What is Fintech?
Fintech is a term that can be used to call innovation in the field of financial services.
This form of innovation can also be said as a financial innovation that is given a touch of modern technology. But it can also be with the meaning of segments in the startup world that can help optimize the use of technology to replace, sharpen, and strengthening various aspects of financial services.
Fintech includes payment methods to fund transfer, fundraising, fund lending, to legacy management that can be improved speed and shortened by using technology.
Based on this interpretation, so it is not surprising that fintech is lightning becoming the needs of citizens and in conclusion is also able to change the lifestyle of citizens, especially those engaged in finance and technology.
The benefits of Fintech include:
●Helping The Startup Industry Grow
In this age, there have been many new startup industries that have sprung up and given birth to innovative products in the field of fintech. An example is Moneythor. This industry creates new products that can share experience in the field of digital banking whose analysis results are more specialized and detailed. Generally, this kind of industry began to develop in Singapore where after that the target was Asia.
●Improve Living Standards
Not only able to bring profit or a large income for the startup industry, the existence of fintech
●also able to improve the standard of living and energy buying citizens.
An example is the startup industry that after that was able to increase innovation to introduce merchants, which merchants can accept payment systems with debit or credit cards with low pay.
Not only that, there is also a startup industry that can make fintech innovations
by improving the infrastructure of the banking world to increase the energy of consumers or citizens. Not only that, fintech
also has a significant role in efforts to reduce the level of poverty to 600 million people. Not only that, the startup industry is also obliged to convince investors on the subject.
●Ease of Financial Services
Other benefits offered by fintech
which is very felt to be the ease of financial services. Try comparing it to 10 years later. When you want to transfer some funds, do you attend a bank teller or atm machine?
Apparently, both subjects are quite troublesome because it takes a while. Not only that, you're also obliged to queue which makes your time continue to be a lot of waste.
However, at this time the subject can be minimized by the absence of fintech. Because you can transfer some money with just a smartphone. Moreover, some fintech is also providing monthly billing features, such as electricity, telephone, and BPJS.
So, you can be more efficient in time and energy because it is not mandatory to always leave the house in carrying out various transactions.
Here are some of the Negative Consequences of Fintech:
There are some negative consequences caused by fintech, among others as follows.
1. Misappropriation of Customer Funds
A lot of financial products are issued by the fintech industry. One of the products issued is a fundraising product that collects large amounts of interest. Harmful subjects are a number of
this fundraising product does not even have a clear license and is not registered with the Financial Services Authority (OJk) so it can be said to be illegal.
There has been a lot of news everywhere that says that some customers face losses due to the misappropriation of customer funds tried by some fintech industries that are not licensed so as to cause customers to run out of funds that have been invested.
2. Investment Scams
The fintech industry actually shares the ease of investment for citizens anywhere and anytime. However, some fintech industries even set up businesses with a large level of risk, do not have clarity on the direction of work, and let alone illegal.
Therefore, the Financial Services Authority (OJK) strives to function in protecting the citizens and urges to always be vigilant in using the various facilities offered by some fintech industries. You should not be easily tempted and immediately convinced of the offer from the fintech industry that is not yet clear credibility.
3. Loan Fraud Problem
At this time quite uproarious fraud problems wrapped in a loan container. The ease of borrowing money online system causes many citizens to fall into the endless fintech roundabout.
Not a few actors online money loan providers carry out manipulation to their users to continue applying for money loans. Many after that use the ID card of the person who does not apply for a loan, but immediately send money to the person's account by pegging a large interest return to make people in debt in fintech.
4. Denouncing Banking Efforts to Roll Out
Due to the rise of the fintech industry, this subject could lead to the business of some banks so that it goes out of business. The conventional banking world has long since been abandoned. Because the convenience offered by some fintech industries gives rise to a number of customers sorting shifts to fintech rather than using banking which meanwhile is much more convenient.
Due to the use of a system that shifts the human position, causing some employees who previously worked in the banking industry run out of work because of the many fintech industries that are growing in the citizens at this time.
5. Dependence on the Internet
As a result of the use of fintech that is very dependent on the internet, so do not want citizens to become dependent on the existence of the internet. Meanwhile, the excessive use of the internet also shares the consequences of not being good for citizens.
If at any time there are problems on the internet network, until the financial transactions are tried can be hampered. This issue is bound to have an effect on the economy.
Fintech Fraud Problem Triggers:
Many trigger the formation of fraud problems by several fintech industries, among others as follows.
1. Lack of Supervision and Regulation
Due to the proliferation of the fintech industry, in fact, there are still many who are lacking in terms of supervision and regulation so it tends to be risky. Meanwhile, another uproar over crimes on behalf of fintech so that there is a need for clear supervision and regulation.
2. Lack of Citizen Knowledge of Data Security
Although it seems easy, make no mistake some fintech industries even allow to carry out the theft of your individual information. Meanwhile, information security means a lot to you so as not to be abused by irresponsible people.
3. Low Understanding of Citizens for Legality
Many of the residents have not clearly identified the meaning of legality. With the rampant fintech industry that does not pocket the message of legality, surely it is going to be very dangerous for its users, right? Not often due to the absence of such legality, make some fintech industry use your information indiscriminately.