Has Capital Rules and Digital Bank Trends Dampen P2P Lending Business?
A total of nine peer-to-peer (P2P) lending fintech players withdrew their registration certificate to the Financial Services Authority (OJK) throughout September 2021 due to difficulties in continuing operational activities. Head of the OJK 2B Non-Bank Financial Industry Supervision Department (IKNB) Bambang W Budiawan said that underdeveloped businesses were one of the reasons for their withdrawals.
"The business model offered could not get the interest or users, so their income is low and unable to support costs," Bambang said. Capital constraints are another reason fintech lending could no longer operate.
Since the beginning of the year, 42 P2P lending companies have returned their registration certificates, leaving only 107 operating P2P lending players in the country as of September 8, 2021.