Tuesday , March 21 2023

Online loans are a threat to banks, really?


Jakarta, KOMPAS.com – The existence of fintech lending (P2P) The nickname for online loans is often thought to threaten the existence of the banking sector. Is not it like that?

OCBC NISP director Parwati Surjaudaja explained that the existence of online loans is actually filling a niche that cannot be serviced by banks, namely microcredit.

Parwati said OCBC NISP worked in the micro business, but that didn't last long.

"We see that it exists because banks cannot I serve"We first got into micro-business in early 2010, and then we left," Parvati said on Thursday (08.08.2019) at Menara Compass.

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Parwati said banks and online loan service providers need to complement each other.

P2P lending has advantages in technology and entry into the wider market. While banks have more resources and better risk management.

According to him, if you want to develop, P2P lending will inevitably need to cooperate with banks, either in the form of acquisitions by banks or by infusing capital from the respective venture capital subsidiaries.

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Because P2P lending requires a greater inflow of funds and cannot generate retail financing only.

"The source of P2P funding comes from retail and if scaling they need institutional partners. Services in Indonesia are also still needed Banking"he explained.

"The context in Indonesia is like a cake, pie-his growing, way of thinkingyour baseball. Then we fight for the cake, but how do we increase the cake, "he said.

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