Legal Risk Of Granting Of Credit To Customers By Financial Technology

English

Abstract

Along with the global expansion of the financial services sector and enhancement of the role of banking institutions as drivers of growth. The Financial Technology Operators have established a system that facilitates the loan and borrowing transaction process, through websites' pages and apps. With this institution, People will find it simpler to engage in credit-related activities as a result. This study aims to find out whether there are 5C analysis arrangements in the provision of credit to Financial Services Commission safeguards for banking technology users as well as regulatory safeguards for banking innovation companies if the customer violates the obligations in the agreement. Our study employs a lawful approach (statute approach) and a conceptual approach (conceptual approach) in a normative legal manner. According to the 5C study, which evaluates a company's capacity, capital, a guarantee, and economic state that can be carried out on credit recipients before Financial Technology Institutions provide loans to credit recipients. Legal protection for Financial Technology institutions can be carried out in a preventive form based on The Financial Services Authority Regulation Number 77/POJK.01/2016 relates to attempts to prevent conflicts by implementing the fundamentals of legal protection and is concerned with Information Technology-Based Money Lending Services. It may be done so in a repressive manner in accordance with Law Number 21 of 2011 Concerning the Banking Authority, in relation to violations of payment obligations committed by loan recipients, they can submit an application to Agency for Banking and Finance.