Mapping the Sustainable Human-Resource Challenges in Southeast Asia’s FinTech Sector

Abstract

The significance of human resources (HRs) has increased with the increasing awareness of sustainability issues and corporate social responsibility. However, the rapidly emerging financial technology (FinTech) sector still presents an HR challenge. Southeast Asia, which accounts for the highest adoption rate of mobile banking, has set new records regarding the number of transactions, as well as funding amount, in recent years. Moreover, borderless financial cooperation, coupled with in-demand tech talents, will rapidly boost the development of the region. Thus, this study explored the new opportunities as well as challenges of a new business model, FinTech, in Southeast Asia’s banking and enterprise sector in the post-COVID-19 era. It also examined how organizations can achieve sustainable development via the interaction of the new operating model with existing ones by developing relevant strategies in the context of the “new normal” working condition. By reviewing the literature on HR management (HRM), we proposed how banking and FinTech companies could supply tech talent with the relevant experience or engage in training projects before recruiting. Additionally, since organizations desire sustainability-minded employees, they offer flexible working arrangements and well-established reward policies that can create remote work performance and retention rates. Being committed to upskilling and reskilling global talent by offering talent mobility opportunities across the organization, as well as by fully embracing the creation of value for cross-cultural talent, companies can support their employees’ long-term career goals and maintain competitive strength. Finally, organizations must focus more on flexible adjustments and cross-domain communication for global talent. Forming strategic alliances with FinTech companies would be an alternative conduit that can ensure that regional laws comply with the local culture and national law, for bias and conflict reduction.

An exploratory review of the fintech influence field

“…Chen et al (2022b) studied the total factor productivity (TFP) of Chinese provincial companies and observed that financial inclusion increases TFP only in larger cities where infrastructure is developed. Wu and Kao (2022) drew attention to human-resource issues in the face of rapid fintech development. The authors note that fintech companies in Southeast Asia face talent shortages, wage inequality, racial and religious discrimination and employee qualification issues and summarize that human-resource management tools can influence the sustainable development of the fintech sector and the economy.…”

The Significant Role of Fintech in Empowering Students in the Digital Era: An Analysis Within the Context of Digital Financial Transformation

“…In this observation, it can be seen that FinTech has the potential to support community development by creating job opportunities and financial inclusion. This also reveals new challenges that companies must face in leveraging social and economic opportunities to support global economic growth (Wu & Kao, 2022). This reflects a significant change in the way financial business operates, with technology being the primary driver of such change (Aulia & Putra, 2023).…”

“…This study encompasses the analysis of changes in students' behavior in managing their finances, the impact of fintech in this process, as well as the challenges and opportunities faced by students in adopting financial technology. In Indonesia, the development of digital financial services such as payment channel systems, digital banking, online digital insurance, peer to peer (P2P) lending, and crowd funding have rapidly evolved (Hareesh, 2023;Wu & Kao, 2022). According to Amrin et al (2022), the rapid development of Fintech is evident in its increased presence across various sectors such as payment startups, lending, personal finance planning, retail investing, crowdfunding, remittances, financial research, and numerous other sectors.…”

The The Impact of Working Environment on Employee Loyalties with Job Satisfaction as an Intervening Variable

“…Improving the work environment can decrease some of the productivity barriers such as complaints and absenteeism. The quality of the physical work environment can affect the ability to recruit and retain human resource talent in an organization (Wu & Kao, 2022a, 2022b. Uncomfortable people in the work environment can result in low performance and high absenteeism.…”