KoinWorks Introduces New Risk Profile Assessment "Grade S", Targeting Micro and Small Enterprises

Startups KoinWorks introduces a new risk profile assessment, named Grade S (Special Grade) for entry into micro and small business financing. This initiative at the same time strengthens the company's commitment to reach more financiers from the MSMEs, after releasing the KoinWorks NEO.

In a press conference held yesterday (01/9), KoinWorks Co-founder and CEO Benedicto Haryono said, "Grade S was introduced to reach the MSME ecosystem that was previously a borrower in the company and proved successful as a bankable and the level of business increased from the previous micro and small.

From the funding ecosystem, there are still many other micro and small businesses that unbankable and can be funded for business growth. So far they have escaped the attention of conventional financial companies.

“Just last night (31/8) we introduced Grade S, previously there was only Grade AE. We introduce this concept to the graduate SMEs that have step up and have an ecosystem to start empowering entrepreneur next generation. Graduates This is not a borrower anymore but a liaison partner," he said.

When concocting the new features of the KoinP2P personal product, Ben continued, the company realized that these MSMEs typically have a high risk of default. The concept also applies high risk, high return. Companies are looking for ways how to become win-win solution for all parties. After researching deeper, there is a segment niche in MSMEs with high risk that can be reduced. The trick is to enter the ecosystem of SMEs that have proven to be successful in growing after being assisted by KoinWorks.

For example, there is financing supply chain leaders which was successfully funded by the company, turned out to have six thousand motorcyclist inside it. That is, the business has the potential to have the next prospective entrepreneur who will be successful because it is supported support system the good one.

For motorcyclist This can be supported by good financing products and assistance without pricing expensive. Then, from the lender's side, they also get insurance to protect the yields that will be obtained.

Mitigation like this allows KoinWorks to channel Grade S funding to informal sector workers such as salesmen, grocery stores, and wholesalers to help develop their businesses and improve their social welfare.

"We are not only mitigating from the business side but also financial protection-his. We want breaking the mold, so don't look risk and return just. Lenders can also participate, not just watching returnhow much."

In the early stages, currently the company has only set this Grade S for certain cases (case by case) for each MSME that is eligible to be funded. Benedicto ensures that he will continue to expand Grade S to more MSMEs because this is closely related to the initiative impact investing being promoted by the company.

It is said that currently KoinWorks has a team impact investing which specifically measures the impact generated for the Indonesian economy, can be seen from the creation of new workers, empowering women, and so on.

Meanwhile, the range of returns that can be received by funders if they participate in Grade S funding starts from 8%-10% per year. "This is our first step in order to be able to provide better access breaking the mold in the financial industry. We want to expand impact investing, because the financier who joins the mission is safety and return. But we want to see impact more real."

Six years of KoinWorks

Since six years of existence, KoinWorks claims to have more than 2 million users, consisting of 1,5 million lenders and 500 thousand registered MSMEs. The company provides eight innovative financial products that provide MSME management services, personal financial development, education loans, and financial products salary advance.

To date, KoinWorks has distributed financing with a total of IDR 13 trillion to MSMEs throughout Indonesia. With these funds, MSMEs have succeeded in developing their businesses with an average monthly income of IDR 70 million.

“We hope that more MSMEs will be encouraged to take steps to reach their best potential through KoinWorks as a company financial partners. This is also further proof for lenders that impact investing with KoinWorks has a positive impact, not only for their profits but also for the Indonesian economy,” said Ben.

KoinWorks also celebrates its success by recruiting competent talents in various fields to join. A total of 950 KoinWorks employees are currently spread across Indonesia and several Asian countries, including Singapore, Vietnam, and India. With strong resources, KoinWorks is optimistic that it can continue to have an impact, not only for its users but also for all MSMEs in Indonesia.