"This way, it is expected that illegal financial technology (services) can be eliminated," OJK's digital financial innovation group analyst, Kurniatul Khasanah, said on Friday.
First, people should understand the benefits provided by a financial service and the purpose of registering for the service prior to registration, he advised.
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After that, they must check the legality of the company, he said. One way to do this is to check whether the company is registered with the Financial Services Authority, he pointed out.
If the legality of the financial technology service provider company is confirmed, people must read and understand the terms and conditions provided by that company, Khasanah said.
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Prospective users should also research the company's performance and reputation, he added.
To anticipate future problems, it is also important to check whether the financial technology company has an easily accessible complaint channel which provides a response, he advised.
The Financial Literacy and Inclusion National Survey (SNLIK) conducted by the Financial Services Authority in 2019 had pegged the national financial literacy index at 38.03 percent, he noted.
On the other hand, the financial inclusion index was at 76.19 percent, he added. The indicators showed an increase compared to 2016, when the financial literacy index was recorded at 8.33 percent and financial inclusion index was at 8.39 percent, he said.
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Despite the positive trend, the level of public awareness regarding digital finance and financial inclusion is still relatively low, Khasanah added.
In the same survey, only 36 percent of the approximately 12 thousand respondents knew about digital financial services, he said.
Moreover, only 31.26 percent of the respondents had used digital financial services, while 68.74 percent had never used digital financial services, he noted.
Those who had never used digital financial services claimed that they did not need them, did not understand them, or did not believe in them, he added.
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