5 Factors Contributing to Indonesia's Fintech Boom
Digital technology is rapidly evolving and has a significant impact on all aspects of life. One of them is concerned with money. Fintech, as one type of start-up service, has had a significant impact on Indonesia's economic growth.
1. What Is Financial Technology?
FinTech is a form of service provided by startup firms to all types of consumers who wish to utilize financial services effectively, realistically, simply, and affordably.
It has been demonstrated that practically everyone now uses digital financial technology services for daily economic activity. Especially in the age of the Covid-19 epidemic, when direct financial transactions with cash are more prohibited.
This may be observed at a variety of retail malls. As one of the characteristics of this financial technology service, people will be increasingly inclined to make payments via transfers or digital wallets.
Fintech includes not just buying and selling activities, but also microfinance and peer-to-peer lending services, which can assist fund those who previously did not have access to banks. So, what factors have contributed to Indonesia's quick development of fintech?
2. Complete All Circles
It is indisputable that technology facilitates financial access for those who did not previously have access to banks. Many limitations exist, making it harder for the poorer communities to benefit from this financial service.
The existence of microfinance, which provides financial services to the lower middle class by providing borrowers with business capital loans to create small-scale enterprises.
In addition to company capital support, fintech offers peer to peer lending, which is the activity of lending money to individuals who need finances to satisfy their requirements without going through the cumbersome process that is typically experienced in banks. Finmas, a start-up company involved in P2P online lending, has gained approval from the OJK, ensuring its safety.
3. Practical, effective, and adaptable
Financial transactions are becoming more practical, efficient, and flexible, which consumers like, thanks to the fast growth of fintech. Those who enjoy online purchasing should be well-versed in the many forms of digital wallets. All direct purchase transactions take place in a matter of seconds, with no face-to-face cash exchanges.
4. Easy donation platform
The sort of crowdfunding service that allows individuals to give more quickly and realistically is the reason for the rapid development of fintech in Indonesia.
Indonesians have a strong social spirit and will go out of their way to assist anyone in need. The emergence of a start-up firm application that delivers donation services practically is undoubtedly a factor of fintech's quick expansion.
5. Guaranteed Safety
Despite the fact that it is all digital and rapid, fintech has assured security so that customers do not have to worry about their personal data being strewn around. The presence of an encrypted security technique ensures that client data is secure. Furthermore, many fintech businesses have been registered with the Financial Services Authority, so consumers do not need to be concerned about dealing unlawfully.
The growth of fintech in Indonesia has a number of advantages in terms of ease, for which we should be grateful. However, the user must set limitations so that technology does not take over his or her life.
5 Factors Contributing to Indonesia's Fintech Boom
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