|Yujia He (HKUST)|
|14 Mar 2019 (Thursday)|
|4:00 - 5:00 pm|
IAS2042, Lo Ka Chung Building, HKUST
Online peer-to-peer (P2P) lending has the potential to provide credit to the underbanked population in emerging markets. In Southeast Asia, the influx of transnational capital has led to rapid expansion, creating regulatory challenges for governments. This paper uses a case study approach to examine the influx of Chinese capital into the online P2P lending sector in Indonesia and the resultant policy response. Driven by the enforcement of tighter regulations in China, Chinese P2P firms and capital entered the Indonesian market and triggered a prompt government response to counter negative economic and social impacts and mitigate risks. We analyze new Indonesian regulations and institutional changes both directly related to online lending and associated with relevant risks in digital and financial services. We conclude that emerging markets should take a proactive approach towards regulating this fledging FinTech sector by establishing broader regulatory frameworks that encompass relevant and emerging risks and working with industry and civil society groups to improve the market conduct and consumer protection.
Dr. Yujia He is a Postdoctoral Fellow jointly appointed with the Institute for Emerging Market Studies and the Institute for Advanced Study at HKUST. Previously she worked in Washington D.C. as a visiting fellow for the Atlantic Council’s Scrowcroft Center for Strategy and Security, and as a researcher for the Wilson Center's Science and Technology Innovation Program. Her research has appeared in Resources Policy, International Journal of Emerging Markets, and several think tank reports. Her work has received funding from the Horowitz Foundation for Social Policy, the University of Chicago Center in Beijing, the George Washington University Center for International Business Education and Research, and Sam Nunn Security Program. Her degrees include Ph.D. in International Affairs, Science and Technology (IAST) and MS in International Affairs from the Georgia Institute of Technology, and BS in Chemistry from Peking University.
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