Modalku Provides Investment Diversification Options for Lenders
PT Mitrausaha Indonesia Group (Modalku) stated that the enthusiasm of the users on the financial technology platform (fintech) to diversify investment in Government Securities (SBN) is quite high, especially millennial users.
Modalku is one of the pioneers in providing fintech peer-to-peer (P2P) lending which is a distribution partner for SBN. Finally, Modalku also enlivened the issuance of the government’s newest retail bond, namely ORI017.
“With the existence of government bonds [as a product on the platform], Modalku provides options for lenders to diversify their funds to a different or safer level of risk. For information, around 60% of SBN investor profiles in Modalku are millennials,” said CoFounder & CEO. Modalku Reynold Wijaya to Bisnis, Wednesday (19/8/2020).
SBN Products Attract Millennials’ Interest
According to Reynold, SBN products such as ORI017 attract millennials because they are safe, guaranteed by the state, and are sold online. So that this investment product is easily accessible to millennials who are close to gadgets and are used to surfing in cyberspace.
Therefore, Modalku stated that he would continue his work as one of the SBN distribution partners, especially for millennials who have joined the Modalku ecosystem as investors or lenders (lenders), as well as those who have not been actively investing.
“Until now, we are still a distribution partner, both in SBR, Sukuk, and ORI. As additional information, this August we are also trusted again as a distribution partner of SR013,” he added.
Reynold explained that although SBN distribution is a ‘byproduct’ outside of the P2P lending business, becoming an SBN distribution partner has had a positive impact on Modalku.
“This shows that the fintech sector is increasingly integrated with the country’s financial ecosystem. In addition, the convenience offered by fintech, especially P2P lending, is certainly one of the reasons for Indonesians to buy state debt securities on our platform as an investment alternative,” Reynold said.
Modalku Supports the Realization of Financial Inclusion in Indonesia
In addition, the main spirit of Modalku is to participate in distributing SBN, namely to contribute to supporting the realization of financial inclusion in Indonesia, educating the public about investment, and making the P2P lending platform ecosystem more trusted by the public.
“This is in line with our vision, which is to build the economy in Indonesia. So as a distribution partner, we will maximize our role to increase public awareness in getting investment alternatives, either as P2P lenders or as investors through products in Modalku such as SBN investment, “the lid.
For your information, there is only five fintech as the distribution partners (Midis) for SBN until the issue of ORI017. Meanwhile, only two P2P lending fintech have joined Midis SBN, namely Modalku and PT Investree Radhika Jaya (Investree).
The remaining three are Fintech Mutual Funds Selling Agent (APERD), namely PT. Bareksa Investment Portal (Bareksa), PT. Star Mercato Capitale (Tanamduit), and PT. Nusantara Sejahtera Investama (Invisee).
Based on data from the Ministry of Finance, the market share of ORI017 sales is still controlled by Midis banking, however, in terms of the number of investors, the portion of midis fintech shows growth.
In the previous ORI issuance (ORI016) the number of investors who bought from Midis fintech was only 7.8 percent. The figure rose in ORI017 to 11.9 percent. Midis fintech also contributed the smallest average order volume, which was IDR 19.9 million per ORI017 purchase.
This is considered to be good news because the average volume of orders for retail SBN is getting smaller, indicating a better degree of commitment and reflecting positive developments in efforts to increase financial inclusion.
The sale of ORI017 renewed the record of online SBN sales with a total volume of IDR 18.3 trillion and is considered capable of embracing new investors because in ORI017 as many as 23,949 people or 56% of the total investors were new investors.