Ovo, Go-Pay Not a Threat to Banks, LPS Says

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Laila Afifa

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  • LPD commissioner board member Destry Damayanti, LPS commissioner board chief Fauzi Ichsan,  LPS executive chairman Halim Alamsyah, LPS executive director of research, surveillance, and bank audit Didik Madiyono during a press conference in Jakarta, September 2018. TEMPO/Dias Prasongko

    LPD commissioner board member Destry Damayanti, LPS commissioner board chief Fauzi Ichsan, LPS executive chairman Halim Alamsyah, LPS executive director of research, surveillance, and bank audit Didik Madiyono during a press conference in Jakarta, September 2018. TEMPO/Dias Prasongko

    TEMPO.CO, Jakarta - The Deposit Insurance Corporation (LPS) said that the flow of third-party funds (TPF) to financial technology (fintech) companies' payment platforms is not a threat to the banking sector. Fund transfer between similar digital accounts, such as Ovo and Go-Pay, will not be a problem to banking liquidity either.

    LPS board of commissioner member, Destry Damayanti, said that the situation could actually profit banks.

    "Because in the end, both OVO and Go-Pay for example, would have to place their money in banks, too," she said during a discussion on women's role in economy, Tuesday, March 26.

    Fintech-based payment companies are thriving at the moment. In addition to OVO and Go-Pay, there is also Dompet Digital. Each company has been showing significant growths over the last two years.  

    Destry continued to say that the existence of fintechs will benefit banks, as it will encourage and increase the use of bank accounts. Additionally, the state will benefit from the increasing rate of financial inclusion.

    "Opening new accounts at banks is a bit troublesome," she said, adding that with technological advancement, fintechs, and digital financial platforms, people can do it at home or anywhere else at their convenience. 

    Dias Prasongko