Fintech Lending Startup KlikACC Performs "Rebrand", Reinforces Commitment to the Productive Sector

Startups KlikACC announces rebranding become KlikA2C (access to credit) to reinforce the company's commitment in providing access to productive credit for MSMEs. This name change is also marked by a change in the appearance of the web page and applications.

At a press conference organized by the company, KlikA2C CEO Djoemingin Budiono explained that as long as the company has been operating since five years ago, the productive sector has always been a target because this sector has the greatest need for credit and has not yet entered the radar of conventional players.

This is reflected in the total distribution portfolio of KlikA2C, around 99% of which target the productive sector. In expanding the reach of financing to MSMEs, the company embraces partners from various business sectors to advance financial access for MSME actors. "We believe that financial inclusion can be built with the spirit of partnership," he said, Tuesday (23/11).

KlikA2C focuses on productive MSME financing, including for the automotive sector, People's Business Credit (KUR) for farmers, invoice financingand employee loans. For KUR financing, the company becomes a partner channeling with BCA. With this product, the company has succeeded in increasing loan disbursement by more than four times over the last two years.

As for the nominal distribution, it touched Rp. 25 billion as of September 2021 from the same period in the previous year of Rp. 9 billion. “Farmers' groups really help the farmers' reading and digital literacy process. They make it easier for KUR distribution to run more smoothly.”

Meanwhile, for automotive financing, targeting the used car segment. The distribution of financing for this product has increased by more than 15 times. According to Djoe, previously used car owners had difficulty getting fees from banks because their credit needs were short-term, about two to three months. This is not included in the bank's criteria because the minimum available tenor is a minimum of one year.

"We've been trying to come here since 2019, but it's grown 15 times. Then during the pandemic, people tend to be reluctant to buy new cars, but the need to buy cars is still there. This is evident from our partners, and I think our products match their needs. The time is short, only three months.”

Djoe explained, the total cumulative loan disbursement was IDR 529,87 billion to a total of 3.014 borrowers and outstanding loan of Rp.86,65 billion. As for lenders, it is dominated by retail circles with a ratio of 65-35 compared to institutions. Overall, this achievement led the company to grow by 11% per quarter over the last 10 quarters.

For the next strategy, the company will further develop the product invoice financing. There are several industrial sectors that will be targeted, including FMCG, transportation, and logistics. "Next year we are preparing electric motorcycle financing products for consumers who are interested in buying this motorcycle," concluded Djoe.

Industry This year

Meanwhile, on the same occasion, AFPI Executive Director Kuseryansyah was also present. He estimates loan disbursement growth industry until the end of this year will grow more than 75% compared to last year. In other words, it is predicted that the accumulated distribution will reach IDR 140 trillion from IDR 74 trillion in 2020.

“That is, the proposed solution this already on track for channeling alternative funding. Although during the pandemic, growth in conventional institutions was zero or even negative, but in fintech can still grow because it uses alternative technology and data,” said Kus.

On the other hand, the potential of the community unbanked in Indonesia is still very large, thus providing room for growth for the industry . In various studies it was stated that MSME segment funding needs amounting to Rp2.650 trillion in 2019. Of these needs, only around Rp1.000 trillion were served by conventional financial institutions. Thus, there is gap IDR 1.650 trillion which can be a potential for industry .

Meanwhile, based on OJK data, the accumulated loans that have been disbursed by the industry since its establishment reached more than Rp260 trillion. Around 58% of this was channeled to the productive sector.