Fintech Lending Startup KlikACC Rebrands, Reinforcing Commitment to Productive Sector

Fintech lending startup KlikACC announced its rebranding to KlikA2C (access to credit) to reinforce the company’s commitment to providing access to productive MSME credit. This name change is also marked by a change in the appearance on the site and application pages.

In a press conference held by the company, KlikA2C CEO Djoemingin Budiono explained that as long as the company has been operating since five years ago, the productive sector has always been targeted because this sector has the largest credit needs and has not been on the radar of conventional players.

This is reflected in the total distribution portfolio of KlikA2C, around 99% of which target the productive sector. In expanding the reach of financing to MSMEs, the company embraces partners from various business sectors to advance financial access for MSME actors.

“We believe that financial inclusion can be built with the spirit of partnership,” he said, Tuesday (23/11). KlikA2C focuses on productive MSME financing, including for the automotive sector, People’s Business Credit (KUR) for farmers, invoice financing, and employee loans.

Building Cooperation with Various Parties

For KUR financing, the company becomes a channeling partner with BCA. In this product, the company managed to increase loan disbursement by more than four times over the last two years.

As for the nominal distribution, it touched IDR 25 billion as of September 2021 from the same period in the previous year of IDR 9 billion. “Farmers’ groups really help the farmers’ reading and digital literacy process. They make it easier for KUR distribution to run more smoothly.”

Meanwhile, for automotive financing, targeting the used car segment. The distribution of financing for this product has increased by more than 15 times.

According to Djoe, previously used car owners had difficulty getting fees from banks because their credit needs were short-term, about two to three months. This is not included in the bank’s criteria because the minimum available tenor is a minimum of one year.

“We’ve been trying to come here since 2019, it has grown 15 times. Then during the pandemic, people tend to be reluctant to buy new cars, but the need to buy cars is still there. This is evident from our partners, and I think our products match their needs.”

Djoe explained that the total loan disbursement accumulatively amounted to IDR 529.87 billion to a total of 3,014 borrowers and an outstanding loan of IDR 86.65 billion.

As for lenders, it is dominated by retail circles with a ratio of 65-35 compared to institutions. Overall, this achievement led the company to grow by 11% per quarter over the last 10 quarters.

For the next strategy, the company will further develop invoice financing products. There are several industrial sectors that will be targeted, including FMCG, transportation, and logistics. “Next year we are preparing electric motorcycle financing products for consumers who are interested in buying this motorcycle,” concluded Djoe.

This Year’s Fintech Lending Industry

Meanwhile, on the same occasion, AFPI Executive Director Kuseryansyah was also present. He estimates that the growth in lending to the fintech lending industry by the end of this year will grow by more than 75 percent compared to last year. In other words, it is predicted that the accumulated distribution will reach IDR 140 trillion from IDR 74 trillion in 2020.

On the other hand, the potential for the unbanked community in Indonesia is still very large, thus providing room for growth for the fintech lending industry. In various studies, it was stated that the financing needs of the MSME segment amounted to IDR 2,650 trillion in 2019.

Of these needs, only around Rp1,000 trillion is served by conventional financial institutions. Thus, there is a gap of IDR 1,650 trillion which can be a potential for the fintech lending industry.

Meanwhile, based on OJK data, the accumulated loans that have been disbursed by the industry since its establishment reached more than Rp260 trillion. Around 58% of this was channeled to the productive sector.