Fintech: A Literature Review

The development of the startup business that continues to increase every year makes startups competing to introduce their products to the public. One that is currently increasing rapidly is Fintech (Financial Technology). The emergence of Fintech in Indonesia aims to facilitate the public in conducting financial transactions online, increase financial literacy, and realize financial inclusion. This mapping study aims to identify previous research on fintech and suggest future research. This study uses a systematic literature review (SLR), which is to collect and assess available research related to the subject of interest, so as to achieve an impartial outcome that can be audited and repeated. This study uses 22 articles identified from electronic databases / sources. Fintech is expected to strike the right balance between providing consumer protection and maintaining financial stability while simultaneously providing sufficient incentives for Fintech's innovation. It is able to build social construction, previous studies have attracted regulators and lawmakers, entrepreneurs, and investors who participated in technology applied in the area of innovative financial services.


Introduction
Financial Technology is recognized as one of the most important innovations in the financial industry and is growing rapidly (Lee and Shin, 2018). This was driven by reduced trust in financial service providers which led to an increase in market appetite for alternative financing (Leong et al, 2017). Much of fintech is driven by a variety of technological advancements: the availability and affordability of infrastructure (for example, the Internet, cellular technology, sensors, increasingly mature technology applications (eg platforms, Big Data analysis), and business operations (e.g. sharing economy), etc (Leong et al, 2017). Lee & Shin (2018) explained that there are six developing fintech business models, namely payment, wealth management, crowd funding, Peer to Peer (P2P) lending, capital markets, and insurance services.
The words FinTech or Internet of Things (IoT) have both gained such broad recognition as representatives of new technology FinTech is leading to several new products and services, including accounting systems and others intended to provide improved and more convenient versions of existing financial mechanisms (Nakashima, 2018). In addition, IoT has also attracted great attentionbecause of the broad range of businesses and industries that this technology is related to or has impacted, and even people not connectedwith the industry are watching trends in this new field, thereforeit could be saidthat currently, there"s not one industry unrelated to Internet of Things (Nakashima, 2018).
The growth of investment in fintech has been phenomenal (Lee and Shin, 2018). According to Accenture (2016a), global investment in fintech ventures in the first quarter of 2016 reached $5.3 billion, a 67% increase over the same period the previous year, and the percentage of investments going to fintech companies in Europe and the Asia-Pacific nearly doubled to 62%. Much of this increase in investment has come from traditional financial institutions (Lee and Shin, 2018). Traditional financial institutions invest in external fintech startups in the form of collaborative fintech ventures, as well as their internal fintech projects in hopes of leapfrogging fintech innovation and gaining a competitive advantage (Lee and Shin, 2018).
A continuous growth of the investment has been powering the development of fintech to advance on technologies breakthroughs in multiple areas, such as mobile networks (Wen et al, 2013;Zhang et al 2013;Zhang andSoong, 2004, Gai et al,2016), big data (Yin and Gai, 2015), trust management (Zhang, 2016;Abawajy, 2016), mobile embedded systems (Zhang et al, 2011;Gai et al, 2017), cloud computing (Castiglione et al, 2015;Gai et al, 2018), image processing (Castiglione et al, 2007), and data analytic techniques (Qiu et al, 2015;Li and Kim, 2015). This mapping study aims to identify previous research on fintech and suggests future research on it. Previous researches suggest some variables to study, such as: study of advance the findings by showing comprehensive descriptions of all the interactions involved. Future studies also can extend the findings beyond China"s case by comparing the fintech industries of different countries; using the Data-Driven FinTech Framework (DF2) to facilitate and standardize future FinTech researches and technical deployments; the Fintech rules should reach the right balance between providing consumer protection and maintaining financial stability while simultaneously providing sufficient incentives for Fintech innovations; as a perspective on a social construct, previous studies appeal to regulators and law makers, entrepreneurs, and investors who participate in technology applied within the innovative financial services domain. It is also of interest to bankers who might consider FinTech and strategic partnerships as a prospective, future strategic direction; the taxonomy"s multidimensionality lays the foundations for analyzing interdependencies among the dimensions and characteristics, that are interesting for policy makers; study about P2P platforms to start using leverage in the future; future research on the mechanisms behind the progress of the disruptive innovation ecosystem; and rigorous research on economic sustainability and cost-effectiveness of newer FinTech models. This study uses Scopus and sciencedirect"s database.

Research Method
The basic objective of a Systematic Literature Review (SLR) is to gather and assess the available research related to the subject of interest, thus achieving impartial results that can be audited and repeated (Milian et al, 2019). An SLR is a rigirous methodological review of research results, whose objective is not just to group existing works on this subject; it is also meant to help develop evidence-based guidance for professionals involved in the area of study (Kitchenham, 2004). To demonstrate that the work is new to the existing body of knowledge, the results of an SLR should identify the state of the art with respect to the research question (Levy and Ellis, 2006).

Results
This study uses 22 articles that were indentified from electronic databases/sources. We find that fintech correlated with government intervention; data-oriented techniques, facility and equipment development, application designs, service models placement, and security and privacy protections; big data and firm size; policy direction; Internet of Things; agriculture"s sector; bankng; innovations; artificial intelligence; risk; regulations; user acceptance; and stock returns. an asset might help us to better understand the valuations of neweconomy firms and better measure aggregate economic activity Wonglimpiyarat (2018) Policy direction The crowd funding system in Thailand is in an initial stage of development at present and thus this funding system needs various government supports to assist SME, the crowd funding mechanisms need to co-evolve with the FinTech industry, the Thai government need to work together in order to improve policy coherence in building a start-up eco-system for entrepreneurial development Nakashima (2018) IoT (Internet of Things) For companies of every size, an essential business activity in modern society and does not mean simply using technology, but achieving social creation through the use of technology Anshari et al (2019) Agriculture"s digital marketplace AgroPay provides necessary functions for investors to conduct transactions efficiently anytime-anywhere. Investors through crowdfunding can select from the wide-range agriculture products through their smartphone to invest Jagtiani and Lemieux (2018)

Shaping financial and banking relationships
LendingClub"s consumer lending activities have penetrated areas thatmay be underserved by traditional banks, such as in highly concentrated markets and areas that have fewer bank branches per capita. The portion of LendingClub loans increases in areas where the local economy is not performing well Lee and Shin (2018) Innovation There are some illustrations of the use of real options for fintech investment decisions Jagtiani and Kose (2018) Artificial  (2016)

Conclusion
Previous researches shown the variables that correlated with fintechs. They also suggest future researches, such as: study of advance the findings by showing comprehensive descriptions of all the interactions involved. Future studies also can extend the findings beyond China"s case by comparing the fintech industries of different countries; using the Data-Driven FinTech Framework (DF2) to facilitate and standardize future FinTech researches and technical deployments; the Fintech rules should reach the right balance between providing consumer protection and maintaining financial stability while simultaneously providing sufficient incentives for Fintech innovations; as a perspective on a social construct, previous studies appeal to regulators and law makers, entrepreneurs, and investors who participate in technology applied within the innovative financial services domain. It is also of interest to bankers who might consider FinTech and strategic partnerships as a prospective, future strategic direction; the taxonomy"s multidimensionality lays the foundations for analyzing interdependencies among the dimensions and characteristics, that are interesting for policy makers; study about P2P platforms to start using leverage in the future; future research on the mechanisms behind the progress of the disruptive innovation ecosystem; and rigorous research on economic sustainability and costeffectiveness of newer FinTech models.