Three Main Points of Indonesian Fintech Industry Issues

The Indonesian Fintech Association (Aftech Indonesia) revealed that players fintech currently there are still three problems in its operational business. The three things are infrastructure, regulation, and collaboration.

Chairman of Aftech Indonesia, Niki Luhur, said that currently the business supporting infrastructure fintech not quite sufficient. The reason is to get service fintech, the community must go through a face-to-face process with the financial service provider, as one of a series of stages know your consumers (KYC).

Existence fintech can be a powerful way to cut the KYC chain more efficiently, for example by presenting a digital signature. Thus, the Indonesian people wherever they are can be served. The financial inclusion target launched by the government can also be realized soon.

"We [players] fintech] does not have the ability to bring our representatives in various regions to carry out the KYC process," said Niki, in a panel discussion held by Sesparlu, Wednesday (29/3).

Niki assesses that the current digital signature concept is still unclear on the standards and legality of the law. He also encouraged the government to immediately implement clear rules for KYC.

Based on the results of his evaluation of studying the strategies of regulators from other countries, Niki gave input to the government to make KYC rules with different standards for each business segment. fintech. Niki also emphasized that the KYC process must be efficient, considering that there are still many areas that have minimal internet access.

Meanwhile, from a regulatory perspective, according to Niki, it should not only be related to risk mitigation. He suggested that regulations generally contain efforts to attract more users. One example that might be done is in the form of tax incentives for consumers who use electronic payment systems.

Promote collaboration

Niki continued that collaboration between financial service actors and fintech service providers can be a powerful weapon to grow the financial services industry on a national scale, because the two cannot run alone.

Company fintech have capabilities in software, upgrade consumer experience, or other. While they are not sufficiently qualified in terms of risk management, credit scoringand collection. These three things are banking strengths that have been around for decades and understand the characteristics of Indonesians.

"With the advantages and disadvantages of each, it can be a good collaboration for both parties. There are still many cakes that have not been worked on," he concluded.