The latest innovations today have developed very rapidly in the modern era. Starting from the fields of business, economy, especially technology. In the field of financial services, there is also modern technology commonly called Fintech. This fintech can also be interpreted as a new segment in the startup world that helps maximize the use of technology. This time we will learn about what a fintech company is. There are a lot of Fintech companies in Indonesia. Because the need for finance is also increasing, so many have established this financial technology-based company. For more details, you can read the article below.

What is a Fintech Company?

Fintech stands for Financial Technology which is a form of modern innovation that aims to change, sharpen, and also accelerate various aspects of financial services. To be clear, this fintech has tasks that include payment methods to fund transfers, fund collection, fund loans, and asset management that can be increased in speed and shortened by utilizing technology. So it is not surprising that fintech itself can quickly become a need for the community so that in the end it is able to change the lifestyle of people, especially companies engaged in finance and technology.

Legal Fintech Companies in Indonesia

There are many fintech companies in Indonesia that have been widely circulated and also have legal licenses from the Financial Services Authority or OJK. The companies below can be used as a place option if you want to make transactions regarding your finances.

ShopeePay Later

ShopeePay Later is one of the fintech companies in Indonesia that aims to provide financial services to every consumer by utilizing online technology. This loan is specifically for Shopee users, both sellers and buyers, whose funds are used in the Shopee application itself. The amount of loans that you can borrow starts from IDR 750,000 for new users to IDR 1,900,000 depending on how long you use ShopeePay Later in transactions. The choice of installment time also varies, ranging from one month that can be paid directly later, to 12 months. ShopeePay Later charges an interest rate of 2.95% per month. In addition, buyers who use this feature will be charged a handling fee of 1%, while in case of delay in payment will be charged a fee of 5%. If the repayment is not made immediately, the amount of fines will increase depending on the length of the delay.

Danamas

Furthermore, there is another fintech company in Indonesia called Danamas. The benefits offered by Danamas itself are also diverse. For financiers, you can determine the desired return from the borrower, can provide loans with a minimum amount to many borrowers, return the principal and interest on a monthly basis, and also the loaned funds will be covered by insurance up to 99%. As for borrowers, you will get benefits such as a non-convoluted process, affordable costs, and also fast disbursements. You can also do the investment process in Danamas.

Investree

There is also Investree as one of the fintech companies in Indonesia with advantages that you can enjoy as well. For financiers, you will get attractive returns of up to 20%p.a, an easy process online, measurable risks, and can also provide funding starting from 1 million. Meanwhile, for those who make loans, you will get benefits such as affordable fees starting from 0.9% per month, transparent transactions, easy and fast processes, and no fixed asset collateral. In addition to borrowing funds, you can also invest in Investree.

Amartha

Furthermore, there is a fintech company in Indonesia called Amartha, which will provide you with offers such as investment and money lending. The advantage of making transactions at Amartha is, you will get a profit of up to 15% per year and weekly cashflow as well as installment payments that can be taken at any time. In addition, Amartha serves funding for micro-entrepreneurs who do not have access to financial services in rural areas. The selected business partners are female micro-entrepreneurs with capital needs starting from 1.5 million. You can also invest in Amartha starting from IDR 100,000 by applying investment services with a crowdfunding scheme.

Dompet Kilat

There is also the Dompet Kilat application as one of the fintech companies in Indonesia that also offers convenience in the financial sector. The advantage that you can get is that you can do credit without collateral, low interest rates starting from 1.25%, and also disbursement of funds for a maximum of 1 hour, besides that you will also get a return of up to 20% per year which is higher than investment products in general.

The Largest Fintech Company in Indonesia

Among the many fintech companies in Indonesia, there are certainly some companies that are considered the largest among other companies. You can see the list of these companies through the article below.

Cek Aja

Cek aja to be one of the largest fintech companies in Indonesia, with several products that you can use such as credit cards, KTA, online loans, savings, loans with collateral, home ownership loans, insurance products and also investment products. There are various benefits that you can get from this Cek Aja company, such as a very easy application process online without the need to go to the office, a very fast printing time of approximately 5 minutes, and also makes online and offline transactions easier.

Bareksa

Furthermore, there is Bareksa as one of the fintech companies in Indonesia that ranks the other largest. Bareksa provides investment products for those of you who want to invest. The advantages that you can get are that Bareksa does not charge tarnsaksi, can buy several mutual fund products in one account, there are supporting investment features and tools such as Bareksa Simulator and also Bareksa Investment Calculator.

Doku Wallet

Furthermore, there is Doku Wallet which is also the largest fintech company in Indonesia that provides money storage features or electronic wallets as the name suggests. The benefit that you can get is that you can use this Doku Wallet as a transaction to make payments for those of you who don't have a credit card like PayPal. In addition, you can also shop online using Doku Wallet on the Lazada application, Citilink, AliExpress, and several other merchants that collaborate with Doku Wallet.

Gopay

There is also Gopay which is a fintech company in Indonesia that is best known to the general public. You can use Gopay on their main application, Gojek. In addition, for those of you who are business owners, you can automatically record payment transactions. Meanwhile, your customers can also benefit from cashback promos from the business you develop.

