The Growth of Fintech Peer to Peer Lending Exceeds Banking Credit: Deposit Insurance Agency (LPS)

The Growth of Fintech Peer to Peer Lending Exceeds Banking Credit: Deposit Insurance Agency (LPS)


The Deposit Insurance Agency (LPS) asked banks to be careful and not to underestimate the existence of online loans (pinjol). This is because the growth in fintech peer to peer (P2P) lending has exceeded the credit growth in the banking industry nationally.

“Banks must take a look, what is small is allowed to be giant too. This means they must adapt to new business competition, must be literate,” said the Chairman of the Board
LPS Commissioner Purbaya Yudhi Sadewa met at the Cibubur Campground, East Jakarta, Sunday (20/8/2023).

For information, the Financial Services Authority (OJK) recorded a growth in loan loans of 18.86% or reaching IDR 52.7 billion in June 2023. This realization exceeded bank credit growth which only reached 7.76% on an annual basis (year on year/yoy). .

Even so, Purbaya ensured that the growth in loan loans would not endanger the banks. This is because the amount of bank credit distribution still dominates, reaching IDR 6,656 trillion.

“The growth has exceeded, not the size. The size is definitely smaller than banking. This means that people prefer access to health insurance faster,” said Purbaya.

Previously, the Chief Executive for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions of the OJK, Agusman, ensured that his party would continue to monitor credit distribution by fintech companies so as not to cause bad credit.

“The final TWP figure from our data is 3.36%. For a 90-day TWP, it has to be below 5%, so it’s very under control,” Agusman said at his office, Friday (18/8/2023).

“We have to be careful, both lenders and borrowers must also maintain good performance so that our system is maintained,” he said.


2023-08-20 16:30:25
#Credit #Growth #Overtaken #Pinjol #LPS #Boss #Asks #Banking #Careful

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