Anticipate Non-Performing Loans

Most Legal Fintech Lending Operators Have Accessed AFPI Fintech Data Center (FDC)

Jakarta, 27 April 2020

Since it was launched by the Indonesian Joint Funding Fintech Association (AFPI) at the end of 2019, there have been 111 out of 161 legal and registered peer-to-peer lending fintech providers / have obtained permission at the Financial Services Authority (OJK) who have submitted borrower data to the central government. data fintech lending (FDC). Most of those who have submitted the daily data routinely also check their prospective borrowers via FDC. This FDC is managed independently by AFPI, specifically for the benefit of these legal fintech lending providers. With the increasing number of fintech lending providers submitting their data to the FDC, the quantity of data managed by the FDC becomes more complete in describing transactions in the fintech lending industry. By accessing more complete FDC data, legal fintech lending providers can maintain the quality of their loans well, especially during the ongoing COVID-19 pandemic. This can be seen from the success rate of payment (TKB) of the industry which is still relatively stable.

The impact of the Covid-19 pandemic to date: FDC recorded a decrease in new loan transactions by fintech lending with relatively stable loan quality
Ketua Harian AFPI, Kuseryansyah

Disclosing the existence of FDC is very helpful for fintech lending organizers who are members of the association to detect and provide preventive actions from potential borrowers. Especially during the COVID-19 pandemic, this fintech data center is increasingly helping the platform from the risk of non-performing loans. “We thank all parties who have participated, especially the AFPI members who have integrated with the FDC. FDC is expected to improve risk management in the industry, especially during the Covid-19 pandemic. FDC can detect and prevent potential customers from borrowing excessively on many P2P lending fintech platforms at the same time, as well as knowing the risk profile of the borrower. So it is not surprising that at this time there has been a decrease in the distribution of new loans in order to maintain a stable 90-day payment success rate (TKB90) or a low NPL," said Kuseryansyah in a press release, Wednesday (22/4/2020). Based on a survey conducted by AFPI on April 5-6 2020 to its members, statistical data shows loan transactions as of March 2020 fell 5% from the previous month. The majority of AFPI members stated that TKB90 was still stable. As of February 2020, OJK recorded TKB90 which is the benchmark for the Fintech P2P Lending industry of 96.08% or NPL equivalent to 3.92%.

Ketua Bidang Technical Support AFPI, Ronald Andi Kasim

Explaining that in the midst of the Covid-19 pandemic, FDC can help fintech lending providers by providing various statistical indicators at the aggregate level. Based on FDC data, the Covid-19 outbreak has had a significant impact on the distribution of new loans through fintech lending. Currently, there is a 20% decrease in the number of FDC data checks compared to before COVID-19 started. Since January 2020, the total FDC data checks to date have been recorded more than 15 million times, with an average of around 140 thousand data checks every day. "Fintech lending organizers can take preventive action through FDC checks, namely to find out the credit history of the prospective borrower in the past and how many loans are still outstanding at various organizers belonging to the prospective borrower. The two main impacts will greatly help reduce bad loans so that the loan portfolio through fintech lending can always be maintained," explained Ronald. Director of OJK Fintech Licensing, Regulation and Supervision, DR. Hendrikus Passagi appreciates the commitment of AFPI and its members who have built a Fintech Data Center or FDC, and is committed to utilizing the presence of this technology to the fullest, as a tool to support healthy industrial growth. In particular, in the midst of the Covid-19 pandemic, the industry requires an innovative credit risk analysis model, as a preventive measure in distributing healthy loans that are beneficial to the wider community. "FDC will be one of the important tools for fintech lending providers to minimize predatory lending practices or loan offers that plunge borrowers into debt bondage. OJK will continue to coordinate with AFPI regarding FDC supervision, so that the presence of this supporting infrastructure can further improve fintech lending services for people who have not or are still having difficulty getting access to funding from other financial industries," said Hendrikus

Ketua Bidang Humas dan Kelembagaan AFPI Tumbur Pardede

Stating that FDC is also a manifestation of AFPIs implementation of steps in carrying out its function as a market supervisory to collaborate with other financial institutions in strengthening financial access in the community, especially the Unbanked and Underserved. "In its development, FDC can also be integrated into data owned by banks or even the Financial Information Service System (SLIK) belonging to the OJK in order to increase joint capacity in providing financial services for the community," said Tumbur. Tumbur who is also the Chief Executive Officer (CEO) of TunaiKita, one of the platforms that has been integrated, added, by joining TunaiKita in the FDC system, it can avoid the threat of debtors with bad borrowing behavior records and fraud identification. In addition, this system is very helpful as an important parameter in determining customer eligibility, which can detect and prevent potential customers from borrowing excessively on many Fintech P2P Lending platforms at the same time.

Chief Information Officer Investree, Dickie Widjaja

At the same time, we hope that this connectivity will continue to provide the best service to stakeholders. "We are proud to have participated in FDC integration. With the realization of this collaboration, we can carry out a mitigation process in selecting Borrowers as a whole so as to minimize the potential for fraud and provide protection to Investree Lenders," he said. The same thing was conveyed by platforms that have also been integrated, namely Danamas, Maucash, and Julo. This FDC supports the needs of the platform so far to verify customer data so that the loan distribution process can be more accurate and precise. "With the FDC data, the quality of the borrowers approved by Danamas will be better. FDC has an impact on the success rate of loan repayments," said Danamas IT Project Manager, Markus Lesmana.

CEO Maucash, Rina Apriana

Said “With the FDC, our platform gets additional information related to customers so that it becomes more complete and the credit decisions taken are more balanced. In the future, with more and more legal p2p lending fintechs that are integrated with FDC, the data will be more complete and will help this industry even more," JULO Head of Engineering, Hans Sebastian, said, "as one of the first platforms to be successfully integrated, we really appreciate support from the AFPI team who always responds to any obstacles during the process. The success of FDC development so far has been greatly assisted by the openness of the AFPI team in planning and discussing technical details involving all platforms. All inputs are also listened to and implemented. Until the end of February 2020, OJK recorded the distribution of Fintech P2P Lending loans worth Rp. 95.39 trillion, an increase of 225.58% from last year (YoY). In terms of lenders, there are already 630,003 entities or an increase of 156.83% YoY, and the number of borrowers is 22,327,795 entities, up 267.17% YoY. As of February 2020, there were 161 companies registered with Fintech P2P Lending, with 25 of them licensed.

The following are fintech peer-to-peer lending providers who have participated in reporting data to FDC and are increasing every day:

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