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Jakarta Post

Fintech loan disbursement slows amid pandemic

  • Yunindita Prasidya

    Jakarta

Jakarta   /   Fri, July 17 2020   /  01:00 am
An illustration of rupiah banknotes. (JP/Arief Suhardiman)

Indonesian 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...