Types of Fintech Companies in Indonesia: 4 Categories
Types of fintech companies in Indonesia fall into four groups: payments, crowdfunding and P2P lending, market aggregators, and risk and investment tools.
Categories of Indonesian Fintech Companies
Fintech is spreading fast in Indonesia. Fintech can be defined as a startup business that offers financial services built on technology. Although it is still fairly new, many people already know it and have started using its services.
Until now, though, many people may know fintech only as online lending. In fact, the fintech scene in Indonesia is much broader. In general, it can be grouped into the following categories:
- Payment, Clearing, Settlement
The first category of Indonesian fintech covers payment system services, which fall under the authority of BI (Bank Indonesia, the central bank). It includes payment gateways and e-wallets. These services make online payments easier and faster, since you can pay through a single portal.
- Crowdfunding & P2P Lending
This category is arguably the most popular with the public. It is also known as funding fintech, or fintech that provides small-capital investment services. Crowdfunding covers fintech that offers mass funding for a range of projects, while P2P (peer-to-peer) lending links borrowers with lenders.
If you plan a short-term investment, you can use this type of fintech. The service is safe to use and has proven profitable, with fairly low risk. Funding comes in a range of amounts that you can match to your needs.
Read also: List of Indonesian Fintech Companies Registered with the Financial Services Authority (OJK)
- Market Aggregator
Another category of Indonesian fintech is the portal that collects and processes data, especially data on financial products. The data it gathers is then shown to fintech users who need to compare products so they can reach the best decision more easily.
With this type of fintech you can do a lot. You can compare prices, features and benefits across financial products. If you are looking for an online loan, this fintech can list all the trusted online lending fintech services available in Indonesia.
- Risk Management & Investment
Financial planning is now easier with risk management and investment fintech. This type of fintech assesses a user's financial situation so the user can make the best plan. The whole process is easy and runs on the smartphone in your hand.
This type of fintech works much like a robo advisor, a piece of software. More precisely, it is software that acts as a financial adviser within an e-insurance or e-trading platform. In effect, you get a personal adviser who gives you the best input.
Those are some of the categories of Indonesian fintech companies you can find in the country. Personal financing no longer needs to be a headache. The arrival of Indonesian fintech has proven it can lighten your workload.
