1. Startups

The Confidence of the Smart Credit Parent Offers a Variety of Digital Financial Products in Indonesia

Atome will soon release a paylater product named "APayLater" no later than the second quarter of this year

Atome Financials, a startup lending from Singapore, officially entered Indonesia. As a company holding, it will accelerate a variety of financial products to target consumers underbanked and underserved. Indonesia is Atome's next expansion after opening offices in China, India, the Philippines and Vietnam.

Before coming with brand itself, actually Atome has set foot in Indonesia since 2017 through Smart Credit, startups lending which specializes in fast loans.

To DailySocial, CEO of Atome Indonesia, Wawan Salum, explained that as a holding company, there is flexibility to accelerate product variety, not just relying on one product. Currently the company is brewing brand new ones that serve digital credit cards or paylater named APayLater.

"There's nothing we can do yet share. Now we are still looking at what kind of market in order to get an idea of ​​how the position brand our. The APayLater concept has been released in Singapore, I want to see which part needs to be changed," he explained.

Wawan also emphasized that Atome's presence did not encourage the merger of businesses with Smart Credit. APayLater and Kredit Pintar will focus on different businesses, so they don't compete with each other. The CEO of Kredit Pintar Wisely Wijaya is still in the same position.

"Kredit Pintar focuses on lending to underbanked and underserved with AI and credit scoring, while APayLater is a product for everyone."

Smart Credit is claimed to have 10 million downloads and was named one of the apps fintech with rating high on Google Play. The total accumulated loans that have been disbursed since 2017 are IDR 10 trillion for 2 million borrowers.

Opportunity pass lending as targeted is indeed very large. By demographics unbankable adult age which reaches 92 million people, product fintech quite a bright future. No doubt there are 2019 in 144 similar to Smart Credit registered with OJK. Until 2019, the number of loans distributed has also reached 60,4 trillion Rupiah, facilitating around 14,3 million users.

While for paylater, This service is indeed growing in Indonesia. Several businesses work together, integrating lending platforms with services consumers. Here are some products circulating in Indonesia:

APayLater Products

The company first launched the application APayLater in Singapore. The concept is not far from service paylater others in Indonesia. The credit limit received can be used to shop at merchant with the QR scanner method.

Consumers are required to pay the first one-third of the total price with a synced debit or credit card. Subsequent payments will be billed every 30 days later and the maximum tenor is three months. The system will automatically deductible the balance of the source of funds each bill appears.

If there is bad credit, APayLater will freeze the account and add an admin fee of SG$20. If you do not pay within seven days, there will be an additional fee of SG$10. There, the government set a maximum limit of admin fees charged at SG$60 per transaction.

Wawan said pilot project from APayLater will be present in Indonesia at least in the second quarter of this year, before releasing the full version. According to him, iteration is needed by startups to get products that suit consumer needs.

“There are a lot of things we want to see, but we want to always make sure cconsumer journeyit must be good. That's why we chose the pilot first for some time, while continuing to monitor and have internal discussions."

He saw that even though in the industry various players had released products paylaterHowever, there is still a large business niche in this segment. As long as the company understands market conditions, where the opportunities are, and how to position their products, they will definitely be able to compete with the market.

“When Kredit Pintar started in 2017 and its development until now has been very rapid, even though at that time the players were not the only ones in the industry. So it's not a matter of old and new players, as long as we understand the industry and its development process, we can definitely compete."

Atome's Plan under Wawan Salum's leadership

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Under Wawan's leadership, he will focus on client and partner development for Atome from the bank, fintech, e-commerce, ride sharing, including talent acquisition, market expansion and product development.

Wawan Salum adds to the ranks of senior bankers who go into startups. Previously he was a banker at DBS Indonesia as Head of Consumer Banking Group and six years at HSBC in various positions. His journey as a banker started at Citibank for seven years and other positions at General Motors and ABN Amro Bank NV

He jumped into startups because according to his view digital developments, in particular fintech in the next few years, will enter the position of mature, followed by banking. This condition is marked by annual growth that is no longer exponential and a business cake that has been busy being worked on which is gradually shrinking in size.

"I don't want to miss the train. Bank already mature Karena growth opportunitiesit can't be 100% anymore. Different with fintech with the current state [growthis exponential], but my prediction growthIt won't be as strong as the previous years because it will soon enter the position mature. "

With his strong experience in finance, he will combine framework and a strong structure in the bank without eliminating the elements agility attached to the startup body. "When allcombine, this will make startup so very powerful. Agility it must be maintained because the market and technology are changing rapidly,” he concluded.

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