Fintech Challenge: No More Super Lenders

Summary

The Financial Services Authority (OJK) plans to limit financial technology companies' (fintech) funding from super or institutional lenders. Currently, super lenders are still dominating fintech funding. OJK wants to encourage lenders' contributions from the public or the retail segment through the latest regulations.

The criteria for institutional lenders will also be clarified, especially regarding foreign super lenders, so that the supervisory function is more effective and measurable. Bambang W. Budiawan, Head of the Department for Supervision of the Non-Bank Financial Industry (IKNB) 2B, said that the prevailing rule is that super lenders are limited to financing up to 25 percent of loans. This is done so that fintech lending does not only depend on a single lender. "In the future, the OJK wants the public lenders to dominate. If there are many lenders, it means something good," Bambang said.

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