KoinWorks Partners with MMI to Offer Mutual Fund Investment for Investors
Pilot project started since last year
Marsya Nabila - 12 June 2020
KoinWorks officially partners with Mandiri Investment Management (MMI) to manage the funds of lenders to be invested in the Mandiri Money Market 2 Investment Fund (MIPU 2) instrument. This collaboration runs in terms of fulfilling OJK’s provisions related to cash lender balances on a p2p lending account that may not settle for more than two days.
On this occasion, KoinWorks encourages more capital market investors in Indonesia as users through its platform. In addition, according to the company’s data, almost 70% of lenders who invest are novice investors. Their have very common knowledge of other investment instruments besides p2p lending.
In a general note, KoinWorks was previously funded by Mandiri Capital Indonesia (MCI) in Series A round.
“We have piloted this product since the end of last year, but only for a limited circle. We want to introduce mutual fund products for 400 thousand KoinWorks lenders,” KoinWorks’ Co-Founder and CEO Benedicto Haryono explained in an online press conference on Wednesday (6/10).
MMI’s President Director Alvin Pattisahusiwa added, KoinWorks was the first p2p lending partner of the company. Mutual fund products they managed have many advantages that goes in line with the profile of KoinWorks’ lenders.
Among these, they have high liquidity with T + 0 transaction time or same-day settlement. In results, the time for disbursement can be done on the same day as the day of purchase. Mutual fund products generally enforce the terms of disbursement of T + 3 or T + 7 into customer accounts.
Next, the nominal investment starts from IDR 10 thousand and yields above deposit interest. As an illustration, MIPU 2 last year gave a yield of 5.7%. “This product is very suitable to be the underlying automation of mutual funds for users,” he said.
KoinWorks’ CMO Jonathan Bryan explained further, deposited funds on the KoinWorks platform for more than two days would be automatically converted to MIPU 2 mutual funds managed by MMI, therefore, it’s not up to lenders’
In the process of opening a lender account, lenders will be facilitated by the system, therefore, they do not need to register manually.
“Whether lenders want to do the funding later, it can be directly used without having to disburse the mutual funds before. Mutual fund unit ownership automatically decreases according to the amount of funding distributed,” he explained.
In addition to KoinWorks, another p2p lending platform already launched similar initiation is Investree. The startup collaborates with Tanamduit and Principal Asset Management.
Original article is in Indonesian, translated by Kristin Siagian