Indonesia’s OJK goes on fintech lender licensing spree
Indonesia’s Financial Services Authority (OJK) has licensed six start-up fintech lenders since September.
Peer-to-peer (P2P) lending start-ups Modalku, a crowdfunding platform for SMEs, KTA Kilat, a cash loan credit platform, Kredit Pintar, a quick-loan provider, Maucash, a big data credit scorer, Finmas, a credit on-demand platform, and KlikACC, a partnership-based loan provider, all secured a business licence from the OJK last month.
These firms join fellow start-ups Danamas, Investree, Amartha, Dompet Kilat, KIMO, Toko Modal, and UangTeman. In total, 13 fintech lenders now have licences, but there are still 114 companies registered with the OJK which don’t.
With the number nearly doubling month-to-month since August, prospects are looking hopeful for those still waiting on a licence to secure one in the next few months.
This exponential increase in licence-issuing puts the country well on the way to a responsible form of financial inclusion which is collectively-driven by the industry and the authorities.
Recent licence-securer Finmas says it simply wants “to help serve the Indonesian people”, and is “deeply committed to maintaining the highest standards of transparency, security and strong corporate governance in accordance with OJK regulations and code of ethics”.
Finmas’ director of compliance Reza Pratama continues: “This process sends a strong message to the industry and other regulators across the Association of Southeast Asian Nations (ASEAN).”
Another newly-licensed lender, Investree, expects the OJK’s license to P2P lending firms will “give more trust to the public and investors in a bid to expand the number of borrowers, lenders and the loan distribution, giving more financial access to the whole Indonesian community”.