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Selecting the Fintech Strategy for Supply Chain Finance: A Hybrid Decision Approach for Banks

Author

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  • Yu-Cheng Kao

    (Graduate Institute of Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan)

  • Kao-Yi Shen

    (Department of Banking & Finance, Chinese Culture University, Taipei 111, Taiwan)

  • San-Ting Lee

    (Department of International Business Administration, Chinese Culture University, Taipei 111, Taiwan)

  • Joseph C. P. Shieh

    (Graduate Institute of Finance, National Taiwan University of Science and Technology, Taipei 106, Taiwan)

Abstract

Many banks are eager to adopt technology solutions to enhance operational efficiency in managing supply chain finance, which involves various participants and complex financial activities. Previous research either focuses on the technology aspect or the optimization of a supply chain; there is little specific guidance on how banks can form a holistic model to evaluate their Fintech strategy for supply chain finance. By using an integrated approach, this study adopted the decision- making trial and evaluation laboratory (DEMATEL) and several analytical methods to construct a hybrid decision model for banks. We concluded four plausible Fintech strategies from previous research and highlighted the advantages of the blockchain-based strategy. We used a domestic bank in Taiwan as a case study during the evaluation phase and implemented crisp and confidence-based fuzzy assessments. The result indicates that the blockchain-based leading strategy would be ideal for this bank. The hybrid decision model also unveils the complicated relationships among those evaluation factors, which sheds light on banks pursuing their innovation in financial services. The findings contribute to banks developing their Fintech-based supply chain financing business, and the supply chain participants may also benefit from securing efficient loans to expedite their operations.

Suggested Citation

  • Yu-Cheng Kao & Kao-Yi Shen & San-Ting Lee & Joseph C. P. Shieh, 2022. "Selecting the Fintech Strategy for Supply Chain Finance: A Hybrid Decision Approach for Banks," Mathematics, MDPI, vol. 10(14), pages 1-20, July.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:14:p:2393-:d:857995
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    References listed on IDEAS

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