The fintech industry continues to demonstrate strong growth, with several companies making significant strides in the digital finance space. As of October 2024, leading fintech companies such as PT Teknologi Merlin Sejahtera (UKU), LinkAja, and GoTo Financial have shown impressive performance, underpinned by steady loan disbursements, controlled non-performing loans (NPL), and enhanced user experiences.

UKU, a rising star in the Indonesian fintech landscape, has reported a stable performance through the first ten months of 2024. The company’s loan disbursement remained steady, with its TKB90 (90-day loan quality indicator) reaching a remarkable 98% in October 2024. Tony Jackson, CEO of UKU, credited this stability to the company's risk control strategies, which are based on big data analytics. “We focus on educating our users to manage their finances responsibly, ensuring timely bill payments for their financial well-being,” said Jackson. This proactive approach has allowed UKU to maintain a strong relationship with its customers, ensuring that the company remains on a positive trajectory.

Meanwhile, LinkAja, a prominent digital payment platform in Indonesia, is also witnessing growth. As of October 2024, the company is optimistic about its ability to increase transaction volume by over 50% by the end of the year. The company reported a nearly 5% month-on-month growth in QRIS (Quick Response Code Indonesian Standard) transactions from August to September 2024. CEO Yogi Rizkian Bahar attributed this growth to the company’s focus on offering more efficient services and improving customer experiences. “Our strategy focuses on a two-sided business model (B2B2C), strengthening both traditional and digital value chains while ensuring low-cost user acquisition and retention,” he explained.

In addition to its growth in QRIS, LinkAja is leveraging its connections with state-owned enterprises (SOEs) to enhance its competitive edge. The platform’s integration with various SOE businesses allows LinkAja to offer joint services such as disbursement solutions and loyalty point exchange systems. This robust ecosystem has enabled LinkAja to maintain a strong market position while attracting new users.

GoTo Financial, the fintech arm of PT GoTo Gojek Tokopedia Tbk (GOTO), has also seen remarkable progress. As of September 2024, GoTo Financial’s loan disbursements reached IDR 4.3 trillion, a threefold increase from the previous year. The growth is largely driven by its Buy Now Pay Later (BNPL) services and personal loans, which together account for 45% and 40% of total disbursements, respectively. The company’s revenue from loan services surged 527% year-on-year (YoY), illustrating the success of its strategic initiatives.

GoTo Financial’s strong performance is attributed to its partnerships with entities like PT Bank Jago Tbk (ARTO), which funds 80% of the loans disbursed. Audrey P. Petriny, Head of Corporate Affairs at GoTo Financial, highlighted the company’s overall financial health, with gross revenue growing by 34% YoY to IDR 4.7 trillion and adjusted EBITDA reaching a new high of IDR 137 billion. Additionally, the company’s non-performing financing (NPF) ratio remains under control, registering at 2.6% in September 2024, a slight increase from 2.52% in August 2024.

The fintech landscape in Indonesia is thriving, with major players like UKU, LinkAja, and GoTo Financial demonstrating resilience and innovation. As the demand for digital finance solutions continues to grow, these companies are well-positioned to capitalize on emerging opportunities. Their continued focus on improving customer experience, expanding ecosystems, and maintaining financial stability will be key drivers of their success in the years to come.

KONTAN.CO.ID