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

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

Authors
Resi Yulia Putri1, *, Miftadi Sudja’i1, Helni Mutiarsih Jumhur1
1School of Electrical Engineering, Telkom University, Bandung, Indonesia
*Corresponding author. Email: Ryputri@student.telkomuniversity.ac.id
Corresponding Author
Resi Yulia Putri
Available Online 31 December 2024.
DOI
10.2991/978-94-6463-640-6_9How to use a DOI?
Keywords
Digital Technology; Multifinance Industry; credit scoring systems; Regulations
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.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2024
ISBN
978-94-6463-640-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-640-6_9How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Resi Yulia Putri
AU  - Miftadi Sudja’i
AU  - Helni Mutiarsih Jumhur
PY  - 2024
DA  - 2024/12/31
TI  - Analysis of Regulations and Techno-Economic in the Digital Multifinance Industry
BT  - Proceedings of the  Sixth International Conference on Applied Economics and Social Science (ICAESS 2024)
PB  - Atlantis Press
SP  - 93
EP  - 107
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-640-6_9
DO  - 10.2991/978-94-6463-640-6_9
ID  - Putri2024
ER  -