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Indonesian FinTech Launches App For Individual SME Investors

An Indonesia-based alternative lender is turning to the mobile device to attract small business investors.

Reports Friday (July 21) said Mitrausahua Indonesia Group, which operates a peer-to-peer lending platform, has launched a mobile app for individual investors of small businesses. The solution means individuals are now open to invest via a crowdfunding model, reports said.

The app joins Mitrausahua’s flagship offering Modalku. For small businesses, interest rates range from 12 to 26 percent. For investors, Modalku promises returns higher than those of commercial bank deposit and fixed investment products. The company rolled out another mobile app this year, Modalku Dana Usahua, which is aimed at borrowers, but its newest app is geared toward the individual investors participating in crowdfunding.

“Modalku offers a win-win solution for customers, for lenders or people looking for alternative investment products and for small business owners,” the company’s Chief Executive and cofounder Reynold Wijaya said in a statement.

“Modalku customers can earn an attractive return each month with relatively controlled risks,” he added. “Our app offers better access to peer-to-peer lending for people looking for alternative investment in Indonesia.”

The app offers a feature, Automatic Funding, which automates the process by which investors can find SME borrowers suitable to lenders’ preferences. Investors can start investing at $75 but must have $750 deposited into their accounts.

Hendrikus Passagi, senior research executive at the country’s Financial Services Authority, lent support for the new solution.

“We welcome the launch of Modalku’s mobile application,” the executive said. “The technology will enhance financial inclusion in the country. It will also support the development of a cashless society. The new feature will expand public access to peer-to-peer lending for SMEs in Indonesia.”


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