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Online lenders join data center to foil recalcitrant borrowers
The Financial Data Center (FDC) was launched by the Indonesian Fintech Lenders Association (AFPI) and the Financial Services Authority (OJK) in November of last year to help platforms identify excessive borrowing, bad credit and fraud from the data stored by other FDC members.
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P2P lending is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers. (Shutterstock/*)
F
ive major peer-to-peer (P2P) lending platforms have formally joined the Fintech Data Center established by the Indonesian Fintech Lenders Association (AFPI) late last year to protect online creditors from recalcitrant borrowers and bad debt.
The association’s technical support head Ronald Andi T. Kasim said that by joining the data center, the five online lending apps could get data on the profiles of potential borrowers, their characteristics and the performances of their loans on other lending platforms.
With such data, online lending platforms that have joined the data center can better vet their potential borrowers so they can prevent bad debt and delinquency, he said.
Ronald said that the five online lending platforms, which consist of Finmas, Danamas, Maucash, Julo and Mekar, were chosen as the pioneers to join the data center because they were most prepared and had obtained licenses from the Financial Services Authority (OJK).
“Hopefully all 164 registered fintech lenders will join at the end of the first semester,” Ronald said during a press conference in Jakarta on Feb. 5.
Several other lending platforms are eager to join the FDC, but they have been unable to fulfill the requirements such as integrating data related to their borrowers’ profiles into the data center.
The head of the association’s institutional and public relations department, Tumbur Pardede, said the data center could help the online lending platforms detect recalcitrant borrowers and potential borrowers who had already borrowed excessive funds from other platforms.
