OVO Becomes the Largest Integrated Financial Technology Service

In a relatively short time, OVO is no longer just a digital payment company (e-payment). OVO, which will be 3 years old in September, has now developed into an integrated digital financial services technology company.

OVO services are no longer just e-money but also include peer to peer (P2P) lending, investment, insurance, and credit scoring, and going forward will expand to multi-finance.

This was conveyed by President Director (President Director) of PT Visionet International (OVO) Karaniya Dharmasaputra, in a virtual meeting with the ranks of the News Editor of One Media Holdings, in Jakarta, Thursday (30/7).

“In the past three years, we have developed into the largest financial technology services ecosystem in Indonesia,” he said.

Karaniya explained, now OVO is not only an e-money company but has also penetrated online loan services or P2P lending. Expansion to P2P lending is done through Taralite products. “Taralite has now received an official license from the Financial Services Authority (OJK),” he explained.

Doing Expansion through Bareksa

In addition, OVO is also expanding its business to investment services through Bareksa. “The investment services that we have provided are mutual funds, SBN (state securities), and gold. In the future, we will also sell corporate bonds and share investment,” he said.

Karaniya added, it was also aggressively expanding in insurance services. In March, OVO worked with Prudential, developing communications with users of the OVO application related to insurance. If the user is interested and fills out a form, then a Prudential agent will contact. “So this is part of encouraging insurance inclusion,” he said.

Meanwhile, OVO’s Head of Public Relations Sinta Setyaningsih explained, the digital financial services business conducted by OVO was proven to help the government increase financial inclusion. This is reflected in 30% of OVO users who have not previously used banking services (unbanked).

“Nearly 30% of OVO users are unbanked, these are the ones who top up OVO balances through Grab drivers, not through bank transactions. So these are what we have seen, before they did not have a bank account, but they were quite comfortable using OVO,” he said.

In addition to encouraging financial inclusion, OVO also embraces many micro, small, and medium enterprises (MSMEs). Sinta explained, from around 600,000 merchants, 500,000 of them were MSMEs.

“At present 550,000 OVO merchants are MSMEs that we are eager to help to be able to create businesses that are not only sustainable but also able to develop and be able to adapt in the midst of a pandemic, even to the point of being able to produce an upscale ecosystem. That’s what we keep trying to help,” said Sinta.

Contribution to the Country

On this occasion, Karaniya also explained, the presence of OVO also has a strategic value for the benefit of the national economy. In addition to helping MSMEs and increasing financial inclusion, since the end of last year, it has been actively involved in helping the government prepare the Pre-Work Card Program.

“The role of OVO is huge because we were involved from the beginning to help build the Pre-Work Card platform. This is the first platform in the history of the Republic to distribute funds based on digital technology. In addition, there will be many other initiatives, especially to help MSMEs,” he said.

One of the factors is because it is now integrated with Dukcapil. Thus, when someone registers on an OVO account, attaching their ID card and self-photograph, it is automatically connected directly to the database on Dukcapil. This can help the government work on the distribution of social assistance through the Pre-Work Card.

He added, despite all the criticism, the public interest in utilizing the Pre-Work Card was very high. “Maybe more than 10 million people have registered on the Pre-Work Card platform,” he said.

Karaniya explained, the government had stressed that this program was not only intended to provide training to job seekers and those who wanted to improve their competence but became one of the platforms to distribute social assistance.