Amar Bank Partners with Mekar to Facilitate Funding for SMEs

Amar Bank set an agreement with PT Mekar Investama Sampoerna (Mekar) in running a p2p lending service to distribute credit facility for some MFI (Micro Financial Institution) in Indonesia. Amar Bank's support supposes to help SMEs' business development through Mekar's partners in all regions throughout Indonesia.

In fintech industry, Amar Bank has Tunaiku as a leading product, while Mekar is a fintech company that facilitates borrowers with lenders known as peer-to-peer (p2p) lending. Furthermore, Mekar will partner up with positive and potential MFI in need for investors to provide loans for its SMEs. In this position, Mekar expects the partnership to help SMEs development.

"This time, Amar Bank pairs with Mekar in distributing funds into some MFIs. Funding will be distributed to thousands of SMEs in some cities in Indonesia. We'll continue to evaluate the potential to provide banking access for customers in need." Vishal Tulsian, Amar Bank's Managing Director, said.

This funding will be distributed to its two partners, Koperasi Mitra Dhuafa (Komida) and Koperasi Abdi Kerta Rahardja (AKR). Both are said to acquire more than a hundred thousand borrowers of SMEs from all over Indonesia.

In the process, Mekar will take a role as a marketplace that also monitoring fund distribution for the selected borrowers.

"It's an honor for a fintech company as Mekar to be partnered with Amar Bank, a bank with one of the leading technology in Indonesia," Thierry Sanders, CEO of Mekar, said.

The partnership is Amar Bank's attempt to increase access towards their lending service. Tulsian added, in 2018, Amar Bank will be focused on two products, conventional and digital lending. The team is also committed in supporting the financial institution, including MFI, as an effort to facilitate people in need for fast and on-point funding.

"It [fast and on-point distribution] is supported with administration process that accessible and convenient transaction in banking. With an objective to provide funding for SMEs, it means that we can also help to fasten the distribution for the right target," he said.

– Original article is in Indonesian, translated by Kristin Siagian