Bank Raya boosts Indonesia’s gig economy with immediate bailouts for BRILink’s agent bankers

The neobank has made its Pinang Paylater technology available to BRILink agents, a nationwide network of MSME owners who act as the unofficial bankers of their villages. Intermediaries now have quicker access to more capital and can offer borrowers different repayment terms.

SUMMARY

  • Bank Raya is the newly transformed neobank under Bank BRI, the world’s largest microfinance institution and of Indonesia largest MSME lender by assets.
  • The neobank has set itself the task of tapping into the economic power of of Indonesia gig and service economy. A key component of this mission is to provide the agent banking sector with more capital for loans to sole traders and MSMEs.
  • BRILink is the agent banking arm of the BRI Group. His business is to turn shopkeepers in the country’s remote and rural areas into the unofficial bankers of their villages. You have the authority to manage deposits, withdrawals and payment transactions on a local level.
  • Until recently, BRILink agents could only access a small amount of principal for lending, with a waiting period for approval. Using Bank Raya’s embedded Pinang Paylater app, agents can now instantly access up to Rp25 million (~$1,700) and offer borrowers multiple repayment terms of five, 15, and 30 days.
  • By the end of 2022, Bank Raya aims to increase its total disbursement of small loans through BRILink agents to Rp7.7 trillion (~$525 million).

Jakarta, Indonesia, June 13, 2022 /PRNewswire/ — As of Indonesia official house of fintechs and home of the gig and service economy, Bank Raya has announced it is now offering more capital in the form of immediate bailout funds to BRILink agents across the country. The neobank does this through its embedded mobile app, Pinang Paylater.

BRILink is the agent banking arm of the BRI Group. His business is to turn shopkeepers in the country’s remote and rural areas into the unofficial bankers (agents) of their villages. It does this by arming them with Bank Raya’s AI-powered suite of digital savings and lending solutions and a direct pipeline to the various pillars of BRI. When residents, gig workers and small business owners wish to complete a transaction, they can visit their local BRILink representative.

Until recently, BRILink agents could only access a small amount of principal for loan origination, with a wait of up to two weeks for approval. Using Bank Raya’s embedded Pinang Paylater app, agents can now instantly access up to Rp25 million (~$1,700) and offer borrowers multiple repayment terms of five, 15, and 30 days.

According to the CEO of Bank Raya Kaspar SitumorangThe neobank is aiming to increase its overall disbursement of small loans through BRILink agents Rp7.7 trillion (~$526 million) until the end of 2022.

“There are now around 600,000 BRILink agents nationwide. But to be eligible for this particular Pinang Paylater bailout loan facility, agents must have what is known as a “champion” or “skipper” level. There are currently around 50,000 agents,” explains Kaspar.

Where bailout funds used to require a wait for BRILink agents, these funds are now made available to agents within two minutes using artificial intelligence as the backbone of Bank Raya and its parent company.

At the borrower level, BRILink’s increase in liquidity is having a far-reaching impact on millions of freelancers, solopreneurs and MSMEs across the country. These are business owners and companies that need working capital immediately to grow today and thrive tomorrow.

“We are optimistic that this collaboration with BRI will make a real difference to BRILink agents as key players in the gig economy. Gig workers as a collective represent one of the cornerstones of economic recovery and growth Indonesia. Our on-site gig workers are the epitome of a new generation of MSMEs whose lending is data-based and digital,” explains Kaspar.

He added that it is just the beginning of Bank Raya’s digital lending support of BRILink, with more to come as Pinang Paylater is just being launched October 2021.

Kaspar said: “The last position we observed for Pinang Paylater was that it had dispersed altogether Rp245 billion (~$16.7 million) across just 6,000 BRILink accounts. The current average credit is Rp15 million (~$1,000) with an average running time of 23 days. With this new offer we want to increase the total payout to IDR 7.7 trillion (~$526 million) until the end of the year.”

He added: “This collaboration is a reflection of Bank Raya’s digital transformation and BRI’s support for the digital ecosystem. Together we will continue to support MSMEs Indonesia. In the future, Bank Raya also hopes to increase cooperation with other financial technology providers. We want to continue our role as the best digital bank by staying true to our role as of Indonesia official house of fintech and home of the gig economy.”

About Raya from BRI

Bank Raya, formerly BRI Agro (IDX: AGRO), is a fully digital bank operating as a of Indonesia official house of fintech and home of the local gig and service economy. Bank Raya’s parent company, Bank BRI (OTCMKTS: BKRKY), is the world’s largest microfinance institution and the country’s largest lender to MSMEs by assets.

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