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Energy Procedia 00 (2018) 000–000

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Energy
EnergyProcedia
Procedia156 (2019) 000–000
00 (2017) 234–238
www.elsevier.com/locate/procedia
2018 5th International Conference on Power and Energy Systems Engineering, CPESE 2018,
19–21 September
2018 5th International Conference on Power 2018, Nagoya,
and Energy Japan Engineering, CPESE 2018,
Systems
19–21 September 2018, Nagoya, Japan
Digital Marketplace and FinTech to Support Agriculture
Digital TheMarketplace
15th Internationaland FinTech
Sustainability
Symposium to Support
on District Heating and Agriculture
Cooling
Sustainability
MuhammadAssessing Anshari*, theMohammad
feasibility ofAlmunawar,
Nabil using the Masairolheat demand-outdoor
Masri, Mahani Hamdan
temperature
Muhammad function
Universiti BruneiAnshari*,
Darussalam, Mohammad
School for &aEconomics,
of Business long-term
Nabil Almunawar, district
Jln Tungku Link heat
Masairol
Gadong, Bandar demand
Masri,
Seri Brunei forecast
Mahani
Begawan, Hamdan
Darussalam

Universiti Brunei Darussalam, School of Business & Economics, Jln Tungku Link Gadong, Bandar Seri Begawan, Brunei Darussalam
Abstract I. Andrića,b,c*, A. Pinaa, P. Ferrãoa, J. Fournierb., B. Lacarrièrec, O. Le Correc
Abstract
a
IN+ Center for Innovation, Technology and Policy Research - Instituto Superior Técnico, Av. Rovisco Pais 1, 1049-001 Lisbon, Portugal
Agriculture plays an important in providing food security and sustainability for the people in any country. However, lack of
b
Veolia Recherche & Innovation, 291 Avenue Dreyfous Daniel, 78520 Limay, France
funding and climited distribution channels to reach customers are frequent problems faced by farmers to meet the level of
Agriculture plays Département Systèmes
an important in Énergétiques
providingcan et Environnement
food and- IMT Atlantique, 4 rue Alfred Kastler, 44300 Nantes, However,
France
sustainability. Agriculture’s sustainability besecurity
strengthened sustainability
by allowingforantheinnovation
people in of
any country.
services lack of
such as Financial
funding and limited distribution channels to reach customers are frequent problems faced by
Technology (FinTech), and digital marketplace. Digital marketplace with Fintech enabled might transform agriculture’s businessfarmers to meet the level of
sustainability.
process into more Agriculture’s
sustainable sustainability
in term of funding can be andstrengthened by allowing
distribution. FinTech offersan innovation
farmers of services
convenient ways ofsuchgettingas sources
Financialof
Technology
funding (FinTech),
through and digital
crowdfunding andmarketplace.
digital paymentDigitalsystem.
marketplace
Thus, with Fintech
digital enabled can
marketplace might
acttransform agriculture’s
as a platform business
for FinTech to
Abstract
process into
integrate themore sustainable
innovative in termsolution
financial of funding
intoand distribution.
broader FinTechecosystem.
agriculture’s offers farmers
The convenient ways of
study proposes a getting
modelling sources of
digital
funding through
marketplace with crowdfunding
FinTech enabled andespecially
digital payment system.and
crowdfunding Thus, digital
payment marketplace
system in order can act as agriculture’s
to support a platform for FinTech to
sustainability.
District
integrate heating
the networks
innovative are commonly
financial solution addressed
into in
broaderthe literature
agriculture’s as one of
ecosystem. the most
The effective
study
The model connects all actors (farmers, landowners, investors, and consumers) into a platform that can promote transparency, solutions
proposes a for decreasing
modelling the
digital
marketplace
greenhouse with
empowerment, FinTech enabled
gasresourcefulness,
emissions fromand theespecially
building
public crowdfunding
sector.
engagement These and payment
systems
in agriculture. requiresystem in order to support
high investments which areagriculture’s sustainability.
returned through the heat
The model
sales. Dueconnects all actorsclimate
to the changed (farmers, landowners,
conditions and investors, and consumers)
building renovation into heat
policies, a platform
demandthat in can
the promote transparency,
future could decrease,
empowerment,
prolonging theresourcefulness,
investment return and public engagement in agriculture.
period.
©The
2018 Thescope
main Authors. Published
of this paper isby to Elsevier
assess the Ltd.
feasibility of using the heat demand – outdoor temperature function for heat demand
© 2019
This The
is an Authors.
open access Published
article by Elsevier
under thelocated Ltd.
CC BY-NC-ND
forecast.
This is an The
open district of Alvalade,
accessPublished
article under the CC Ltd. in Lisbon license
BY-NC-ND
(https://creativecommons.org/licenses/by-nc-nd/4.0/)
(Portugal), was used as a case study. The district is consisted of 665
license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
© 2018
SelectionThe Authors.
and peer-review underby Elsevier
responsibility of the 2018 5th International Conference
buildings
Selection that vary in both construction period and typology. Three weather scenarios (low,on Power high)
medium, and Energy Systems
andEngineering,
three district
This is an and
Engineering,open peer-review
access2018,
CPESE
under
article responsibility
under
19–21
of the 2018license
the CC BY-NC-ND
September 2018, Nagoya,
5th International Conference on Power and Energy Systems
(https://creativecommons.org/licenses/by-nc-nd/4.0/)
Japan.
renovation
CPESE 2018, scenarios were developed (shallow, intermediate, deep). To estimate the error, obtained heat demand values were
Selection and19–21 September
peer-review under2018, Nagoya, Japan.
responsibility of the 2018 5th International Conference on Power and Energy Systems
compared with results from a dynamic heat demand model, previously developed and validated by the authors.
Engineering,
Keywords: CPESE
Digital 2018, 19–21
Marketplace; September
Financial Technology2018, Nagoya,
(FinTech); Japan. Sustainability; Crowdfunding, AgroPay
Agriculture;
The results showed that when only weather change is considered, the margin of error could be acceptable for some applications
(the errorDigital
Keywords: in annual demandFinancial
Marketplace; was lower than 20%
Technology for all Agriculture;
(FinTech); weather scenarios considered).
Sustainability; However,
Crowdfunding, after introducing renovation
AgroPay
scenarios, the error value increased up to 59.5% (depending on the weather and renovation scenarios combination considered).
The value of slope coefficient increased on average within the range of 3.8% up to 8% per decade, that corresponds to the
decrease in the number of heating hours of 22-139h during the heating season (depending on the combination of weather and
renovation scenarios considered). On the other hand, function intercept increased for 7.8-12.7% per decade (depending on the
coupled scenarios). The values suggested could be used to modify the function parameters for the scenarios considered, and
improve the accuracy of heat demand estimations.

