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Indonesian millennials accurately assess their finances, study suggests

News Desk

The Jakarta Post

Jakarta  /  Wed, November 20, 2019  /  11:08 am
Indonesian millennials accurately assess their finances, study suggests

Indonesian millennials know how to assess their financial capabilities, allowing them to obtain loans close to the amount requested. (Shutterstock/Icatnews)

Information technology-based lending services are now becoming more popular in Indonesia. People of different ages have started to consider the online loan services as an alternative when needing extra financial support.

Among different age groups in Indonesia, a research study conducted by international financial company Robocash Group discovered that millennials aged between 25 and 30 had the ability to more accurately match their needs in finance to the actual capabilities.

Robocash Group is a financial company operating in the segments of consumer alternative lending and marketplace funding in Europe and Asia.

For the research, they studied customer applications in India, Indonesia, Vietnam and the Philippines since the beginning of this year.

Read also: P2P lenders create thousands of jobs, reduce poverty: Study

The company said in a statement that Asian customers aged between 31 and 34 had been most accurate in matching their needs in finance to actual capabilities. This age group was said to obtain financing closest to the amount they requested.

Applicants aged 18 to 24 showed to be less accurate with only 7.9 percent, meanwhile the eldest age group 51 to 60 had an accuracy of 12.3 percent.

Specifically for Indonesia, customers aged between 25 and 30 demonstrated the best accuracy. As for applicants aged 18 to 24, they turned out to be less precise with only 4.5 percent accuracy, while customers aged 51 to 60 recorded an accuracy of 18.9 percent.

Based on the data, the company said, ”Millennials were the first users of online financing tools in Asia. Unlike Generation X and Baby Boomers, they have felt more at ease trying digital services. As a result, they have obtained a deeper understanding of how fintech works and better financial literacy.” (jes/kes)

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