Credit Demand Increases, KoinWorks Only Distributes to Potential Sectors
Demand for loans in financial financing technology increased during the new normal (new normal). The fintech lending startup KoinWorks recorded loan requests rising by up to 30%. KoinWorks COO Bernard Arifin said despite increased demand, Koinworks selected lending and only chose sectors it considered potential.
“People who sell in e-commerce, which happens now many are flooded with orders, frozen food (frozen food) increased sales. They have high demand, this is what we help,” he said in a video conference on Wednesday (7/15).
The company also noted loans that have been disbursed rose 15% in the first half of this year when compared to the same period last year. So far, 41.78% of KoinWorks loans are channeled into the fashion and culinary sectors.
19.61% of the sports and hobby sector. Then 11.5% of the gadgetry and electronics sector. By providing loans to potential sectors, Bernard claimed the company could maintain the risk of default. At present, KoinWorks’s Non-Performing Loan (NPL) ratio is still around 1%.
Restructuring Loans in the Middle of a Pandemic
KoinWorks has also restructured loans to ease the burden on borrowers affected by Covid-19. Even so, only a few KoinWorks borrowers restructured their loans. There are around 5% of the borrower’s portfolio which is proven to have been affected by the pandemic and is getting loan restructuring.
The company recorded user growth during the pandemic of 41%. The growth was seen over the past six months in 2020 with a total of more than 519,000 users registered on the KoinWorks platform as of June.
During the pandemic, KoinWorks also received funding of US$ 20 million or around Rp 316 billion, although some investors chose to wait and see. Funding was obtained from several investors including EV Growth.
Benedicto Haryono, CEO & Co-Founder of KoinWorks said that his party as the first Super Financial App platform in Indonesia continued to demonstrate its commitment to making financial inclusion in the country more evenly distributed.
KoinWorks provides access to affordable financing alternatives for small and medium businesses (SMEs) in Indonesia and competitive funding for millennials. He considered that his party had successfully posted a positive performance amid the challenging economic conditions due to the Covid-19 pandemic.
Users Increase during New Normal
Public enthusiasm for financial products was quite high during the Covid-19 pandemic. Users of the fintech KoinWorks platform increased by 41 percent over the past 6 months. Benedicto revealed that KoinWorks recorded a growth in the past six months in 2020
This user growth, he said, showed people’s enthusiasm for financial products that could help their daily lives both for personal and business endeavors. “More than 519,000 users have registered on the KoinWorks platform as of last June,” he said in a press release received by Bisnis.com Sunday (7/12/2020).
The Company will Continue to Strive to Answer the Needs of the Community
KoinWorks also experienced a 15 percent increase in productive lending in the first half of 2020, compared to last year.
“We proactively assist Indonesian SMEs in going through this difficult time both in terms of access to finance, which can be seen from the growing number of distribution of financing to SMEs and business development education in the pandemic through various interactive channels and programs.”
Benedicto added that the easing of the Large-Scale Social Limitation (PSBB) also had an impact on increasing loan demand by almost 30 percent. The increase is in line with businesses that have begun to operate again.
“We will continue to strive to maintain user confidence through product development that can respond to market needs and the implementation of various strategies to mitigate risk in order to maintain loan quality and default ratio through a credit-scoring system that has been adapted to the conditions of the new normal era,” he explained.