A Comparative Social-Legal Analysis: Fintech Lending Governance in Indonesia and Malaysia

DOI

10.2991/978-94-6239-785-9_12How to use a DOI?

Keywords

Business Law; Consumer Protection; Digital Governance; Fintech Lending; Socio-Legal Analysis

Abstract

The rapid expansion of fintech lending services in Southeast Asia has transformed access to credit, especially for underserved communities. However, this innovation also brings significant legal and social challenges, concerning consumer protection, data privacy, and abusive debt collection practices. This study provides a comparative socio-legal analysis of fintech lending governance in Indonesia and Malaysia, examining the interplay between legal frameworks and borrowers’ lived realities. In Indonesia, regulatory oversight is primarily carried out by the Financial Services Authority (OJK), while in Malaysia, Bank Negara Malaysia (BNM) and the Ministry of Local Government Development (KPKT) are responsible for regulating digital lending activities. Although both countries share similar policy objectives, they reveal striking differences in institutional arrangements, enforcement mechanisms, and public responses. Drawing on a combination of normative legal analysis and empirical insights, the study highlights the gap between formal regulations and the socio-economic realities of digital borrowers. It argues that effective fintech lending governance must go beyond legal formalism and adopt a community-centred approach that emphasises fairness, transparency, and accessibility. The study recommends stronger inter-agency coordination, enhanced financial literacy initiatives, and regional cooperation to harmonise regulatory standards across the ASEAN region.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Dikha Anugrah
AU  - Bias Lintang Dialog
AU  - Sri Mulyani
PY  - 2026
DA  - 2026/10/07
TI  - A Comparative Social-Legal Analysis: Fintech Lending Governance in Indonesia and Malaysia
BT  - Proceedings of the UUM 13th International Legal Conference 2025 (UUMILC 2025)
PB  - Atlantis Press
SP  - 161
EP  - 172
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6239-785-9_12
DO  - 10.2991/978-94-6239-785-9_12
ID  - Anugrah2026
ER  -