Fintech Startup GajiGesa Provides Early Access to Salary for Employees
It's not a lending since the company soen't provide loan, already secured seed funding
The thing is, the monthly payroll system in Indonesia held an issue for most workers. According to BPS data, Indonesia has at least 129 million workers, many of whom face financial pressures and difficulties caused by irregular cash flow, monthly payment schedules, unexpected expenses, and limited financial access.
The World Bank FINDEX estimates that 70% of Indonesians borrow money from informal institutions, often with high-interest rates and super-tense collection systems. GajiGesa intends to solve this issue, which was initiated at the end of 2020 by Martyna Malinowska (previously Standard Chartered Bank's Product Lead and LenddoEFL's Product Director ) and Vidit Agrawal (formerly APAC Strap's Head of Business Development, CARRO's COO , and Uber's first employee in Asia).
In an interview with DailySocial, Agrawal explained that the idea was first initiated by Martyna, she had to work extensively with blue-collar employees at LenddoEFL, most of whom were unbanked since 2016. Martyna saw firsthand that the challenges to factory workers in gaining financial access were very limited, especially when getting additional capital.
If possible, they choose to take short tenors because of liquidity problems. However, this is contrary to the principle of loans in financial institutions in general, they are required to take long-term loans with higher nominal loans or short-term loans with high-interest rates.
At the same time, Agrawal was working in Southeast Asia for Uber. The average driver earns $250 per month, excluding Singapore. The main issue also concerns harassment by lenders. "Observing the many challenges faced by blue-collar workers to complete short-term access to capital that is fair and reliable is an inspiration for GajiGesa," Agrawal explained.
GajiGesa provides services for employers and employees in speed up cash flow with financial products, including flexible salary access or what is known as Flexible Earned Wage Access (FEWA), financial education, bill payments, real-time analysis, and more.
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