Technological developments in the 4.0 Industrial Revolution are now rapidly expanding. One of the digitization forms of the 4.0 Industrial Revolution is Fintech. According to BI, Financial Technology/FinTech is the combined result of financial services with technology that ultimately changes the business model from conventional to moderate. In which initially paying is must face-to-face and carrying a certain amount of cash, can now conduct long-distance transactions by making payments that can be done in a matter of seconds. The presence of Fintech emphasizes aspects of ease and practicality, undoubtedly a significant role in the economic progress of the country, especially in terms of national investment.
Fintech in Indonesia began to develop in 2015 with the presence of Asosiasi Fintech Indonesia (AFPI). The existence of this AFPI can be said as a trigger factor for fintech development in Indonesia. In the year 2016, fintech company began to emerge, and until now, recorded, there are 161 fintech companies registered in OJK.
The people of Indonesia very well welcoming the presence of Fintech itself. It is due to the many facilities offered by the Fintech. Fintech can reach various circles, ranging from the upper classes to millennials who have not been able to gain credit access—furthermore, electronic money such as GOPAY, OVO, DANA. Which is a product of Fintech, offers practical and fast payment transactions so that the existence of Fintech greatly assists people.
Other than used for terms of payments, Fintech has also entered the domain of investment, especially the online mutual fund instruments. Thanks to electronic money, online mutual fund companies such as Bibit, Bareksa, and other similar companies, can conduct transactions between investors with practical because investors can do their investment activities anywhere and anytime. Prospective investors also are not bothered anymore in the administrative terms because it is merely registering through their gadgets. Investors with minimal capital can also invest in this instrument. Enough with a capital of Rp 10.000, investors can already invest in the company of the online mutual fund. Furthermore, investors also do not have to worry because all investment activities are safe. After all, the OJK itself secures it.
As time goes by, the development of online mutual fund in Indonesia experienced a sharp enough increase. As an overview, by December 2017, the number of investors in online mutual funds was only at 623.000, while in January 2020, the investor's number of mutual funds reached 1.84 million. The increase in the number of investors is very massive because only within one year, the increase is near 3x the fold
Fintech plays a significant role in the development of investment in Indonesia. The online mutual fund, which is influenced by Fintech, proves to increase significantly the interest of people to start investing.
However, it is worth remembering that the current number of investors is only a fraction of The total population of Indonesia. Therefore, it is necessary to improve the participation of the community in supporting the development of investment in Indonesia so that the national economy can grow well.
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