Acceleration to Develop New Loan Products; Fund Diversification Through Institutional Lenders

In early 2021, technology companies p2p loansAcceleration announced its achievement in disbursing loans worth Rp960 billion over the past year. The performance was successfully distributed even though Indonesia was experiencing a crisis along with the Covid-19 pandemic.

Based on the records of the Financial Services Authority (OJK), loan distribution in 2020 experienced an increase of 91,3% year on year (yoy) at IDR 155,9 trillion compared to 2019 of IDR 81,49 trillion. Meanwhile, the amount of loans disbursed p2p loans grew 16,43% yoy from Rp13,14 trillion to Rp15,31 trillion in 2020.

Akseleran's Co-Founder & CFO Mikhail Tambunan in an official statement said, "Cumulatively, Akseleran has distributed a total of more than IDR1,9 trillion in business loans to 2500 borrowers and is also supported by more than 150 thousand lenders. (lenders) retailers or individuals spread evenly from Aceh to Papua.”

He also added that there was an increasing trend in the distribution of Akseleran's business loans each month with an average of IDR 80-90 billion. In January 2021, Akseleran succeeded in disbursing a total business loan of Rp. 105 billion or above the average loan disbursement.

Product development

In a separate interview, Ivan Tambunan as Co-Founder & CEO of Akseleran said that the pandemic that occurred in 2020 had made the company undertake de-risking, namely risk reduction that causes a change in the percentage of their two flagship products, including invoice financing (60%) and pre-invoice financing (40%). This is due to the nature of pre-invoice financing tend to be more risky.

Nevertheless, the company admits that it continues to apply a credit rating that is careful with a focus on candidate borrowers as part of risk mitigation. This move was allegedly successful in reducing the total achievement of Accelerator's NPL cumulatively at 0,13%.

In addition, Ivan also said that the company is developing solutions API-based loan origination system (LOS). This product is called seamless supply chain financing facilities. The concept is the same as working capital financing to the business chain in the context of providing a supply of goods/services from third parties beg, in this case it is corporate anchors to the party buyer.

Along with this API solution, there will also be a new product called instant B2B digital commerce financing. Acceleration targets collaboration with platforms B2B digital trade , payment gateway, or other payment channels to facilitate transactions using the facilities provided by Accelerator. The system is like paylater, but specific to B2B.

Diversification of funding sources

Today (11/2) Acceleration just announced PT Bank Jago Tbk as one of the institutional lenders in the platform. Through synergistic collaboration In this case, Bank Jago is committed to channeling productive financing to MSME actors (borrowers) through the Akseleran platform of IDR 50 billion which will start in February 2021.

Previously, there were already several names that had become businesses institute at Acceleran. From the banking industry, there is already Bank Mandiri, BCA, JTRUST, and regional bank BPR SUPRA. Besides, there is also Pawn shops, Mandiri Tunas Finance, KreditPlus, Ciptadana, and several finance who became institutional lenders.

Until now, the percentage of total disbursement of funds in Akseleran is still dominated by retail (70%); the rest institutional lender (30%). Cooperate with more than 10 institutional lenders, the company managed to disburse approximately $70m or Rp979 billion.

His party sees that in the future there is a possibility for this composition to change to 50:50 between retail and institutional. Looking at the market outside, for example in the United States or China, in the end what dominates is institutional funding. However, according to Ivan, the Indonesian market is a little different. There is a lot of retail investment outside, while in Indonesia it is not. This platform itself aims to open access for the public to be able to develop their funds. This is what Ivan feels to be unique market.

"According to me, retail market there will still be, maybe in the future it can be less but we will still maintain marketplace our concept. When the pandemic hit, institutional lenders started to withdraw, what would happen if there wasn't one retail? This shows the importance of diversifying sources of funds," explained Ivan.

Currently, Akseleran is said to be involved in a series B fundraising round which is targeted to be completed in Q1 2021. It did not say who was involved, but his party stated that the support from previous investors remained strong.

"The target, we want to be able to scale-up 10x our current volume in 2-3 years. Hopefully, by the end of 2021, we will be able to sustainable with positive," concluded Ivan.