Financial technology (FinTech) P2P lending, Danain get fresh funding from PT Bank Sahabat Sampoerna, said the company early this week - Photo by the Company

JAKARTA (TheInsiderStories) – Financial technology (FinTech) P2P lending, Danain get fresh funding from PT Bank Sahabat Sampoerna, said the company early this week. But the company not disclosed the amount of the injection.

“With the support of Bank Sahabat Sampoerna, we are more optimistic about achieving significant growth compared to last year,” Danain’ co-founder & CEO Budiardjo Rustanto said in a press statement.

In the first quarter of 2020, funding channeled by Danain grow more than double from Rp64 billion (US$4.57 million) to Rp 153 billion. Rustanto said in an official statement last May, majority of funders who have joined the company’ platform for more than six months aimed to increase the amount of funding.

He added, every funding carried out in Danain was always gold-backed, where the products was deposited safely in private partner pawnshops. With the trend in gold prices continuing to rise, no wonder that the funds channeled have a very healthy collateral coverage level.

Hartanto claimed that his party was never pessimistic about the current COVID-19 pandemic. He believes that the P2P lending business model is resistant to shaking, because all transactions have been designed using technology.

FinTech startups in Indonesia have initiated a revolution in the way financial institutions, including banks, in the country are intended work. The presence of the tech company has given an opportunity to citizens who have so far never had access to a bank, including those who have no banking saving accounts (because of deposit limits), by offering digital payments  based on smartphone applications.

According to Pricewaterhouse Cooper research, digital payments have become so big across the archipelago. Total transaction value is expected to show an annual growth rate between 2017 – 2021 of 18.4 percent, resulting in a total of US$36 million in 2021.

Popular FinTech categories in Indonesia are lending platforms, capturing 17 percent and marketplaces for financial products, that have occupied 13 percent. In Indonesia, FinTech participation in digital payments was first set up on 2001, by Kartuku.

Then, PT Telkomunikasi Selular, unit of state-owned telecommunication operator PT Telkom Indonesia Tbk (IDX: TLKM) has launched T-Cash, instead of paying with cash or a debit card, customers can use T-Cash with a cellular phone to pay for various services and goods and to transfer money.

In 2013 other telecommunication firm, PT XL Axiata Tbk (IDX: EXCL) launched Tunai, that allows XL customers to make financial transactions by only using their phones. Types of transaction that can be used are XL credit purchase, billing payment, shopping at merchants, online shopping, also national and international remittances, all of which can be carried out at anytime and anywhere.

Surprisingly, ride-hailing services are also disrupting the country’ banking industry by offering electronic wallets as the first step to introduce banking products to previously unbanked residents. With a valuation of about $1.3 billion, GoJek has emerged as one of Indonesia’ largest and most promising internet service companies. Mobile wallet GoPay now handles payments for many the decacorn transactions.

Not only GoJek, Singapore based ride-hailing Grab is making a big push to seize the opportunity. The company recently pledged to invest $700 million into its Indonesian operations, which includes building out its team, localizing its tech and making investments. Grab snapped up Kudo Payments to boost its own payment platform, GrabPay.

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