An Analysis of Big Data Analytics, IoT and Augmented Banking on Consumer Loan Banking Business in Germany
DOI:
https://doi.org/10.37535/104001120212Keywords:
Industry 4.0, Consumer Loans, Big data analytics, IoT, Augmented bankingAbstract
This research aims to analyze the particular component of industry 4.0 applying in the consumer loans banking business. Industry 4.0 comprises of a lot of technological advantages, this research selected three components of industry 4.0; Big data analytic, Internet of Things (IoT), and Augmented reality in banking. Secondary data are used to conduct this research, collected from the previous research and the academic literature. At first, this research explains why the consumer loans banking business in Europe, especially in Germany, needs to integrate Industry 4.0. secondly, this research analyzes the suitable component of industry 4.0 into the consumer loans banking business. The findings of this research deliver an essential piece of analysis to the consumer loans banking business' stakeholder with direction on implementing industry 4.0 into their business.
References
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Bolt, W. & Humphrey, D. (2015). Assessing bank competition for consumer loans. Journal of Banking & Finance, 61, 127–141. https://doi.org/10.1016/j.jbankfin.2015.09.004
Brown, M., Jappelli, T., & Pagano, M. (2009). Information sharing and credit: Firm-level evidence from transition countries. Journal of Financial Intermediation, 18(2), 151–172. https://doi.org/10.1016/j.jfi.2008.04.002
Caudell, T. P. & Mizell, D. W. (1992). Augmented reality: an application of heads-up display technology to manual manufacturing processes. In J. F. Nunamaker (Ed.) Proceedings of the Twenty-Fifth Hawaii International Conference on Volume: ii (pp. 659–669). http://dx.doi.org/10.1109/HICSS.1992.183317
Chiang, R. C., Chow, Y. F., & Liu, M. (2002). Residential Mortgage Lending and Borrower Risk: The Relationship Between Mortgage Spreads and Individual Characteristics. Journal of Real Estate Finance and Economics, 25(1), 5–32. https://doi.org/10.1023/A:1015347516812
Christensen, C. M. (1997). The Innovator's Dilemma – When new Technologies Cause Great Firms to Fail. Harvard Business School Press.
Civic Consulting (2017): Study on measuring consumer detriment in the European Union Final Report, Part 1: Main Report - Study. Directorate-General for Justice and Consumers EU Consumer Programme. https://doi.org/10.2818/87261
Clark, G. (2014). Chapter 5 - The Industrial Revolution. Handbook of Economics Growth 2, 217–262. https://doi.org/10.1016/B978-0-444-53538-2.00005-8
Collin, P. H. (2003). Dictionary of Banking and Finance (3rd ed). Bloomsbury
Evans, D. (2011). The Internet of Things. How the Next Evolutions of the Internet is Changing Everything. Cisco Internet Business Solutions Group (IBSG).
Demsetz, H. (1988). The Theory of the Firm Revisited. The Journal of Law, Economics, & Organization, 4(1), 141–161. https://doi.org/10.1093/oxfordjournals.jleo.a036941
Dorfleitner, G., Hornuf, L., Schmitt, M., & Weber, M. (2017). FinTech in Germany. Springer International Publishing.
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Fuleky, P. (2020). Macroeconomic Forecasting in the Era of Big Data. Springer International Publishing.
George, G., Osinga, E. C., Lavie, D., & Scott, B. A. (2016). Big Data and Data Science Methods for Management Research. Academy of Management Journal, 59(5), 1493–1507. https://doi.org/10.5465/amj.2016.4005
Gobble, M. M. (2013). Big Data: The Next Big Thing in Innovation. Research-Technology Management, 56(1), 64–67. https://doi.org/10.5437/08956308X5601005
Gomber, P., Koch, J., & Siering, M. (2017). Digital Finance and FinTech: current research and future research directions. Journal of Business Economics, 87(5), 537–580. https://doi.org/10.1007/s11573-017-0852-x
Gupta, M. & George, J. F. (2016). Toward the development of a big data analytics capability. Information & Management, 53(8), 1049–1064. https://doi.org/10.1016/j.im.2016.07.004
Haddad, C. & Hornuf, L. (2019). The emergence of the global fintech market: economic and technological determinants. Small Business Economy, 53(1), 81–105. https://doi.org/10.1007/s11187-018-9991-x
He, P., Hua, Z., & Liu, Z. (2015). A quantification method for the collection effect on consumer term loans. Journal of Banking & Finance 57, 17–26. https://doi.org/10.1016/j.jbankfin.2015.03.008
International Monetary Fund (2011). Germany: Technical Note on Banking Sector Structure. In IMF Country Report No. 11/370. https://www.imf.org/external/pubs/ft/scr/2011/cr11370.pdf
Kagermann, H., Wahlster W., & Helbi, J. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0. Forschungsunion.
