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VOL. 12, ISSUE 3 (2026)
Beyond financial access: A criminological analysis of the debt cycle in Indonesian fintech lending
Authors
Afi Kamilia, Bonifasius Hargens, Tegar Bimantoro
Abstract
Fintech lending is often presented as a
solution to individual financial needs, yet its effectiveness remains
questionable. This study examines whether fintech lending genuinely functions
as a financial solution and how the debt cycle forms when viewed through both
financial and criminological lenses. Using descriptive analysis of secondary
data drawn from official sources and prior research, the findings are
interpreted through criminological frameworks, including Routine Activity
Theory, victimology, Strain Theory, and Differential Association Theory. The
results show that fintech lending, rather than serving as a financial
management solution, frequently creates new problems for borrowers: high
interest rates and mounting debt place borrowers under pressure and further
complicate their financial circumstances. Beyond individual financial
mismanagement, the debt cycle reflects a structural pattern in which
financially strained borrowers, exploitative lending practices, and limited
regulatory oversight converge, while coercive debt collection practices
position many borrowers as victims within the system. Fintech lending appears
largely ineffective at meeting people's basic living needs, trapping many
borrowers in cycles of debt and, in some cases, leading to deliberate default
that is socially reinforced within borrower communities. Although fintech
lending offers quick access to funds, its current implementation has yet to
support sustainable financial well-being. Addressing this will require greater
financial literacy, stronger risk management practices, more robust consumer
protection, and stricter regulatory oversight.
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Pages:381-387
How to cite this article:
Afi Kamilia, Bonifasius Hargens, Tegar Bimantoro "Beyond financial access: A criminological analysis of the debt cycle in Indonesian fintech lending". International Journal of Law, Vol 12, Issue 3, 2026, Pages 381-387
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