A Comparison Peer to Peer Lending Platforms in Singapore and Indonesia (original) (raw)
Related papers
The Self Regulation on Peer to Peer (P2P) of Lending Industry in Indonesia as Problems and Prospects
Jurnal Pembaharuan Hukum, 2022
The purpose of this research is to find out that the industrial revolution 4.0 has had a significant impact, especially in the use of technology and the internet in daily human activities, both in personal life and in economic activities. This study used a normative legal research method that examines various legal theories related to financial technology both in Indonesia and other countries. The P2P lending service carries out business activities by providing, managing, and operating money-borrowing services by utilizing information technology as a liaison. Peer to Peer (P2P) Lending in Indonesia is regulated in POJK No. 77/POJK.01/2016 concerning Information Technology-Based Lending and Borrowing Services. This regulation is the basis for the implementation of P2P Lending business activities or online borrowing, which is one type of fintech, including regulations regarding supervision carried out by the Financial Services Authority (OJK) on the implementation of these business activities. However, in practice, lending by P2P Fintech has attracted a lot of controversies because there are still many problems, including interest arrangements, the rise of illegal fintech applications and also the weakness of consumer protection where these things have not been fully addressed and regulated by POJK No. 77/POJK. 01/2016.
Peer-to-Peer (P2P) Lending in the Digital Age: Indonesian Context
The 6th Gadjah Mada International Conference on Economics and Business (GAMAICEB), 2018
Latest data from Asosiasi Fintech Indonesia, financial technology in Indonesia has been growing from 9% in years 2013-2014 to be 78% in years 2015-2016. With the trustful new system, P2P lending scheme has potential to continue growing and support Indonesian economy. Since peer to peer (P2P) lending service has been growing rapidly these days, this paper aims to understand which factors could support the growth of P2P lending service in Indonesia. Several factors that support P2P lending are better macroeconomics condition, demographic changes, consumer behavior, growth of financing, and support from regulation. P2P lending itself is categorized in 3 groups, which are: personal borrowing, small business borrowing, and borrowing for students. Using Global Findex Database 2014, we conduct logit and margins regression across ASEAN countries, controlling the country. Combining the analysis with literature review, we found two main results. Male, younger people, and the poorest 20% of income group tend to have higher probability to borrow money. Probability of people in the poorest 20% group to borrow money is approximately 0.53, while probability of the richest 20% to borrow money is only 0.47. Among ASEAN countries, people in Indonesia, along with Cambodia and Philippines, have higher probability to borrow money; which is around 0.60, 0.61, and 0.75, respectively. In particular, Indonesia has two main factors which will contribute to the potential of its growth: demographic composition dominated by younger age; and the presence of potential regulation which has already been applied in its financial environment. Combining those analysis, we conclude that P2P lending service is potential to continue growing in Indonesia.
Seluk-Beluk Peer to Peer Lending Sebagai Wujud Baru Keuangan DI Indonesia
2019
ABSTRAK Perkembangan teknologi informasi telah membuat inovasi keuangan berbasis teknologi (financial technology). Dengan berkembangnya inovasi ini, kini hadir sebuah sistem pinjam-meminjam uang yang diwadahi oleh sebuah platform dari perusahaan penyedia layanan yang disebut peer to peer lending (“P2P Lending”). Ini adalah terobosan dari inklusi keuangan dalam mengatasi sistem permodalan yang belum dapat terjangkau oleh lembaga keuangan resmi seperti perbankan. Untuk itulah, Jurnal ini dibuat untuk menganalisis mekanisme usaha dan kelebihan serta kekurangan, mitigasi risiko, serta perlindungan bagi Peminjam dan Pemberi Pinjaman di industri P2P Lending. Secara singkat, mekanisme dari P2P Lending ini ialah Pemberi Pinjaman memberikan pinjaman kepada Peminjam yang telah disaring oleh platform. Melalui P2P Lending, Pemberi Pinjaman memperoleh keuntungan dari bunga atas pinjaman yang diberikan sekaligus kerugian yang mungkin akan dialami seperti risiko gagal bayar. Peminjam memperoleh ke...