Khan, R., Khan, S. U., Zaheer, R., & Khan, S. (2012). Future internet: the internet of things architecture, possible applications and key challenges. 2012 10th International Conference on Frontiers of Information Technology, 257-260. http://dx.doi.org/10.1109/FIT.2012.53
Koch, P., Flötoto, M., Weigl, U., & Schröck, G. (2016). The road ahead Perspectives on German banking. McKinsey&Company.
Kurt, R. (2019). Industry 4.0 in Terms of Industrial Relations and Its Impacts on Labour Life. Procedia Computer Science 158, 590–601. https://doi.org/10.1016/j.procs.2019.09.093
Lampropoulos, G., Siakas, K., & Anastasiadis, T. (2019). Internet of Things in the Context of Industry 4.0: An Overview. International Journal of Entrepreneurial Knowledge, 7(1), 4–19. https://doi.org/10.2478/ijek-2019-0001
Liu, A. & Lamb, G. (2018). Artificial intelligence and augmented intelligence collaboration Regaining trust and confidence in the financial sector. Information & Communications Technology Law, 27(3), 1-17. http://dx.doi.org/10.1080/13600834.2018.1488659
Lozada, N., Arias-Pérez, J., & Perdomo-Charry, G. (2019). Big data analytics capability and co-innovation: An empirical study. Heliyon, 5(10), e02541. https://doi.org/10.1016/j.heliyon.2019.e02541
Malhotra, R. & Malhotra, D. K. (2003). Evaluating consumer loans using neural networks. Omega, 31(2), 83–96. https://doi.org/10.1016/S0305-0483(03)00016-1
Marr, B. (2015). Big Data: Using SMART Big Data, Analytics and Metrics to Make Better Decisions and Improve Performance. Wiley Hoboken.
Mazibaş, M. & Tuna, Y. (2017). Understanding the Recent Growth in Consumer Loans and Credit Cards in Emerging Markets: Evidence from Turkey. Emerging Markets Finance and Trade, 53(10), 2333–2346. https://doi.org/10.1080/1540496X.2016.1196895
Milian, E. Z., Spinola, M. d. M., & Carvalho, M. M. d. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34, 100833. https://doi.org/10.1016/j.elerap.2019.100833
Murati, A., Skau, O., & Taraporevala, Z. (2018). Disruption in European consumer finance: Lesson from Sweden. McKinsey&Company.
Parlour, C. A. & Rajan, U. (2001). Competition in Loan Contracts. American Economic Review, 91(5), 1311–1328. https://doi.org/10.1257/aer.91.5.1311
Perera, C., Zaslavsky, A., Christen, P., & Georgakopoulos, D. (2014). Context Aware Computing for The Internet of Things: A Survey. IEEE Communications Surveys & Tutorials, 16(1), 414–454. https://doi.org/10.1109/SURV.2013.042313.00197
Porter, M. E. (1998). Competitive Strategy – Techniques for Analyzing Industries and Competitors. The Free Press.
Pranatharthy, A. C., Jaipuriar, A. K., & Chintalapudi, N. M. (2013). Augment reality in financial service. Infosys.
Roberts, J. A. & M Sepulveda, C. J. (1999). Money Attitudes and Compulsive Buying. Journal of International Consumer Marketing, 11(4), 53–74. https://doi.org/10.1300/J046v11n04_04
Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., & Harnisch, M. (2015). Industry 4.0: The Future of Productivity and Growth in Manufacturing. The Boston Consulting Group.
Scannella, E. (2015). What drives the disintegration of the loan origination value chain in the banking business. Business Process Management Journal, 21(2), 288–311. https://doi.org/10.1108/BPMJ-02-2014-0017
Schmidt, T. & Zwick, L. (2018). Loan supply and demand in Germany's three-pillar banking system during the financial crisis. International Finance, 21(1), 23–38. https://doi.org/10.1111/infi.12125
Seddon, J. J. J. M. & Currie, W. L. (2017). A model for unpacking big data analytics in high-frequency trading. Journal of Business Research, 70, 300–307. https://doi.org/10.1016/j.jbusres.2016.08.003
Shevat, A. (2017). Designing Bots-Creating Conversational Experiences. O'Reilly Media Incorporation
Sivarajah, U., Kamal, M. M., Irani, Z., & Weerakkody, V. (2017). Critical analysis of Big Data challenges and analytical methods. Journal of Business Research, 70, 263–286. https://doi.org/10.1016/j.jbusres.2016.08.001s
Smullen, J. & Hand, N. (2005). Oxford dictionary of Finance and Banking (3rd ed). Oxford University Press.
