Fintech Industry Awaits New Rules of Financial Services Authority and BI

INDUSTRY.co.id - Jakarta - the Financial Services Authority (OJK) seems quite concerned about the development of the fintech industry in the country.

Late last year OJK has issued the Financial Services Authority (POJK) Regulation Number 77 / POJK.01 / 2016, on the Information Technology Borrowing Service (LPMUBTI).

Under these rules, OJK regulates things that the loan business provider must adhere from user to user, or so-called peer to peer lending (P2P lending).

So in the end it will protect the interests of consumers related to the security of funds and data, as well as the national interest related to the prevention of money laundering and terrorism financing, as well as the stability of the financial system.

IT-based lending service providers are given opportunities by OJK for the next 6 months to register membership to OJK, provided that among others;

Organizer is required to provide escrow account and virtual account in banking, and place data center in the country.

Until the end of October 2017 as many as 22 technology-based financial services have been officially registered in OJK.

Fintech is officially registered has been licensed to offer financial services in Indonesia.

Furthermore OJK will also issue a circular (SE) to arrange more deeply about fintech. SE among others regulate about the procedure of borrowing-borrowing, customer service, to supervision.

Fintech Licensing and Oversight Management Director Hendrikus Passagi said in addition to borrowing and lending schemes, OJK will release a circular governing the use of electronic applications for borrowers and borrowers through fintech companies.

The application will contain data such as PIN, fingerprint recording, face scans and eye retina, as well as video conferencing when the customer does borrowing and borrowing.

We built an integrated system, he said some time ago.

The two rules he said will protect the customers of fintech users. Hendrikus hopes that in the future borrowing services based on information technology can continue to grow and facilitate the community.

OJK hopes that fintech companies can soon make electronic applications to borrow and borrow and run schemes to maintain various risks.

On different occasions of OJK Commissioner Representative, Nurhaida reiterated that OJK will make new rules related to fintech.

According to her, the rules are related to the nominal fund management constraint managed by Fintech company. Until now, it continues to brew again about the rules of fintech.

"There may be a later (nominal constraint), we may set a certain limit, this provision, and if so large will follow this provision," she told INDUSTRY.co.id's editor via his short message.

Unfortunately Nurhaida not sure when the rules out. According to him this rule is still being discussed by all stakeholders, such as Bank Indonesia and the Ministry of Communications and information.

"It's in the discussion, we'll see it first .. This industry is growing fast yes, if there are developments we have to adjust again," she said.

Later said Nurhaida, in making rules about fintech his side will always see the risk in the future.

This is aimed at ensuring that Fintech does not kill other conventional financial industries.

Not only OJK, the monetary authority of Bank Indonesia (BI) also has a plan to set fintech.

This was disclosed by Bank Indonesia Senior Deputy Governor Mirza Adityaswara. The Bank Indonesia Regulation (PBI) is targeted to be published by the end of 2017.

BI regulation concerning fintech can be present along with regulatory sandbox, he said as quoted from Antara.

Mirza said the regulation could support the development of financial technology and provide direction to digital industry players in order to grow healthy and provide adequate financial services to the community.

"We will prepare the regulation and the environment so that the digital economy will develop well in the signs that are included in the regulator monitoring," he said.

Mirza said the fintech regulations that followed the regulation of the sandbox framework provided an opportunity for startup businesses to launch innovative products, services and mature business models.

Through the regulation, Mirza added, BI can provide full support for the development of financial technology, especially for the mitigated financial services while taking into account the risks.

"In addition, through the implementation of the sandbox, BI can supervise and observe the development of fintech from time to time," he explained.

Previously, in November 2016, BI has inaugurated the "Fintech Office" which is a platform for assessment, risk mitigation and evaluation of business models and products and services from fintech and research initiators related to technology-based financial services activities.

The establishment of the "Fintech Office" is based on the awareness of BI as a payment system authority on the need to support the development of sound technology-based financial transactions.

The digital economy services supported by this regulatory sandbox can support small-scale startup companies to finalize the concept and grow in order to contribute to the economy.

With the sandbox framework, "Fintech Office" will spearhead BI in understanding financial technology and providing a setting that is able to provide optimal support for the development of this industry.