Data Protection in Financial Technology Services (A Study in Indonesian Legal Perspective) (original) (raw)

The Role of The Financial Services Authority in The Legal Protection of Privacy Rights in Connection with Personal Data of Fintech Lending Debtor in Indonesia

PADJADJARAN Jurnal Ilmu Hukum (Journal of Law), 2019

The speed of disbursement of funds also makes fintech lending seems easy. Consequently, many people are interested to make credit. There are more than 900 alleged violations of law and human rights by online funding applications, including alleged violations of the privacy rights of the debtor’s personal data where billing is submitted not only to the debtor but also to all telephone contacts stored on the debtor’s cellphone without consent. This study is a prescriptive normative study through library research to look for secondary data by using primary, secondary, and tertiary legal materials and field researches. The study reveals several results. Firstly, although the Regulation of the Financial Services Authority Number 77 of 2016 has been published, fintech providers registered in the Financial Services Authority have not upheld a legal culture to protect debtors on the use of debtors’ personal data. Secondly, fintech lending makes it easier for Indonesian people to have a posi...

Financial Technology and the Legal Protection of Personal Data: The Case of Malaysia and Indonesia

Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 2020

The presence of digital technology brings significant changes in many aspects of human life, including the economy and financial services. The rapid development of financial technology (fintech) is being responded quickly by many countries including Indonesia and Malaysia. Not only conventional fintech, but Sharia fintech is also developing significantly in both countries. This phenomenon is caused by the efficiency and ease of fintech. However, fintech in Indonesia is not followed by a comprehensive protection of personal data. The absence of special regulation on the protection of personal data in Indonesia causes the data often be misused by certain parties such as being stolen, sold, transferred and eliminated irresponsibly causing harm to fintech users. Meanwhile, Malaysia has built a legal system of personal data protection since 2010 and becomes the first country in the ASEAN region to have a comprehensive personal data protection law system. Therefore, the article aims to ov...

Jurnal Nasional Terakreditasi SINTA 5 dengan Judul "The Fintech Phenomenon: Protection of Consumer Privacy Data in Online Lending

Universitas Bhayangkara Jakarta Raya, 2021

Financial technology innovation that occurs nowadays leads to accelerated changes in the financial sector. However, these developments are like double-edged swords, on the one hand they provide convenience for consumers, on the other hand pose risks for consumers related to the confidentiality of their personal data. Money lending business through Peer to Peer lending (P2P lending) system often results in consumers receiving threats when they are late making payments. This paper presents several cases that result in consumers experiencing personal data theft, receiving threats directed at relatives or acquaintances. Even committing fraud by taking money from borrowers or customers without following the regulations made by the Financial Services Authority (OJK). The research data is carried out in a qualitative normative way where the data is translated based on legal norms and uses legal theory that can explain and answer existing legal problems.

Financial Technology: Legal Challenges for Indonesia Financial Sector

IOP Conference Series: Earth and Environmental Science

The global financial services sector is transforming as technology advances. Various types of technology based innovative financial business models or financial technology (fin-tech) are growing rapidly around the world, including Indonesia. The Financial Stability Board (FSB) incorporates the fin-tech progress in its work plan in 2017 in the perspective of financial stability. In Indonesia, the Financial Services Authority has issued the Financial Services Authority Regulation No: 77 /FSAR.01/ 2016 on Technology-Based Lending and Borrowing Services to provide a legal basis for fin-tech activities, in particular services with peer to peer lending models. In practice, fin-tech in Indonesia is not only used to facilitate lending and borrowing, but also used for other business models, especially start-up business, investment and social activities, which are not included in the scope of lending and borrowing. On the other hand, fin-tech development in Indonesia is expected to contribute to economic development, particularly in facilitating micro, small and medium enterprises to gain access to finance. The advantages of fin-tech include cost efficiency and ease of access to finance, but on the other hand there are some obstacles and risks that potentially arise, such as credit risk, insufficient technology, misuse of funds and user/consumer data and protection of national interests such as money laundering as well as disruption to monetary stability. Therefore, in addition to the need for comprehensive regulation, supervisory aspects by the financial services authorities are urgently needed to make fin-tech a part of the financial services sector.

