Indonesian start-up FinAccel is planning this year to expand its digital credit service, which currently has 1.2 million users, to other ASEAN states to double its credit to Rp 4 trillion (US$291.7 million), one of its senior officials.
“We decided to expand to Thailand and the Philippines because they are similar to Indonesia,” Alie Tan, the CEO of Kredivo, the credit lending app operated by the Singapore-headquartered FinAccel, told the press at a public seminar on Feb. 20, adding that the three countries shared similar demographics and spending habits.
Alie said that FinAccel, one of the major peer-to-peer (P2P) lending companies in Indonesia, also planned to tap into healthcare and education loans, as the Financial Services Authority (OJK) mandated that the company allocate a minimum of 30 percent of its funds toward productive loans. He said the company was still looking for potential lenders in the two sectors.
“In the long term, we are also studying Sharia lending options, since Indonesia is a predominantly Muslim country,” said Alie.
FinAccel received Rp 1 trillion in funding from Permata Bank in 2019 which was said to be the biggest fund a national bank had channeled to a lending tech company.
Alie said the company was also in talks with several other banks on providing its P2P lending services to distribute funds.
According to OJK data, online lending companies disbursed funds totaling Rp 81.5 trillion through more than 81 million individual transactions in 2019.
The Indonesian Fintech Lenders Association (AFPI) has projected 50 percent growth in P2P lending for 2020.