Support Government Eradicating Illegal Platforms, Tips For Selecting Safe Fintech Services

Illustration of fintech services (Unsplash)

JAKARTA - The increasingly rapid development of technology is expanding the opportunity for people to get financial services more easily and safely. One of them is the growth of financial technology services, including fintech lending, which allows access to financial services that are more efficient, accessible, and affordable for many Indonesians.

Unfortunately, the development of this technology has been used by several irresponsible parties. One of them is the rise of illegal loan platforms that are not subject to the rules of the Financial Services Authority (OJK), both related to the imposition of service costs, security, and other aspects.

From 2017 to the end of September 2024, the Financial Services Authority (OJK) through the Illegal Financial Activity Eradication Task Force (Satgas PASTI) has closed 11,389 illegal financial entities, including 9,610 illegal loan entities. Meanwhile, the government, through the Ministry of Communication and Digital Affairs of the Republic of Indonesia, continues to aggressively continue the program to eradicate illegal online loans and online gambling.

As the leading fintech lending company in Indonesia, PT Financing Digital Indonesia (Ada Kami) fully supports the government's initiative by actively providing financial education to the public. One of them is by actively monitoring and reporting websites and fake social media that use the name Ada Kami. Brand Manager of PT Financing Digital Indonesia (Adami), Jonathan Kriss, said, "We are ready to jointly assist the government in eradicating illegal loan platforms. In addition to collaborating through monitoring and reporting, public education support from industry players is the key to help the public to be able to recognize and understand how to choose digital financial services that are legal and secure. Platforms registered and supervised by OJK ensure that the public gets services that are regulatory, transparent, and protect their interests."

Here are some characteristics of illegal loan platforms to avoid:

1. Not Registered with OJK

Unlike the illegal loan platform, legal fintech lending services have been registered officially, licensed, and supervised by the OJK, as well as being part of the Indonesian Joint Funding Fintech Association (AFPI). To ensure the legality of financial service platforms, the public can check the list of legal platforms on the official OJK website containing the names of applications, the names of PT, and the official websites of each platform.

2. Hidden Costs And Not In Accordance With OJK Provisions

Although it offers a fast and easy loan application process, illegal online loans often charge loan fees that are not in accordance with OJK provisions, even with hidden additional costs that burden users. The legal fintech platform provides information regarding loans in a transparent manner, with a maximum daily interest of 0.3% per day according to OJK regulations.

3. Excess access to Personal Data

Illegal loan platforms can access all personal data in a user's phone. In many cases, this data can be misused during the collection process. Registered/authorized platforms OJK are only allowed to access the user's camera, microphone, and location.

4. Requirements and Regulations for Returns are not in accordance with Regulations

Legal platforms have an obligation to collect according to OJK provisions. In addition, illegal platforms do not limit the total return, including fines. In contrast, legal fintech lending platforms set a daily delay fee of 0.3%, or a total of 0.6% including interest, with a maximum return limit, including fines, no more than 100% of principal loans.

By selecting a legal fintech lending platform licensed and supervised by the OJK, the public can be protected from financial activities carried out outside of regulatory regulations that have the potential to pose detrimental financial risks, including the risk of misuse of personal data of borrowers, loss/usage of funds, inappropriate repayment of loans, and Ponzi schemes.

A wise financial management is an important step to ensure that people use services according to their personal financial needs and abilities. By choosing financial services carefully, the public can avoid losses caused by illegal platforms and build a safer financial future," concluded Jonathan.