The Impact of Fintech Services for the Community and MSMEs in Indonesia

In the last two years of service fintech developing rapidly offering options that are now widely used routinely by the community. Starting from digital wallets, fintech lending, wealth management, paylater, insurtech, to fintech enablers. In a #TuesdayStartup session with Editor in Chief DailySocial.id Amir Karimuddin, discussed what are the trends and developments in services fintech in Indonesia.

Platform growth fintech enablers

In particular, most of the Indonesian people are getting used to the use of digital wallets until now paylater for payment. But within the last two years of service fintech also began to be enlivened with a new platform also known as fintech enablers. New terms have also emerged, there are open banking, open finance, to banking as a service (BaaS) all of which actually take advantage of the existence of the Open API with different targets.

"Specifically for enabler, embedded finance or open finance all focus on the B2B segment. There is a new business that gives color, which also becomes keyword di Fintech Report 2021. Platforms fintech This is with a variety of services, later whether they are in the same house or between platforms can communicate better with each other using an API. In the future open finance, embedded finance more applications will be made on various platforms," ​​said Amir.

Added by him to be able to provide excellent service seamless patternIn general, these products are packaged like financial products such as investments and others that are included in the options available marketplace, which establishes strategic cooperation with fintech enablers the. In Indonesia, players targeting this industry include Safe, Finantier, and AyoConnect.

Education and security

One thing that also concerns all parties related to the service fintech is to answer the question: what is the service fintech needed and appropriate for their needs? So that it will avoid misuse of the platform to offers that are spread freely using social media. Understanding or digital financial literacy needs to be conveyed by many parties, both stakeholders who are directly involved, the media, to the public in general.

"For platforms, usually already included in associations, for example AFPI which jointly conducts education. In this case I see not only product literacy, but also digital literacy which must be continuously encouraged, if we see so many people forward messages on WhatsApp without verifying the truth. for loan services and others, including on social media," said Amir.

In terms of security, until now there have been no cases large enough that harm customers to the platform. All platforms have worked well to protect their users/customers from threats hacker and others. However, in order to continue to maintain security, all relevant platforms are required to continue to follow the rules imposed by the regulator. Does it maintain the security of user data to user accounts.

Benefits for MSMEs

Services fintech directly benefiting SMEs. those who fall into the micro category, so far do not have complete financial records or bookkeeping and most of them are still done conventionally. This makes it difficult for them when they want to do business development to get a capital loan from a bank.

As providers of conventional financial services, banks have rules and restrictions, so they find it difficult to reach MSME actors who still cannot have accurate financial and business data. In this case the service fintech with the KYC process and other processes that are more flexible, can bridge the bank with them.

For example, through a marketplace that stores data on MSME actors, or certain communities that have been reached by financial institutions for financing. Utilizing this process, banks will be able to support MSME players through strategic collaboration with services fintech.

"Fintech have a way to do KYC analysis or screening methods it is better to ensure that businesses that are difficult to access and avoid by banks can then be reached using services fintech, said Amir.