The landscape of financing in Indonesia is evolving rapidly, particularly with the introduction of digital banks offering direct loans through their own applications. However, according to the Indonesian Fintech Association (AFTECH), channeling loans—where banks collaborate with fintech companies—are still seen as having significant potential.

Abynprima Rizki, AFTECH's Director of Marketing, Communication & Community Development, emphasized that the synergy between the banking and fintech sectors is poised to grow as more players enter the market to provide accessible financial products.

Rizki expressed optimism about the future of channeling, stating, “Everyone wants to collaborate now. All are aiming for financial products that are easily accessible.” This sentiment highlights the trend toward open finance, which is expected to gain momentum as more stakeholders seek innovative ways to reach consumers.

One of the major advantages of channeling loans is the convenience it offers users. For instance, customers can easily engage in various transactions via mobile banking, such as topping up e-wallets and paying utility bills from anywhere at any time. This ease of access is crucial for users who prioritize flexibility and speed in financial transactions.

To further enhance collaboration, AFTECH is actively bringing together fintech players and other sectors like banking, insurance, and capital markets. Rizki noted, “There are many potentials fintech can explore, such as payment gateways, fintech aggregators, and innovative credit scoring systems, which can support the operations of various financial services.” This cooperative approach not only benefits fintech companies but also enhances the overall financial ecosystem.

Several digital banks are gearing up to provide online loans directly to their customers. For instance, PT Bank Jago Tbk. (ARTO) plans to boost its lending performance by introducing new offerings, while PT Bank Neo Commerce Tbk. (BBYB) has launched "Neo Pinjam," a direct loan product available through its neobank application. These moves signify a shift towards more direct lending models, which coexist alongside traditional channeling strategies.

Amin Nurdin, a senior faculty member at the Indonesian Banking Development Institute (LPPI), highlighted the inherent connection between channeling loans and risk-sharing between banks and fintech companies. He believes that this trend will persist, as banks are heavily regulated and may find it beneficial to collaborate with fintechs, which are more agile in adopting innovative practices for lending.

As digital transactions soar, with significant declines in ATM card usage reported in August 2024, the importance of channeling loans becomes increasingly clear. Fintech companies play a pivotal role in extending financial services to underserved segments, thereby contributing to a more inclusive financial landscape.

However, Nurdin cautioned that banks must carefully consider several factors when engaging in channeling, including fintech management governance, the credit processes involved, and potential credit risks. As the industry continues to evolve, striking the right balance between innovation and regulatory compliance will be crucial for sustainable growth in channeling loans.

BISNIS.COM