Industry professionals in Indonesia are asking financial technology companies to expand abroad from Java and unsymify the national government to satisfy the wishes of the unbanked population.
Only 23% of the country’s fintech corporations succeed beyond the island of Java, while only 41% operate in Greater Jakarta, according to a recent survey conducted through the Fintech Association of Indonesia or Aftech, which includes responses or comments from its members.
As first reported through the Jakarta Post, more than a portion or 50% of respondents indicated that they planned to make the country’s rural and non-banked population a prospective target market.
Djauhari Sitorus, assignment manager for the Indonesian National Council for Financial Inclusion, said in a recent discussion:
“Fintech’s current progression still focuses on urban and [suburban] areas. We need more money for other people who live outside Java. “
Sitorus added that it was difficult to supply other people living in rural areas, as many do not know how to use virtual money effectively.
More than 50% of financial technology companies that responded to the survey said low grades of monetary schooling were the main challenge to providing Indonesia’s rural market. they still want to be cared for, such as lack of Internet access in rural areas and limited monetary resources.
Indonesia had received only 38% in the Financial Literacy Index and 76% in the Financial Inclusion Index (both low), which was published in the form of a Financial Services Authority (OJK) survey in 2019. projects that would allow the Asian country’s monetary inclusion and plans to help the country achieve a 90% score on the Financial Inclusion Index over the next five years.
According to the e-Conomy SEA report in 2019 through Google, Temasek and Bain
Mirza Adityaswara, president and executive director of the Indonesian Institute for Banking Development (LPPI), said:
“Fintech’s participation in the distribution of social assistance and the government budget to SMEs is still low. Much remains to be done to ensure that fintechs expand ties with the banking sector. “
Triyono Gani, head of virtual monetary innovation and microfinance progression at OJK, said:
“It is now very opportune for the government to have more confidence in fintech, for example, for the disbursement of microcredits (KUR)”.
As recently reported, the Fintech Lenders Association of Indonesia had submitted to assist in disbursing the budget allocated to the COVID-19-related national economic stimulus program.
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