Some time ago we were surprised that in Indonesia, many illegal Fintech companies were still operating freely. Especially in difficult times such as the COVID-19 pandemic, many people want to look for safe and reliable online loans to make their lives better.
As reported by the Financial Services Authority (OJK) Investment Alert Task Force, it was discovered that dozens of Indonesian fintechs were lending and had illegal status a month ago, April 2020. The total is not approximate, there are 81 fintechs that do not meet the requirements to operate in Indonesia
If we trace back to 2018, there have been 2,486 illegal fintechs that have been given strict action.
Before getting to know more about what fintech is, Kula wants to tell you first. So Fintech is an abbreviation of financial technology, where there is an innovation in the financial or financial services sector. The innovation is financial or funding which can be done online.
Fintech can be interpreted as a financial option in the startup world that can help maximize the use of technology such as speeding up and changing various parts of financial services. In fact, Indonesian fintech services can make all types of transactions easier, with just a smartphone.
Returning to the discussion, the Investment Alert Task Force not only stopped several fake fintechs but also stopped 18 business activities that were indicated to be investing without the permission of the authorities in charge and competent. This kind of mode is very worrying, ALovers. Because their sales take advantage of ordinary people, who don’t know anything about fintech mechanisms, by offering the promise of unfair rewards, aka multiple profits.
So that ALovers will be more alert and immediately respond to whether this is an illegal fintech company or not below.
- Provide very easy requirements
Referring to the explanation from the Financial Services Authority (OJK), illegal online loan providers usually provide light conditions, in fact they tend to be very easy. This was also accompanied by the disbursement of funds which was carried out simultaneously.
The scheme is like this: ALovers submits a loan application to the fintech agent or sales person on duty, chats for a while, not long after the money has been disbursed into your account. It’s said to be easy and straightforward, but this could be a time bomb in the future.
- Company identity is unclear and gives the impression of being disguised
Like most companies in any country, they will definitely be open about information, vision and mission and corporate identity so that it is known to the general public. such as where the office address is located, what the telephone number is and so on, but for fintech companies that already have bad intentions and aim to deceive, they will obscure some company information.
Illegal fintech individuals will deliberately obscure, or even disguise, the company’s identity. Because of their intentions, the employees even replaced their real names with pseudonyms, so that if they were caught, they would not be tracked by the police.
- High interest and no restrictions
Illegal fintechs are very likely to apply high interest rates of up to 2% – 3% per day and it is strange that there is no complete and detailed transparent interest calculation structure.
The OJK itself does not set interest rates for Fintech companies, but the OJK itself determines consumer protection which of course has been agreed upon by fintech companies registered with the OJK. The recommended collection period is only a maximum of 90 days from the payment deadline for the total cost which cannot be more than 100% of the principal amount.
- Carefully and Be Careful in Choosing Fintech
Isn’t it scary to see the characteristics of unofficial and illegal Fintech like the ones above? Well… That’s why Akulaku Finance Indonesia is here as one of the fintech companies that already has permission from the Financial Services Authority (OJK) as the best and most trusted consumer financial platform in Indonesia, as a provider of easy, fast and 100% safe online loans and then as a platform shop in installments online or on site without using a credit card.
From now on we all have to be wary of illegal fintech, and if you are still confused about finding safe fintech, just choose Akulaku Indonesia!