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Jakarta Post

Foe to friend: Fintech companies work with banks to reach unbanked

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, November 5, 2019   /  06:34 pm
The Jakarta Post Image
Illustration of financial technology (fintech)(Shutterstock/File)

When financial technology (fintech) start-ups began mushrooming in the country a few years ago, several economists and experts described the phenomenon as a disruption of the conventional banking business. Fintech firms can provide loans to customers faster than banks by using their technology in determining a person’s credit rating. Banks find it difficult to compete with fintech’s speedy services, as they are bound to rigid regulations. However, things seem to have changed recently as fintech companies are now collaborating with banking institutions to reach so-called unbanked people by given them access to financing while boosting financial inclusion in the country. Peer-to-peer (P2P) lending platform Amartha, for instance, has received funds amounting to Rp 150 billion (US$10.67 million) from private lender Permata Bank and Rp 100 billion to Rp 200 billion fr...