Sonntag, D., Albuquerque, G., Magnor, M., & Bodensiek, O. (2019). Hybrid learning environments by data-driven augmented reality. Procedia Manufacturing, 31, 32–37. https://doi.org/10.1016/j.promfg.2019.03m.006
Herring, M. (2010, November 6). Augmented Business – Smart system will disrupt lots of industries, and perhaps the entry economy. The Economist Special Report. https://www.economist.com/special-report/2010/11/06/augmented-business
Tsai, M., Lin, S., Cheng, C., & Lin, Y. (2009). The consumer loan default predicting model – An application of DEA–DA and neural network. Expert Systems with Applications, 36(9), 11682–11690. https://doi.org/10.1016/j.eswa.2009.03.009
Updegrave, W. L. (1987). How Lenders Size You Up One Tip: maintain a checking account. Money, 16(4), 145.
Vaidya, S., Ambad, P., & Bhosle, S. (2018). Industry 4.0 – A Glimpse. Procedia Manufacturing, 20, 233–238. https://10.1016/j.promfg.2018.02.034.
Vasileva, V. (2019). Development of Consumer Lending by Non-Bank Credit Companies in Bulgaria. Economic Archive, 1, 65–77.
Vermessan, O., Friess, P., Guillemin, P., Gusmeroli, S., Sundmaeker, H., Bassi, A., Jubert, I. S., Mazura, M., Harrison, M., Eisenhauer, M., & Doody, P. (2011). Internet of Things Strategic Research Roadmap. In O. Vermessan & P. Friess (Eds.), Internet of Things - Global Technological and Societal Trends (pp. 9–52). River Publishers.
Argyres, N. (1996). Evidence on The Role of Firm Capabilities In Vertical Integration Decisions. Strategic Management Journal, 17(2), 129–150. https://doi.org/10.1002/(SICI)1097-0266(199602)17:2<129::AID-SMJ798>3.0.CO;2-H
Armistead, C. & Rowland, P. (1996). Managing Business Processes: BPR and Beyond. Willey.
Atzori, L., Iera, A., & Morabito, G. (2010). The Internet of Things: A survey. Computer Networks, 54(15), 2787–2805. https://doi.org/10.1016/j.comnet.2010.05.010
Bolt, W. & Humphrey, D. (2015). Assessing bank competition for consumer loans. Journal of Banking & Finance, 61, 127–141. https://doi.org/10.1016/j.jbankfin.2015.09.004
Brown, M., Jappelli, T., & Pagano, M. (2009). Information sharing and credit: Firm-level evidence from transition countries. Journal of Financial Intermediation, 18(2), 151–172. https://doi.org/10.1016/j.jfi.2008.04.002
Caudell, T. P. & Mizell, D. W. (1992). Augmented reality: an application of heads-up display technology to manual manufacturing processes. In J. F. Nunamaker (Ed.) Proceedings of the Twenty-Fifth Hawaii International Conference on Volume: ii (pp. 659–669). http://dx.doi.org/10.1109/HICSS.1992.183317
Chiang, R. C., Chow, Y. F., & Liu, M. (2002). Residential Mortgage Lending and Borrower Risk: The Relationship Between Mortgage Spreads and Individual Characteristics. Journal of Real Estate Finance and Economics, 25(1), 5–32. https://doi.org/10.1023/A:1015347516812
Christensen, C. M. (1997). The Innovator's Dilemma – When new Technologies Cause Great Firms to Fail. Harvard Business School Press.
Civic Consulting (2017): Study on measuring consumer detriment in the European Union Final Report, Part 1: Main Report - Study. Directorate-General for Justice and Consumers EU Consumer Programme. https://doi.org/10.2818/87261
Clark, G. (2014). Chapter 5 - The Industrial Revolution. Handbook of Economics Growth 2, 217–262. https://doi.org/10.1016/B978-0-444-53538-2.00005-8
Collin, P. H. (2003). Dictionary of Banking and Finance (3rd ed). Bloomsbury
Evans, D. (2011). The Internet of Things. How the Next Evolutions of the Internet is Changing Everything. Cisco Internet Business Solutions Group (IBSG).
