Fintech Collaborates with BPR and E-Commerce to Fight Digital Banks

During the rise of digital banks in the country, financial technology startups or fintech lending are actively hooking up with Rural Banks (BPR) and e-commerce. Economists assess fintech lending will compete fiercely with digital banks in providing retail credit.

Last February, fintech Akulaku hooked up BPR Supra Artapersada, BPR Naribi Perkasa, BPR Ciledug Dhana Semesta, and BPR Rama Ganda. Then Modal Rakyat collaborated with BPR Masyarakat Mandiri (Bank MM).

The Financial Services Authority (OJK) has also issued guidelines for two fintech lending cooperation schemes with BPRs, namely channeling and referrals. “This collaboration allows more users to be reached,” said Co-Founder and CEO of Modalku Reynold Wijaya, Friday (19/3).

Modalku is also Targeting MSMEs

Currently, Modalku operates in Jakarta, Depok, Tangerang, Bekasi, Bandung and Surabaya. This fintech has collaborated with several BPRs such as BPR Varia Centralartha, BPR Bekasi Binatanjung Makmur, BPR Sukawati Pancakanti.

“We believe that BPRs are more familiar with the characteristics and needs of the people in their operational areas,” said Reynold. “We are open to collaborating with other BPRs.”

Apart from BPR, Modalku is targeting Micro, Small and Medium Enterprises (MSMEs) in the e-commerce ecosystem. Co-Founder and COO Modalku Iwan Kurniawan said that loan disbursement last year continued to increase because MSMEs had penetrated the digital ecosystem during the corona pandemic.

“Digital penetration that continues to increase is a potential for Modalku’s business. The public has a better understanding of the benefits of fintech,” said Iwan in a press release, last January (18/1).

Digital MSMEs targeted by fintech lending are not only in marketplaces such as Tokopedia and Shopee, also Gojek to Sayurbox. Fintech Awan Tunai announced a partnership with Sayurbox and the Swiss Capacity Building Facility (SCBF) today.

Awan Tunai is tasked with developing data collection and digital assessment infrastructure through funds facilitated by SCBF. This aims to form a credit risk management process that is accepted by banks more suitable for smallholder MSMEs. In addition, for the development of basic infrastructure systems.

“Limited access to formal credit support, capital and technology has a negative impact on the economic stability of farmers. This partnership will have a big impact on the welfare of farmers,” said CEO Awan Tunai Dino Setiawan in a press release, Friday (19/3).

Other Fintech also Collaborate with e-Commerce

Meanwhile, sharia fintech lending, Alami, is working with Bukalapak’s business line in the e-procurement sector, BukaPengadaan. This startup provides Islamic credit to BukaPengadaan partners and customers.

“This sharia financing is expected to meet these needs. This is the time for MSMEs to upgrade to meet procurement needs on a Business to Business (B2B) and Business to Government (B2G) scale,” said CEO of Alami Dima Djani in a press release, Tuesday (16/3).

Another fintech that is hooking up B2B e-commerce is KoinWorks. Through KoinP2P, Zaapko is an e-commerce company in the B2B inventory liquidation business. Zaapko provides a payment solution in the form of credit access from KoinWorks for its customers. Financing is carried out through installment schemes, invoice financing and buyer financing.

Meanwhile, the Co-Founder and CEO of Akseleran Ivan Tambunan said that the company has more than 15 institutional lenders. Some of them are BCA, Bank Mandiri, Bank J Trust, BPR Supra, Credit Saison, Mandiri Tunas Finance, Radana Finance, and Ciptadana.

With BPR Supra, the company disbursed a total business loan of around IDR 23 billion. “In the future, we will open ourselves as widely as possible to collaborate with other BPRs, while always prioritizing the credit risk mitigation process,” he said, Friday (19/3).

Institute for Development of Economics and Finance (Indef) researcher Bhima Yudhistira assessed that fintech collaboration with e-commerce is very important to encourage lending. This is because the retail or credit segment with a low ceiling will become a competitive field between fintech and digital banks.