IOSR Journal of Humanities And Social Science (IOSR-JHSS), 2020
Abstract: Discussion: Bank of Indonesia Regulation Number 19/12PBI/2017 on Financial Technology defines Financial Technology (fintech) as the technology-based financial system that develops products, services, technologies, and new business models. Fintech also influenced the monetary stability, financial system stability, efficiency, continuity, safety, and reliability of the payment system. As the borrower to peer-to-peer (P2P) lending, consumers have the rights for legal protection in the form of contract, debt counselling, protection against interest rate fluctuation, and other additional fees. Consumer Protection for technology-based lending services is regulated in Article 1 Act Number 8 the Year 1999 on Consumer Protection; Article 1 BI Regulation Number 19/12PBI/2017; and Article 4 to Article 26 Financial Services Authority (OJK) Number 77/PJOK.01/2016. In P2P lending, there are several issues that the debtors faced: the increasing number of illegal fintech companies, debt collection via intimidation, high-interest rate, and personal data misuse. Article 26 OJK Regulation Number 77/PJOK.01/2016 states that the financial services providers must protect the privacy and confidentiality of consumer’s data. Article 6 to Article 8 explains that if a P2P company is not registered in OJK, such company will be perceived as illegal. During debt collection, The Indonesia Fintech Association (AFI) Code of Conduct required all of the P2P companies to promote goodwill. Research Method: This study utilizes juridical empirical research through a qualitative approach. A qualitative approach is a method of analysis that delivers descriptive data analysis—data from respondents which can be in writing, oral, or subject’s behaviours that are studied as a whole. The data were received from respondents and informants. This research refers to Act Number 8 the Year 1999 concerning Consumer Protection and Financial Service Authority Regulation Number 77/PJOK.01/2016 concerning Financial Technology Peer-to-Peer Lending. Conclusion: Key Word: fintech, Consumer Protection, Financial Services Authority Date of Submission: 11-07-2020 Date of Acceptance: 27-07-2020
Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia
Gadjah Mada International Journal of Business
P2P lending offers loans to the public with easy processes and terms. However, the level of P2P lending disbursements is still lower than that of the banks. In addition, a comparison of the number of users of P2P lenders and the productive age population of Indonesia shows that there are still many people who do not use P2P lending. This paper examines the factors that make Indonesians avoid P2P lending. This study used an online survey approach for its data collection and structural equation modeling (SEM) to analyze the data from 499 responses. The study found that the perceived threat from P2P lending is influenced by its perceived severity, perceived susceptibility, and risk tolerance. This perceived threat and social influences cause people’s avoidance motivation. This study contributes to the fintech literature by providing empirical evidence on the avoidance of P2P lending from the borrowers’ perspectives using the TTAT model. Other implications are an input for regulators/go...
The Problems of Consumer Protection in Fintech Peer To Peer Lending Business Activities in Indonesia
Sociological Jurisprudence Journal
Industrial Revolution 4.0 has influenced the development of technology and information. The presence of financial technology (fintech) especially fintech peer to peer lending in Indonesia is proof that the Industrial Revolution 4.0 has had an influence on economic aspects as a fundamental aspect of the country. The implementation of fintech peer to peer lending in providing alternative financing to consumers is currently faced with several problems, especially issues related to consumer protection. This study uses a normative legal research method with a statutory approach. This research shows that the state has tried to provide preventive protection to consumers through several regulations, namely Bank Indonesia Regulation Number 19/12/PBI/2017 concerning the Implementation of Financial Technology that regulates the procedures for implementing fintech in Indonesia and also the OJK Regulation Number 77/POJK.01/2016 on Information Technology-Based Lending and Borrowing Services that ...