Demsetz, H. (1988). The Theory of the Firm Revisited. The Journal of Law, Economics, & Organization, 4(1), 141–161. https://doi.org/10.1093/oxfordjournals.jleo.a036941
Dorfleitner, G., Hornuf, L., Schmitt, M., & Weber, M. (2017). FinTech in Germany. Springer International Publishing.
EBA (European Banking Authority). (2019). EBA Consumer Trend Report 2018/19. https://www.eba.europa.eu/eba-publishes-consumer-trends-report-for-2018-19
Finlay, S. (2008). The Management of Consumer Credit. Palgrave Macmillan UK.
Financial Services and User Group. (2019). Responsible consumer credit lending - FSUG opinion and recommendations for the review of the consumer credit directive. European Commission. https://ec.europa.eu/info/publications/fsug-opinions-2019_en
Fuleky, P. (2020). Macroeconomic Forecasting in the Era of Big Data. Springer International Publishing.
George, G., Osinga, E. C., Lavie, D., & Scott, B. A. (2016). Big Data and Data Science Methods for Management Research. Academy of Management Journal, 59(5), 1493–1507. https://doi.org/10.5465/amj.2016.4005
Gobble, M. M. (2013). Big Data: The Next Big Thing in Innovation. Research-Technology Management, 56(1), 64–67. https://doi.org/10.5437/08956308X5601005
Gomber, P., Koch, J., & Siering, M. (2017). Digital Finance and FinTech: current research and future research directions. Journal of Business Economics, 87(5), 537–580. https://doi.org/10.1007/s11573-017-0852-x
Gupta, M. & George, J. F. (2016). Toward the development of a big data analytics capability. Information & Management, 53(8), 1049–1064. https://doi.org/10.1016/j.im.2016.07.004
Haddad, C. & Hornuf, L. (2019). The emergence of the global fintech market: economic and technological determinants. Small Business Economy, 53(1), 81–105. https://doi.org/10.1007/s11187-018-9991-x
He, P., Hua, Z., & Liu, Z. (2015). A quantification method for the collection effect on consumer term loans. Journal of Banking & Finance 57, 17–26. https://doi.org/10.1016/j.jbankfin.2015.03.008
International Monetary Fund (2011). Germany: Technical Note on Banking Sector Structure. In IMF Country Report No. 11/370. https://www.imf.org/external/pubs/ft/scr/2011/cr11370.pdf
Kagermann, H., Wahlster W., & Helbi, J. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0. Forschungsunion.
Khan, R., Khan, S. U., Zaheer, R., & Khan, S. (2012). Future internet: the internet of things architecture, possible applications and key challenges. 2012 10th International Conference on Frontiers of Information Technology, 257-260. http://dx.doi.org/10.1109/FIT.2012.53
Koch, P., Flötoto, M., Weigl, U., & Schröck, G. (2016). The road ahead Perspectives on German banking. McKinsey&Company.
Kurt, R. (2019). Industry 4.0 in Terms of Industrial Relations and Its Impacts on Labour Life. Procedia Computer Science 158, 590–601. https://doi.org/10.1016/j.procs.2019.09.093
Lampropoulos, G., Siakas, K., & Anastasiadis, T. (2019). Internet of Things in the Context of Industry 4.0: An Overview. International Journal of Entrepreneurial Knowledge, 7(1), 4–19. https://doi.org/10.2478/ijek-2019-0001
Liu, A. & Lamb, G. (2018). Artificial intelligence and augmented intelligence collaboration Regaining trust and confidence in the financial sector. Information & Communications Technology Law, 27(3), 1-17. http://dx.doi.org/10.1080/13600834.2018.1488659
Lozada, N., Arias-Pérez, J., & Perdomo-Charry, G. (2019). Big data analytics capability and co-innovation: An empirical study. Heliyon, 5(10), e02541. https://doi.org/10.1016/j.heliyon.2019.e02541
Malhotra, R. & Malhotra, D. K. (2003). Evaluating consumer loans using neural networks. Omega, 31(2), 83–96. https://doi.org/10.1016/S0305-0483(03)00016-1
Marr, B. (2015). Big Data: Using SMART Big Data, Analytics and Metrics to Make Better Decisions and Improve Performance. Wiley Hoboken.
