Impact Credit Solution Bridges Technology Companies with Financial Institutions

The large need for MSME actors to increase their business capital is seen as an opportunity for the platform fintech, financial institutions, and banks to meet this demand. One of the services fintech who want to present a related solution is Impact Credit Solutions (ICS).

Founded by Reinier Musters (CEO) and Mackenzie Tan (COO), the Singapore-based startup wants to bridge banking and financial and non-financial technology companies that want to provide access to capital loans to their customers/partners. Indonesia is considered to be a market that has great potential for them to present these solutions.

To maximize their business in Indonesia, they have also appointed Dewi Wiranti as Country Head.

To DailySocial.id, Mackenzie said that by taking advantage of customers or merchant technology companies have on each platform, ICS through Single API bring technology and connections between two lending parties to customers.

"ICS is a financial technology company that enables MSME lending in Southeast Asia. We build embedded lending solutions which any technology company, P2P, or bank can use to create loan products."

In particular, ICS solutions enable product creation, workflow, and efficient decision making seamless pattern throughout the loan process. ICS capabilities include a credit analysis engine built on millions dataset SMEs.

Integrated with internal and external service providers, giving clients of ICS a single point of contact for everything from to collection. The monetization strategy that was launched was to charge customers with a SaaS-based subscription fee based on the volume of the loan.

One of the obstacles that many MSMEs encounter when they want to apply for a loan process is the lengthy approval process. ICS wants to make this process faster and easier. ICS has also established strategic partnerships with a number of well-known banks in Indonesia.

For startups, they have also partnered with platforms EXPERIENCE. The collaboration aims to provide sharia financing for hospitals, clinics, pharmacies, and other players in the healthcare supply chain in Indonesia.

Regarding fundraising activities, ICS currently has raised funding from leading banks and venture capital companies including BCA, Patamar Capital, 500 Startups, Mitra Integra, Mitra M Venture, and others.

"We have also received support from the US Development Finance Corporation, USAID, and the Australian Department of Foreign Affairs and Trade," added Mackenzie.

Support technology and banking companies

In the process, the end consumer will not be directly connected to the ICS platform, because it is backend. Applications do pre-approved and pre-scoring, then ICS will manage everything including connecting P2P companies to the relevant banks. From the banking side, only prospective borrowers who have passed the criteria are then eligible to get business capital.

"As embedded lenders, we do not have to interact directly with the end borrower. Our clients maximize their customer loyalty because their customers only see the brand and platform. They don't see a possible ICS solution end-to-end lending process," said Mackenzie.

ICS functions as a fintech and banking company one-stop-solution for loans. ICS's single API allows clients to create bespoke loan products that meet their customers' specific needs, while giving them access to low-cost bank capital to fund loans.

Loan potential for MSMEs

With nearly 60 million MSME actors in Indonesia, the potential for productive credit distribution is indeed worth exploring. From the data compiled by OJK, so far the nominal productive loans provided by the platform continues to increase trillions of Rupiah. Of course this has a good impact, because not all MSME actors can access loans from institutions such as banks.

There is an effort to channel through technology platforms (by cooperating with companies fintech) can also be seen as a breath of fresh air for increased financial inclusion. Moreover, there is a platform based on open finance enable collaboration between financial institutions, including banks.