Four Fintech Lending Startup Acquired License from OJK
A "working group" is to be held to accelerate license for AFPI members
Marsya Nabila - 17 May 2019
Indonesian Fintech Lenders Association (AFPI) announces its four members, Investree, Amartha, Dompet Kilat, and Kimo to acquire license from OJK as fintech lending. In total, with Danamas, there are only five out of 113 AFPI members listed in OJK.
“We appreciate our four members to acquire OJK’s license after the long process to make sure the fintech lending industry was build upon a strong infrastructure,” AFPI’s Head of Institutions and Public Relation, Tumbur Pardede said.
He continued, the four startups reflect all fintech lending’s business models. Investree with the SME’s productive sector and supply chain, Amartha focused on women’s micro businesses. Dompet kilat aims for consumptive sector with quick loan, and Kimo runs payment for balance top-up sellers.
In order to fasten the other members to acquire business license, AFPI is to build a special working group for license. Therefore, all startups which already listed are encouraged to share insights for members that suits their respective segments.
Therefore, they should be faster in completing requirements from OJK, the positive image will built among society.
Investree’s Co-Founder and CEO, Adrian A Gunadi said, the company needs two years to complete the requirements, as for Amartha. In the process, there are series of agreements in terms of administration or risk management that is completely essential.
One of those is to comply with ISO 27001, it doesn’t apply to every tech-based startup. The license isn’t simple and requires so things, particularly for startup working in financial service. Confidentiality is one of the example.
Furthermore, the integration system must adapt per OJK request, devices to monitor in order to run along the APU PPT (anti money laundering) it should be perfect, the auditor must be included in OJK.
“Any [requirements] to be integrated with system must be prioritized and meet the OJK standard. Some product development plans should be ‘hold’ for it,” he added.
After acquiring license, the company’s build up its confidence for partnership with all classes, either the government or private company. Also, there are companies and financial industries in need for partner with official license from regulator to guarantee their users.
“I think what we’ve been planning this year should worked. Starting to expand agressively with new partners is to be realized next year for we’ve grown confident through license,” Amartha’s Founder and CEO, Andi Taufan Garuda Putra said.
In terms of industry, fintech lending has distributed Rp33 trillion loans per April. For further detail, Amartha is claimed to distribute more than Rp 1 trillion for 230 thousand entrepreneurs with 98,26% payment success rate (TKB).
While, Dompet Kilat has distributed more than Rp10 billion loans for 20 thousand active consumers, the payment success rate has reached 97%. Investree has distributed over Rp2 trillion for 4 thousand borrowers. There are 66 thousand lenders with payment success rate up to 90,99%.
Lastly, Kimo has distributed Rp1 trillion loans since founded in 2016 with 10 thousand balance top-up partners.
Success payment rate is OJK’s requirement for all p2p lending entities with license to display success rate in the 90th day of its operation. It intends to improve transparency and help the lenders to know the risk of its funding placement.
Original article is in Indonesian, translated by Kristin Siagian