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BCA ignores online credit trend due to its high risks

12 April 2019 07:26 AM  Company: PT. Bank Central Asia Tbk[BBCA]
Rp. 26,000  -400 (-1.52%)

JAKARTA. PT Bank Central Asia Tbk (BBCA) said that it would ignore the trend of online credit loans, because the risk was too high for the company's performance.

Jahja Setiatmadja, President Director of BBCA, said that his party would not follow the trend, as has been done by a number of fintech in Indonesia. "We don't want to start yet, in our opinion the risk is still too high," Setiatmadja said as quoted by Kontan, on Thursday (11/4) yesterday.

In addition, Setiaatmadja explained that a number of online credit fintech in China had gone bankrupt, because they did not have sufficient risk mitigation  even though the fintech has a qualified creditworthiness analysis system.

Furthermore, Setiaatmadja said that the fintech algorithm in China can provide good ratings for creditors. "But with high interest rates, the borrower does not only borrow from one company (fintech)," Setiatmadja explained. (KR/AR)

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PT. Bank Central Asia Tbk [BBCA]   Rp. 26,000   -400 (-1.52%)