Indonesia Conference Directory

The startup business in Indonesia continues to grow, one of which is now rapidly advancing is a new industry of financial technology or commonly called Fintech. Reporting from Wikipedia, Fintech is a new technology and innovation with the aim of competing with traditional financial services and facilitating public access to these services. Fintech aims to make it easier for people to access financial products, facilitate transactions and also improve financial literacy. In Indonesia, Fintech companies are dominated by startup companies with great potential that develop in various sectors, starting from payment startups, lending, financial planning (personal finance), retail investment, crowdfunding, remittances, financial research , and others. In September 2015 the Association of Fintech Indonesia (AFI) was established which aims to provide a reliable and reliable business partner to build the Fintech ecosystem in Indonesia. Globally, the Fintech industry also continues to grow rapidly, as evidenced by the emergence of startup companies in this field and Fintech users also continue to grow significantly, from around 7% in 2007 to 78% in 2017. Based on statistical data, the total value of Fintech transactions reaches US $ 18.65 billion (Rp. 252 trillion) or grew 24.6% from the previous year. The number of users recorded per 2017 is 135-140 companies. As a result of the predicted development of Fintech, Bank Indonesia as the payment system authority holder is shown by the formation of the Fintech Office in 2016 which made regulations to regulate the running of this new sector safely and comfortably. Jagtiani and Lemieux (2016) found that technology has enabled lending, increased the ability of large banks to provide small dollar loans to consumers and business. The other result found an increase in bank lending in areas where larger banks do not have a physical presence. Research motivation in this paper, we will investigate the advantages and disadvantages of consumer loans made by a large fintech lender and similar loans that were originated through traditional banking channels in Indonesia.