There is Danger of Underbanked Communities in Indonesia, Here Fintech's Answer

TRIBUNBATAM.id - The phenomenon of unbanked or groups of people who do not have a bank account, become the main focus when discussing financial inclusion.

In fact, besides the unbanked group, there is another biggest challenge that comes from the underbanked community.

At present, around 26% or 47 million of the total adult population in Indonesia already have a bank account but still face limited access to conventional financial services in the realm of consumer financing such as credit cards and KTA for various reasons, one of which is a limited credit history.

Under these conditions, the progress of digital financial industry (fintech) brought fresh air to the underbanked group because it was able to expand access for financial services that could support an increase in living standards.

On the other hand, in order to maximize the impact of fintech industry as a solution for Indonesia's underbanked people, the expansion of access needs to be balanced with increased public literacy, especially in choosing credible services and prudent ways to manage its loans.

One digital credit platform, Kredivo through its General Manager, Lily Suriani, said that the company will continue to be involved in various collaborations with regulators and associations that reach underbanked people, including those living outside the capital.

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"Furthermore, the role of industry players in providing education and the performance of regulators in regulating the fintech ecosystem, the underbanked community must remain active in gathering information and preparing themselves to manage their loans, because in the end we are the ones who best understand financial capabilities of themselves and their families," said Lily in her official statement, Friday (12/20/2019).

Besides to ensuring that people borrow from digital lending applications that get official permission from OJK, there are wise tips on managing installments so that life stays calm every month.

First, make sure you understand the tenor, the principal amount, and the interest that must be returned.

"Secondly, set maximum debt percentage limit from total monthly income," Lily said.

The third step is to complete installments until it runs half of tenor period if the community wants to have several installments.

"Last, don't be impulsive. Think carefully about the purpose of loan, " she said.

Lily rate, public acceptance of fintech industry could be said to be extraordinary.

"Kredivo itself has assessed the credit worthiness of more than 3 million users and has channeled nearly IDR 30 million in loans so far this year.

We believe that service security is the key to building and maintaining public trust in the industry, " she said.