Lazada and AIZEN Partner to Present Innovative Electric Vehicle Logistics Ownership Scheme
AIZEN offers financing solutions for electric vehicle ownership in partnership with Sunindo Kookmin Best Finance
AIZEN, startup fintech based AI from South Korea, has signed a memorandum of understanding (MoU) with Lazada Logistics, the logistics business unit of Lazada Indonesia. This MoU is in order to support the market landscape electric vehicle (EV) in Indonesia through "EV-CreditConnect", an AI banking service for EVs.
It is hoped that this agreement can support the financing revolution of the electric vehicle industry by bridging the gap between financial institutions and mobility operators, as well as expanding the provision of efficient and environmentally friendly vehicles for Lazada Logistics' courier partners.
AIZEN CreditConnect is an AI-based platform that enables financial companies to find customers, develop products, manage risks, and operate systems. This platform has been operating in Korea and Vietnam.
In Indonesia, AIZEN is partnering with Sunindo Kookmin Best Finance which will connect buyers with credit providers and offer innovative financing solutions for electric vehicle ownership to Lazada Logistics courier partners.
This collaboration will facilitate the financing process in obtaining high loan approval rates and competitive interest rates. Through the program Vehicle Ownership Program (VOP), Lazada Logistics courier partners have the opportunity to own EV directly in their name, so that when the installment period is over they will already have their own assets.
According to research results revealed by the Electric Mobility Ecosystem Association (AEML) and AC Ventures, the potential electric vehicle market Indonesia will grow exponentially by $20 billion by 2030.
In an official statement, AIZEN Indonesia Country Manager Damien Ngai explained, by introducing AI-based financial services and accelerating credit decision making in the EV market, AIZEN is contributing to Greener Finance. This synergy is a concrete step in support roadmap of Indonesia in developing the electric motor vehicle industry in the era of electrification.
"In the future, it is hoped that electric motorbikes will be increasingly accessible to the Indonesian people and become a more environmentally friendly and efficient transportation alternative in the future," said Ngai.
Lazada Indonesia Chief Logistics Officer Philippe Auberger added that collaboration with AIZEN is a form of the company's efforts to realize greener logistics operations. "We are committed to continuing to develop quality logistics solutions that are more environmentally friendly and sustainable for businesses in Indonesia," he said.
Before signing the MoU with AIZEN, the solution for procuring electric vehicles at Lazada was carried out with Smoot Elektrik, a local EV manufacturer. Smooth is integrated with smartphone, which is equipped with various features that make it easier for couriers such as reading the health condition of the motorbike and battery, cashless payments to top-up KM, GPS Tracker, turn off the engine, read trip history, etc.
In addition, there are more than 1.000 battery exchange points (swap stations) Smoot which is spread throughout Indonesia. It was stated that courier partners who already use EV motorbikes cover the Jabodetabek area.
Ngai said that currently apart from infrastructure and education challenges, the electric vehicle industry is also facing challenges in financing electric vehicles. The down payment and interest rates for purchasing an electric vehicle are generally higher than traditional vehicle financing, plus the loan tenor is shorter. Various factors are also taken into consideration, such as the presence of a new brand and the type of vehicle.
Through this partnership, the two companies will work together to facilitate the smooth deployment of electric vehicle fleets and build an environmentally friendly delivery system. Couriers as debtors will get loans more easily. In the end, they can save fuel, the long-term effects of which can improve living standards and have a positive impact on environmental and social sustainability.
By processing data generated by electric vehicles, AIZEN can help banks complete data more accurately using the AI Banking-as-a-Service (BaaS) platform to assess and manage their EV portfolio. This results in lower risk premiums and helps consumers in more affordable electric vehicle financing.
Better financing has the potential to encourage more adoption of environmentally friendly electric vehicles and create better credit products to serve a wider market share.
Previously, AIZEN was also appointed as a technology partner for Woori Finance which wanted to work on the electric vehicle financing segment, especially motorbikes. This multifinance previously focused more on working on the car and heavy equipment financing segment. In this agreement, Woori Finance is collaborating with AIZEN Global and SWAP, an electric bicycle manufacturing and battery infrastructure company.