BUSINESS ANALYSIS AND DESIGNING MODELS OF GOVERNANCE AND ALSO RISK MANAGEMENT FOR FINTECH AS EFFORTS OF FINANCING OPTIMIZATION IN MSMEs

Abstract

The development of financial services based on technology or Financial Technology (Fintech) potentially gives a great contribution for Indonesia’s economy. Fintech is able to draw both investor and MSMEs business administrator together that need credit loans with easier requirements compare to conventional financial institutions. The purpose of this research is to find out the readiness of MSMEs for the service offered by Fintech related to financing activity, to find out the role of fintech towards MSMEs development and national financial system, and also to find out which governance and risk management model that suits Fintech’s business field. Qualitative descriptive research method is used in this research with semi structured documentation and interview data collection technique to collect primary and secondary data. Data analysis technique used in this research is content analysis from various sources, including text source, survey result and interview result. The research result shows that the majority of MSMEs doers, about 81,8% of total respondents are absolutely ready in utilizing Fintech service. However, in this case, regulator needs to consider socializing the use of fintech in transaction process towards MSMEs to optimize the role of fintech as alternate financial source for MSMEs. The research result shows that model design of fintech governance and risk management in this research should adopt IT governance framework that includes strategic alignment, trust value delivery, resource management, business & IT risk management and performance management. Besides that, big data management also becomes part of fintech business governance and risk management model design.