AdaWe Rely on "Channeling" with Digital Partners, Start Focusing on Productive Loans

AdaWe are one of the players which has been operating in Indonesia since 2018 and is now one of the top ranks for lending by volume. The company will continue this achievement by collaborating with more digital partners in order to increase the utility of the loan ceiling and enter the productive sector.

"AdaWe I believe that every Indonesian must have a dream or goal that they want to achieve in their lives, among them being able to achieve that dream requires financial support," said VP of Adakami William Guo to DailySocial.id.

AdaWe have two loan products, namely, Daily Loans and Installment Loans. The difference between the two is in the choice of payment method. For Daily Loans, with a payment method of 21 days or 28 days, while Installment Loans are paid in installments per month up to three times.

The company cooperates with various digital partners in order to increase the utility of the ceiling limit. One that has been announced is JD.id. JD.id users can use the limit received from AdaKami —after the verification process, as an alternative payment method when shopping for various needs on the JD.id platform.

In the future, more collaborations will be announced. The reason is that the company wants to be present in various aspects of user needs that need to be supported by alternative financing/payments. "AdaWe want to answer the needs and trends that exist today where collaboration with more other digital platforms, such as e-commerce, e-wallets, and other digital platforms have become part of people's lives.”

Accumulatively until October 2021, AdaKami has distributed nearly 3 million borrowers with nearly 1 million active borrowers through the application. The disbursement value reaches Rp. 5,5 trillion.

As for Actioncalendar, so far only using institutional lenders or often called super banker. William mentions one of them is Jago Bank who has committed to disbursing funds amounting to Rp100 billion since mid-2021. “Until today AdaKami is also in discussion with several parties super banker which we hope to announce a collaboration between late 2021 or early 2022.”

Separately quote from Bisnis.com, starting with consumer loans, now AdaKami is starting to support the productive sector. According to an internal survey conducted by the company, although the largest distribution dominance is still in the consumptive sector, around 23% of users use loans for independent businesses. As many as 47% of users in it use these funds for capital loans, and most users are in the age range of 20-39 years.

AdaKami CEO Bernardino M. Vega said the company set an aggressive target this year because it was supported by its strategy to enter the sector, especially micro-home businesses. "So if we look at the pandemic period yesterday, it's not uncommon for types of borrowers whose status has a job, he applies for a multipurpose loan and uses a personal name, not a business. Now, he doesn't use the funds for daily needs, instead he uses it to open a side business."

The strategy that will be taken to support the plan is to enlarge ticket sizes, making the interest rate even lower by increasing the profile user, accommodate longer tenors, and provide easy approval.

Tighten risk mitigation

William continued, recently the image of the industry continue to be tarnished because of the actions of illegal players. According to him, in terms of transparency and accountability, what you need to know is that one of the factors that distinguishes legal and illegal fintech is the disclosure of information related to borrowing costs.

The company always displays all the details of the loan fee, before the user applies for a loan, so that the user can consider the total cost they have to pay. Meanwhile, in terms of data security, privacy and information technology, AdaKami has been certified ISO 27001:2013 related to digital information security.

"The rise of illegal lending has also become a concern for AdaKami, where we actively through official platforms carry out educational communications and provide practical advice to users and the public at large regarding the use of fintech. lending safe and wise."

AdaWe also take a series of steps to mitigate risk in order to prevent the risk of default. William explained, in the initial registration process, AdaKami utilized AI technology to study and detect possible fraud based on user-entered data and information.

"This is also supported by big data, one of which is PEFINDO and also the completeness of the existing security systemWe use in determining credit scoring. "

Credit rating is a credit parameter that can represent or reflect the character and ability of prospective borrowers to be responsible for their loan applications. High or low credit ratings can also provide a predictive picture of the probability of success in paying from prospective borrowers in the future.

“Our TKB position is currently classified as good and healthy, as can be accessed through the page website us, as of September 2021 TKB90 is at 99,7%.”

As of November 5, 2021, AdaKami's service fee will follow the new rules issued by AFPI to a maximum of 0,4% per day from 0,8% for one-time products, and 0,3% to 0,4% per day for products instalment. Meanwhile, the maximum loan limit given is IDR 10 million for each user.

William was reluctant to mention the company's fundraising plans to support its next expansion move. For the record, AdaKami is a joint venture of FinVolution, the largest finance company from China, with 80% ownership and PT Paraduta Satya Wahana, which is part of Northstar.

The trend of consumer financing is declining

According to OJK statistical data as of May 2021, there are 118 fintech operators lending conventional and 9 sharia administrators. In total, the total assets owned reach Rp4,1 trillion. The platforms also managed to accommodate around 8,7 million lender (p2p) accounts disbursing Rp13,8 trillion in funds.

The dominance of the consumer loan portion still dominates the total distribution portfolio in the industry. When you see during 2020 yesterday, consumptive distribution takes up a portion of 62,04% of the total new loans IDR 74,41 trillion. However, the trend is slowly decreasing due to the OJK's push for lending players to work on productive financing in their portfolios.

Menurut report DSResearch and AFPI, the average consumer loan disbursed by the platforms was under Rp2,5 million (70,1%), followed by Rp2,5 million-Rp25 million (20,8%), and Rp25 million-Rp100 million (1,3, 46,8%). As for the total loan disbursement, there were 50% of companies that disbursed loans of up to Rp1 billion, more than Rp23 trillion (5%). In addition, there are 3 players who have distributed more than IDR XNUMX trillion to their borrowers: Pendanaan.com, Asetku, UangMe, Kredivo and Smart Credit.