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

Resi Yulia Putri (), Miftadi Sudja’i () and Helni Mutiarsih Jumhur ()
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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

A chapter in Proceedings of the Sixth International Conference on Applied Economics and Social Science (ICAESS 2024), 2025, pp 93-107 from Springer

Abstract: 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.

Keywords: Digital Technology; Multifinance Industry; credit scoring systems; Regulations (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-640-6_9

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