Plus Minus Fintech Business

It is undeniable if digital technology in the financial sector or financial technology (fintech) is growing very rapidly in Indonesia. It is because fintech provides convenience and comfort in transaction.

Just imagine, you who are in need of money loans do not need to bother coming to a conventional financial institution. You simply be in front of the mobile phone or computer and meet all the requirements then investors will dilute the loan to you.

Not surprisingly, if the fintech business is touted as an innovation in financial services, even it is only a platform not a formal financial institution like a bank. Armed with this information technology base, the financial services provided are made through electronic systems using the internet network (in Rupiah currency).

At least, for those of you who want to enter the business world of fintech, knowing what the shortcomings and advantages of this business increasingly make your eyes open, that every business has its own risks and benefits. Here are some shortcomings and advantages of fintech that you can learn:

Deficiency (Minus)

  • The risk of financing if bad is difficult to trace
  • Risk management is not overseen by OJK (Financial Services Authority) but, by individual companies for lending disbursement. This is different from a formal financial services agency whose risk management is channeled by OJK
  • High interest due to the application of interest is done by the lender (lender), although in its implementation not to incriminate the borrower
  • Lack of transparency in financial performance due to non-OJK supervision as performed by formal financial institutions

Advantages (Plus)

  • Easy access because it is done via online (digital)
  • Affordable, especially for those who are often rejected by banks for one reason or another
  • Efficiency from cost to staff / employees who do not have to be met like a formal financial services company

Apart from the above deficiencies and advantages, you who wish to enter the fintech world must at least comply with the regulations of Bank Indonesia or the Financial Services Authority associated with it. The goal is to keep your business on a legal path.

To ensure a smooth investment and business operation from the legal perspective, but also still focus on maintaining your business in Indonesia and reach your revenue target, it is advised for you to find capable and trusted lawyers or legal consultants for advice and assistance in ensuring your legal compliance with prevailing trading laws and regulations.

SMART Consulting is an Indonesian Corporate Legal Services firm. We have assisted local and multinational companies in handling their corporate legal matters, including preparing resolutions and general meeting of shareholders for their Client, liaising with BKPM in regards to Client investment and business licenses, and acting in an advisory capacity for the Client.

Contact Us Now to get your legal solution for your business goals, and still comply with the prevailing laws and regulations.
H: +62821-1234-1235

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