Fintech Consolidation Trend Starts Soon
The Financial Services Authority (OJK) will soon release a new regulation on mergers and acquisitions in the financial technology (fintech) lending industry. It will be in line with the regulator's plan to increase the minimum capital limit to establish a fintech company from Rp 2.5 billion to Rp 15 billion. For the record, the idea to increase the limit came from the operators.
"The Rp 2.5 billion worth of paid-up capital is not sustainable, since many lenders have negative equity; some others even have below Rp 1 billion. In the future, they need additional paid-up capital from existing and new investors," said the OJK Deputy Director of Fintech’s Regulation, Research and Development, Munawar Kasan.