Consumer Protection in Lending Fintech Transaction in Indonesia: Opportunities and Challenges

Journal of Physics: Conference Series, 2020

Currently, lending fintech is proliferating. It is because of the high financing needs of the people who have not been reached by the banks. The existence of lending fintech is getting stronger with the issuance of the Financial Service Authority Regulation Number 77 of 2018 concerning Information Technology-Based Money Lending and Borrowing Services. Until August 2019, there were 127 lending fintech registered in the Financial Service Authority. Unfortunately, there is still a problem concerning protecting consumers who make loan transactions with fintech companies, along with the rise of illegal fintech companies. Therefore, this paper tries to analyze the potential development of lending fintech in Indonesia, along with its opportunities and challenges. The study of this research uses normative juridical. This paper concludes that the current regulation is still not enough in providing legal protection to consumers in conducting the transaction in lending fintech. Therefore, it i...

The Urgency of Law Renewal Regarding the Protection of Consumer Personal Data in Financial Technology Companies That Abuse Consumer Personal Data Protection

Scientia

The use of Financial Technology based on Peer to Peer Lending in information technology-based lending andborrowing services in Indonesia has always increased, especially since the Covid-19 pandemic. In the use ofFinancial Technology based on Peer to Peer Lending, consumers must provide personal data including alldata, information, information and documents, both electronic and non-electronic and emergency telephonenumbers. Unfortunately, there are cases of misuse of personal data, namely if consumers have not paid off theloan, the Financial Technology Company threatens to disseminate photos and personal data of the borrowerif they do not pay off the loan immediately. One of the factors that influence the misuse of personal datais the absence of facilities and regulations that comprehensively regulate the protection of personal datain Indonesia. The purpose of this study is to analyze of legal protection against consumer personal data inFinancial Technology companies. This research u...

Legal Protection of Personal Data Financial Technology Based Online Loans from The Consumer Protection Act

Walisongo Law Review (Walrev)

This study aims to determine the legal protection of personal data financial technology (Fintech) based on online loans in terms of the Consumer Protection Act and what are the legal consequences of personal data violations by fintech companies based on online loans in terms of the Consumer Protection Act. The type of research used is normative legal research. The conclusion of this study is that the legal protection of consumer personal data has been regulated by the Financial Services Authority (OJK) Circular and the Regulation of the Minister of Communication and Information concerning Confidentiality, Integrity and Security of Consumer Personal Data or Information and the Legal Consequences of Personal Data Violation, which is regulated in Article 47 of the Authority Regulation. Financial Services Number 77/POJK.01/2016 is an administrative sanction, then there is the Personal Data Protection Bill which regulates criminal sanctions. Penelitian ini bertujuan untuk mengetahui perl...

The Evaluation of the Indonesian Fintech Law from the Perspective of Regulatory Technology Paradigms to Mitigate Illegal Fintech

Jurisdictie: Jurnal Hukum dan Syariah, 2024

Illegal fintech is one of the main issues not fully addressed in the digital finance sector in Indonesia despite various legal regulations. This condition shows that the fintech legal framework in Indonesia still needs to be entirely relevant to the concept of Regulatory Technology (regtech). This study aims to analyze the position of the fintech legal framework in Indonesia in overcoming illegal fintech with a regtech approach chosen as an analytical instrument-a basic concept that combines law and digital financial technology to create an orderly platform and comply with all applicable laws. This article uses normativelegal research methods and a conceptual approach, indicating that the legal framework governing fintech in Indonesia fragments, with rules spreading across the civil, administrative, and criminal sectors. This legal framework still needs to be reinforced as a legal tool to overcome the problem. Based on the regtech approach, increased transparency and accountability in fintech implementation are essential as legal support for dynamic supervision and law enforcement and to allow for wider access to cooperation between stakeholders

Indonesia Data Protection in the Use of M-Banking, Is It Save?

Jurnal Magister Hukum Udayana (Udayana Master Law Journal)

Banking is one of the institutions in the financial sector that provides services to users and customers. The development of science, information, and technology, makes it easy to develop the banking system itself, by developing systems and services that aim to provide facilities and pamper its customers. With regard to flexibility, efficiency and practicality. Thus, was born a new method in developing banking services for customers, where the system is called electronic banking, or usually with the term e-banking which allows customer service users to use it, anywhere and anytime, not limited by time with the service. As for the making of this journal, he uses an approach to the type of normative legal research, where research is carried out in research conducted by examining library materials related to this issue. The problem raised by the author is how the normative juridical review is related to the protection of bank users using M-Banking from the threat of crime in the digita...

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 ...