Big data analytics in digital platforms: how do financial service providers customise supply chain finance?

Abstract

PurposeThis study examines the role of financial service providers (FSPs) in assessing the supply chain credit of small and medium-sized enterprises (SMEs) and how they help SMEs obtain supply chain finance (SCF) through an established digital platform using big data analytics (BDA).Design/methodology/approachThis study conducted data mining analysis on the archival data of China's FSPs in the mobile production industry from 2015 to 2018, using neural networks in the first stage and multiple regression in the second stage.FindingsThe findings suggest that digital platforms sponsored by FSPs have a discriminative effect based on implicit BDA on identifying the quality and potential risks of borrowers. The results also show that tailored information utilised by FSPs has a supportive effect based on explicit BDA in helping SMEs obtain financing.Originality/valueThis study contributes to the emergent research on BDA in supply chain management by extending the contextual research on information signalling and platform theory in SCF. Furthermore, it examines the distinctive financing decision models of FSPs and provides a solution that addresses the information deficiency and overload of both lenders and borrowers and plays a certain reference role in alleviating the financing problems of SMEs.

Positioning big data analytics capabilities towards financial service agility

“…Further studies that corroborate this study have suggested that BDA capability can be used to enhance enterprise agility, especially to predict customers' transactional patterns for tailored services (Stylos et al, 2021). Song et al (2021) also promoted the need for financial institutions to use digital platforms with BDA to potentially identify the risk of borrowers and the quality of customised services.…”

“…Bolstering various study BDA capability implications for the financial sector (Song et al, 2021;Galhau et al, 2016;Gupta and George, 2016), this study demonstrates the impact of BDA usage on FSA. The findings help financial institutions focus on nurturing technical capabilities of digital technology deployment and strategic managerial capabilities to utilise emerging technologies like BDA applications.…”

“…(2020) observed that effective IT capability for digital resources and other applications promotes firms' agility such as intelligence insights with market analysis and strategic business modelling. Other studies also intimated that aligning BDA tools within the financial services can leverage banks to gain competitive advantage and more of customer focus as revealed in this study Song et al. (2021), Hassani et al.…”

“…, 2021). Song et al. (2021) also promoted the need for financial institutions to use digital platforms with BDA to potentially identify the risk of borrowers and the quality of customised services.…”

“…Bolstering various study BDA capability implications for the financial sector (Song et al. , 2021; Galhau et al.…”