Focus danabijak After License Acquisition and External Funding

The Financial Services Authority (OJK) once stated that: including industries that are relatively fast recovering during this pandemic. A study conducted by the World Bank in 2020 showed a growth in transaction volume of 11% and the number of transactions by 13% for companies fintech globally in aggregate.

In a release issued by the Ministry of Communication and Information regarding industry In Indonesia last August, it was stated that the distribution of loans provided until June 2021 had reached 25,3 million people with a total disbursement of Rp. 14.793 trillion.

On the other hand, there are still many people who have not received funding from banks (unbanked) and potential for the company to work on fintech. One of them, micro, small and medium enterprises (MSMEs) that have not been integrated with the digital ecosystem.

In Indonesia, there are already several players targeting the micro market like this, you name it my capital, Investree, Acceleration, too danabijak which on September 8, 2021, officially pocketed a license from the OJK.

OJK License

In a short interview with DailySocial.id, according to parties danabijak, OJK is working hard to build a measurable financial services industry (scalable) and sustainable.

In their recent effort, OJK put more pressure on closing lending platforms fintech illegal which causes a lot of problems for users and the industry, and they continue to set a maximum interest rate limit (interest rate cap) to offer better service to the users.

Throughout 2021, there have been 42 which returns its registered mark to the Financial Services Authority (OJK). This makes the number of players fintech In Indonesia, there are only 107 players left as of September 8, 2021.

CEO danabijak Markus Prommik said, "With the rise of loans online which is illegal, the official license from the OJK that has been obtained will certainly strengthen the position danabijak as a fintech company that is legal, credible and can be trusted by the wider community."

With this, the company sees that the market fintech is undergoing changes and will adjust the business to continue to meet user needs such as building digital financial products that are tailored to each user segment as a form of commitment to financial inclusion in Indonesia.

Business growth

After three years of operation, startup lending which focuses on micro-loans, managed to record 4,5 times growth in monthly disbursement rates in less than a year amid the pandemic. Overall, the company has disbursed more than 300,000 loans to approximately 100,000 consumptive and productive borrowers in Indonesia and maintained TKB90 at 95,55%.

The company admits that the sources of funds used mostly come from institutional lenders both from Indonesia and abroad. However, the company has not been able to publish information regarding the number and what institutions have channeled funds through its platform.

Regarding monthly distribution, at this time danabijak has disbursed over US$ 2,000,000 monthly "Our next target is to reach US$ 10,000,000 monthly disbursement by 2022." added Mark

There are various methods of disbursement and repayment of loans in the business model . Platforms danabijak allows its users to make early repayments without penalty fees to offer flexibility and make loans according to the needs of each user.

All of these processes are carried out safely in accordance with industry standards and strict user data security guarantees in accordance with applicable regulations.

The company also provides various options such as extension, restructuring or changes to the installment schedule so that people can understand their ability to pay installments, manage their monthly expenses and implement good financial literacy.

In addition, one of the value proposition offered danabijak What differentiates it from other P2P companies is the focus on the financial well-being of all customers. The company is currently still focusing on working on the underbanked group and MSME players.

Markus also said, "We also always share financial knowledge and provide education to every borrower about good financial management. Through products digital finance, we accompany customers to build a good credit history so they can improve their lives."

Future goals

When asked about future plans, his team revealed that the company's main vision and goal is to accelerate access to credit for 5 million people and businesses in Indonesia by 2025.

From a funding standpoint, danabijak has secured funding from GK Plug and Play, the fruit of the accelerator program it participated in in 2018. In mid-2021, the company is said to have secured funding from several investors, among them Kristjan Kangro (CEO of Change Invest), as well as new investors such as Walter Marke de Oude (Founder & Chairman of Singlife).

"We invest funds from fundraising to drive growth, product development, and improve data science to support credit scoring. For example, currently we have launched several new products (example: 3-12 month installment loans) and improved credit scoring capabilities. "

Regarding future plans, danabijak admits that it will continue to form partnerships, in terms of technology services, with various financial institutions, banks, multi-finance companies, and technology companies. "We believe that collaboration and efforts to build an ecosystem that benefits everyone is the key to Indonesia's growth and development," concluded Markus.