OJK Will Strengthen External Credit Scoring For Pinjol

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) encourages the strengthening of external credit scoring in the peer-to-peer (P2P) lending (pinjol) ecosystem.

Head of the Supervision Department of Other Financial Services Institutions OJK Triyono said the provisions regarding credit scoring had been regulated in OJK Regulation Number 10/POJK.05/2022. Even so, he recommended that there be still credit scoring checks from external parties.

"At POJK 10, we have arranged that there must be a risky filtering of each P2P lending. However, we must not rely 100 percent on that," said Triyono quoting Antara.

Triyono explained, using services outside of P2P lending that can provide more accurate results can be a better option. This is to reduce the risk of default which then has an impact on bad payments to lenders or investors.

Even so, he admitted that the choice of using external credit scoring services involved many considerations, especially in terms of costs.

"There may be a little extra cost, but it compensates from the level of credit scoring accuracy," said Triyono.

Meanwhile, Triyono said the aggregated credit risk rate or default rate (TWP90) was still at a safe level, which was 2.82 percent as of April 2023. That level was up from the previous 2.81 percent in March 2023.

TWP90 is a measure of the default rate or negligence in the settlement of the obligations of fintech customers above 90 days from the maturity date. TWP90 is a measure of the quality of fintech funding.

OJK noted that there are 24 P2P lending companies that have TWP90 above 5 percent, an increase in one company from the position in March 2023 which is 23 organizers.

Meanwhile, the outstanding financing of P2P lending grew by 30.63 percent on an annual basis (year-on-year/yoy) to Rp50.53 trillion as of April 2023.