Financial Technology as an Innovation Strategy for Digital Payment Services in the Millenial Generation

Abstract

The aim of this paper is to develop a framework for assessing the Financial Technology landscape, which has been implemented by a number of companies in Indonesia. Financial stability is the basic foundation of solid, sustainable and inclusive growth of financial companies in the country. In this regard, this paper responds to the 4.0 technology prioritization of digitization issues. The emergence of technology-enabled innovation in financial services is the result of a confluence of drivers. Customer preferences, particularly amongst millennial, and ―digital natives with regard to convenience, speed and cost of financial services are increasingly demanded. This research was conducted for 7 months, involving millennial respondents who had previously done FinTech transactions in the area of Jakarta, Depok and Tangerang. Quantitative data analysis was employed to analyze the research data. The findings indicate that, first, FinTech has been adopted in some rapidly growing emerging markets and frontier economies but still in small players. Second, evolving technologies, particularly those related to the internet, big data, mobile technology, and computing power, have become the drivers of innovations in financial services. In conclusion, there are a number of business opportunities which have opened for new entrants in the financial sectors by using the IT collaboration systems