Low Banking Access, Big Opportunities for Fintech

Technology & Telecommunications

Premium

10/10/2017 07:23 WIB

URL has been copied

Memuat...

Low Banking Access, Big Opportunity for Fintech

Adult Population with Bank Access (2014)

A Small Font
A Medium Font
A Bigger Font

You are accessing content Single Data Premium.
To continue, please subscribe or buy individually.

Professional

Enjoy premium access with a more affordable price.

Start from

~~Rp300.000~~ 150.000/month

Access more premium content and exclusive features for customers.

Start from

50.000/month

Hanya Rp833 per artikel

More details »

Buy Retail

Read the article immediately “Low Banking Access, Big Opportunities for Fintech”.

Rp10.000

We accept the following payments:

Some payment methods are still in the process of being activated.

Adult Population with Bank Access (2014)

Download

Source

A Small Font
A Medium Font
A Bigger Font

Low banking access presents a significant opportunity for the growth of financial technology (fintech) in Indonesia. The advancement of the digital economy is expected to increase funding for businesses that are not yet served by the banking sector through the emergence of Peer-to-Peer (P2P) lending services, ultimately stimulating growth.

According to Bank Indonesia (BI) data, in 2014, only 36.06 percent of the adult population had accounts with formal financial institutions. Meanwhile, only 15.3 percent had savings accounts, and a mere 8.5 percent had loans from formal financial institutions. This untapped market segment can be targeted by P2P lending players.

As of June 2017, bank credit currently only reached 34.8 percent of the Gross Domestic Product (GDP), which was nearly Rp 13 quadrillion. Credit for Micro, Small, and Medium Enterprises (MSMEs) constituted only 6.84 percent of the GDP and 19.63 percent of total bank credit.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."