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DSInnovate Report: Economic and Social Impact of MSME Financing Using "Fintech P2P Lending"

Compiled in collaboration with Modalku as a fintech p2p lending player in the productive sector

The presence of financial technology (fintech) in Indonesia provides various benefits, especially when people underserved and unbankable still widely spread in various regions. No exception for MSME actors, services fintech as peer-to-peer lending (p2p lending) provide easier options for them to get access to capital assistance funding. Especially when it comes to micro-scale businesses, there are still many that have not been touched by access to conventional financial institutions.

Focus fintech for the empowerment of MSMEs is important, because of the large contribution to the national economy. The latest data states that the contribution of MSMEs reaches 60% for PBD and 97% for job creation. There are many gaps that are trying to be bridged by fintech p2p lending, starting from more affordable access through technology, to the creditworthiness assessment process that can be more adapted to the conditions of MSME actors.

The pandemic that began in 2020 also provided turbulence for business people in Indonesia in general, and the ones that were significantly affected were MSMEs. In this difficult situation, fintech p2p lending continues to provide many roles, one of which, according to AFPI data as of 2020, there is a total of 74 trillion Rupiah disbursed to MSME actors, an increase of 27% from the previous year.

To take a deeper look at the extent of service fintech p2p lending provide economic and social impact on the MSME sector, Modalku and DSInnovate collaborate to conduct research entitled "Economic and Social Impact of MSME Financing Using Fintech Peer-to-Peer Lending". There are five main topics summarized, including:

  1. Overview of MSME financing
  2. Modalku's existence in MSME financing
  3. Demographic profile of MSMEs in Indonesia
  4. Experience in financing from conventional services or other sources
  5. Future MSME financing plans

There are many interesting findings revealed in the report, one of which is that 50,29% of the total respondents who took part in the survey used loan funds to purchase business raw materials, followed by operational costs (19,14%). Furthermore, most of these business actors benefit from the smooth flow of cash, both for capital funding (25,1%) and additional stock of goods (24,9%).

Download the report via the following link: Click here.

More Coverage:

- Disclosure: DSInnovate cooperates with my capital in the creation and release of this report. Modalku is a fintech p2p lending platform that focuses on providing productive financing for MSMEs in Indonesia

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