Not only financial technology (fintech), aka financial technology (tekfin), distribute credit online in Thailand. Now national banks have also started targeting distribution through this online system. With the development of fintech lending, customers must know which is safer between the bank and fintech lending. This is important so that Thai people are not trapped in the wrong credit mechanism.
 
What must be considered by prospective users?
Prospective customers must pay attention to several things before applying for a loan from peer-to-peer services. Before choosing which platform you will use, you should check the legality of the platform. At present, the Thai community can find dozens of online loan advertisements on the internet. Many of them offer various facilities and advantages that will certainly attract customers.
 
When we talk about loans, banks and fintech lending companies will ask for your data. You need to know that personal data is a very valuable thing. Misuse of data can have a negative impact on you. Before you apply for peer-to-peer loan, you must understand all the provisions imposed by a lending company. Make sure that the company you choose does not have the authority to access your personal data (except those that have been given). Read more about how to apply peer-to-peer loan in Thailand here.
 
If you are a creditor, you must know the mechanism of giving, returning, and handling late payments or bad credit. Creditor is the only source of funds owned by a lending platform. Creditor uses a platform like this to invest so that they have the right to get security guarantees for their investments.
 
You are also advised to choose a lending platform that has a good data handling system. Data leaks will lead to abuse. Some cases indicate that hackers can abuse your data to apply for loans or steal money from your account. Creditors can experience a greater loss than a data leak. They can lose all their money before they even realize it.
 
Risk
When we talk about security, we will also talk about risk. Please note that most of the losses will be borne by creditors & debtors; the company will not be responsible for any losses not caused by system errors. The company will only be responsible or provide compensation for losses caused by system errors.
 
This means that the company will only facilitate problem solving, not bear the non-technical losses that may be experienced by its users. This is certainly inversely proportional to the bank. Banks are generally safer. All theft activities can be known and dealt with quickly by the bank. Any loss that is not caused by negligence will also be replaced by the bank. Apart from the security weaknesses of fintech lending, the crime rate on this platform is still very low because basically the digital platform also has professionals working to track and even return all assets (data and money) stolen.