* Corresponding
© author.Published
2017 The Authors. Tel.: +6737162092.
by Elsevier Ltd.
E-mail address:
Peer-review underanshari.ali@ubd.edu.bn
responsibility of the Scientific Committee of The 15th International Symposium on District Heating and
* Corresponding author. Tel.: +6737162092.
Cooling.
E-mail address: anshari.ali@ubd.edu.bn
1876-6102 © 2018 The Authors. Published by Elsevier Ltd.
This is an open
Keywords: access
Heat article
demand; under the
Forecast; CC BY-NC-ND
Climate change license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
1876-6102and
Selection © 2018 The Authors.
peer-review Published by Elsevier
under responsibility Ltd.5th International Conference on Power and Energy Systems Engineering, CPESE
of the 2018
This
2018,is19–21
an open access article
September 2018,under the CC
Nagoya, BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Japan.
Selection and peer-review under responsibility of the 2018 5th International Conference on Power and Energy Systems Engineering, CPESE
2018, 19–21 September 2018, Nagoya, Japan.
1876-6102 © 2017 The Authors. Published by Elsevier Ltd.
1876-6102 © 2019 The Authors. Published by Elsevier Ltd.
Peer-review under responsibility of the Scientific Committee of The 15th International Symposium on District Heating and Cooling.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
Selection and peer-review under responsibility of the 2018 5th International Conference on Power and Energy Systems Engineering,
CPESE 2018, 19–21 September 2018, Nagoya, Japan.
10.1016/j.egypro.2018.11.134
 Muhammad Anshari et al. / Energy Procedia 156 (2019) 234–238 235
Muhammad Anshari et al./ Energy Procedia 00 (2018) 000–000

