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Jakarta Post

Holistic effort for P2P fintech: Stop the abuse

  • Andre Rahadian and Erwin Kurnia Winenda

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PREMIUM
Jakarta   /   Mon, May 20, 2019   /  09:19 am
Holistic effort for P2P fintech: Stop the abuse P2P lending is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers. (Shutterstock/*)

The past several years have seen the rise of online-based P2P lending firms in Indonesia. These firms, often called “fintech (financial technology) P2P”, serve a very important niche market: bringing financial services to portions of the population previously considered unbankable — taxi drivers, low-income families, poor inner-city youths and other people that had very little to no access to traditional financial institutions. Unfortunately, along with the sharp expansion of these services have come ethical concerns about how these firms conduct their business. These concerns mainly revolve around their (often) predatory lending practices and the rude, and sometimes violent, way their debt collectors often do their jobs. Some of these problems stem from the laser-like focus of these firms on growth. So sharp is this focus that potential customer evaluation and go...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.