IDEAS home Printed from https://ideas.repec.org/a/uii/jrambr/v4y2024i2p324-339id35151.html
   My bibliography  Save this article

Navigating regulatory sandbox initiatives for innovation diffusion in fintech lending: A systematic review

Author

Listed:
  • Rahardito Dio Prastowo
  • Dana Indra Sensuse
  • Sofian Lusa
  • Prasetyo Adi Wibowo Putro

Abstract

The development of digital technology has succeeded in providing alternative financial services with the FinTech lending industry. This industry allows direct connection between lenders and borrowers through a digital platform. FinTech lending has unique characteristics that provide advantages over traditional financial institution services, such as utilizing soft information for credit risk assessment, providing unsecured loans, and using third-party platforms to secure transactions. Indonesian government continues to update the regulatory framework for the FinTech industry including the implementation of regulatory sandbox. This effort aims to ensure that the development of digital financial innovation is beneficial and safe for society. Various jurisdictions have also implemented similar initiatives to address issues in FinTech lending, allowing companies to test their operations under regulatory supervision. This research conducted a systematic review using the PRISMA 2020 methodology to understand issues related to FinTech lending and the initiatives provided by regulatory sandboxes to address the issues. The study identified 10 issues in the FinTech lending sector using the Technology, Organization, and Environment (TOE) framework and 11 initiatives from implementing regulatory sandboxes using the Diffusion of Innovation (DOI) framework. Finally, this study highlights the potential for further research regarding the issues of algorithmic bias and monopolistic practices, as well as the exploration of how regulatory sandboxes can mitigate these issues.

Suggested Citation

  • Rahardito Dio Prastowo & Dana Indra Sensuse & Sofian Lusa & Prasetyo Adi Wibowo Putro, 2024. "Navigating regulatory sandbox initiatives for innovation diffusion in fintech lending: A systematic review," Asian Management and Business Review, Master of Management, Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 4(2), pages 324-339.
    • Handle: RePEc:uii:jrambr:v:4:y:2024:i:2:p:324-339:id:35151
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/AMBR/article/view/35151
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:jrambr:v:4:y:2024:i:2:p:324-339:id:35151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/AMBR/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.