Digital Planning Platform to Facilitate Financial Literacy and Independence
Today, financial independence is often the talk of the public, especially the younger generation in Indonesia. Financial independence itself is defined as a condition in which a person is not burdened with consumptive debt and has a passive income source that can meet daily needs and desires.
Everyone has different benchmarks when it comes to financial independence. One thing is certain, to achieve this goal, good financial planning is needed.
The use of technology such as financial records and investment platforms aims to make it easier for people to achieve financial goals, but not a few are still not familiar with effective financial planning.
Sribuu COO and Co-Founder Nadia Fadila revealed that the phenomenon in the fintech industry in the past five years was a focus on inclusion.
Fintech companies are competing to invite people to use digital platforms such as electronic money, introduce online banks, and facilitate access to investment.
“According to OJK data, 80% of Indonesians already have access to banking. However, the level of financial literacy is still 30%. There are still problems that we can tackle in the future as a fintech [platform]. How can people use various accesses according to their financial intelligence?” said Dila.
Departing from this phenomenon, Sribuu wants to facilitate and help direct the younger generation to be able to have good financial planning in order to achieve their financial goals, of course assisted by the use of the latest technology.
Literacy Along With Inclusion
Before entering the era of technology, people did financial planning manually by taking notes in books. Then, as the times progressed, they switched to using the Spreadsheet application.
Currently, users are increasingly facilitated by the presence of an AI-based financial recording platform that can provide personalized recommendations based on the user’s track record and preferences. This recommendation did not escape the review of certified financial advisors.
In addition to simplifying the financial planning process, technology platforms also contribute to improving financial literacy in the community. Sribuu, for example, actively provides education related to financial literacy through social media and articles in the application.
For outreach, companies start as a community and want to expand their reach. One of them is through collaboration with more than 30 campuses in more than 10 cities with the Sribuu campus ambassador program.
When the pandemic first broke out, many people began to care about their financial health. More and more people are interested in knowing more about investment, insurance is accompanied by increasing traction on many financial instruments.
However, with different backgrounds, responsibilities, and income for each person, there is no one specific formula that can be applied to all. Here, financial literacy is needed in deciding the appropriate instrument for effective financial planning.
Financial Planning Cycle
In the #TuesdayStartup discussion which took the topic “Road to Financial Freedom: Exploring the Role of Technology in Achieving Financial Freedom”, Sribuu Business Development Achmad Farhan Noor explained the stages that must be passed in an effort to achieve financial goals.
The first thing to determine is the target timeframe for achieving financial independence and how much it will take to get to that point. After setting goals, the cycle begins by determining the budget which is divided into categories.
One of them is the allocation for savings, here you can start to see if there are investment instruments according to the risk profile that can be used to achieve goals more quickly.
Then, start carrying out daily transaction recording. For financial independence, it usually has a long period of time, therefore evaluation is needed at intervals to ensure that it remains on the right track.
In carrying out this cycle, it takes a commitment that is not small. In addition to having to diligently record expenses, you must be able to refrain from spending more than the budget that has been set. As a technology platform, the focus is on helping simplify the process, as well as reminding, but commitment comes from each individual.