1. Introduction

The emergence of Financial Technology (FinTech) and digital marketplace gained wide attention from industry,
research, public or private organization. FinTech is an important concept and application that trigger researches in
any sectors including farming and agriculture. As digital marketplace enables new forms of communication and
transactions between actors within agriculture’s business process (consumers, suppliers, farmers, investors,
distributors, etc.), smart connectivity is an essential part for sustainability and productivity. Agriculture is associated
with agricultural economics and management studies to explore development of food economies and sustainability
[1]. In traditional business process, farmers especially in developing countries suffer some problems of funding
deficiencies, capital issues, limited access to financial institutions, and lacking access to the market. There are also
many layers involved in agriculture’s supply chains from farmers to consumers creating additional cost for product.
Digital marketplace has changed many business processes almost in any sector [2]. Introducing digital marketplace
with FinTech enabled could advance e-agriculture that has become the action plans in declaration of the World
Summit on the Information Society (WSIS) where The Food and Agriculture Organization (FAO) has the
responsibility of implementing e-agriculture [3]. Digital marketplace in agriculture is needed to support market
demand for quality of agricultural products with a cheaper price from diverse geographical locations.
Digital marketplace will accelerate changes in demand, leading to a growing interest in foods from diverse
geographical locations [4]. Therefore, accommodating FinTech in digital marketplace could overcome frequent
problems of financial issues faced by farmers and encourage public to invest into agriculture [5]. Digital marketplace
as a platform will empower with the massive information instantly that they can reach out to almost everything
through the Internet using their smartphone to find any information that they need or going further by making online
transactions anywhere and anytime [6]. The study proposes a model of digital marketplace with FinTech enabled in
agricultural setting. Digital marketplace will act as system intermediaries that can be accessed by all the actors
involved based on their respective roles. The main role of digital marketplace is to link producers and consumers so
that goods or services can flow from producers to consumers directly with less intermediaries. Similarly, digital
marketplace in agriculture involves e-commerce transaction linking producers or farmers to customers and
wholesalers. It may include managing the flow of transactions and distribution for business-to-business (B2B),
business to consumers (B2C) and consumer-to-consumer (C2C). Then, any financial transaction occurred within
digital marketplace are supported by its FinTech.

2. Literature Review

There are several actors in agriculture business linking the first line processors, wholesalers, manufactures, retailers,
manufacturers, and finally customers. Figure 1 shows the most common actors involved in agribusiness’s supply
chain. The first line processors refers to all actors involved in processing raw agro products, i.e., farmers,
landowners, and investors. In case of small medium agro enterprises, first line processors sell directly to customers.
However, the most common type of digital marketplace in the agro product sector is business to business (B2B) [7].
Sometimes, farmers own land and invest at the same time. However, there are condition where farmers do have land
but do not have enough funding. Farmers receive funding from investors or bank to buy seeds, fertilizers, and any
supporting tools. In another conditions, farmers rent a land from landowners and lend venture capital from investors.
Then, these actors are suppliers or distributors. Suppliers, distributors or business providers act as intermediaries that
can dominate supply chains activities by controlling the flow of goods as well as prices from first line processors to
customers, wholesalers, or retailers. These are many layers existed from the first line processors to customers that
each layer incurs additional cost. The existing model also portrays limited sources of funding and access to the
market for first line processors. While, Customers have less control over products’ option and pricing.
236 Muhammad Anshari et al. / Energy Procedia 156 (2019) 234–238
Muhammad Anshari et al./ Energy Procedia 00 (2018) 000–000

Fig. 1. Supply chains in Agribusiness. Source: Authors’ Compilation, 2018.

2.1. Digital Marketplace

There are problems of non-information-based business in agriculture so that the dependency on ICT to conduct
business operations is lesser than service industries. However, competition’s landscape has intensified with the free
trade zone that allows any goods, products and services to freely move with less restriction among the countries,
implying that ICT in agriculture will instill high impact on the future growth of agribusiness for sustainability,
competitiveness and the long-term survival. In addition, businesses has rely on advance supply-chain management
to support customers in making quick, effective, and efficient reservations. Customers search best available
agriculture products as well as making reservations use web/Apps. Web/Apps provides convenience, easy access, up
to date information, price comparisons, time saving. The emergence of digital marketplace for agriculture will no
longer be a choice for many business organizations rather it has become a competitive necessary for them to stay in
the market. Digital marketplace will drive innovation including in agribusiness by introducing a platform as
intermediaries which is a service provider that connects investors, landowners, farmers, and customers in a single
platform of mobile market. It offers customers to have direct access to the first line processors using their
smartphones. It will make customers to gain more bargaining power as they can compare prices, quality, delivery,
and services from multiple suppliers [8]. While, social media within the platform is a powerful tool to support
internal communication and knowledge sharing as well as the quick dissemination of information [9]. Furthermore,
social media can be used by service providers to learn people or customers’ behavior by extracting data from the
conversation that takes place in the social networks [10, 11].

2.2. Financial Technology (FinTech)

FinTech is the innovative use of technology to deliver financial services and products offering a user-friendly and
convenient ways of managing finance for its consumers in apposition with traditional methods. Additionally,
Fintech is also referred as the future of banking and finance that simply provide the technology to financial service
providers [12]. FinTech and its financial services can aid agriculture’s sector to compete in a global economy
through crowdfunding, mobile payments, money transfers, loans, fundraising, asset management, and
payments/billing. FinTech is considered innovative because it can be easily connect all the actors in the business line
into a single platform. For instance, crowdfunding in FinTech can connect first line processor (Figure 1) to the
public as investors and at the same time as customers for the products. It enables peer-to-peer investment where
individuals lend money to first line processors without using an official financial institution as an intermediary.
Furthermore, FinTech’s payment facilitates pay online with a virtual payment account.

