Illegal Fintech Characteristics - With the development of technology, increasingly diverse types of businesses are also developing, especially those related to financing or known as Financial Technology (Fintech).
If with the conventional system, Mibi's friends have to come and submit an application to get funding, then with the rapid development of technology, you can get access to credit easily from home without having to come directly.
As an illustration, Fintech is a type of financing that relies on technology to serve its customers, which provides easy processing, coverage and transactions. There are several types of fintech, which is discussed this time about P2P.
P2P stands for Peer-To-Peer lending or online lending for short. The standard term in Indonesian is known as Information Technology-Based Lending and Borrowing Services.
Fintech P2P lending is defined as innovation in terms of borrowing and borrowing without the two parties meeting face to face which is possible because of the assistance of information technology.
All forms of services are provided by this P2P company through a website or application that is downloaded first. This P2P business is very specific, namely lending and borrowing services.
Technology does help a lot, but it also has a negative impact, as in this technology-based P2P. This allows for fraud, especially because there are indeed many illegal Fintech scattered.
Consumers in this practical era are required to be more selective and careful in submitting their business capital needs. If you are not vigilant, you may be exposed to fraudulent practices from players in unofficial P2P lending.
Understand the characteristics of illegal P2P so you don't get trapped, here's the information summarized from several sources
No Official Permission
In any context related to finance, banking and financing, your main reference is to see if the company has an official operating license that does have the authority to oversee these activities.
Of course, this status becomes important because Fintech that is unclear or unhealthy is not allowed to operate, which can have a detrimental impact on customers.
Identity Masquerade
The original work address, telephone number, e-mail address are important because they are related to identity. Fintech that has a license can of course be tracked where their head office and branch offices are.
In the case of illegal Fintech, there is a disguise of identity. The point is that there is indeed an office address included on their website, but after cross-checking the address, it is found that it is not the actual address. It could be a school, a resident's house or something else where the point is that there is no match between the description and the reality on the ground.
The purpose of this disguise is very clear, namely to avoid if there are authorities who come to investigate them. If you encounter this case, it must be suspected that the Fintech company is not official.
Too Easy Process
It is true that Fintech was formed to provide convenience, but it does not mean very easy as if without adequate processes and procedures. Usually Fintech like this will provide the lure of disbursement of funds in just a matter of minutes having landed in your account.
All forms of customer information will definitely be digested by legal Fintech first, to find out about the ability to pay if funding is given, which is also to determine the magnitude of the risk of default. But for illegal Fintech it is the opposite. While this may sound like fun, it's worth being wary of.
Stealing Personal Data
Personal data is for personal consumption only, not for publication. Illegal fintech somehow can get a lot of information about personal data ranging from family names, friends' names, even their phone numbers.
Usually your contacts will be contacted and do not hesitate to be terrorized if you are late in making a payment, so that the impact of your personal affairs is known by many people. Of course you don't want this problem to happen, which will definitely disturb your privacy.
Very High Interest Percentage
Actually this percentage depends on the policy in a country. Usually, illegal fintech will certainly violate the rules to get even higher profits.
They will not transparently provide information regarding interest and interest penalties to customers, so that customers are very surprised when the bill appears. Interest must not exceed 100% of the principal amount of the loan and is maximum billed after 90 days of delay.
Intimidation
This intimidation is a feature that is carried out when billing. At first, he only gave a short message if the bill would be made in a few days, but if it was too late, the intimidation started.
Official fintech will only collect during working hours according to OJK rules, but what is illegal is of course they violate the rules by collecting at any time, and often not only customers are terrorized, but also co-workers, family, colleagues are also the targets of intimidation.
By knowing the characteristics of illegal P2P Fintech, Mibi friends should be even more vigilant and avoid encountering things like that before it's too late.
