Factors Influencing the Emergence of Fintech in Malaysia: A Concept Paper

Abstract

According to a PricewaterhouseCoopers (PwC) report on Global Banking and Capital Markets (BCM), the vast majority of CEOs (93%) view technology as a crucial contributor to the sector's transformation over the next five years. This has certainly changed the technology of the various aspects of personal and professional life. This digital revolution affects almost all industries, especially in Malaysia. Fintech opens up huge opportunities that will benefit the Malaysians and the entire sector. This article focuses on Malaysia's potential to develop fintech as a means of supporting the economy and establish a new way of life. Malaysia's potential for fintech can be seen in three categories: (1) laws and regulations, (2) cybersecurity threats, and (3) financial sustainability. A conceptual framework was formed on the factors influencing the emergence of fintech in Malaysia by using the theory of reasoned action and technology acceptance model. This study aims to establish a relationship between Malaysia's fintech industry's achievements thus far and the anticipated replacements that will be constructed to boost fintech. The laws and regulations relating to the legal status of fintech user protection were further discussed. Users especially public accountant may be deprived of their rights due to cyber security concerns such as fraud or hacking. In times of crisis, such
as the COVID-19 outbreak, fintech companies need to find other ways to fund their operations to sustain their development and stay afloat.