Fintech Peer-To-Peer (P2P) Lending: Explanation For The Issues In Indonesia

Sheila Silvia Permatasari, Kiko Armenita Julito, Safira Zakkiyah Dwi Santosa

Abstract


Financial technology (fintech) in Indonesia is developing rapidly. This is demonstrated by the acceleration of digital development and transformation in this country. The interaction between society and financial services has evolved very quickly over the last few years. On October 9, 2023, there were 101 companies as the total of Fintech peer-to-peer lending companies which listed at Otoritas Jasa Keuangan (OJK) or Financial Service Authority. However, from 2018 to 2023, OJK was recorded as having blocked 6,680 illegal fintech lending companies. The illegal Fintech lending companies have many risks. This research will observe several fintech lending problems in Indonesia along with the explanations of why these things occur. A qualitative approach will be used as a method in this research with NVIVO 14 software as a tool for analyzing data. The results of this study have provided an explanation of several problems that occur in Indonesia regarding FinTech P2P lending. Several of these problems are outlined into five points including: unclear admin fees; illegal access obtained from borrowers; threats, slander, fraud, sexual harassment; data misuse, high interest rates without limits.

Keywords


FinTech Lending, P2P, Financial Technology

Full Text:

PDF

References


Hijden, P., & Wende, M. (2020). Mitigating brain drain by connecting universities. International Higher Education, 1-7.

Suryonoa, R. R., Budia, I., & Purwandaria, B. (2021). Detection of fintech P2P lending issues in Indonesia. Sriwijaya International Conference International Conference of Information Technology and Its Applications (pp. 1-10). Surabaya: Siconian.

OJK. (2016). Financial Services Authority Regulation Number 77 of 2016 Concerning Information Technology- Based Lending and Borrowing Services. Jakarta: Otoritas Jasa Keuangan.

Nigmonova, A., Shams, S., & Alam, K. (2024). Liquidity risk in FinTech lending: Early impact of the COVID-19 pandemic on the P2P lending market. Emerging Market Review, 1-20.

Suryono, R., & Budi, I. (2019). P2P lending sentiment analysis in Indonesian online news. Sriwijaya International Conference International Conference of Information Technology and Its Applications (pp. 39- 44). Surabya: Siconian.

OJK. (2024, March 25). Statistik P2P Lending Periode Januari 2024. Retrieved from Otoritas Jasa Keuangan: https://ojk.go.id/id/kanal/iknb/data-dan- statistik/fintech/Pages/Statistik-P2P- Lending-Periode-Januari-2024.aspx

Chen, S., Gu, Y., Liu, Q., & Tse, Y. (2020). How do lenders evaluate borrowers in peer-to- peer lending in China? International Review of Economics and Finance, 651– 662.

Suryono, R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (Fintech): a systematic literature review. Journal of Information, 1–20.

Caglayan, M., Talavera, O., & Zhang, W. (2021). Herding behaviour in P2P lending markets. Journal of Empirical Finance, 27–41.

Nigmonova, A., Shams, S., & Alam, K. (2024). Liquidity risk in FinTech lending: Early impact of the COVID-19 pandemic on the P2P lending market. Emerging Markets Review, 1-20.

Moon, M. D. (2019). Triangulation: A Method to Increase Validity, Reliability, and Legitimation in Clinical Research. Journal of Emergency Nursing, 103–5.

Yuniarti, S., & Rasyid, A. (2020). Consumer Protection in Lending Fintech Transaction in Indonesia: Opportunities and Challenges. ICComSET 2019 (pp. 1-7). Jakarta: IOP Publishing.

Basha, S. A., Elgammal, M., & Abuzayed, B. (2021). Online peer-to-peer lending: A review of the literature . Electronic Commerce Research and Applications , 1- 19.

Yeh, J., Chiu, H., & Huang, J. (2024). Predicting failure of P2P lending platforms through machine learning: The case in China. Financial Research Letter, 2-11.

Deng, J. (2022). The crowding-out effect of formal finance on the P2P lending market: An explanation for the failure of China’s P2P lending industry . Finance Research Letters, 1-6.

Hadiyati, N. (2021). Illegal Fintech P2P Lending in Indonesia: Addressing the Problem of Over-Indebtedness During the COVID-19 Pandemic . JURNAL JURISPRUDENCE , 1-16.

al, Y. e. (2024). Liquidity and Credit Risk in Indonesia: The Role of FinTech Development . SAGE Open, 1-20.

Pranoto, Kholil, M., & Tejomurti, K. (2019). FINTECH LENDING: CHALLENGE AND OPPORTUNITIES OF THE INDONESIA’S LOAN UNBANKED TO DEVELOP THE INCLUSIVE FINANCIAL INDUSTRY . HANG TUAH LAW JOURNAL , 105-119.

Rossiana, G., & Mulia, K. (2024, Februari 21). Indonesia's top P2P platforms meltdown spooks retail lenders . Retrieved from Nikkei Asia: https://asia.nikkei.com/Spotlight/DealStre etAsia/Indonesia-s-top-P2P-platforms- meltdown-spooks-retail- lenders#:~:text=Troubles%20in%20Indo nesia's%20peer%2Dto,to%20drive%20a way%20retail%20lenders.&text=JAKAR TA%20%2D%2D%20Indonesia's%20pee r%2Dto,being%20put

Dessy, A. (2024, January 5). The Development of Peer-to-Peer Lending in Indonesia.Retrieved from Medium: https://medium.com/@angelinadessyw/th e-challenge-of-developing-peer-to-peer- lending-in-indonesia

Sirait, J. S. (2021, September 16). Pinjol Ilegal, Gugur Satu Tumbuh Seribu - Terjerat Pinjol (Part 4) | Mata Najwa. (N. Sihab, Interviewer)

Rizki, F. (2024, May 17). JEBAKAN PINJOL : Aturan, Bunga, Oknum dan rendahnya pengetahuan. (W. Image, Interviewer)

Robert. (2023, December 12). Pinjol Illegal Makin Gawat . (R. Files, Interviewer)

Rooshenas, L., Paramasivan, S., Jepson, M., & Donovan, J. L. (2019). ntensive Triangulation of Qualitative Research and Quantitative Data to Improve Recruitment to Randomized Trials: The QuinteT Approach. Qualitative Health Research, 72-79.

Natow, R. S. (2020). The Use of Triangulation in Qualitative Studies Employing Elite Interviews. . Qualitative research, 60–73.




DOI: https://doi.org/10.52447/jam.v10i2.9078

Refbacks

  • There are currently no refbacks.