Tempo are reporting that Indonesia’s financial technology (fintech) industry, especially Peer-to-Peer (P2P) lending, also known as online loans, is growing rapidly with the Indonesian Fintech Association (Aftech) noting total loans facilitated as of April 2023, hit IDR 17.3-trillion.
Aftech Chairman Pandu Patria Sjahrir said that fintech has developed rapidly in recent years noting that in 2016, there were only 24 companies joining the association, but now the number has skyrocketed to 340.
“The development of fintech lending is very high. The accumulated loans in 2018 amounted to IDR 3-trillion and increased to IDR 17.3-trillion as of April 2023, a growth of 42-percent,” Pandu said at a discussion on Indonesia’s fintech lending industry on Thursday, June 8, 2023, in Jakarta.
Additionally, the number of lenders reached 1-million as of April 2023 from 115,000-lenders, and the number of borrowers rose from just 330 to 111.18-million. Pandu added that this was a growth of 180X, report Tempo.
He explained that the success paying rate in 90-days as of April 2023 reached 97.18-percent. According to him, this figure is much better than in August 2020 which was 91-percent.
“Non-performing loans (NPL) as of April 2023 stands at 2.82-percent,” he said.
Tempo say that the profitability rate for fintech lending recorded a positive trend of 4.52-percent, and non-equity retail reached 9.34-percent as of April 2023.
“What we are focusing on is improving the governance of fintech lending to be better and more sustainable,” Pandu concluded.
Source: Tempo
Photo by Jason Briscoe on Unsplash
