Fintech has been attempting to come up with solutions for the same issues that the National Council for Inclusive Finance aims to solve
The startup industry, with its technology and digitisation process, is often praised for its ability to disrupt existing conventional business structure. However, in my opinion, there is an exception for the finance technology or fintech sector, particularly in Indonesia. In the past years, not only that fintech has become an industry of its own, but it also play a role as a solution to complement other industrial sectors.
A simple example would be how fintech startups present a solution for peer-to-peer payment, peer-to-peer lending, and other forms of financial services. Gradually, fintech gives more ease and access for a part of the society that has not been touched by financial services such as savings, debit cards, credit cards, even bank loans.
The Indonesian government itself seems to realise the importance of empowering and bringing together members of this part of the society. It plans to set up a Managing Team for the National Council for Inclusive Finance to increase access to formal financial services for low-income societies.
According to the plan, the National Council will consist of various ministries and state financial institutions, with President Joko Widodo leading the council himself.
What the government attempts to solve through the National Council had actually been done by tech startups in the past few years, with the products and services that they provide. Even with their status as a startup, with resources that are world apart from banking and other formal financial sector, fintech startups had made the effort to provide financial services with comparable quality as those by formal services.
The government itself has been bringing Indonesian fintech players on board as part of their effort to provide financial inclusion. The latest attempt being the supports given by Financial Services Authority (OJK), Indonesia Chamber of Commerce and Industry (KADIN), and several other partners in hosting a conference, exhibition and festival event called Indonesia Fintech Festival and Conference 2016 (IFFC 2016).
The event will be held at the Indonesia Convention Exhibition (ICE), Bumi Serpong Damai. Apart from a conference, the event will also held a Startup Competition and Speed Dating section as part of its offering.
The plan to form a National Council for Inclusive Finance had brought fintech into a more centralised and in-demand position. The spirit, the issues, and the solution provided by fintech is in line with what the government is expecting, which is to provide greater access to financial services in the society.
The article Kehadiran Fintech Jadi Semakin Sentral Bagi Indonesia dengan Rencana Dibentuknya Dewan Nasional Keuangan Inklusif was written by Prayogo Ryza and was first published on DailySocial. English translation by e27.
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