Invest through Equity Crowdfunding

This article published in Kompas, April 10th, 2021, page 13.

The recent development of financial technology opens up another investment options. Some investors may have built portfolios through peer-to-peer lending, now there are crowdfunding that offer investors a chance to take a profit and at the same time, helping a SME (small and medium) business to develop.

Crowdfunding allows people to raise funds to finance a business. For example, investor can crowdfund a business of boarding house or other property. They will get a share of the profit that depends on the performance of the funded companies. In general, this profit ratio can be higher that deposit interest. On the other hand, crowdfunding offers a chance for SME businesses to get funded, way more easy compared to applying for credit from banks or other financial institutions.

Crowdfund could be a new trend in Indonesia this year. OJK has issued a new regulation that could be a catalyst for the industry development. The regulation offers another option of fund raises. According on previous regulation, the issuing company can only raise funds in the form of capital share. Now with the new regulation, company can offer securities such as bonds or sukuk (sharia bonds). Lanjutkan membaca →

Re-interpretation of Cyber Risk Governance

The fourth wave of the industrial revolution has shifted bank services to become more digital. This shift can become a double-edged sword when not followed by strengthening cyber security. According to the concept of Klaus Schwab, the disruption of the fourth industrial revolution does not only cover aspects of production. Disruption also occurs in aspects of management and governance, including cyber risk.

For some experts, “safe” in the context of cyber is a miracle. According to former FBI director Robert S. Mueller, there are only two types of companies globally. The first are companies that have been hacked, while the rest are companies that will be hacked. Former CEO of Cisco Systems, John T. Chambers, has another, more worrying opinion. Two types of companies in this world are those that have been hacked and those not aware that they have been hacked. Lanjutkan membaca →

Creating Room for Innovation in the Financial Services Supervision

We didn’t do anything wrong, but somehow we lost. That was the statement of Stephen Elop, CEO of Nokia, to end the press conference when he announced the Microsoft’s acquisition on his company. There was nothing wrong with Nokia when they dominated the sales of mobile phones in the world. However, they were late to learn and innovate, and Nokia was suddenly irrelevant.

In this era, innovation and changes occur quickly, accelerated with internet technology development and mobile devices. E-commerce is stated turning of the traditional retail store. GoJek challenges BlueBird’s stability as a leading transportation provider. The number of magazines and newspapers that stopped publishing the printed edition has already been uncounted because pressure by the online media.

The financial industry maybe more resilient than the other industries. Still, they face the same challenger as the other industries: the consumer wants a practical and fast service and if possible, cheaper. The financial service institution has to understand this and start innovate. Or they will be a dinosaur, irrelevant both by smaller startup or others financial service institutions.

During this competition, a supervisor institution concerns to ensure customer protection, financial system integrity (related to money laundering and terrorism funding), and economic stability. This regulatory and supervisory action has to be done while maintaining innovation room for financial service. This can be done by confirming the fair rules (same level playing field) and policy toward innovation between the existing financial institution and the fintech startup. Lanjutkan membaca →

Get Closer with UangTeman’s Business Model

This post published in DailySocial, August 5th, 2015.

UangTeman, a startup that lends you money, draws many negative responses. Firdaus Djaelani, Financial Service Authority’s Executive Head of Non-Bank Industry Supervisors, mercilessly (yet honestly) stated that UangTeman is a new form of userer that makes use of technology. Well, if you lend me a million with 1% of daily interest attached, I would prefer calling you a userer rather than a friend.

Such high interest is implemented by UangTeman since, sadly but true, its business model isn’t more modern than traditional bank’s, although utilizing technology within the operational process. Although users may practically apply for the loan online, first time users must still come to UangTeman’s office to complete the process. This forces UangTeman to establish a branch office in every city it operates.

This face-to-face process is UangTeman’s serious flaw. Every new branch office means more costs to spent. This is actually what startups need to avoid, by making everything online. Lanjutkan membaca →