Fintech or Financial Technology is one of the technology-based financial service innovations. Currently, several types of fintech are developing in Indonesia which can be a choice for Indonesian to use these services. However, detailed informations related to fintech services or Financial Technology are still not much known by most people. Therefore, to help provide more in-depth information regarding this type of fintech, see the following explanation:.
1. Crowdfunding
The first type of the growing fintech in Indonesia is crowdfunding. This type of fintech is a form of fundraising that is carried out through internet or digital platform to finance certain projects. This term is also more widely known by the Indonesian people as “urun dana”, because the funds raised are shared funds belonging to several people who participate.
Currently, crowdfunding is one of the most widely known and popular fintechs in the community. A real example of crowdfunding that has received a lot of attention in Indonesia is benihbaik.com. Apart from that, there are also other crowdfunding examples such as beramaljariyah.org or kitabisa.com.
Also read: Fintech Investment: Definition, Tips, and Risks
2. Microfinancing
Types of fintech (source: freepik).
The next type of fintech that is developing in Indonesia is microfinancing. The term refers to financial services that are specifically provided for people in the lower middle class. The aim of microfinancing is to help MSME owners to develop their business more easily. his type of fintech is quite easy to find.
One of the microfinance companies that are quite well known in Indonesia is Amarta. Through this micro-financing mechanism, MSMEs caneasily get more capital loans which enable the business todevelop optimally.
3. Digital Payment System
The next type of growing fintech in Indonesia is Digital Payment System, which is a payment service made digitally or online. Digital Payment System makes it easy to make payments anytime and anywhere.There are many forms of this type of fintech in Indonesia. For example, online payment service providers for electricity, credit cards, and so on
Some digital payment systems that are quite well known today in Indonesia are OVO, GoPay, PayTren, and LinkAja. With this system, many benefits can be obtained by its users, from a more practical way to a competitive cost.
4. E-aggregator
There is also -aggregator as a type of fintech that has been growing in Indonesia recently. While not a lot of people know about this particular financial service,E-aggregator is a platform that can be used by the public to find out information and performance of certain financial products. This information can be useful to help the community make the right investment decisions.
This type of fintech helps ordinary investors to be able to find out the advantages and disadvantages of each financial product. Examples of E-aggregators that are quite common in Indonesia are Cermati, Cekaja, Tunaiku, etc.
Also read: 7 Benefits of Fintech for Modern Society
5. P2P Lending
P2P Lending stands for Peer-to-Peer Lending. This type of financial technology is a platform-based funding service. On the platform, funders will be connected to a suitable beneficiary of their choosing.
Currently, there are many types of P2P Lending that are known by most people in the country. Examples are Modalku, Amarta, KoinWorks, and many more. A lot of MSME owners are able to get investors to grow their business because of P2P Lending. . Thus, this type of fintech indirectly supports MSMEs to have a faster growth for the country.
6. Online Loans
Online loans are another type of financial technology that is starting to grow in the country. A lot of people have tried to use these facilities to meet their various needs, from business development to fulfilling daily needs, education costs, and so on.
Online loans offer convenience for people to get the funds they need. However, one must be careful in choosing the platform for their online loan, because in addition to higher interest rates, pay attention to the conditions that must be met so that the loan is received safely and not a hassle later on.
Also read: Examples of Popular Fintech Companies in Indonesia
7. Investment Risk Management
There are not many people in the country that knows investment risk management is a type of fintech that is growing in Indonesia. Most people in this country are not familiar with the use of Robo advisors for financial planning to insurance. Therefore, the information circulating among the people of the country regarding this is very minimal.
This investment risk management is an electronic investment trading platform, In this type of fintech, people are directed to choose the best form of investment. For example in the form of investment in gold, stocks, and so forth. Some of the fintech companies engaged in this field are Rajapremi, Cekpremi, and many more. For those who are interested in using these services, you should be smart in choosing and knowing all the advantages and disadvantages that may occur.
Those are the types of fintech that are developing in Indonesia today. Hopefully the descriptions of various types of financial technology above can add to your knowledge. So that later if you decide to use these financial services, you can choose what is the most appropriate investment.
