Financial technology forecasting using an evolving connectionist system for lenders and borrowers: ecosystem behavior

Al-Khowarizmi Al-Khowarizmi, Michael J. Watts, Syahril Efendi, Anton Abdulbasah Kamil


Financial technology (FinTech) which is included in the development of digitalization in the financial sector in the industrial era 4.0. FinTech can make any transactions anywhere with the pillars of peer-to-peer (P2P) lending, merchants, and crowdfunding. In the P2P lending pillar, there are borrowers and lenders who are digitized in FinTech devices. FinTech in Indonesia is controlled by a state agency called the financial services authority or otoritas jasa keuangan (OJK). In the movement of P2P lending, there are borrowers and lenders who can be said to be investors where these activities are reported to the OJK. This data can be forecasted using a neural network approach such as evolving connectionist system (ECoS), which is a method capable of forecasting with learning that develops in the hidden layer. In this research article, we present results on forecasting borrowers with a mean absolute percentage error (MAPE) of 0.148% and forecasting lenders with an accuracy measurement with MAPE of 0.209% with a learning rate 1=0.6 and a learning rate 2=0.3. So, this forecasting model can be said as an optimization in FinTech activities on the behavior of borrowers and lenders.


Evolving connectionist system; Financial technology; Forecasting; Peer-to-peer lending

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IAES International Journal of Artificial Intelligence (IJ-AI)
ISSN/e-ISSN 2089-4872/2252-8938 
This journal is published by the Institute of Advanced Engineering and Science (IAES) in collaboration with Intelektual Pustaka Media Utama (IPMU).

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