Bank Raya boosts gig economy in Indonesia with instant rescue funds for BRILink agent bankers

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

SUMMARY

  • Bank Raya is the newly transformed neobank of Bank BRI, the largest microfinance institution in the world and indonesia largest MSME lender by assets.
  • The neobank’s mission is to unleash the economic power of indonesia economy of concerts and services. A key part of this mission is to equip the agent banking sector with more capital for lending to individual entrepreneurs and MSMEs.
  • BRILink is the agent banking arm of the BRI Group. Its business is to turn traders in remote and rural areas of the country into unofficial bankers in their villages. They have the authority to manage collections, receipts and payment transactions at the local level.
  • Until recently, BRILink agents could only access a small amount of capital for loans, with a waiting period for approval. Now, with the help of Bank Raya’s integrated Pinang Paylater app, agents can instantly access up to 25 million rupees (~$1,700) and offer borrowers multiple repayment periods 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 Rp 7,700 billion (~$525 million).

Jakarta, Indonesia, June 13, 2022 /PRNewswire/ — As indonesia official home of fintech and headquarters of the gig and service economy, Raya Bank announced that it is now offering more capital in the form of instant rescue funds to BRILink agents nationwide. The neobank does this through its on-board mobile application Pinang Paylater.

BRILink is the agent banking arm of the BRI Group. Its business is to turn traders in remote and rural areas of the country into unofficial bankers (agents) of their villages. It does this by arming them with Bank Raya’s suite of digital savings and lending solutions and a direct pipeline to the various pillars of BRI support. If residents, gig workers and small business owners want to transact, they can consult with their local BRILink agent.

Until recently, BRILink agents could only access a small amount of capital to originate loans, with a waiting period of up to two weeks for approval. Now, with the help of Bank Raya’s integrated Pinang Paylater app, agents can instantly access up to 25 million rupees (~$1,700) and offer borrowers multiple repayment periods of five, 15 and 30 days.

According to the CEO of Bank Raya Kaspar Situmorangthe neobank aims to increase its total disbursement of small loans via BRILink agents to Rp 7,700 billion (~$526 million) by the end of 2022.

“There are now around 600,000 BRILink agents nationwide. But to be eligible for this Pinang Paylater rescue loan facility, agents will need to have what we call ‘Champion’ or ‘Skipper’ seniority levels. So right now it’s about 50,000 officers,” Kaspar explained.

While bailout funds for BRILink agents previously required a waiting period, with the help of artificial intelligence as the backbone of Bank Raya and its parent company, these funds are now made available to agents in less than two minutes.

At the borrower level, BRILink’s increased liquidity has far-reaching implications for millions of freelancers, sole traders and MSMEs across the country. They are business owners and businesses that need working capital immediately to grow today and prosper tomorrow.

“We are optimistic that this cooperation with BRI will concretely help BRILink agents as key players in the gig economy. Gig workers as a collective represent one of the cornerstones of economic recovery and growth. in Indonesia. Our local workers are the embodiment of a new generation of MSMEs, whose credit distribution is done digitally on the database,” Kaspar explained.

He added that it was in its infancy for digital lending support BRILink through Bank Raya, with more to come as Pinang Paylater only launched in October 2021.

Kaspar said: “The last position we observed for Pinang Paylater was that he had scattered a total of 245 billion rupees (~$16.7 million) via only 6,000 BRILink accounts. The current average loan is 15 million rupees (~$1000) with an average duration of 23 days. With this new offer, we aim to increase the total disbursement for IDR 7.7 trillion (~$526 million) by the end of the year.”

He added: “This collaboration is a manifestation of Bank Raya’s digital transformation and BRI’s support to the digital ecosystem. Together we will continue to support MSMEs in Indonesia. Going forward, Bank Raya also hopes to increase its collaboration with other fintech providers. We aim to continue our role as the best digital bank by staying true to our role as indonesia official home of fintech and home of the gig economy.”

About Raya by BRI

Formerly BRI Agro (IDX: AGRO), Bank Raya is a fully digital bank serving as indonesia official home of fintech and home to 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 MSME lender by assets.