Midtrans

Almost similar to Doku Wallet, Midtrans is also one of the largest fintech companies in Indonesia. The advantage offered by Midtrans is that there are 18 payment methods that are integrated with a page called Snap, in addition to that Midtrans has guaranteed data security, and Midtrans collaborates with large companies such as Tokopedia, Garuda Indonesia, and also CINEMAXX.

Illegal Fintech Companies in Indonesia

After knowing some of the legal and largest fintech companies in Indonesia, this time we will learn what fintech companies in Indonesia are illegal so that later we don't make the wrong choice in terms of the security of your funds.

Indo Rupiah

The Indonesian rupiah offers a variety of cash and online loans appropriately. But unfortunately, as of April 2021, the Indo Rupiah was inaugurated as one of the illegal online lending companies in accordance with the information on the official website of the Financial Services Authority or OJK.

PETIR Indonesian Rupiah

In addition to the Indonesian Rupiah, there is also the Indonesian Rupiah Lightning which is also one of the online loans that is declared illegal because it does not have an official license from the Financial Services Authority. In addition, they also offer suffocating interest for those of you who borrow on the application.

Ai Money

Furthermore, there is Ai Money which is also one of the online loans and does not have an official license from the Financial Services Authority. Applications that do not have an official license are feared to later take advantage of the moment with activities that cannot be accounted for.

There is Money

Furthermore, there is the Ada Uang application which has also been warned by the OJK to stop its operation in making online loans. This application is a stand-alone application that was also founded by its own developers without any related companies.

Daily Kredit

There is also Daily Credit which has been closed by the Investigation Alert Task Force by stopping its operations in making online loans. In addition to the OJK, usually these illegal loans will claim to have other legalities by forming a clean scam. Therefore, it is expected to remain cautious in making online loans by looking at the official license from the OJK itself.

Characteristics of Legal and Illegal Fintech Companies

After knowing what are the examples of legal, illegal, and largest fintech, this time we will learn what and how the characteristics of legal and illegal fintech are. These characteristics will later be able to help you determine which applications you can use to make online loans or investments.

Characteristics of Legal Fintech

You need to know, what are the characteristics of legal fintech itself. This legal fintech is what you can later use as an option in making online loans without worrying about fraud and also losing the funds you will borrow, or other bad events.

Legal Fintech Registered with OJK

The most important feature of fintech that is legal is to have an official license from the Financial Services Authority. This official license is what makes an online loan legal and can operate in Indonesia. OJK has also recorded as many as 138 official loans registered as of May 4, 2021. Meanwhile, to check the names of companies registered with the OJK, you can check on the official website of the OJK, namely ojk.co.id.

Clear Company Information

In addition to being registered with the Financial Services Authority, companies that establish online loans or investments must have clear company information such as an official website and a clear office address. So that later if you want to do a tracking, you can ask directly on their website or come to the office directly.

Interest from Fintech Supervised by OJK

This online loan application has interest that is also supervised by the Financial Services Authority. They will transparently inform about the interest and fees that will be incurred. They will not cover this up and also inform the information in advance before making a loan. This information will usually be related to interest, fees, tenor, or loan period at the beginning when you want to make a loan.

Characteristics of Illegal Fintech

After knowing what the characteristics of legal fintech are, we will finally learn about what are the characteristics of illegal fintech. Before making an online loan, you should observe how the signs of illegal fintech itself.

Not Registered with OJK

The most important characteristic of an illegal fintech company is that the company does not have an official license from the Financial Services Authority. As previously explained, this OJK can be the determining point of the legality and illegality of a company in running online loans and investments. You can see this official license through the web from the company or the application they offer, or you can also see it through the official website of the OJK itself.

Obscure Flowers

Furthermore, there are unclear interest such as the application of interest, fines, and other very high costs. In fact, they are not clear in carrying out an agreement. Usually they will provide very, very easy loan terms. In addition, they could also promise unreasonable profits in a relatively short time.

Unethical Billing Process

The billing they do is usually very unethical such as harsh words or in the form of threats. This billing is also usually done by a collector who does not have a billing certificate.

Does not have a complaint service

Illegal fintech companies usually do not have a complaint service. Even if you complain to the OJK or AFPI, the complaint will not be cheated on because they do not handle complaints about illegal fintech lending. However, you can complain about this fraud to the police or the Investment Alert Task Force (SWI)

The Company's Location Is Unclear

As mentioned earlier, if the location of the company is unclear, then it can be confirmed that the company is an illegal company. Even if there is a company that operates abroad, it will be difficult to solve a case.

Often Use SMS Spam Mode

Usually, illegal fintech companies will use the SMS spam method in launching their scams. They will offer a wide range of products such as high fund loans with very easy terms and frills. The characteristics of this spam SMS can also be seen from the sender's number. They will use the usual provider number without the name of the company automatically from the company. After knowing what are the examples of fintech companies in Indonesia along with the legal and illegal characteristics of these fintech companies, it is hoped that you will continue to find out other information from the company you will choose in making online loans and fund investments. Also remain cautious of existing scams. Demikian pembahasan dari GICTrade mengenai penjelasan "Perusahaan Fintech di Indonesia". This the discussion from GICTrade regarding the explanation of "Fintech Companies in Indonesia". You can also find out other information about investments, commodities, and other finances, such as Property Investment Advantages, Disadvantages, and Capital only in the GIC Journal. Also make sure you deepen your forex knowledge at GICTrade, via the scalping ebook, and also NFP live trading.