The goal is to test digital finance innovation organizers to ensure that the organizers had met the IKD criteria as stipulated within POJK 13/2018Solo, Central Java (ANTARA) - Digital finance innovation (IKD) should be arranged to prioritize consumer protection and facilitate effective and efficient digital infrastructure development, according to the Financial Services Authority (OJK).
The OJK conducts a testing mechanism known as Regulatory Sandbox to evaluate the reliability of business process, business model, financial instrument, and governance, Director of OJK's Financial Service Institution's Monitoring Department, Ridiani Kurnia, noted in Yogyakarta, Tuesday.
"The goal is to test digital finance innovation organizers to ensure that the organizers had met the IKD criteria as stipulated within POJK 13/2018," he explained.
Meanwhile, consumer protection that has been conducted is a preventive effort through education with good literacy.
Through this, potential consumers can understand the benefits and risks of transaction using a P2P (peer-to-peer) lending platform, choose legal P2P lending platform, calculate loan repayment capability, loan for productive purpose, and understand contract contents, he elaborated.
Principally, the cooperation between bank and fintech can provide benefits in the development of innovative solutions to confront digitalization, improve the quality of analysis toward customers and potential customers, and increase the number of products that customers can use.
In relation to digital finance, the OJK recorded 102 licensed platforms, including seven platforms with the sharia system, until the end of January 2023.
Meanwhile, the number of user accounts had reached 105.7 million, with loan accumulation of Rp546.80 trillion, with an outstanding figure of Rp5.03 trillion at the end of January 2023 and total assets of Rp6.42 trillion.
Director of OJK's Financial Service Entrepreneurs Behavior Monitoring Department, Imam Cahyono, stated that legal online loan can only access three aspects of customers: camera, location, and microphone.
"No more than that. If they can access contact, gallery, and others, beyond those three, report to OJK. We can take action," he emphasized.
The OJK can have these online loans' operational license revoked as a penalty, he remarked.
Cahyono stressed that whether or not the users' data is shared should be an option.
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Translator: Aris Wasita, Fadhli Ruhman
Editor: Sri Haryati
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