JAKARTA – Despite the concerning economic situation domestically and globally, as well as fierce competitors in its field, Modalku Group proceeds with its plan to venture on the multifinancing industry by establishing Modalku Finance. Aiming for a steady growth rate, this company plans to exercise some strategic moves with prudence in response to the current economic trend.
During the Press Conference of the Launching of Modalku Finance today (22/11), Reynold Wijaya, Co-Founder of Modalku, admitted that 2022 has not been an easy year for the financing industry and economy in general, as the world struggles to recover from the pandemic. Furthermore, with the dreadful prospect of a recession, the ever-increasing reference interest rate, and possible rise in its non-performing loan (NPL) ratio, Modalku Group is forced to be stricter in selecting its debtors. It plans to review the portfolio and cash flow of the borrowers more carefully to maintain the level of performing loan, paying attention to 5C aspects of credit distribution (Capacity, Capital, Collateral, Conditions, and Character).
However, this strategy does not automatically translate into zero credit distribution growth rate. “It does not mean we do not pursue growth,” Wijaya reiterated. Modalku Group now aims to secure more sustained growth, exercising caution in unnecessary investments and experimental expansion. “We need to be wise in expending money these days; we just have to maintain our [growth] pace,” he said.
Furthermore, the challenges that face Modalku Finance do not only lie on global and domestic economic climate, but also its competitors across the sector, from other P2P lending and multifinancing platforms, as well as banks. However, Steven Gunawan, President Director of Modalku Finance, is confident in focus points of his company compared to most multifinancing platforms. “Multifinancing is a huge industry, but only a few of them focuses on supporting MSMEs. That is where our strength lies,” he stated. “We utilises an agnostic approach in our business, welcoming all MSMEs from every sector,” he added. On top of this, Modalku Finance promotes technology utilisation for accessibility and comfort in transaction, as well as security. It also eliminates the fixed-assets guarantee policy, making it easier and less intimidating for future debtors.
When being asked about the annual target, Wijaya and Gunawan are yet to be able to specify an exact number. However, according to the press release, as of October 2022, Modalku Group had distributed IDR 40.42 trillion of credits in over 5.1 million transactions across Indonesia, Malaysia, Singapore, Thailand, and Vietnam. (ZH)