DoFinance Insights and outlooks: Monthly Update for July 2022
Recollections in Indonesia
Welcome to DoFinance Insights and outlooks! Another month has passed. As always we, the DoFinance, are here for you to shed light upon the latest developments in the world of p2p lending and the life of DoFinance. This entry mostly focuses on the ongoing recollections that take place in Indonesia, respectively. Always make sure you follow our blog posts to be aware of the latest news. Have a pleasant read!
When it comes to recollection in DoFinance, two countries are in the spotlight – Poland and Indonesia. Talking about the latter, we might outline the fact that the Lending has mostly stopped in Indonesia and most of the efforts are now tilted towards the collection of the outstanding portfolio. The Lending stopped mainly due to the lower loan quality, which means Borrowers are less likely to return the loan timely. Meanwhile the local legal impediments amount in their entirety to the local regulators’ negative stance towards p2p lending as such, thus affecting Loan Originator operations by imposing limitations to the possible interest rates and loan durations periods. Besides that the local regulatory landscape has an overall negative sentiment towards the p2p lending industry so it renders the overall business climate much worse than before. This goes along with a spike in fraud cases due to a loophole in new bank regulation, leaving Loan Originators now place to move or to make gains. This alone eats out a very prominent part of potential Loan Originator operations.
Leaving that there and moving on to recollections one might see that recently the number of employed collection agencies, that are deemed much more efficient than other means of debt collection, has increased notably. This should affect the speed of recollection in a very positive manner. Below you may see a list of currently employed Debt Collection Agencies that work hard towards our common goal:
Our investors might remember the blog post from 26.08.2021, where a detailed description of the recollection process was presented to DoFinance affected investors. This was an outlook for the future, keeping in mind that the business would not stop, which would mean that the business proceeds are possible to use in recollection or for satisfying DoFinance investor claims. This, however, did not go as planned taking in account all written above this possibility is considerably jeopardized and investments will most likely be recovered only from old debt collection. Dofinance is requesting the Loan Originators to do everything it can in order to recover as much as possible in the shortest time possible. We will provide more updates in this regard as soon as it becomes available.
Moving on forward to the current recollection amounts – the recovered funds amount is almost equal to the debt collections cost accumulated so far, surpassing it by a notch. But not to leave other means of recollection out of the scope Dofinance is also requesting Loan Originators to constantly update loan portfolio sale options. As that would give a one time income and avoid exposure to debt collection costs.Below you may see a detailed overview of the current situation described above.
That sums up the news on loan recollection in Indonesia. What is left out of the scope is the recent and ongoing delay in payout requests. Please remember that the delay in payouts is temporal and please note that all payout requests will be satisfied shortly.
This sums up the blog update as of July 2022. Please stay tuned for more news.