Technology Improves Well, NPL Fintech Goes Down

Non-performing loan (NPL) trends in financial technology (fintech) industry based on peer to peer lending continue to go down. The Financial Services Authority (OJK) predicts the ratio of non-performing loan by the end of this year to below 1%.

Management Director of Fintech Licensing and Oversight Hendrikus Passagi said NPL industry accumulation of fintech until April 2018 has reached 0.53%. While at the end of January 2018 was 1.28%. It means NPL fintech continues to improve since the beginning of this year.

"Until May 2018 we estimate nearly 0.4%, until the end of this year it is predicted that the NPL rate is below 1%," said Hendrikus. The reduce of default credit of fintech lending is caused by artificial intelligence technology applied by fintech in approval of low-risk loan applications.

OJK keeps pushing the decline of the NPL of fintech lending company. Even so, the fintech NPL ratio will not drop to 0%, because it would be a problem that the data insert in was not real. Furthermore, OJK is conducting a host to host pilot project where all of fintech lending server companies must connect directly to OJK. By that condition, OJK can monitor via online. "Later the financial report that appear is not only every month again, but can every second," said Hendrikus.

The realization of NPL of PT Akseleran Ekonomi Inclusive Indonesia (Akseleran) is still at 0%. Director of Akseleran Christopher Gultom said, the ratio of default credits tend to be stable from May 2018 until the end of Lebaran. It is because Akseleran selectively filters out the potential borrowers.

"We check the financial capability of the borrower, the collateral, and also, the credit record of credit of the borrower," said Christopher. Except of that, Akseleran also regularly checks to the borrower to askthe status of his business, such as through whatsapp.

Meanwhile PT Crowdo Indonesia continues to keep NPL below 1% until the end of this year. General Manager of Crowdo Indonesia Cally Alexandra said, until May 2018 the ratio of default credit below 1%. "We will press at the lowest as possible that expected to below 1%," he said.

This condition is driven by the artificial intelligence (AI) technology,  so that the selection of borrowers is tightly and appropriately chosen. "Furthermore, our loan tenure is fairly short compared to others that is just 1 – 12 months," said Cally.

Source: Antara

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

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