Kredit Pintar Collaborates with KEB Hana Bank to Give Loans

A financial technology startup, lending, and borrowing (fintech lending), Kredit Pintar hooked up Bank KEB Hana Indonesia to distribute loans of IDR 100 billion to consumers in the country. This is a continuation of the partnership between the two companies which began in September 2020.

Hana Bank Chief Consumer Banking Officer Anton Hermawan said the partnership with fintech lending was a new business capital for the company.

“Therefore, the principle of prudence in credit loan financing needs to be managed very carefully,” he said in a press release, Thursday (20/5).

However, Bank Bank considers that the track record and integrity of Kredit Pintar is good in loan processing, from submission to approval. “This is one of the main reasons we support this collaboration,” said Anton.

Director of Smart Credit, Wisely Wijaya, added that the loan facility in collaboration with Hana Bank will focus on people who have not maximally received financial services (underbank).

Based on the results of the National Survey of Financial Literacy and Inclusion (SNLIK), Indonesia’s financial inclusion rate increased from 50% in 2017 to 76.19% in 2019.

Meanwhile, Smart Credit has cumulatively distributed loans of around IDR 14 trillion to two million borrowers.

Kredit Pintar has 650 thousand active borrowers, with total loans this year of around IDR 650 billion. Meanwhile, the Smart Credit application was downloaded more than 10 million times on the Play Store.

The collaboration between Hana Bank and Kredit Pintar takes place amid the rise of large banks switching to digital banks. At the same time, fintech lending is aggressively hooking up with Rural Banks (BPRs).

Fintech and Startups Have Collaborated with Digital Banks Earlier

Previously, PT Cerita Teknologi Indonesia (Restock.id) had collaborated with PT Bank Neo Commerce (BNC). The bank, codenamed BBYB, disbursed loans to Restock.id amounting to Rp 20 billion for funding MSMEs through an asset and inventory guarantee scheme.

In addition, BNC has also disbursed similar financing to Crowdo, a fintech platform made by PT Mediator Komunitas Indonesia and Esta Kapital owned by PT Esta Kapital Fintek in channeling credit in disbursing working capital to MSMEs worth IDR 30 billion for Crowdo and IDR 20 billion, respectively. for Esta Kapital.

Another player, PT Akseleran Financial Inclusive Indonesia, is collaborating with PT Bank Jago Tbk to channel productive financing to MSME players through the Akseleran platform of IDR 50 billion starting in February 2021.

In February, Akulaku hooked up BPR Supra Artapersada, BPR Naribi Perkasa, BPR Ciledug Dhana Semesta, and BPR Rama Ganda. Likewise, People’s Capital, which collaborated with BPR Masyarakat Mandiri or MM Bank.

Spokesperson for the Indonesian Joint Funding Fintech Association (AFPI) Andi Taufan Garuda Putra said that BPR is currently an important fintech lending partner. Because, BPR helps in expanding the marketing network.

The collaboration between fintech lending and BPR is also considered beneficial for both parties. “BPRs can act as lenders, while fintech lenders can apply technology for credit assessment,” said Taufan, on February (26/2).

Since Last Year, Fintech Has Started Collaborating with Banks

Overall, fintech lending has been actively hooking up with banks since last year. Data from the Financial Services Authority (OJK) also shows that the portion of lenders or institutional lenders has continued to increase from January to September.

Sequentially, the figures were 0.2%; 0.21%; 0.21%; 0.21%; 0.21%; 0.22%; 0.22%, 0.33%, and 0.34% compared to the total. In October, the share of institutional lenders jumped to 0.75%. Then it rose again to 1.1% in November 2020.

Institute for Development of Economics and Finance (Indef) researcher Bhima Yudhistira estimates that the portion of institutional lenders in fintech lending continues to increase. “It could even reach 2-5% in 2021,” he said, in February (25/2). “This is because there are mutual benefits.”