/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Finmas granted Indonesian fintech lending licence

Source: Finmas

Finmas (PT Oriente Mas Sejahtera), has officially obtained a business license as a fintech lending platform based on the Decree of Board of Commissioners of Indonesia’s Financial Services Authority (OJK) No. KEP-85/D.05/2019 dated 30 September 2019.

The issuance of the official license from the OJK confirms that FINMAS has completed stringent compliance requirements and fulfilled all obligations stipulated under the OJK Regulation No. 77/POJK.01/2016 on the provision of information technology-based money lending services and its derivative rules.

As of August 2019, there were only seven fintech lenders out of 127 registered fintech lending companies that had successfully obtained a business license from the OJK. The issuance of OJK’s business license for FINMAS and five more almost doubles the number of licensed fintech lenders and strengthens our collective effort to drive financial inclusion responsibly, across Indonesia.

Speaking on the occasion, Reza Pratama, Finmas Director of Compliance said, “Finmas was established to help serve the Indonesian people, and we are deeply committed to maintaining the highest standards of transparency, security and strong corporate governance in accordance with OJK regulations and code of ethics issued by the Indonesia Fintech Lending Association (AFPI). We appreciate the incredible diligence by OJK towards issuing this license only to companies that meet all the strict compliance requirements. This process sends a strong message to the industry and other regulators across ASEAN.”

Reza added that the key to Finmas’ success in obtaining the license is the company’s unique combination of a strong business model, governance and compliance practices, risk mitigation in collaboration with institutions registered with OJK, technology-based customer service centers, and infrastructure designed to uphold our shared values of inclusion, privacy, and customer protection.

With its new “licensed” status, Finmas is determined to build on the incredible support and trust from its rapidly growing community by continuing to innovate, collaborate, and integrate new services that extend the reach of its platform and improve the financial health for millions of Indonesians, SMEs, and merchants in line with the company’s vision.
Rainer Emanuel, Finmas Head of Corporate Communications said, “We share a common mission with OJK to accelerate financial inclusion for all Indonesians. With this license, we are excited to invest further and scale our support of AFPI and OJK’s financial education and literacy efforts, broaden our suite of fair and inclusive services to cater to unbanked and underserved communities, and increase the overall economic contribution of the fintech lending sector to Indonesia’s economy.”

In just 12 months of operations, the Finmas app has been downloaded on the phones of over 4.5 million users, serving over 1.2 million Indonesians and MSMEs and counting. The company has also actively participated in numerous financial education and literacy programs across the archipelago. Finmas will also look to pursue new partnerships with various businesses and organizations across Indonesia, including merchants, MSMEs, retailers, e-commerce, financial services institutions, industry associations, and government agencies, among others.

Comments: (0)