3. Method

Some referred journal publications were used to find all sources for referencing mostly in English languages. The
methods employed of content analysis of the research on agriculture’s business process, digital marketplace and
FinTech published in peer-reviewed journals. Then, the results were clustered into a thematic of technical,
conceptual, and modelling of digital marketplace in agriculture. In our analysis, we examined the business process
 Muhammad Anshari et al. / Energy Procedia 156 (2019) 234–238 237
Muhammad Anshari et al./ Energy Procedia 00 (2018) 000–000

of mobile commerce in agribusiness. Subsequently, we used the results of analyses to formulate model and
recommendations.

4. Discussion

Digital marketplace with FinTech enabled are driven with the massive adoption of smartphone so that many
business transactions including in agriculture are conducted through smartphones, including transactions in
investment, payment or buying online. Smartphones has become a front-end device of digital marketplace where
customers, suppliers, and investors engage in business transaction directly or indirectly and also be used as tools to
manage business remotely. Early business type in the agriculture is business to business (B2B), this is because the
market is fragmented, the supply chain is inefficient, buyers change sellers regularly and the value of the products is
usually volatile [13].
As smartphones are utilized for many business transactions, then business organizations, including agriculture
sectors embrace mobile technology developing mobile business platform. Figure 2 shows the model of digital
marketplace with the FinTech enabled namely AgroPay. Digital marketplace as a platform acts as business
intermediaries that connects to all actors. The platform can be based on Web or Apps that allows communications
and transactions among actors can be conducted using smartphones. Double arrow directions indicate that the flow
of data/information is reciprocal for connecting actors.

Fig. 2. Modelling Digital Marketplace with AgroPay as FinTech’s platform. Source: Authors’ Compilation, 2018

As comparison, in conventional business intermediaries, suppliers or business owners control the flow of goods
and products’ pricing from first line processor to their customers (Figure 1). However, digital marketplace as the
platform changes business process by removing the layers of business owners so that all actors may have direct
access for transaction and exchange of information [14]. For instance, customers can make transactions directly to
the farmers by picking up from their Apps and pay the farmers through their AgroPay account. While, farmers could
buy fertilizers from suppliers from the platform and also pay through AgroPay. B2B transaction in digital
marketplace has enabled business customers (i.e. Hypermart) to order directly from first line processor whenever
they need to get stock for agriculture freshly from the farm. Digital marketplace has changed the role of business
intermediaries by reducing the control of data flows from investors, farmers, and customers. At the same time,
introducing FinTech through AgroPay will make cashless transaction easy for all the actors. The platform provides
service for all parties forming a direct set of business line. Furthermore, the niche of the platform is mobile services
where all parties can participate in business activities at any time and from anywhere.

Fig.3 Crowdfunding interface at AgroPay

238 Muhammad Anshari et al. / Energy Procedia 156 (2019) 234–238
Muhammad Anshari et al./ Energy Procedia 00 (2018) 000–000

The other FinTech initiative in the platform is crowdfunding system (Figure 3). Crowdfunding will allow farmers to
easily get source of funding from the public. Crowdfunding allows farmers to expand their agribusiness by
providing everyone the ability to invest and track their investment of their agriculture product from their
smartphones. The first line processors might offer investors to choose their agriculture products from short-term
investment on short-cycle plants such as peanut or vegetables to long-term investment on fruit trees such avocado or
dates. Potential investors can be anyone that invests on agriculture products for specific timeframe from seeding to
harvesting depends on type of product.
Conclusion
Smartphone is a general-purpose device that can be used to access, process, present information as well as facilitate
business transactions. Digital marketplace with FinTech enabled can be a very useful platform for conducting
business transactions on agriculture as they can be done conveniently at anytime from anywhere. The platform can
be expected to attract all actors in agribusiness, conducting business transactions transparently and conveniently
with personalized services. AgroPay provides necessary functions for investors to conduct transactions efficiently
anytime-anywhere. Investors through crowdfunding can select from the wide-range agriculture products through
their smartphone to invest. In addition, customers are empowered to access directly on price and making comparison
on various agriculture products offered and pay directly using AgroPay as other FinTech initiative. This will cause
an increase price competition among agro products suppliers and improve sustainability of agriculture product
through FinTech.

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