Fintech Lending Modal Rakyat Adds New Institutional Lenders
Modal Rakyat fintech lending in 2021 has the initiative to be more aggressive in channeling funding for MSME players, especially those affected by the Covid-19 pandemic. One of the steps taken by the company is to increase the number of institutional lenders in the hope that the distribution of financing will be more optimal.
Most recently, Modal Rakyat has formed a partnership with the Bank Perkreditan Rakyat Masyarakat Mandiri (Bank MM). Hendoko (CEO of Modal Rakyat) and Febrianto Anugrah Kesuma (President Director of Bank MM) recently signed the partnership.
In this partnership, Bank MM is committed to channeling financing of up to IDR 2 billion through Modal Rakyat. “We are very happy, BPR friends have started to follow the socialization conducted by OJK and AFPI in order to intensify collaboration with digital platforms,” said Hendoko.
MM Bank, he said, was one of the financial institutions that contacted Modal Rakyat directly to express their interest in becoming an institutional lender in Modal Rakyat. “We hope that this kind of interest and intention can continue to increase among BPR actors in 2021,” said Hendoko.
Value and Duration of the Financing
Financing will be focused on MSME players registered in Modal Rakyat with a distribution of IDR 100 million to IDR 2 billion with a loan duration of 1-6 months that meet the credit assessment standards in the Modal Rakyat.
“With the growth of technology financial services, which are now starting to develop in Indonesia, now financial services can be accessed more easily, quickly and widely. This underlies us to cooperate with Modal Rakyat in channeling funding to MSME players,” said Febrianto.
Until now, Modal Rakyat as a fintech lending has distributed financing of more than IDR 914 billion to more than 20,000 MSME players throughout Indonesia. As of December 2020, 62.82 percent of financing was channeled in DKI Jakarta and 31.18 percent outside DKI Jakarta.
In addition, 51.81 percent was distributed to the Technology sector and 27.32 percent to the Trade sector. Meanwhile, the number of lenders to date has more than 45,000 individual lenders and 13 institutional lenders (including MM Bank).
“In 2021, we are targeting disbursement of IDR 2 trillion in financing. We hope that in the future there will be more institutional funders, including rural banks working together with Modal Rakyat. Hopefully the collaboration and alliance between non-digital and digital financial institutions will be more solid and prime in 2021,” said Handoko.
Modal Rakyat Disbursed Loans of IDR 660 Billion in 2020
The peer to peer lending organizer or PT Modal Rakyat Indonesia (Modal Rakyat) managed to channel loans worth IDR 660 billion throughout 2020. That value grew 490% annually, aka year to year (yoy).
“Established since 2018, Modal Rakyat has distributed financing of more than IDR 782 billion to thousands of MSME players in Indonesia. The distribution based on the province is 62.82% in DKI Jakarta, and 31.18% non-DKI Jakarta,” said Capital Rakyat in a written statement, Friday (1/1).
The distribution is supported by 17,000 donors or lenders consisting of 79.1% male and 20.90% female. Modal Rakyat Lenders are dominated by millennials with an age range of 19 years to 34 years who contribute 59.29% of the total lenders.
Until mid-December 2020, MSMEs from the technology and food sector became the biggest borrowers or borrowers on the Modal Rakyat platform. In detail, 51.9% of MSMEs came from the technology sector, 27.32% from the food sector, 5.99% contributed by automotive MSMEs.
Meanwhile 4.71% from architects and construction. The other sectors contributed 10.18% of the total borrowers. In 2020, Modal Rakyat has collaborated with more than 10 agencies. Both financial institutions, start-ups, to other companies.