OJK Warns Fintech Companies of Sustainability Issues

TEMPO.CO, Jakarta - The Chairman of the Board of Commissioner of the Financial Services Authority (OJK) Mahendra Siregar mentioned that sustainability is the main challenge currently faced by the financial technology (fintech) industry. Thus, he said, the ability to achieve profitability becomes important.

"Without it, don't even hope to attract investors," he said during the National Fintech Month and the 5th Indonesia Fintech Summit & Expo in Jakarta today, Nov. 23, 2023.

Mahendra reminded fintech actors to not only speak of growth but also sustainability. "No sustainability, no survival," he remarked.

Additionally, another issue brought up by the head of OJK was the issue of consumer protection. According to Mahendra, public trust in fintech should never dwindle.

Concerning the sustainability of the fintech business, the Deputy Commissioner on the Supervision over Non-Bank Financial Industries of OJK M. Ikhsanudin previously stated that data showed 64 percent of fintech companies are five years and under. Meanwhile, there were only around 2.7 percent of fintech companies that have been operating for more than 20 years.

Citing Antara, Ikhsanudin claimed that whether or not a fintech company would be sustainable was not conclusive, since most of these companies were new. 

RIRI RAHAYU | ANTARA

Editor's Choice: OJK Projects Eightfold Growth of Indonesia's Digital Economy by 2030

Click here to get the latest news updates from Tempo on Google News