Comparative Analysis of Regulations on IT-Based Money Lending and Borrowing Services in Indonesia and Vietnam

Abstract

Providing information technology-based money lending and borrowing services offers convenience and benefits for users to access fresh funds quickly and safely. However, debtors often misuse their situation, leading to financial losses and potential intimidation. The research problem in this study revolves around several key aspects, including defining existing information technology-based money lending and borrowing services, comparing the regulatory implementations for these services in Indonesia and Vietnam, and exploring potential legal measures to counter illegal fintech activities. The objective of this research is to assess and analyze the implementation of information technology-based credit service regulations, commonly known as FinTech, in both Indonesia and Vietnam. This research adopts an empirical normative legal approach, involving legal, conceptual, and qualitative analyses. The findings reveal that both countries have taken proactive measures by enacting regulations to govern the rapidly expanding fintech industry. However, they continue to face challenges posed by widespread illegal fintech operations, which pose risks to the privacy of individuals' personal data. Additionally, both nations encounter a shortage of skilled professionals capable of effectively detecting and combating illicit fintech activities. Therefore, it is imperative to enhance regulations and invest in professional training to eliminate illegal fintech practices.