The COVID-19 pandemic continues to this day. This pandemic has had a major impact, especially on the economy in the Micro, Small and Medium Enterprises (MSME) sector. One of the MSMEs affected is the fashion MSME in Kampung Rajut Binongjati, Bandung City.
Kampung Rajut Binong Jati itself is a creative village engaged in the fashion industry, with 400 home-based knitting industries producing up to 1,500 dozen garments.
Unfortunately, in the midst of this pandemic, the fashion industry, especially clothing, has experienced an economic decline of up to 70%. This is due to a decrease in demand, increased raw material prices, and obstacles in the distribution of goods by delivery services.
Binong Jati knitting entrepreneurs also often face various problems such as low human resources, limited infrastructure, production technology, and most importantly, capital difficulties.
Capital difficulties are caused by the fact that banks usually have several requirements that entrepreneurs cannot meet. Many MSME players choose to use illegal FinTech (loan sharks) because they are easily accessible and do not have difficult requirements, even though the interest rates are high.
Based on this, the Faculty of Economics & Business (FEB) of Widyatama University (UTama) held an online Community Service (PKM) by conducting training to prevent people from falling into the trap of borrowing from loan sharks.
The activity was chaired by UTama lecturer Sakina Ichsani, S.E., M.M., and attended by the Director of LJK 1 Supervision of the Financial Services Authority, Sotarduga Napitupulu, who also served as a guest speaker.
According to Sakina, the university needs to conduct this training to provide guidance to MSME entrepreneurs in Kampung Rajut Binong Jati so that they do not obtain instant capital that is detrimental (Illegal FinTech) and to provide an overview of FinTech that can provide capital without high interest rates.
Business owners in Kampung Binong Jati are encouraged to learn about FinTech products and terminology. After receiving positive feedback from participants, they are encouraged to trust and choose FinTech products and continue using them.
Sakina said that MSME owners in Kampung Binong Jati need to be aware of the development of FinTech so that they can take advantage of it in addition to cooperatives and banks. FinTech continues to grow with a variety of sophisticated services that make it easier for MSME owners.
Financial Technology (FinTech) is a start-up company engaged in financial services. FinTech provides users with alternative investments to access financial services in a practical, efficient, convenient, and economical manner.
However, the selection of FinTech must still be done carefully because there are many scams happening today. Users should choose FinTech that has been registered and obtained a business license from the Financial Services Authority (OJK).
To protect the public from the trap of illegal fintech, BPR/BPRS is undergoing digitalization. In this activity, Satorduga explained the digitalization of BPR/BPRS as a sharia financial service bank regulated and supervised by the OJK.
“The digitization of BPR/BPRS is intended to enable customers to obtain higher quality benefits, and customers to become the ones who determine the most suitable choice for themselves,” said Sakina on Saturday (8/31/2021).
She further explained that BPR/BPRS can have their own websites, applications, or mobile banking. These platforms are useful for providing information such as general knowledge about BPR/BPRS, the locations of BPR/BPRS according to the nearest location, and interest rates.
“There was indeed a drastic decline in December 2020, but in May 2021, it has increased again, which is encouraging. The resilience of BPR/BPRS has been tested in various periods, seasons, and times,” said Sakina.
Sakina added that both FinTech and BPR/BPRS are expected to provide convenience for MSME players by offering ease of use. Both use technology to provide more sophisticated options that suit their respective needs.
She hopes that through these training activities, knitting business players in Kampung Binong Jati can understand the disadvantages of using illegal FinTech and can use FinTech to obtain capital efficiently.
(Source: majalahsora.com)
