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Amid growth in fintech, government balances innovation with risk
The government is currently seeking to bolster security for financial technology (fintech) customers without disrupting the development of fintech businesses and innovation.
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Deputy Finance Minister Mardiasmo delivers a speech in the third annual Islamic Finance Conference in Makassar, South Sulawesi, on July 4. (JP/Riza Roidila Mufti)
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he government is currently seeking to bolster security for financial technology (fintech) customers without disrupting the development of fintech businesses and innovation.
Deputy Finance Minister Mardiasmo said that the positive impact of fintech, including in technological innovation, came with a number of risks, including fraud, data breach and cybersecurity issues.
“Fintech regulations that are too rigid will disrupt the ability to innovate. On the other hand, regulations that are too loose will create greater risks for consumers,” he said at the third annual Islamic Finance Conference in Makassar on Wednesday.
He said the number of fintech companies had grown rapidly in recent years.
Citing data from the Indonesian Fintech Association (AFTECH), Mardiasmo said the number of fintech companies in 2017 was 235, an increase from the 165 recorded in 2015 and 2016 and the 25 recorded in 2011 and 2012.
Mardiasmo said during the 3rd Annual Islamic Finance Conference in Makassar, South Sulawesi, that there were a number of models in fintech, focusing on areas such as lending, digital payments, financial marketplaces and financial planning.
Growth was also recorded in the industry's overall transaction value, which reached US$18.6 billion in 2017, a 19.23 percent increase from the US$15.6 billion recorded in the corresponding period in 2016. (bbn)
