7 crowdlending sites in Indonesia

Two years ago, 60 percent of Indonesia’s adult population still didn’t have a bank account.

It’s a gold rush moment for fintech in Indonesia.

Banks and the government came to realize they’ve failed to solve one of Indonesia’s fundamental problems: financial inclusion.

It’s holding the country back. In 2014, roughly 60 percent of Indonesia’s adult population still didn’t own a bank account. Families get stuck in cycles of poverty because they don’t have access to fair loans in times of need.

There’s been slow improvement since, but no major breakthrough. Fintech is seen as the potential savior.

Mobile payments could help reach the unbanked. Microcredits distributed online could make farmers or small business owners more resilient. Algorithms that take new data sources into account can form the base for alternative credit rating systems.

Peer-to-peer lending boom

Regulations are still quite loose as the government, fintech startups, and financial institutions are negotiating new rules for this sector.

The climate has led to a proliferation of fintech startups in the country.

One of the booming categories is peer-to-peer (P2P) lending. In this type of lending, the money doesn’t come from financial institutions, but from lenders like you and me.

Here’s a rundown of P2P lending sites in Indonesia, each with its own model and lending focus.

It’s important to note all these sites are still young. Whether P2P lending at scale has a future in Indonesia has yet to be proven.

1. Modalku

Modalku can be described as a small business loan marketplace.

It offers loans of between US$3,850 and US$38,500 for small and medium businesses for a loan period of three, six, or 12 months.

2. Investree

3. Amartha

4. GandengTangan

5. Koinworks

6. Crowdo

7. DanaDidik