UangTeman Will Full Pivot Become a P2P Lending Company

Uang Teman stated that it will fully pivot into a p2p lending company, the transfer will officially start next year. This transfer was carried out by Uang Teman in line with the receipt of a registered certificate at the OJK in accordance with POJK No. 77/2016.

The founder and CEO of UangTeman Aidil Zulkifli reasoned that this pivot was carried out because of the company's desire to be regulated and supervised by OJK.

"We were founded in April 2015 with a business model on lending. But since it was registered as p2p lending, we have to restructure the business," he explained to DailySocial.

The business model that UangTeman has used since its establishment is on lending with the name of the bailout product. On lending This means that the company provides loans to customers with sources of funds from the company itself.

Later the business model will be transferred to a subsidiary that is being prepared by UangTeman by utilizing sources of funds from their own pockets or from other partners. In terms of share ownership, it has not yet been decided whether it will be fully owned by the company or invite other partners to form a joint venture.

Aidil admitted that he was still discussing internally and discussing with regulators regarding the new business model that UangTeman would undertake. His party is also still finalizing the p2p lending business model which will later become UangTeman's new business.

He couldn't go into detail about it either. According to him, what is certain is that the p2p lending segment that the company will focus on will cater to the needs of consumers and individual communities. This focus will be one of the differences between UangTeman and other p2p players in Indonesia, most of which focus on MSME loans.

"Credit consumer it does have a high risk of default, but we managed to keep it below 2% because we use provisions in financial management. So if the NPL can penetrate 5%, we can still do it profitable. After all, we use internal credit scoring to assess the quality of customers before making loans."

Next year's plan

In addition to new business restructuring, UangTeman will also launch an unsecured loan product for new customers. The product has previously been available but is still limited to loyal customers who have applied for a loan three times.

Not only that, UangTeman will also run a sharia-based p2p lending business. Aidil revealed, so far the company is still in the process of being at the Indonesian Ulema Council.

For the distribution of loan funds, it is targeted to grow 10 times from this year's achievement or around Rp. 1 trillion from the realization to date of Rp. 130 billion. Its contribution still comes from Jabodetabek with a portion of 70% of the total distribution and the rest from outside Jabodetabek.

The company will strengthen the existence of cities where UangTeman has been operating by starting to target offline activities for its marketing strategy. This is meant to improve awareness society against brand MoneyFriends. Currently UangTeman is present in 18 cities, spreading to Lampung, Palembang, to Makassar.

The company will also strengthen the team data science located in Hyderabad, India to improve quality results credit scoring company. The office has only been opened by UangTeman five months ago, and it contains six Indian employees. In Indonesia there is also a team data science, but there are only two people.

"We think every year's challenge is different. For this year is a talent for data science still very minimal. We don't want to compete with other technology companies by offering big salaries, so we prefer to build an office in India."

To support business expansion, UangTeman plans to seek fresh funds for the Series B stage. Aidil said, there were a number of Chinese investors who expressed interest in investing in UangTeman. According to him, this latest funding announcement will be made in the third quarter of 2018.

"Currently still beauty contest," concluded Aidil.