How AFPI Get People to Choose a Legal Fintech Platform

There are still many cases of illegal online lending platforms (fintech lending) being found. The Indonesian Joint Funding Fintech Association (AFPI) said it has four ways so that people prefer licensed fintech lending, so they don’t get caught in illegal online loans.

The first way, is to create a billing code of ethics. “We set the correct ethics in billing,” said AFPI Multipurpose Funding Fintech Cluster Chairperson Rina Apriana in a virtual press conference on Friday (21/5).

In this code of conduct, the fintech lending platform of AFPI members must not use threats of violence and embarrass borrowers in the collection. They are prohibited from using physical or verbal violence or spreading the borrower’s personal data.

“If there is this practice, we have an official website to report it,” said Rina. The AFPI website explains that the report can be via email pengaduan@afpi.or.id or toll-free telephone at 150-505.

The second way, do a billing force certification. This was done to anticipate violations that were not desired by the collection staff.

Third, diversify the loan. AFPI encourages its members’ fintech lending platform to not only provide consumptive loans, but also be productive.

Encouraging the Community to Apply for Productive Loans as Well

According to him, loan product diversification needs to be done, because currently the portion of loans for the consumptive and multipurpose sector still dominates the distribution of fintech lending loans.

Until the end of 2020, the Financial Services Authority (OJK) noted, the portion of new productive loans was 35.7%. The fourth way, by doing innovation.

“We rely on credit scoring and e-kyc. Not all loans are approved, but it is judged whether they are feasible or not. Approval decisions are fast,” said AFPI Daily Chairman Kuseryansyah.

According to him, in these ways, the fintech lending platform indirectly protects prospective borrowers from loan burdens. Because loans that are approved without paying attention to the ability to pay will be a burden for the borrower.

AFPI also relies on a data center or Fintech Data Center (FDC) which can provide an overview of potential borrowers. The data shared by fintech lenders through the data center is not in the form of a username, but a National Identity Number (NIK).

According to him, data centers can anticipate bad borrowers borrowing funds from multiple platforms. But many people still borrow funds from illegal fintech lending platforms.

“This is very dangerous for the community,” he said, Thursday (20/5). This is because debt collection activities on illegal fintech lending platforms are carried out unethically. In fact, accompanied by terror, intimidation or harassment.

The Public is Urged to be Careful about Illegal Fintech

He also asked the public to be more observant and not access illegal platforms. SWI noted, in April yesterday, there were 86 new illegal fintech lending platforms and 26 business activities without permits that could potentially harm the public.

Since 2018, SWI has blocked 3,198 illegal fintech lenders. In fact, until now the OJK has only granted business licenses to 148 registered fintech lenders. The rise of illegal fintech is in line with the increasing number of complaints to the OJK.

As of December 2020, there were 6,787 complaints. Meanwhile, in March 2021, the total number of complaints to OJK reached 5,421 complaints. Outside the OJK, not a few fintech customers have complained about their problems to other institutions.

For example, the Jakarta Legal Aid Institute (LBH), which in December 2018 received 1,330 complaints. The number of complaints more than tripled to 4,500 complaints in June 2019.

Chairperson of the AFPI Multipurpose Funding Fintech Cluster, Rina Apriana, added that in collecting bills, the association has a code of ethics that all its members must obey.

Some of these codes of conduct include the prohibition of using threats of violence and embarrassing borrowers.

They are prohibited from using physical violence or dressings and are not allowed to share the borrower’s personal data. “If there is this practice, we have an official website to report it,” said Rina.