NewTech Friday: FinAccel
FinAccel’s co-founder and CEO, Akshay Garg, spoke with Boris Plantier about his company’s unique offering that is promoting financial inclusion in Southeast Asia.
What led to the creation of FinAccel?
Indonesia has the 4th largest population in the world with a trillion-dollar economy. There are nearly 100m smartphone users, and 70-80m people in the middle class. Despite that, Indonesia faces a large gap in credit penetration with credit card penetration at just 3% in a population of 260m.
We’re trying to address this problem by giving urban millennials instant access to credit through an all-digital and seamless process, helping them to conserve their current cash flow with a pay later option that is affordable at bank-like interest rates. By doing so, we’re promoting financial inclusion for everyone with a smartphone and boosting the country’s economy.
FinAccel extends credit to online and offline shoppers in Indonesia under the Kredivo brand. Kredivo is one of the pioneers in the unsecured lending area, leveraging deep data analytics across users’ digital footprints to automate credit risk scoring.
What makes Kredivo unique compared to other lending services are the following:
• An instant, fully digital, and fully automated application and approval process
• A unique 2-click checkout that simplifies the checkout process for consumers and reduces the cart abandonment rate for merchants
• Very affordable, bank-like, interest rates offered to customers. At 0% for full payment in 30 days, and 2.95% on instalment, we are the cheapest non-bank lender in the country.
What's coming next for FinAccel?
Through Kredivo, we always innovate to provide affordable, convenient, and safe credit to encourage financial inclusion. We will try to be present in every credit aspect of life of a consumer, starting from the fulfillment of daily needs (electricity bills, phone bills) with pay later and installment services.
FinAccel aims to serve 10 million users in the next few years though Kredivo and other financial services, becoming a one-stop solution for credit because there are still many other important aspects of life that require financing. Near-term plans include the rollout of low-interest education, healthcare, and partnerships with banks for joint product development. We hope to become an inseparable part of people's lives in this digital age.
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