What is Fintech: Definition, Types, List of Legal Fintech 2022

Admin BFI
2 August 2022
What is Fintech: Definition, Types, List of Legal Fintech 2022

Technological developments have contributed a lot to the efficiency of our daily activities. One of them is the presence of fintech.

Thanks to this technological innovation, all forms of financial transactions have become easier, faster and more accurate. Many people are helped thanks to the existence of fintech.

Sobat BFI, do you know what fintech is? The BFI team will invite you to understand what fintech is through the following article.


1. What is Fintech?

Financial technology or abbreviated as fintech is a technological innovation in the financial sector. This innovation can be in the form of financial products and services.

Fintech is here to facilitate all forms of existing financial transactions. These include ease of making payment transactions, payment system security, and supporting the government in economic development.

According to the National Digital Research Center (NDRC), fintech is a term used to describe a technological innovation and digitization of financial services. The existence of this fintech is expected to accelerate financial activities. For example, transfer of funds, payments, to borrowing funds.

2. Fintech Regulations in Indonesia

The development of Fintech in Indonesia has been regulated by government regulations through Bank Indonesia and the Financial Services Authority (OJK). The regulations are contained in the following description.

  • BI Circular Letter No. 18/22/DKSP concerning the Implementation of Digital Financial Services.

  • BI Regulation No. 18/17/PBI/2016 regulates all matters related to Electronic Money.

  • BI Regulation No. 18/40/PBI/2016 stipulates the Implementation of Payment Transaction Processing.

  • OJK Regulation (POJK) No. 77 of 2016 concerning Information Technology-Based Lending and Borrowing Services.

Apa Itu Fintech

Image Source: Pexels/Ivan Samkov

3. Benefits of Fintech

After you know what fintech is and its regulations, then let's understand the benefits of fintech itself.

3.1. Benefits of Fintech in General

1. Facilitate Financial Transactions

The presence of fintech makes financial transactions more practical. With just one mobile phone, you can make various financial transactions without the need to queue, go to the bank, or bother to provide change. Different layers of society can use it.

2. Ease of Access to Funding

The existence of fintech is very helpful for those who need a fast funding alternative. That way, anyone has the opportunity to get business capital or even meet daily living expenses.

3. Participate in Supporting National Financial Inclusion

Financial inclusion is an economic activity in which the community is involved and has access to financial institutions. Currently, Indonesia's financial inclusion is still at 49% of the government's target of 75%.

Thanks to the presence of fintech that offers effectiveness and convenience through technology, people can now more easily access various financial services. For example, making payments, buying and selling, saving, borrowing funds, and much more.

4. Improving Living Standards

Thanks to the ease of access available, people's standard of living have increased. People can easily meet their financial needs. This includes those who have limited access to conventional banks.

5. Faster Turnover of the Economy

Fintech can also help accelerate the economy. One reason is that access to finance is much easier. This is aimed at accelerating the economic turnaround because more and more small businesses are being helped.

3.2. Benefits of Fintech for Consumers

1. Affordable price

2. Various options

3. Get better financial services

3.3. Benefits of Fintech for Fintech Players

1. Simplify the transaction process

2. Reducing capital and operational costs

3. More protected information

3.4. The Benefits of Fintech for a Country

1. Support economic development

2. Accelerating the velocity of money which has an impact on improving the community's economy

3. Participate in developing the National Strategy for Financial Inclusion (SNKI)

4. Types of Fintech in Indonesia

After knowing what fintech is, it's incomplete if we don't know the types of fintech in Indonesia.

Here are the types of fintech you need to know.

4.1. Peer to Peer Lending Service (P2P)

Technological innovation in the form of money loans. It's done online, it's easy, and the process is fast. There is no need to queue or the process is convoluted like conventional banks.

Examples of Fintech P2P: Akseleran, JULO, koinp2p2, ModalRakyat.

4.2. Crowdfunding

Technological innovations in the form of financial transactions that function to raise funds give donations or program initiatives for certain social movements.

