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Jakarta Post

ANALYSIS; Peer-to-peer lending: A new form of financial inclusion

  • Reynold Wijaya

Jakarta   /   Tue, November 29 2016   /  10:10 am

The involvement of financial technology (fintech) companies in the field of peer-to-peer (P2P) lending has attracted attention from the public and regulators, namely the Financial Services Authority (OJK) and Bank Indonesia (BI). Players within the financial services ecosystem expect P2P lending to become a solution for the lack of access to financial services in the country and to achieve financial inclusion through synergy with other financial institutions and technology companies.

P2P lending is a digital platform that brings together borrowers — mostly small and medium enterprises (SMEs) — seeking a capital injection and lenders aiming for competitive returns.

The platform offers numerous advantages over banking services. For example, its flexibility allows it to channel capital to virtually anyone, in any amount, effectively and transparently, at low interest rates...