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View all search resultsFintech loan disbursement slows amid pandemic
Fintech P2P loan disbursement grew just 3.12 percent year-on-year (yoy) in May to a total of Rp 109.18 trillion (US$7.59 billion) from Rp 106.06 trillion as of April.
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I
ndonesian financial technology (fintech) peer-to-peer (P2P) lending companies have recorded slowing growth in loan disbursement as the economic impact of the pandemic pushes start-ups to be more careful in channeling their credit.
Indonesian Fintech Lenders Association (AFPI) deputy chairman Sunu Widyatmoko acknowledged that several customers faced difficulty in accessing loans as the coronavirus outbreak unfolded.
“The COVID-19 pandemic has caused several platforms to decrease new loan disbursement,” he said during a webinar held by the AFPI on Monday.
He explained that the loan process was now tougher for new applications and that it was an inevitable consequence of an industry that targeted underserved and unbanked users, or the so-called “bottom of the pyramid”, whose loans would inevitably incur more risks.
Financial Services Authority (OJK) data show that loan disbursement from fintech P2P lending has slowed in recent months.
The growth of loan disbursement was only 3.12 percent year-on-year (yoy) in May to a total of Rp 109.18 trillion (US$7.59 billion) from Rp 106.06 trillion as of April. During the same period last year, loan channeling grew 10.87 percent annually to Rp 41.03 trillion.
At the same time, bank loan disbursement grew just 3.04 percent yoy in May, much slower than 5.73 percent in April, as the coronavirus battered the real sector.
