JAKARTA - Coordinating Minister for Economic Affairs Darmin Nasution affirmed that financial technology (fintech) companies must play a role in improving financial inclusion. For that reason, collaboration between stakeholders and digital infrastructure development must be increased.
Mr Nasution explained that rapid technological innovation in the financial sector will positively impact on the Indonesian economy. Fintech companies also play a pivotal role in improving financial inclusion by reaching out to regions and groups with little to no access to conventional financial services.
According to Findex data, financial inclusivity in Indonesia reached 48.9% in 2017, up by 12% from 2014. “The improvement was pretty good, but we must aim higher. Fintech companies have the potential to fill the void,” said Mr Nasution at the 2019 Indonesia Fintech Summit & Expo as quoted by Bisnis.com, Monday (23/9).
Fintech companies, Mr Nasution added, provide easy, quick, safe, and affordable financial services for the Indonesian public. According to 2019 data from the Indonesian Fintech Association, 70% of Indonesian fintech companies’ portfolios consist of groups with no access to conventional financial services.
“Fintech companies and players directly help the state maximise financial inclusivity among the public. With better access, the public can be exposed to other forms of financial services that can improve their livelihood,” said Mr Nasution. (MS)