Go-Jek expanding fintech efforts to tackle unbanked population
INDONESIAN transport and digital payment giant Go-Jek is hoping to boost financial inclusion by partnering with three peer-to-peer (P2P) lenders in the country.
According to the Global Findex (Financial Inclusion Index) database, while Indonesia is making significant progress in bringing its population into the formal financial system, over half of the population remain unbanked.
Through the partnership, the company can boost its financial service offerings across the ecosystem, providing merchants, drivers, and users without bank credits better access to loans.
The World Bank estimates the micro, small, and medium enterprise (MSME) financing gap at US$330 billion.
“We believe that a strong collaboration between financial services providers and technology companies can reach a wider range of people who have difficulty accessing financial services, such as unbanked communities,” said Go-Jek president Andre Soelistyo in a statement quoted by Reuters.
The Jakarta based startup will be working with Findaya, Dana Cita, and Aktivaku. Findaya specializes in providing lending services to Go-Jek Partners. Dana Cita and Aktivaku, on the other hand, are lending platforms specializing in academics/education and housing/property respectively.
The initiative will run separately from Go-Jek’s current payment vertical Go-Pay.
Go-Pay is currently one of the most popular mobile payment platforms in Indonesia, which comes as an added function within the main Go-Jek app.
According to Reuters, Go-Jek founder Nadiem Makarim stated that the platform processes over 100 million transactions per month, and records up to 25 million monthly users.
Currently, the company offers a variety of app-based services beyond ride-hailing, including food delivery, ticket booking, online shopping, and bill payments.
The move has been welcomed by Indonesia’s financial regulator OJK (Otoritas Jasa Keuangan).
Hendrikus Passagi, OJK’s Fintech Regulation, Licensing, and Supervision Director said that the collaboration is very positive to increase financial inclusion in Indonesia.
He added that OJK will continue to boost the digital economy ecosystem in Indonesia to improve public welfare.
Go-Jek’s partnership came at a time when businesses and consumers have a demand for more efficient lending services, as banks are traditionally slower in their approach.
This isn’t the company’s first foray into fintech. Previously, the unicorn startup acquired three other fintechs Midtrans, Kartuku, and Mapan.