- Government aims to create 1,000 high-quality startups by 2020
- Set up BNVLabs to foster collaboration in building the fintech ecosystem
THE boom in financial technology (fintech) is threatening the traditional banking ecosystem in Indonesia. Fintech not only offers alternative payment processes, but also enables easier and safer financial transactions.
The two are not necessarily incompatible as the current banking ecosystem can integrate with a fintech ecosystem to create digital solutions.
Bank Bukopin took up this challenge by initiating programmes to educate rookies in the startup world.
This endeavour is in line with the government’s vision and commitment to make Indonesia ‘The Digital Energy of Asia’ by 2020 through the National Movement of 1,000 Digital Startups, a collaboration between KIBAR and the Indonesian Ministry of Communications and Information.
The National Movement of 1,000 Digital Startups is aimed at creating 1,000 high quality startups in Indonesia. The programme currently runs in six cities and aims to operate in another four.
“The banking ecosystem in Indonesia has to think about business modernisation where traditional banking integrates with fintech,” said Indonesian Minister of Communications and Information Rudiantara in a press conference.
“We prepared ourselves as supporters, to take and use this chance to create more fintech startups that could offer solutions to Indonesia,” said president director of Bank Bukopin Glen Glenardi.
According to chief executive of KIBAR Yansen Kamto, this project will help digital startups in fintech to grow and contribute in making Indonesia have the “strongest economic ability” across Asia.
The road to 1,000 digital startups
Fintech startups like iGrow, Reblood, and Nebengers are now part of the National Movement of 1,000 Digital Startups.
iGrow is a marketplace that brings together under-employed farmers, under-utilised land, and investors to produce high-quality organic food and sustainable incomes with cloud-based agricultural management software.
“In the agriculture industry, fintech is a revolution. Fintech expands the scale of how the industry works,” said iGrow chief executive Andreas Senjaya.
Reblood is an application to inform blood donors about blood donation events as well maintain a history of their blood donation activities and offer reminders.
“Fintech gives an easier experience for both the startup and user. In Reblood, we have a gamification programme where blood donors receive points towards a reward. This is where we apply fintech even though it is not a cash transaction,” said chief executive officer Leonika Sari.
Nebengers is a ride-sharing platform for long-distance trips where people can hitch and hike on a ride when they post “Give a ride” on the app and Twitter. Users that have empty seats in their car may “Approve” or “Reject” the request.
“Our users used to pay by cash but in the future, we will use cashless methods on our platform,” said founder Andreas Aditya Swasti.
Bank Bukopin, KIBAR, and the Ministry of Communication and Information also launched BNVLabs to support the National Movement of 1,000 Digital Startups.
BNVLabs is an integrated programme that supports improvements in the fintech ecosystem in Indonesia. It is also a platform for startup founders, creators, and collaborators to work together with programmers and designers.
Through this program, KIBAR focuses on people, programmes, and places by building an internal innovation team who connect key external stakeholders with fellow startup creators. They also run startup incubation programmes and establish co-working spaces.
Bank Bukopin Business Development and Economic director Adhi Brahmantya, Bank Bukopin will lead the change, connect players, influence teams, and provide financial support.
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