Logiq Begins Next Phase of Micro-Lending Program
Logiq, Inc., a global provider of award-winning eCommerce and fintech solutions, has begun the next phase of its previously announced mobile micro-lending platform in an exclusive strategic alliance with Koperasi Mona Santoso Berjaya (KMSB).
The next phase involves the rollout of a new mobile fintech platform for 5 million contract and delivery drivers of Garda Digital Indonesia, a membership organization overseen by Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK). BPJSTK manages the pensions and health benefits for these members. The new fintech platform will make microloans available to the members for personal or business use, such as purchasing, configuring or repairing their mobile vehicles.
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This follows the initial phase where Logiq and KMSB recently launched a pilot program to provide mobile micro-lending and related services targeting 6,000 government body employees who will be able to borrow up to 20% of their annual salary.
Under the exclusive alliance, Logiq and KMSB are developing a jointly owned and operated mobile fintech platform designed to deliver mobile financial services in Indonesia. Logiq, through its Indonesian operations, is providing the platform design and technology, management, ongoing hosting and technical support. KMSB is providing the professional and financial institutional relationships that will drive the microlending program. The partners are working together to launch a new marketing and advertising campaign that will encourage adoption and regular use of the mobile fintech offerings.
Through the new fintech platform, KMSB will provide micro-lending services to government, state-owned enterprises and member organizations registered with BPJSTK. As part of managing the pensions and health benefits for contract and delivery driver members, BPJSTK serves as the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with a combined total of 48 million individual members.
The mobile fintech platform will eventually be introduced to BPJSTK’s 48 million members and 600,000 SMBs, as well as through affiliated organizations such as Mentalku, which supports the motor vehicle license administration, and Sehatku, a medical clinic organization network. Members will also be able to access Logiq’s PayLogiq™ e-Wallet and GoLogiq™ hyper-local food delivery mobile platforms.
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“Beginning the next phase of the program represents another major step towards improving the lives of nearly 20% of the Indonesian people who do not have access to traditional financial services,” said Brent Suen, president of Logiq.
Finch Capital, a thematic VC in financial technology, recently reported the impact of the COVID-19 pandemic is accelerating the digital adoption of financial services and created increasing demand for contactless digital banking services across Southeast Asia. According to SGE, Indonesia’s fast-growing digital financial services market is projected grow at a compounded annual rate of 34% to reach US$8.6 billion by 2025.
“Fueled by these powerful market trends, our opportunities for new revenue streams from microlending, mobile payments, and our eCommerce solutions with this enormous user base are tremendous,” continued Suen. “We see this potentially generating tens of millions of dollars in revenue annually for the benefit of our shareholders once our alliance with KMSB is fully launched, as well as through additional important programs that KMSB is planning to introduce.”