The Indonesian financial industry is in the midst of a fast-growing digitalization. This has the potential to increase financial inclusion for the unbanked and underbanked population in Indonesia. To achieve this potential, there has to be collaboration between banks and financial technology (fintech) companies in order to ensure growth of the ecosystem.
“The swift rise of digital transformation in Indonesia is made possible because banks and fintech companies grow together, supported by an increase in the digital finance solution literacy across all social-demographic profiles of customers. I believe that, in the future, the underbanked population along with [state-owned enterprises] will continue to look for digital finance solutions to meet their needs,” said Bhimo Wikan Hantoro, Chief of Digital Banking BRI Agroniaga.
Collaboration between banks and fintech companies can be accelerated through integration of Application Programming Interface (API). API is a software interface that enables two applications or institutions, such as fintech companies and banks, to communicate with each other.
One of the technology companies in collaboration with PT BRI Agro Tbk is PT Majoo Teknologi Indonesia. A memorandum of understanding (MoU) between the two parties was signed on May 2021.
Majoo is an entrepreneurial application that provides mini-ERP for SMEs. As a provider of Comprehensive Business Management Services for SMEs, Majoo is equipped with features such as point of sales (PoS) application, inventory and customer management systems, accounting, payroll, business analytics, and online orders.
In establishing itself as the House of Fintech, BRI Agro continues to expand its collaboration with fintech companies and PoS providers, including Majoo. “Through collaboration with Majoo as a member of the BRI Ventures portfolio, our strategy is to [embed] Majoo as one of the ecosystems within BRI Group in order to scale up its business size,” said Sigit Murtiyoso, Director of Agri-Retail and Funding of BRI Agro in a written statement.
According to the MoU, BRI Agro and Majoo will collaborate in banking services, specifically in providing lending facilities. Both parties also reached an understanding to integrate their open API via the Majoo platform, in order to facilitate customers of BRI Agro in their payment activities.
“We are very optimistic that the collaboration with Majoo will contribute to the community and gig economy workers in Indonesia. In the future, BRI Agro hopes to expand its collaboration with fintech players, as it will open more opportunities for us to better provide digital banking services,” said Sigit.
