AFPI Survey: P2P Lending Record 5% Business Decrease Due to Pandemic

The Indonesian Joint Funding Fintech Association (AFPI) reports on the industry p2p loans experienced a 5% decrease in loan distribution from March 2020 compared to the previous month due to the Covid-19 pandemic. It is also mentioned that the decline in business has not had an impact on the level of non-performing loans.

In a short survey conducted by the association on April 6, 2020, respondents stated that TKB90 (90 Days Pay Success Rate) was stable. The association has not received the latest data to see the current conditions. If you look at the OJK data, the industrial TKB90 is at 96,08% or NPL 3,92% as of February 2020. This figure is considered healthy for the industry.

This survey was participated by 130 AFPI members as respondents. He explained, as many as 52% of them or 68 players claimed to have received a request for restructuring from the borrower.

"This survey is new industrially. We will conduct a survey when we see that this pandemic has lasted a long time, how the decline of each platform, both from nominal and debtors," explained AFPI Daily Chair Kuseryansyah in video conference with the media, Monday (20/4).

The man who is often called Kus added, wave of pandemic impact is predicted to be at the top position between next month and June 2020. At that time, it is predicted that the TKB90 and NPL levels will experience a correction. Companies are encouraged to continue to actively monitor on a daily basis and stress test to reduce impact.

"Covid-19 has more or less affected the company's business plans, including the target of all members of the organizers. The pandemic is also feared to increase the risk of payment failure, which will further tighten risk mitigation for new loan applications."

When explored further, from all segments p2p loans some are actually blessed. One of them is Tokomodal, which is engaged in productive loans for shop owners. Tokomodal CEO & Co-Founder Chris Antonius explained that his business actually showed signs of a drastic increase due to increased shop transactions.

"When malls and shopping centers are closed, people go back to shopping at stalls to buy basic needs. That's why loans at Tokomodal actually increase. Moreover, our tenor is only seven days. turn overIt's fast," he said.

From the company's analysis from two months ago until now, Tokomodal does not have a loan restructuring application. To support the shop's operations, the company is now creating a support program by waiving admin fees for every loan application.

Slightly different conditions faced by investree. They recorded from the total outstanding credit for around 15% of loans potentially affected by the pandemic. The average industry is engaged in retail, such as restaurants and coffee shops.

Less than 1% of them are realized from loans with late payments. The rest, around 2%-3% are proactive by asking for a restructuring proposal. However, this approval depends on the decision of the lender. The form of relief provided by Investree is an extension of the tenor and payment holidays or pay holidays.

"We can't immediately restructure because p2p is not on balance sheet, but off-balance sheet. So there must be approval from Actioncalendar, whether to agree to restructuring or is there payment holidays," added Investree's Chief Risk Officer Amalia Safitri.

Crowdo did the same thing. The company analyzed borrower businesses that have been affected by the pandemic since last March. Among them consumer goods which experienced the highest relief applications, there were also other sectors.

"We analyze which borrowers will be affected by Covid-19. In April, there were already requests. Currently, only 3% of borrowers have applied for restructuring. We communicate intensively with borrowers who ask for credit relief for their daily control," said the COO. Crowdo Indonesia Nur Fitriani.

Chris continued, the impact felt by every p2p player will depend on the industry segment served. Take for example, if there is a food stall that applies for a productive loan, but the location of the business is in a tourist location, the business will automatically be affected.

"I see that loans that are closer to basic needs will increase their business. Logistics, medical equipment, E-commerce also shows an upward trend in the number of loans," continued Chris.

AFPI Head of Public Relations and Institutions Tumbur Pardede explained: p2p loans different from banks. They only act as a hosting platform that brings together borrowers and lenders. So, the platform is not authorized to give restructuring approval without the approval of the lender.

"However, the organizers can facilitate requests for restructuring requests for MSME borrowers affected by Covid-19 to lenders," he added.

Until the end of February 2020, OJK recorded loan disbursement p2p loans worth Rp95,39 trillion, up 225,58% year on year. From the lender's perspective, there are 630 thousand entities and 22,32 million borrowers. Total organizers p2p loans There are 161 companies registered with OJK, with 25 of them already licensed.

Continue to recruit employees

The impact of Covid-19, for some startups, has become an opportunity to recruit more new talents. Tumbur, who is also the CEO of Tunaikita, explained that the company is recruiting more workers customer service because there is a high need for communication with borrowers.

In addition, personnel in the field of assessment are now increasingly needed to see potential in new areas that are not affected by Covid-19 or find new borrowers. "Employee reduction has not had an impact, in the industry it is increasingly looking for employees who are indeed specific in carrying out their duties and functions," he said.

Business p2p loans, he continued, earns income from fee on lending and borrowing transactions. Meanwhile, interest income and penalties on loans belong to the lender. Therefore, their income depends on the amount of the disbursement value, while this distribution depends on the lender's confidence in the performance of the platform.

"This moment also shows a strong business foundation. In my efficient opinion, these moments can actually prove that we have done the right thing [having a strong business foundation]," concluded Chris.