The Impact Of The Fintech Revolution On Conventional Bank Credit In Indonesia: Opportunity Or Challenge?

In 1998, Indonesia experienced a financial crisis caused by the disruption of the performance of the banking sector. At that time, economic recovery was very difficult because it required very high costs, and it was difficult to restore public confidence in the financial sector. Therefore, amid the rampant use of Peer to peer-to-peer lending compared to using credit in conventional banks, this research is important to be carried out to prevent a recurrence of the financial crisis experience that occurred in 1998. This study uses secondary data covering January 2018-December 2023. Data was collected from the Financial Services Authority (OJK). The analysis method used is multiple linear regression with the Stata 14.0 tool. The study's results indirectly show that the increasing popularity of fintech, especially P2P Lending, will reduce the use of credit in conventional banks. On the contrary, the higher the Payment Success Rate (TKB) and Loan Default Rate (TWP), the higher the credit rate for conventional banks. It is recommended to the government supervise the public in conducting online loans or P2P Lending so that the performance of conventional banks is not disrupted.