TY - JOUR
T1 - Data Protection in Financial Technology Services
T2 - International Conference on Industrial Technology for Sustainable Development 2017, ICon-ITSD 2017
AU - Anugerah, Dian Purnama
AU - Indriani, Masitoh
N1 - Funding Information:
Up to July 2017, a total of 180 startup fin-tech has been operating in Indonesia. Looking this situation, the Indonesian government responds quickly this phenomenon. Indonesia Financial Service Authority (OJK) and Indonesian Central Bank (BI) release new regulations regarding fin-tech service. Although not directly address fin-tech in specific; however, this regulations at least provides an opportunity for fin-tech to flourish. This means that the government responds to this situation well. OJK released regulation POJK No.77/POJK.01/2016 regarding Money Lending Services Based on Information Technology. Meanwhile, BI released PBI No. 18/40/PBI/2016 on Management Processing of Payment Transactions. The two regulations regulate the two most important things in the fin-tech service: peer to peer lending system and payment gateway system. Regulations issued by OJK and BI adopting the Regulatory Sandbox. What does it mean with Regulatory Sandbox? Regulatory Sandbox introduced by The Financial Conduct Authority (FCA), the financial body in United Kingdom in April 2016. Basically Regulatory Sandbox is a set of regulation which allows both fin-tech startups and established company to test their innovative product in the area of Fin-Tech. It is yet the best approach when dealing with the new technology. Regulators promote the innovation to grow faster and bigger by lowering barriers but still protect the consumers from the harmful effect of new product.
Publisher Copyright:
© Published under licence by IOP Publishing Ltd.
PY - 2018/7/24
Y1 - 2018/7/24
N2 - The banking sector has facing a new competitor, namely Financial Technology (Fin-tech). Fin-tech itself can be described as an industry composed of companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. In Indonesia, Fin-tech has been widely developed in the past 3 years. Fin-tech is facing a new challenge as a new service for financial consumer which adapts new way of living in modern digital technology era. Basically, Fin-tech is offering three main categories such as payment, personal finance and financing. In financing application there are peer to peer financing, social crowd funding and also loan marketplace. All of this kind application has some issues in legal framework and data protection due to the using of communication technologies such as internet, social networks, Smartphone, massive use of data with the Big Data, connected objects etc. The using of big data and those new technologies have created new opportunities for these sectors, these developments also raise significant data protection concerns. This paper will discuss two legal issues of Fin-tech, the legal aspect and the data protection.
AB - The banking sector has facing a new competitor, namely Financial Technology (Fin-tech). Fin-tech itself can be described as an industry composed of companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services. In Indonesia, Fin-tech has been widely developed in the past 3 years. Fin-tech is facing a new challenge as a new service for financial consumer which adapts new way of living in modern digital technology era. Basically, Fin-tech is offering three main categories such as payment, personal finance and financing. In financing application there are peer to peer financing, social crowd funding and also loan marketplace. All of this kind application has some issues in legal framework and data protection due to the using of communication technologies such as internet, social networks, Smartphone, massive use of data with the Big Data, connected objects etc. The using of big data and those new technologies have created new opportunities for these sectors, these developments also raise significant data protection concerns. This paper will discuss two legal issues of Fin-tech, the legal aspect and the data protection.
KW - Consumer
KW - Data Protection
KW - Financial Technology
UR - http://www.scopus.com/inward/record.url?scp=85051396423&partnerID=8YFLogxK
U2 - 10.1088/1755-1315/175/1/012188
DO - 10.1088/1755-1315/175/1/012188
M3 - Conference article
AN - SCOPUS:85051396423
SN - 1755-1307
VL - 175
JO - IOP Conference Series: Earth and Environmental Science
JF - IOP Conference Series: Earth and Environmental Science
IS - 1
M1 - 012188
Y2 - 25 October 2017 through 26 October 2017
ER -