IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-640-6_9.html

Analysis of Regulations and Techno-Economic in the Digital Multifinance Industry

In: Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)

Author

Listed:
  • Resi Yulia Putri

    (Telkom University, School of Electrical Engineering)

  • Miftadi Sudja’i

    (Telkom University, School of Electrical Engineering)

  • Helni Mutiarsih Jumhur

    (Telkom University, School of Electrical Engineering)

Abstract

The financial and financing industry, particularly the multifinance sector, is undergoing significant transformations due to digital technology. This research investigates the impact of digital technology on the multi finance industry in Indonesia, focusing on the credit scoring system that addresses challenges related to the approval process and system analysis. The study examines the feasibility of implementing a digital multifinance credit scoring system in Indonesia, especially for prospective borrowers from technical, economic, and regulatory perspectives. The developed credit scoring model using the XGBoost algorithm demonstrates 70% accuracy on training data and 69% on test data, with a precision rate of 75% and a ROC value of 87%. The business feasibility analysis shows promising financial prospects with an NPV of Rp979,247,084, an IRR of 22%, a MIRR of 17%, a Payback Period of 4 year 4 month, and a Profitability Index of 1.09663. These metrics collectively suggest that the project has potential for significant financial benefits in the long term. The research also emphasizes the crucial role of regulations by the Financial Services Authority (OJK), highlighting the need for proper oversight to ensure financial stability, consumer protection, and data security.

Suggested Citation

  • Resi Yulia Putri & Miftadi Sudja’i & Helni Mutiarsih Jumhur, 2025. "Analysis of Regulations and Techno-Economic in the Digital Multifinance Industry," Advances in Economics, Business and Management Research, in: Fuad Arif Rahman & Vina Kholisa Dinuka & Jessica Olifia & Agus Supriyadi & Rizki Lanniari HS & Zaima (ed.), Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024), pages 93-107, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-640-6_9
    DOI: 10.2991/978-94-6463-640-6_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:spr:advbcp:978-94-6463-640-6_9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.