Delphi technique, and 10 factors were eliminated. The intra-organizational and extra-organizational strategic factors were then analyzed separately through the fuzzy DEMATEL technique. Among the intra-organizational strategic factors, the nature of the needs of the bank's customers, the forward-thinking of the bank's senior managers, the culture of risk-taking among managers and senior experts, and the agility of the bank's structure and processes were the most effective, respectively. Among the extra-organizational strategic factors, the intensity of competition between banks, the fee system, the performance of the regulator in legislation, and the risks and security considerations concerning FinTechs, had a greater effect on the partnership between banks and FinTechs, respectively.Keywords: Financial Technology, FinTech, Banking Industry, Banking FinTechs, Fuzzy Approach.Traditional banking needs new fintech innovations and technologies to improve its processes and services. Various factors affect the cooperation of banks and fintechs, some of which are related to banks and others to the banking environment.The purpose of this study is to identify and analyze the strategic factors affecting the cooperation of banks and fintechs in Bank.The present study is applied in terms of orientation and has a quantitative nature in terms of methodology. Two methods of fuzzy Delphi and fuzzy dematel were used to analyze the data. The fuzzy Delphi method was used to screen the strategic factors of the research and the fuzzy dematel technique was used to identify the most effective factors. Two tools of interview and questionnaire were used to collect data. The research questionnaires were:Fuzzy Screening Questionnaire and effect analysis Questionnaire. Initially, through literature review and interviews with experts, 28 strategic factors were identified.These factors were screened by fuzzy Delphi technique.10 internal factors and eight external factors had a defuzzy number greater than 0.7 and were selected for analysis with fuzzy dematel.Analysis of internal factors with fuzzy dematel showed that the factors of the nature of the needs of the bank's customers,the future thinking of the bank's senior managers, the culture of risk-taking between managers and senior experts and the agility of the bank's structure and processes have the most net effect In relation to external factors, the factors of intensity of competition between banks, effective factors on the cooperation between banks and fintechs. IntroductionThe relationship with banks is not only beneficial for them but also brings threats and challenges. So, banks have resorted to using different strategies to deal with the possible threats of FinTechs, the most important of which is the formation of strategic partnerships. A strategic partnership is a cooperative arrangement between organizations, contributing to the competitive advantage of the parties. Some advantages of the strategic partnership between the banking system and FinTech are efficiency in speed, agility, cost, and attracting new customers. Some of the challenges faced by traditional banks are having complex structures, high level of formality, increasing operating costs, providing expensive and time-consuming banking services, lack of service innovation, and failure to meet customer expectations (Soltani and Tahmasebi Aghbolaghi, 2020). Through strategic partnerships with FinTechs, banks can overcome many of their inefficiencies.Most of the studies on banks and FinTechs have investigated the effects of financial innovations on the operational variables of banks, such as costs and performance. The challenges and opportunities of bank and FinTech partnerships have been evaluated by some studies. Moreover, some studies have extracted the patterns of bank and FinTech partnerships from the point of view of bank and fintech managers. Factors affecting the partnership between banks and FinTechs have been examined by a few studies. They obtained limited factors from the perspective of a few stakeholders. The strategic partnership between banks and FinTechs is affected by various factors, some of which are intra-organizational and some are extra-organizational. Accordingly, the study questions are as follows:What are the strategic factors affecting the partnership between banks and FinTechs?Which strategic factors have the most impact on the partnership between banks and FinTechs? Literature ReviewBy providing customer-oriented services, using Internet-based technologies, and facilitating the use of financial services, FinTechs have competed with traditional financial services (Suryono et al., 2021). FiTtechs offer more innovative, faster, and cheaper services than banks. On the other hand, banks have slower structures and processes than FinTechs. Many traditional institutions, such as banks, do not have a positive view of Fintechs (Romānova & Kudinska, 2016; Temelkov, 2018). However, the trend towards bank-FinTech partnerships has increased significantly recently (Buchak et al., 2018; Iman, 2019; Ky et al., 2019; Cole et al., 2019; Ya, 2020; Cheng & Qu, 2020; Saphyra & Zahra, 2021; Hoang et al., 2021). Banks and their managers have two important approaches to FinTechs. The first approach does not have a positive view of FinTechs, arguing that the risk of partnering with and investing in them is very high and that partnering with them can lead to various threats such as security risks. The second approach suggests that partnering with them, especially in research and development, can lead to the agility of banking structures and processes. Partnerships between banks and FinTechs can have various reasons, the main of which are reducing costs, increasing profitability, growing revenues, developing market share, reducing each other's risks, and providing optimal and unique services (Tahmasebi Aghbolaghi et al., 2021). Many studies have investigated the effects of FinTechs on banking indicators. Th These studies, which form an important part of the literature, aim to explain the effects and functions of FinTechs and their innovations in the banking sector. This relationship is accompanied by challenges such as regulatory (Buchak et al., 2018; Omarova, 2020), customer management (Suryono et al., 2020), security (Lee & Shin, 2018), integration and partnership (Phan et al., 2020), fee system (Koshesh Kordsholi et al., 2019), receiving international licenses (Payandeh et al., 2014; Koshesh Kordsholi et al., 2019), authentication and validation systems (Suryono et al., 2020), wallets (Agarwal & Zhang, 2020), and low financial literacy of users (Suryono et al., 2020). One of the most important challenges faced by FinTechs is the lack of effective and supportive laws. The laws enacted are mainly for the benefit of traditional institutions. They are mostly ambiguous and unpredictable. Banks and large financial institutions are reluctant to partner with FinTechs due to the ambiguity of laws and regulations. Materials and MethodsThis study was conducted to provide a framework for identifying and analyzing strategic factors affecting the partnership between banks and FinTechs. For this purpose, fuzzy Delphi and fuzzy DEMATEL techniques were used. These are quantitative techniques and use quantitative data for analysis. The fuzzy Delphi technique was used to screen the strategic factors of partnership between banks and FinTechs and the fuzzy DEMATEL technique was used to analyze the effectiveness of these factors. Since these techniques are quantitative, the study has multiple quantitative methodologies. Moreover, it is an applied study because of the benefit of its findings for the banking industry and FinTechs.The study was conducted in three steps. In the first step, the factors affecting the partnership between banks and FinTechs were extracted through a literature review and interviews with FinTech experts. In the next step, these factors were screened using the fuzzy Delphi technique. In the third step, the effectiveness of the screened factors was determined through the fuzzy DEMATEL technique. ConclusionThis study was conducted to identify and analyze the strategic factors affecting the partnership between banks and FinTechs. 28 factors were extracted through a literature review and expert interviews. 14 of the extracted factors were intra-organizational and the rest were extra-organizational. They were screened using the fuzzy Delphi technique, and 10 factors were eliminated. The intra-organizational and extra-organizational strategic factors were then analyzed separately through the fuzzy DEMATEL technique. Among the intra-organizational strategic factors, the nature of the needs of the bank's customers, the forward-thinking of the bank's senior managers, the culture of risk-taking among managers and senior experts, and the agility of the bank's structure and processes were the most effective, respectively. Among the extra-organizational strategic factors, the intensity of competition between banks, the fee system, the performance of the regulator in legislation, and the risks and security considerations concerning FinTechs, had a greater effect on the partnership between banks and FinTechs, respectively.Keywords: Financial Technology, FinTech, Banking Industry, Banking FinTechs, Fuzzy Approach.
