KEUNGGULAN KOMPARATIF ANTARA FINTECH LENDING DAN KREDIT MIKRO PERBANKAN

Abstract

About 60-70% of the whole sector of small medium enterprises not yet have access to financing on banking because the votes are not yet eligible. Currently the only financial institutions can meet the total needs of Rp700 trillion form Rp 1,700 trillion annually. Peer to Peer Lending service is believed to be able to answer the challenge has not been equitable financing services in the country. The purpose of this research is to find out the comparative advantages and risk profile in allocating credit on Peer to Peer Lending service compared with banking. The comparative advantage is made on the company's 64 Fintech Lending in Indonesia that provides microcredit lending services. The results of this research show that P2P Lending service is an alternative financing without collateral are easy, fast and practical for borrowers and has interesting return for the lender. In addition, practical lending services and without collateral increases the desire of businessmen micro in gaining access to funding. Meanwhile, the high loan interest rates increases the potential for borrowers defaulted and there is no guarantee that investment is given to the lender. The comparative advantage of Fintech Lending is higher than micro credit of bank because the fintech lending can operate with efficiently at lower cost.