Examples of Fintech P2P:,, GandengTangan

4.3. Microfinancing

The technological innovation targets the lower middle class. Make it easier for them to get loan funds with affordable interest. The presence of this innovation is very helpful for people who have limited access to banking.

Examples of Fintech Microfinancing:

4.4. Digital Payment System

Technological innovations that facilitate instant payment transactions. Used to pay bills such as electricity, transportation tickets, credit, digital wallets, and much more.

Examples of fintech digital payment systems: OVO, GoPay, ShopeePay

5. Market Comparison / Market Aggregator

Technological innovations offer convenience for the public to compare various financial products. The function of market comparison is to assist the general public in financial planning, especially in making decisions regarding suitable investment instruments.

Examples of fintech market comparison/market aggregators:, Cermati, Lifepal, BandingAja

6. How Fintech Works

How fintech works depends on the type of fintech. For example, fintech is a digital payment system. This type of fintech functions as the owner's digital wallet where it will be easier for us to make cashless transactions without having to worry about change.

Unlike the digital payment system, crowdfunding fintech is here as a solution to collect funds for donations. The way is by submitting a campaign to raise funds, later when the application is received the organizers will look for people who are willing to set aside a little money to donate.

Even though they have different functions, all existing fintech offer convenience in transacting through technological innovation.

7. Fintech Development in Indonesia

Talking about what fintech is, it's better if we know how fintech is developing in Indonesia.

Fintech began to be present in Indonesia in 2006. The presence of this fintech did not immediately develop rapidly as it is now, many challenges were faced.

It was only in 2015, precisely in September that an organization that regulates fintech was formed called the Indonesian Fintech Association (Aftech). The existence of this organization also supports the development of fintech in Indonesia. Fintech is finally easier to accept and spread widely.

A large number of fintech users in Indonesia has made this country ranked 3rd with the highest number of fintech users in the world after India and Brazil. This coronation was carried out by the 2021 edition of the State of Finance App Marketing.

Reporting to the Indonesian fintech association, the number of fintech in Indonesia is still dominated by 43% payments and 17% loans.
As for the number of fintech lending that have been registered with the Financial Services Authority (OJK) as of April 22, 2022, there are 102 companies.

8. List of Latest 2022 Legal Fintech in Indonesia

The following is a list of legal Fintech peer-to-peer lending (P2P) according to the Financial Services Authority (OJK).

No. Electronic System Name Website Company name Licensed Certificate Date Type of business Operating system
1. Danamas PT Pasar Dana Pinjaman KEP-49/D.05/2017 06 Juli 2017 Conventional Android
2. Akseleran PT Akseleran Keuangan Inklusif Indonesia KEP-122/D.05/2019 13 Desember 2019 Conventional Android dan iOS
3.  JULO PT Julo Teknologi Finansial KEP-16/D.05/2020 19 Mei 2020 Conventional Android
4.  EASYCASH PT Indonesia Fintopia Technology KEP-49/D.05/2020 16 Oktober 2020 Conventional Android
5. Pintek PT Pinduit Teknologi Indonesia KEP-26/D.05/2021 21 April 2021 Conventional -
6. investree PT Investree Radhika Jaya KEP-45/D.05/2019 13 Mei 2019 Conventional and Shariah Android dan iOS
7. Indodana PT Artha Dana Teknologi KEP-15/D.05/2020 19 Mei 2020 Conventional Android dan iOS
8. PINJAM YUK PT Kuaikuai Tech Indonesia KEP-2/D.05/2021 6 Januari 2021 Conventional Android
9. klikUMKM PT Pinjaman Kemakmuran Rakyat KEP-13/D.05/2021 23 Februari 2021 Conventional -
10. KlikCair PT Klikcair Magga Jaya KEP-103/D.05/2021 17 September 2021 Conventional Android

To see the full list you can access this webpage.

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Sobat BFI, that's the discussion regarding What is Fintech: Definition, Types, Benefits, List of Fintech Legal 2022. Hopefully, this information can be useful for all readers.

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