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Jakarta Post

Fintech faces headwinds in reach for unbanked

  • Dzulfiqar Fathur Rahman

    Jakarta

Jakarta   /   Fri, September 25 2020   /  01:00 am
(Clockwise, from upper left) Experian Asia-Pacific Managing Director for Southeast Asia and Regional Innovation, Mohan Jayaraman, Indonesia Fintech Association (Aftech) Board Member Chrisma Albandjar, The Jakarta Post Journalist Riska Rahman, University of Indonesia's Social and Economic Research Institute (LPEM-UI) Head of Research Group for Digital Economy and Behavioral Economics, Chaikal Nuryakin, and Bank Indonesia Deputy Governor Sugeng pose during the Jakpost Fintech Fest webinar series on Thursday, September 24, 2020, titled Fintech for financial inclusion throughout Indonesia.(JP/-)

Indonesian fintech companies are still facing basic infrastructure and literacy issues in their attempt to increase financial inclusion in the country.

Some two-thirds of surveyed fintech companies were already serving both the unbanked and underbanked population, including in rural areas, according to a recent survey by the Indonesia Fintech Association (Aftech), which has 362 members offering various financial services.

However, 75 percent of the fintech companies reported they were still facing low financial literacy among the target market, 57 percent reported facing basic infrastructure problems and 44 percent reported facing limited capital or resources challenges.

“So if we can work on this part, all of these three things, we can actually reach our target even faster,” Aftech board member Chrisma Albandjar said on Thursday d...