JAKARTA (TheInsiderStories) – Peer to peer lending player, PT Digital Alpha Indonesia with brand UangTeman will get Series B1 funding worth more than US$5 million from Japanese investor, said the senior official on Thursday (10/24). This funding will be announce next month.
Last July, UangTeman has received Series B funding from Japanese, US and Chinese investors. CEO and Co-Founder Aidil Zulkifli, explained this funding will be used to develop the company businesses and integration of several data based in Indonesia.
UangTeman has received a registered sign from Financial Service Authority on June 21, 2017 and received a full business license from the authority on May 24, 2019. The financial technology (FinTech) firm is one of 13 P2P lending that gets permission from the regulator.
The company has distributed loans worth Rp442 billion (US$31.57 million) from 2018 to August 2019. 26 percent of the loans were given to individual business loans and 21 percent is channeled for educational needs. The success rate of the 90-day loan repayment success was at 95.74 percent.
According to Morgan Stanley, from 1,582 respondents, 20 percent of them preferred to use digital payment services from FinTech companies compared to the banks, telecommunications companies, or e-commerce players.
Seeing this, a number of banks regulated its business strategies so that not eroded by technological developments. The tactics used are various, starting from acquiring the FinTech company, cooperating with the fintech company or forming its own financial innovation.
For an example, PT Bank Rakyat Indonesia Tbk (IDX: BBRI), through its subsidiary PT BRI Agro Tbk (IDX: AGRO) formed its own online loan application, namely Pinang. Pinang is a digital lending product from BRI Agro and is also the first application-based bank loan product in Indonesia.
According to managing director of BRI Agro, Agus Noorsanto, the launch of Pinang was the company’ innovation in facing the digital era, so that the services prepared were more advanced and in accordance with the needs of today’ customers. This product will target the ultra-micro segment and open opportunities and expand the reach of BRI at this time.
By combining digital technology, Pinang has a submission process until disbursement of less than 10 minutes, with a flexible tenor of 1 to 12 months.
While, PT Bank Mandiri Tbk (IDX: BMRI) is reviewing the lender’ steps to enter the online business. Thomas Wahyudi, SVP of at the bank, said before launching this services, the bank had to take several considerations such as regulatory permits and form of the business whether its built by the company or cooperate with FinTech company.
Currently, the state-owned bank joint with an electronic wallet from China, Alipay, set up a cross border e-wallet. The company is currently processing the license to Bank Indonesia.
The SEVP at the bank, Jasmin, explained, n this collaboration, the bank will become an acquirer, while Alipay as an issuer. The collaboration was an implementation of BI’ Quick Response Indonesia Standard (QRIS).
With the cooperation, Bank Mandiri can support Alipay’ operation in Indonesia. Its because the central bank requires the settlement process of electronic money (e-money) transactions in the country must be carried out by local banks in BOOK IV scale.
Through the partnering has potential to attract revenues around Rp2 trillion (US$141.84 million) from Chinese tourists who visit the country. He hope, the bank get around Rp100 billion of fee income from the transaction.
Bank Indonesia has put a 49 percent limit on foreign ownership in companies that offer e-money services in a bid to better regulate such services amid growing interest in financial technology.
The limit was set by central bank to all electronic money issuer companies, both operating and newly handing permits. The rules said, every company offering payment in electronic money services also must obtain a permit from BI.
The new foreign ownership limit applies only to new investment, or to any existing firm who is changing ownership. Based on central bank regulations, e-money business should secure a license from BI for various payment system service providers such as: Principal, Issuer, Acquirer, Clearing Operator and Final Settlement Operator.
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