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FROM being called ‘worse than loan sharks,’ to more basic reviews saying that its nearly impossible getting that loan through the web web site, UangTeman is surviving, and even, apparently thriving.

Speaking recently to Digital Information Asia (DNA) in Jakarta, its cofounder and ceo Aidil Zulkifli (pic above) admits as a free promotional tool that he struggled with the bad publicity at first, but managed to use it.

“We are actually nine months old, operating fast and doing pretty much. As a startup, you must never be scared of bad press; you merely should try to learn how exactly to handle it,” he claims.

UangTeman, or ‘Friend’s cash’ in English, began operations in 2015, and has been growing 20% to 25% month-on- month since, according to Aidil april.

The economic solutions technology (fintech) startup dispenses payday advances to individuals in need of assistance: tiny, short-term loans to simply help borrowers endure for his or her day-to-day requirements until their next paycheque.

Borrowers may take as much as a maximum of Rp2 million (US$148.60) and at the least Rp1 million (US$74.20) the time that is first but they are charged a 1% rate of interest a day for the following 18 to 25 times.

Even though many begin to see the 1% day-to-day rate of interest as an excessive amount of, Aidil contends that this is actually the only cost that clients need certainly to deal with – there are no management or processing charges.

He keeps the attention price is “relatively okay” compared aided by the danger the faces that are startup day.

“We aren’t a bank; we usually do not gather cash from people. The funds we provide to your clients arises from our personal ‘friendly’ pockets,” declares the Singaporean-born previous lawyer.

He additionally stresses that UangTeman is certainly not contending aided by the banking institutions, however with the mortgage sharks and lenders that are informal the marketplace.

“The loan roof will increase to Rp3.5 million (US$260) and also the rate of interest goes down as soon as the debtor shows credit that is good and it has lent once or twice currently.

“The majority of individuals in Indonesia are surviving from paycheque to paycheque; when they require extra cash, UangTeman would be here for them, like a buddy.

“It is focused on making a huge effect – it is about building a company where from the one hand, you could make cash, yet in the other, you could make an optimistic effect on society,” he adds.


the key challenge for just about any financing company is a thorough back ground check associated with the borrower that is potential. UangTeman will depend on technology with this type or variety of homework, relating to Aidil.

“We have actually our personal technology and algorithms which will perform some initial back ground check utilizing lots of information points,” he adds.

While stressing that security and privacy may also be crucial for the company, he contends that keeping a decreased amount of non-performing loans could be the goal. Plus in this, UangTeman relies greatly regarding the technology this has built.

Clients will see down whether their application is authorized or otherwise not immediately. If you are authorized, UangTeman’s operations group shall continue steadily to monitor to make certain there’s absolutely no fraud.

“Once everything is authorized, clients will get the funds within their bank reports in three to twenty four hours,” Aidil promises.

Although the loan quantity doesn’t seem like much, it appears to match the needs of the prospective market UangTeman is serving.

From the survey that is internal% of their customers are micro business people; 25% make use of the loan for academic function; and around 20% make use of it to pay for medical center and medical bills, relating to Aidil.

Back once again to essentials

The theory behind UangTeman would be to provide under-banked individuals usage of financial loans, specially to small and short-term loans that may provide their basic and needs that are daily.

“The marketplace is simply those who never very own charge cards. They will have fundamental bank accounts, nevertheless the banking institutions aren’t lending them cash simply because they carry a high risk,” says Aidil.

A current credit history on MSMEs (micro, little and medium enterprises) by industry regulator Bank Indonesia revealed that MSME loans account fully for 18.5per cent of banks’ total credit circulation.

But regarding the total that would go to MSMEs, medium loans constitute 48.1%, little loans have 28.5% share, and micro loans make-up 23.5%. By Bank Indonesia’s meaning, a micro loan is certainly one without any practical minimum as much as a optimum of Rp50 million (US$3,718).

Sustainable business design

Although UangTeman has guaranteed an undisclosed round that is seed-funding investors such as Alpha JWC Ventures, Aidil claims the business enterprise model is sustainable and therefore the startup may survive without relying greatly on such external assets.

However the seed investment will be necessary to measure its operations and achieve more towns and suburbs into the national nation, also to start a minumum of one contact centre workplace in each town it runs in.

“We have now been money that is making Day One, with your very first clients, and I also think this might be additionally just payday used cars Union SC exactly what attracted our investors,” Aidil claims.

He additionally contends that the investors had been keen to spend in UangTeman because he could be maybe not through the services that are financial.

“If you need to alter and disrupt the monetary solutions industry, you have to result from the exterior, in my opinion.

“That means, it will be easy to see other ways to provide similar services and products; interruption sometimes happens as soon as we cross each industry that is other’s” he adds.

Aidil claims that UangTeman may likely pursue Series-A money year that is early next claiming it already has investors prepared.

The program now could be to teach the marketplace, particularly individuals from residential district areas, in addition to to start a contact centre workplace in western Java.

December 15, 2020

Without a doubt about Little loans to

Without a doubt about Little loans to FROM being called ‘worse than loan sharks,’ to more basic reviews saying that its nearly impossible getting that loan […]