Fintech Lending Sector Shows Rising Credit Risk

High NPL Ratio Among Productive Segment Platforms

The Financial Services Authority (OJK) has revealed that 22 fintech peer-to-peer lending platforms recorded an aggregate non-performing loan (NPL) ratio exceeding 5% as of October 2025. According to Agusman, Head of Supervision at OJK, the majority of these platforms operate in the productive segment, making them particularly vulnerable to economic fluctuations.

Economic Dynamics Driving Credit Risk

Agusman explained that the primary reason for the high NPL ratio among productive segment fintech lenders is their direct exposure to economic dynamics. As economic conditions change, borrowers in these segments face increased challenges in repaying loans, thereby elevating credit risk for lenders. This situation underscores the need for robust risk management practices within the fintech lending industry.

Regulatory Oversight and Industry Implications

The OJK's findings highlight the growing credit risk in the fintech lending sector, particularly among businesses catering to productive segments. In response, regulatory bodies may need to enhance oversight and implement measures to mitigate these risks, ensuring the stability and sustainability of the fintech lending market.