Here are 5 Types of Fintech that are Developing in Indonesia

The development of technology has brought many changes in our lives. Especially now that we have entered the digital era, which has made a lot of breakthroughs and made our lives easier.

Currently, technological developments have also had an impact on various industrial sectors, one of which is the financial industry. The many changes in the digital era, it has forced the financial industry to keep up with the times so as not to be left behind by competitors.

One proof of technological developments in the financial sector is the birth of several startup companies engaged in technology-based financial services, or what we usually call fintech (Financial Technology).

The birth of fintech in our country is expected to help many levels of society, especially those related to financial services, especially if we remember that there are still many people out there who have not had optimal access to banking.

Companies engaged in the fintech sector are currently focused on making various innovations related to financial services and combining them with technology to make it easier for many people to access.

Types of Fintech in Indonesia

According to the Financial Services Authority (OJK), currently, there are 5 types of Fintech that are developing in Indonesia:

Crowdfunding

Linguistically, a crowd means a collection of many people, and funding means funding or fundraising. According to the Indonesian Embassy, ​​crowdfunding is the funding of a business, project, etc. which involves the wider community through internet networks.

Usually, crowdfunding works using a website, and people can access crowdfunding through the website very easily.

Currently, crowdfunding is used in both social and investment activities. By using crowdfunding, we as business actors can collect a certain amount of funds from investors, and after the funds are collected according to the target, the funds can be disbursed and used directly according to our needs as customers.

Microfinancing

Microfinancing is an activity that focuses on empowering the economy of small communities at large. Microfinancing includes various financial services, such as depository services, credit, business financing, payments, and other financial services that are intended to help the general public or small entrepreneurs who need financial assistance.

The main purpose of microfinancing is the welfare of small communities, and helping their businesses to develop better.

Now, to realize this, several institutions use fintech through websites and the internet to make it easier for the public to get financial services, as well as make it easier for lenders to invest their capital.

Peer to Peer Lending (P2P Lending)

With P2P lending fintech, we can bring together lenders (investors) with loan seekers in one online platform. In return, investors will earn interest on the funds they lend.

P2P lending is a solution for both parties, both business actors and lenders (investors). Business actors get convenience in getting their business capital, without having to go through various long processes. Meanwhile, investors also benefit from the funding he has provided.

Ethics.co.id is a fintech company engaged in Islamic P2P Lending, where business actors can get funding more easily, and investors can invest part of their assets, and later investors will get a profit ratio according to the agreement. Don't worry, you can rest easy when you make ethis.co.id as a partner because ethis.co.id has got permission from OJK!

Market Comparison

As the name suggests, this fintech is used to compare various kinds of financial products on the market. Usually, this fintech is used to make it easier for someone to prepare financial planning so that we can choose which financial product suits our needs.

Digital Payment System

The Digital Payment System is currently one of the most widely used fintech today. This fintech provides payment services via digital, also known as cashless.

This fintech aims to facilitate the public in payment methods, by using various digital features that can be accessed easily. The use of the Digital Payment System is also very diverse, it can be to buy credit, pay water and electricity bills, or even to shop for daily needs.

Digital payment system providers are also very diverse, from banks and non-banks. There are now many business platforms that have digital payment systems, to make it easier for customers.