Analyzing the Use of P2P Lending Mobile Applications in Greater Jakarta
P2P lending emerged as a result of the digital revolution that met people's needs to borrow funds in an easy way, and became an alternative to other conventional lending methods, such as lending money to banks. With the increasing access to Internet usage in society, public access to P2P lending applications will also be more open. It is proven by the significant increase of transactions in P2P lending applications in current years. Previous research has focused more on the phenomenon of P2P lending growth and its relation to the existing financial ecosystem, namely banking, and research that focuses more on MSMEs as P2P lending application users. Therefore, we see the need for research to find out what factors influence the intention to use P2P lending applications, including knowing the positive impact of perceived ease of use, perceived usefulness, trust, user innovation, and government support for attitude towards using the P2P lending applications, and the positive impact of attitude towards use for behavioral intention to use P2P lending applications. The study was conducted by taking a sample of 150 people who had never applied a P2P lending application and were domiciled in Greater Jakarta. The data analysis method used for hypothesis testing was Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that trust and user innovativeness factors have a positive effect on attitude towards using P2P lending applications and attitude towards use has a positive effect on behavioral intention to use P2P lending applications. Meanwhile, perceived ease of use, perceived usefulness, and government support do not have a positive impact on attitude towards utilizing P2P lending applications.
Detection of fintech P2P lending issues in Indonesia
Heliyon
Financial technology (fintech) is a growing industry in Indonesia, supported by advances in the technological infrastructure. At the end of 2019, the Financial Services Authority (OJK), the financial authority in Indonesia, recorded 164 registered and licensed fintech (P2P lending) companies. However, since early 2018, the Investment Alert Task Force (SWI) and the Ministry of Communication and Information Technology have blocked 1,350 illegal fintech platforms. Illegal fintech lending practices have mechanisms beyond the responsibility and authority of the OJK, including the risk of collection and distribution of personal data. The essence of this study is to discuss the landscape of fintech P2P lending in Indonesia from Indonesian Online News data, explore cases of fintech p2p lending in Indonesia, and understand the rules and policies. Qualitative research with a case study approach and Focus Group Discussion techniques were used to obtain data from 4 stakeholders in the Fintech P2P Lending Industry in Indonesia. VOS Viewer software is used to build keywords from Indonesian Online News collections, NVIVO 12 qualitative software is used to assist data analysis. The research found the keyword clusters most frequently discussed in the Indonesian Online News collection and five case themes such as public awareness about P2P lending (user understanding), data leakage, and restriction of data access, including personal data protection, personal data fraud, illegal fintech lending, and Product marketing ethics.
The Effect of Lender's Protection on Online Peer-to-Peer Lending in Indonesia
Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020, 2019
This study aims to analyze how lender protection for default risk provided by peer to peer lending platform (P2P) effect to prospective lenders' lending intentions in Indonesia, and use platform trust as the mediating variable. We collected and summarized protection terms provided by P2P platform through examined 17 platforms websites and interview two platforms' management. We also survey 303 respondents accessed through online questionnaire. Analysis of this study used Path Analysis of Structural Equation Model (SEM) method run with LISREL software. Respondents are prospective lenders who familiar with P2P Lending concept and some of them are real lenders. We found that there are several policy perceived as protection for lenders, such as having SLIK checking, using machine learning technology to record and analyze loan, joining in international forums related to credit risk management and collaborate with financing company to overcome the risk of shortage fund. We also found that the peer to peer lending platform should be able to build lender trust by making lenders feel protected to invest on the platform despite the possibility of default risk. We suggest that Financial Services Authority (called OJK) may create protection policies to protect lenders in the market like Indonesian Securities Protection Fund (ISPF).
Erratum: Indonesian Peer to Peer Lending (P2P) at Entrant’s Disruptive Trajectory
Business: Theory and Practice
The article “Indonesian Peer to Peer Lending (P2P) at entrant’s disruptive trajectory” by Cliff Kohardinata, Noorlailie Soewarno, Bambang Tjahjadi, published on 17 February 2020 in the research journal Business: Theory and Practice, 21(1), 104−114, https://doi.org/10.3846/btp.2020.11171, contained a following error on 104 p.: The affiliations were mixed. They should read: Cliff KOHARDINATA 1, Noorlailie SOEWARNO 2, Bambang TJAHJADI 3 1, 2, 3 Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia 1 Faculty of Management and Business, Universitas Ciputra, Surabaya, Indonesia Corrected version of the article is available online. The publisher apologises for this error.