8 Examples of Popular Fintech Companies in Indonesia

May 16, 2022
perusahaan fintech indonesia

Get to know what a fintech company is and examples of fintech companies in Indonesia.

What are some examples of best fintech startups in Indonesia that are popular and growing rapidly? Here’s the list.

Today, unlimited technology is constantly evolving and experiencing significant increases. The rapid development of technology requires each individual to work hard and continue to innovate in order to create high quality and ease of use output.

One of the online businesses that have developed in the community is e-commerce or online stores. This business provides facilities for them to market their products and provide convenience for sellers and buyers. In addition to e-commerce, technology players were also surprised by the emergence of a new industry called financial technology or commonly abbreviated as FinTech.

In this article, we will discuss what a fintech company is and various examples of top fintech companies in Indonesia.

Read also: Main Role of Venture Capital on Startup Business

Understanding, Types, and Benefits of FinTech

What is fintech company? FinTech is an industry that combines finance and technology. The purpose of fintech companies is to make it easier for people to access financial products, conduct financial transactions, and improve understanding of literacy in the financial field.

There are various Indonesian FinTech companies. FinTech companies in Indonesia are generally dominated by startup companies, such as payments, retail investments, leading or lending, financial planning, crowdfunding, remittances, and financial research.

So far, the presence of FinTech startup companies is able to make startup companies more well developed. The company’s business development also tends to be faster and more consistent. This certainly shows that Indonesia can also be competent in this field. Seeing this opportunity is good enough to make FinTech companies continue to grow over time.

Most Popular Fintech Companies in Indonesia

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Examples of the Most Popular Fintech Companies in Indonesia

Currently, FinTech Indonesia companies are experiencing very rapid growth. In just a few years, fintech startup companies in Indonesia have been growing in terms of number. Therefore, IDC financial highlights, continue to make observations to assess the quality of FinTech companies in Indonesia. Some aspects that are considered are the intended market, investments, user adoption, marketing, and their chances of survival.

The following are the most popular and fast-growing Indonesian FinTech companies according to IDC financial highlights. These companies have also been registered with the Financial Services Authorization (OJK), so the credibility of the company is unquestionable.

  1. Modalku

The first example of an Indonesian fintech company is Modalku, a peer-to-peer lending platform that allows owners (SMEs) to be able to apply for loans of 50 million to 500 million rupiah within three to twelve months. If the loan application is approved, the application will be displayed on the Modalku website. This is so that prospective lenders or investors can see the needs of SMEs.

If the loan amount expected by the SME owner is successfully fulfilled within the predetermined time span, then Modalku will immediately disburse funds. In accordance with the agreement agreed at the beginning, Modalku will withdraw commissions of 3 percent from borrowers and 3 to 4 percent from investors. The Modalku site began launching in January 2016 and has received Series B funding in 2018 worth 25 million dollars.

  1. Finansialku

Finansialku (PT Solusi Finansialku Indonesia) is a financial planning company that has educational channels, financial apps, and financial consulting. This website-based application makes it easier for people to manage and plan finances. The Finansialku application also helps to create a budget, record finances, manage investments, plan finances, and make financial reports.

As of August 2020, this one of the best Indonesian fintech company has collected seed funding with a total of US$3.3 million.

Read also: What is Venture Capital? Definition, Benefits, How It Works

  1. Kredivo

Kredivo is one of the top fintech in Indonesia with the concept of loans without credit cards with a fast registration process and disbursement of funds. This online loan startup offers convenience in shopping without a credit card at several e-commerce sites and popular outlets such as gadget and electronic outlets, fashion, home appliances to outlets that offer services. Kredivo also offers convenience in cash loans with the lowest interest compared to similar companies.

On July 25, 2018, Kredivo announced that it had received Series B funding worth US$30 million. Startup investors participating in this funding include Alpha JWC Ventures, Jungle Ventures, Openspace Ventures, GMO Venture Partners, and 500 Startups.

  1. GO-PAY

To support various services owned by the GO-JEK on demand application, GO-JEK finally created a service called GO-PAY to support cashless payment services. Initially, GO-PAY itself had the name GO-JEK credit and changed its name after one year later. Currently, GO-PAY has also acquired PonselPay which is a company that owns e-money licenses to support its operations.

Currently, the majority of GO-JEK users have taken advantage of this service because many customers are spoiled with various discounts and gifts that are quite tempting and can be exchanged for points. Not only that, currently GO-PAY can not only be used as a transaction tool in the GO-JEK application, but also equipped with several features such as balance transfers, cash withdrawals, and also to transact at various merchants in the near future.

  1. OVO

OVO can be said to be a strong competitor to GO-PAY. How not, there are currently many “cashback wars” between OVO and GO-PAY in several merchants in Indonesia. OVO is just like GO-PAY is a digital wallet application that makes it easy for users to make cashless transactions. With promotions that attract customers, OVO also collaborates with many merchants and has even collaborated with more than 200,000 SMEs spread across Indonesia.

OVO is under LIPPO GROUP with Albert Lucius as its Chief Product Officer. Albert Lucius said, in addition to cashless payments, OVO’s service coverage has also been expanded to include Paylater (for transactions on Tokopedia) and business capital loans and all these services have obtained permission from the Financial Services Authority (OJK).

Read also: Seed Funding and Ways to Get Investors for Startups

  1. TaniFund

Fintech innovation in Indonesia is not only up to loan services for business only. Unlike other fintech companies, TaniFund is present as a breakthrough in the world of agriculture by providing solutions for farmers, ranchers and fishermen in Indonesia to get financial access in order to develop their businesses in the agricultural, fisheries and livestock sectors. TaniFund is integrated with TaniHub which is a digital agricultural ecommerce that is ready to distribute crops to hundreds of buyers from traditional markets, restaurants, catering and many more. It can be said that TaniFund is a company that provides special loan services for farmers, ranchers and fishermen in Indonesia.

  1. Ajaib

Currently, there are many fintech products that make the millennial generation as their target, not least Ajaib which is an application that makes it easier for millennials to invest online, so that investments can be made easily and quickly. Ajaib helps make it easier for novice investors, especially young people who are still new to invest in the capital market (mutual funds) by offering ease of investing starting from Rp. 10,000 only. Ajaib has partnered with several well-known investment managers such as Syailendra, Prospera, Ciptadana, and many more.

Ajaib was founded by founders from 3 countries, namely Anderson Sumarli, Yada Piyajomkwan, and Kevin Lee. According to Ajaib Co-Founder Anderson Sumarli, Ajaib has raised tens of billions of rupiah in investment funds from users. Currently, they have received fresh funding from Y Combinator of US $ 120 thousand (around Rp1.7 billion).

  1. TCash

In 2010 Telkomsel company launched a service called TCash. Tcash provides services in terms of payments and digital wallets making it easier to transact. To make transactions using TCash, you can do so using several methods. These methods include bringing NFC devices closer and scanning QR Codes. The NFC method was developed in 2014.

Tcash not only provides convenience in buying celluler credit, but also can be used to shop, pay bills, send money, and pay merchants. Currently, there are many merchants participating in making transactions through Tcash, such as Belanja.com, Gramedia, Cinema XXI, McDonald’s and many more. For Tcash users, there is no need to doubt the legality, because Tcash has obtained permission from Bank Indonesia.

Thus some explanations and examples of best Indonesian FinTech companies that are quite popular. Stay careful in choosing a FinTech company that you will use because currently there are many FinTech companies that are not clear about their existence. Try to choose a FinTech startup company that has been registered with the Financial Services Authorization (OJK).