Banking Support for Fintech Lending Advances Through Technology Solutions and Collaboration

One sector in the industry financial technology (fintech) with very rapid development in Indonesia is or funding. The proof, until now there are 158 which have been registered with the Financial Services Authority (OJK), with 33 of them already licensed. According to the 2020 Fintech Report research report released by DailySocial.id and supported by PT Bank CIMB Niaga Tbk (CIMB Niaga), as of September 2020, there was a loan disbursement of Rp128,7 trillion involving 29,2 million borrower accounts and 681 thousand investor accounts. .

Support from other industrial sectors, including banking, has also contributed to the growth of the ecosystem in Indonesia. One of them comes from CIMB Niaga, which is currently collaborating with several players in Indonesia, among others, with Investree, Koinworks, Smart Credit, Friends' Money, Cashwagon, Avantee, and so on.

Collaboration Between Banking and Fintech

In the early days of emergence fintech startup in Indonesia, some business players in the banking industry, especially the older generation generally see fintech as a threat. Especially when the players fintech managed to get high traction, amount customer a lot, as well as extraordinary transactions. This was also conveyed by Anton Hermawan, Head of Digital Business Development at CIMB Niaga in an interview with DailySocial.id.

Anton also said that at this time it would be unwise to fintech is still considered a threat. Because fintech can also be viewed as businesses, where banks can collaborate and work independently hand in hand together with them.

“We believe that even though fintech can do a lot of things outside the bank, but there are still some things that the bank can do better. Hence, we can cooperate with fintech to complement each other. Regarding a number of things that banks may not be able to do, we cooperate with fintech. As for the need to use bank services, we are competing with other banks to cooperate with us fintech," he said.

Technology Based Solution Support from Banking for Fintech

This collaboration is also realized by CIMB Niaga by offering digital banking solutions for . One of them is by providing services end to end starting from opening a Virtual Account, opening a digital account (Lender's Fund Account), to handling transactions themselves through the Gateway@CIMB web service.

These various services are also supported by Application Programming Interface (API) in order to provide a smooth process and a good experience for both end users and customers as a partner.

Utilization of the CIMB Niaga API is also able to facilitate the opening of digital accounts directly from platform which has become a partner of CIMB Niaga, so users do not need to come to the branch office. Implementation and integration of APIs in various CIMB Niaga products and services on platform owned by its business partners, including can increase efficiency, encourage innovation and conducive competition, and accelerate financial inclusion.

Funding Support for MSMEs through Fintech Lending

Micro, small and medium enterprises (MSMEs) have a very important role for the economy in Indonesia, including being able to absorb up to 89,2 percent of the total workforce, provide up to 99 percent of the total employment, contribute 60,34 percent of the workforce. total national GDP, contributed 14,17 percent of total exports, and contributed 58,18 percent of total investment.

Therefore, CIMB Niaga also seeks to encourage the progress of MSMEs through its services. In addition to various API-based solutions and services, CIMB Niaga also provides various loan disbursements through: . This service can be used by MSMEs as capital to develop their business, or for personal borrowers for various needs.

Ecosystem fintech in Indonesia, including experienced rapid growth and development. Both in terms of players, users, to the activeness of various industrial sectors that support this growth, both in terms of innovation and technology, as well as the funding provided. Watch the development of the ecosystem fintech in Indonesia in the 2020 Fintech Report research report released by DailySocial.id and supported by CIMB Niaga which can be downloaded at dly. social/fintechreport2020.