Mazibaş, M. & Tuna, Y. (2017). Understanding the Recent Growth in Consumer Loans and Credit Cards in Emerging Markets: Evidence from Turkey. Emerging Markets Finance and Trade, 53(10), 2333–2346. https://doi.org/10.1080/1540496X.2016.1196895
Milian, E. Z., Spinola, M. d. M., & Carvalho, M. M. d. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34, 100833. https://doi.org/10.1016/j.elerap.2019.100833
Murati, A., Skau, O., & Taraporevala, Z. (2018). Disruption in European consumer finance: Lesson from Sweden. McKinsey&Company.
Parlour, C. A. & Rajan, U. (2001). Competition in Loan Contracts. American Economic Review, 91(5), 1311–1328. https://doi.org/10.1257/aer.91.5.1311
Perera, C., Zaslavsky, A., Christen, P., & Georgakopoulos, D. (2014). Context Aware Computing for The Internet of Things: A Survey. IEEE Communications Surveys & Tutorials, 16(1), 414–454. https://doi.org/10.1109/SURV.2013.042313.00197
Porter, M. E. (1998). Competitive Strategy – Techniques for Analyzing Industries and Competitors. The Free Press.
Pranatharthy, A. C., Jaipuriar, A. K., & Chintalapudi, N. M. (2013). Augment reality in financial service. Infosys.
Roberts, J. A. & M Sepulveda, C. J. (1999). Money Attitudes and Compulsive Buying. Journal of International Consumer Marketing, 11(4), 53–74. https://doi.org/10.1300/J046v11n04_04
Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., & Harnisch, M. (2015). Industry 4.0: The Future of Productivity and Growth in Manufacturing. The Boston Consulting Group.
Scannella, E. (2015). What drives the disintegration of the loan origination value chain in the banking business. Business Process Management Journal, 21(2), 288–311. https://doi.org/10.1108/BPMJ-02-2014-0017
Schmidt, T. & Zwick, L. (2018). Loan supply and demand in Germany's three-pillar banking system during the financial crisis. International Finance, 21(1), 23–38. https://doi.org/10.1111/infi.12125
Seddon, J. J. J. M. & Currie, W. L. (2017). A model for unpacking big data analytics in high-frequency trading. Journal of Business Research, 70, 300–307. https://doi.org/10.1016/j.jbusres.2016.08.003
Shevat, A. (2017). Designing Bots-Creating Conversational Experiences. O'Reilly Media Incorporation
Sivarajah, U., Kamal, M. M., Irani, Z., & Weerakkody, V. (2017). Critical analysis of Big Data challenges and analytical methods. Journal of Business Research, 70, 263–286. https://doi.org/10.1016/j.jbusres.2016.08.001s
Smullen, J. & Hand, N. (2005). Oxford dictionary of Finance and Banking (3rd ed). Oxford University Press.
Sonntag, D., Albuquerque, G., Magnor, M., & Bodensiek, O. (2019). Hybrid learning environments by data-driven augmented reality. Procedia Manufacturing, 31, 32–37. https://doi.org/10.1016/j.promfg.2019.03m.006
Herring, M. (2010, November 6). Augmented Business – Smart system will disrupt lots of industries, and perhaps the entry economy. The Economist Special Report. https://www.economist.com/special-report/2010/11/06/augmented-business
Tsai, M., Lin, S., Cheng, C., & Lin, Y. (2009). The consumer loan default predicting model – An application of DEA–DA and neural network. Expert Systems with Applications, 36(9), 11682–11690. https://doi.org/10.1016/j.eswa.2009.03.009
Updegrave, W. L. (1987). How Lenders Size You Up One Tip: maintain a checking account. Money, 16(4), 145.
Vaidya, S., Ambad, P., & Bhosle, S. (2018). Industry 4.0 – A Glimpse. Procedia Manufacturing, 20, 233–238. https://10.1016/j.promfg.2018.02.034.
Vasileva, V. (2019). Development of Consumer Lending by Non-Bank Credit Companies in Bulgaria. Economic Archive, 1, 65–77.
Vermessan, O., Friess, P., Guillemin, P., Gusmeroli, S., Sundmaeker, H., Bassi, A., Jubert, I. S., Mazura, M., Harrison, M., Eisenhauer, M., & Doody, P. (2011). Internet of Things Strategic Research Roadmap. In O. Vermessan & P. Friess (Eds.), Internet of Things - Global Technological and Societal Trends (pp. 9–52). River Publishers.
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Published
2021-06-20
How to Cite
Putra, M. P. (2021). An Analysis of Big Data Analytics, IoT and Augmented Banking on Consumer Loan Banking Business in Germany. Journal of Research on Business and Tourism, 1(1), 16–36. https://doi.org/10.37535/104001120212
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