Even for people who already have access to banking, fintech still provides convenience. It is easier for people to make financial transactions. Financial transactions that were originally made with cash or using a debit or credit card, can now be done by tapping the QR Code using a smartphone. Payment transactions, money transfers, fundraising, loans to investment management can also be done easily and practically using technology.
What is Fintech?
Fintech or financial technology is synonymous with start-ups that use information technology in providing financial services. To get a better picture, you should know what services a fintech provides.
Bank Indonesia divides the classification of fintech types into four types based on the services provided. These are:
a. peer-to-peer (P2P) lending and crowdfunding;
b. payment, clearing, and settlement;
c. risk and investment management;
d. market aggregator.
Types of Fintech
- Peer-to-peer (P2P) lending and crowdfunding
The first platform is P2P lending and crowdfunding. This one platform brings together those who need funds with those who are willing to provide funds. If P2P lending brings together parties who want to seek loans with people who want to invest. While crowdfunding is more social in nature.
- Payment, clearing, and settlement
The most used platform from this category is the fintech payment platform. You must be familiar with using electronic money such as Doku and Dana. The two platforms are included in the category of payment, clearing, and settlement.
- Risk and investment management
Examples of fintech platforms in this category are Investree and Bareksa. Through this category of fintech, you can manage your personal finances, manage risk from planning practically. You only need to install an application that you can access from your smartphone and then fill in the requested data regarding financial management.
- Market aggregator
Examples are financer or arranger. Fintech in the market aggregator category is a fintech that collects financial-related information to be conveyed to its users. This information varies, it can be about general tips for managing, investing, to credit card information.
Regulation in Indonesia
In Indonesia, fintech is growing rapidly. If you want to use it to support your business, or even want to create your own fintech company, it’s a good idea to check the regulations in Indonesia. This regulation is issued by the Otoritas Jasa Keuangan (OJK). Some of the relevant regulations are as follows:
OJK Regulation Number 13/POJK.02/2018 concerning Digital Financial Innovation in the Financial Services Sector,
OJK Regulation Number 35/POJK.05/2018, which is concerning the Business Implementation of Financing Companies,
OJK Regulation Number 37/POJK.04/2018 concerning Crowdfunding Services Through Information Technology-Based Stock Offerings (Equity Crowdfunding).
By taking into account the applicable regulations or legal basis, both fintech companies and users are guaranteed more secure and comfortable in financial transactions.