Types of Fintech Startups in Indonesia: 5 Main Categories

Fintech companies in Indonesia have emerged since the Indonesian financial technology association was formed in 2015. They have reshaped many categories in the existing financial services market. If you are an aspiring startup founder, it is important to know and understand how fintech is developing and what types of financial technology exist, so you can keep up with trends and hire the right professional IT staff to stay competitive. One key to a fintech startup's success is its IT infrastructure.

Here is a classification of the types of financial technology.

Asset management

A company's business operations, such as employee management, payroll and financing systems, now need to be automated. Fintech startups in asset management provide platforms that help businesses become more efficient and practical. As a result, businesses in Indonesia depend less on paper, because work once done by hand can now be done through an app.

Crowdfunding

Charity, fundraising and many other social activities can now be carried out through one type of fintech: crowdfunding. This sector provides platforms for raising funds that are then channeled to war victims, natural disaster victims, fundraising work and more.

E-money

One of the most popular sectors in Indonesia's fintech ecosystem is electronic money (e-money), where money is packaged into the digital world. You can use your digital money through an app to pay bills, shop and more. Such e-wallets are also available on smartphones, which makes them more convenient. They offer an e-card with credit card features that can be used for shopping.

Peer-to-peer (P2P) lending

This type of startup offers regular online lending solutions. People who want to grow or open a business can benefit from P2P lending, because these startups aim to provide financial services to the public. All you have to do is fill out the required form on the website, which takes no more than 5 minutes. You then receive the loan as long as you meet the requirements.

Insurance

Insurance usually works by setting aside a mandatory monthly fee for future benefits. With a fintech sector focused on insurance, customers get information about the nearest hospitals, trusted doctors, hospital referrals and more. These startups were founded to offer intuitive, simple and proactive solutions that help users find their way through their healthcare system.

These companies work with leading hospitals and world-class doctors who want to partner to manage their members' health.

Those are some of the main categories in Indonesia's fintech market. We hope you learned a thing or two from this!

Read also: Fintech in Indonesia: A Brief Overview and Its Feasibility