RISK MANAGEMENT IN FINTECH LENDING Trisadini Prasastinah Usanti, Anindya Prastiwi Setiawati, Nur Utari Setiawati
Departement of Private Law Faculty of Law - Airlangga University Jl. Darmawangsa Dalam Selatan, Indonesia. 60286
In this global era, fintech offers a fast and easy lending service for people anytime. However, the easy process can cause various problems such as late payment and default in payment. Fintech will suffer from those risks and it can jeopardise the business. Moreover, most of the platforms do not ask for collateral as a requirement. So, in this article, the authors will discuss how fintech should manage their risks in lending using statute and conceptual approach. The results show that fintech should adopt the 5Cs credit analysis (character, capital, capacity, collateral, condition) as a way to minimise their risks. The Financial Services Authority (OJK) has not regulated risk management for fintech. Thus, fintech should follow the existing model from banking institution to manage their risks.