New regulations for fintech companies as financial inclusion is on the up
New rules will be imposed upon fintech companies in Indonesia’s vibrant tech sector, even as the industry is expected to expand to more of the country’s 260 million people. The new rules, expected to be issued this month by the Financial Services Authority, known as OJK, will require fintech companies to register with authorities. Those that don’t will not be allowed to raise money from banks or tap financial markets. An OJK board member said the move was intended to bolster transparency and encourage lenders to more thoroughly calculate financial risks. Indonesia has led the region in expanding inclusion due to greater internet access and the increased use of smartphones in the country, increasing the value of fintech to the island nation.