Heaptalk, Jakarta — A Fintech startup, Kredivo, announced its additional channeling facility with a credit limit of US$43 million (around Rp700 billion) from PT Bank KEB Hana Indonesia (Hana Bank).
As is known, channeling is financing from banks through subsidiaries or other financial institutions, such as fintech lending. Hana Bank’s channeling fund distribution is its follow-up investment in this fintech, with a credit limit worth US$18.4 million, approximately Rp300 million in 2022.
Responding to the matter, Co-Founder and President Director Kredivo Indonesia, Umang Rustagi, conveyed that this fintech company will optimize this channeling facility to expand community reach, specifically those in tier 2 and tier 3 cities, and facilitate various community requisites.
“This collaboration is expected to assist us in achieving Kredivo’s big vision to serve tens of millions of customers in the next few years,” Umang added.
Moreover, the country’s pay later industry remains promising as the consistency level of public adoption continues flourishing. The uplift is reflected in the Indonesia Financial Services Authority (OJK) report, whereby outstanding receivables for financing payments reached US$377 million, growing around 23.9% as of March 2024.
“Since the first disbursement, we have recognized that Kredivo possesses robust business fundamentals that provide flexible credit access for the Indonesian people. For this reason, we have decided to elevate our channeling facilities in the second phase. We expect to expand financial inclusion, particularly in the underserved society, by obtaining credit products from banks,” the President Director of Hana Bank, Jong Jin Park, said.
Hana Bank’s asset growth was supported by an increase in credit distribution of US$2.1 billion in Q1 2024 (YoY), improving 12.82% compared to the previous value of US$1.9 billion in the early quarter of last year. This banking company’s positive credit distribution is also demonstrated by its non-performing loans (NPL) of about 0.75% as of March 2024, which is still below the industry average.
In maximizing the pay-later service for its users, Kredivo also continues to provide pay-later service features relevant to people’s needs, such as a 24-month tenor and a limit of up to 50 million. This fintech also applies a risk management matrix through AI-enabled real-time decisions to analyze credit scores, verify data, and accurately predict the default potential of prospective users.
