Bank DBS Indonesia and Modalku jointly provide Rp 100 billion loans to support MSME growth and development in the midst of pandemic | Bahasa

Indonesia, 31 May 2022 - Bank DBS Indonesia in collaboration with Modalku, a digital funding platform for MSMEs in Indonesia, provides Rp 100 billion of financing through the loan channeling scheme. Bank DBS Indonesia acts as an institutional lender to channel loans to micro, small, and medium enterprises (MSMEs) through Modalku. Bank DBS Indonesia also provides the digital corporate banking platform DBS IDEAL to facilitate Modalku's daily transactions. The collaboration is the realisation of Bank DBS Indonesia’s goal of reaching the MSME segment it has yet to tap into.

Director of Institutional Banking Group, PT Bank DBS Indonesia Kunardy Lie said, "Through collaboration with Modalku, Bank DBS Indonesia indirectly provides support for and contributes to the growth of MSMEs in Indonesia. Going forward, we are happy to work with more third parties to build a digital ecosystem in line with our commitment to continuing to accelerate financial inclusion in Indonesia. Furthermore, DBS IDEAL, which is specifically designed to meet the needs of MSMEs, simplifies and accelerates the corporate banking transaction process by enabling customers to make transactions anytime and anywhere, tracking transactions in real-time, transparently and informatively. Therefore, MSMEs can focus on what is important, namely developing their business.”

Modalku and Bank DBS Indonesia are brought together by a shared mission of creating a more inclusive and innovative financial world by providing cash flow management to support business operations and connecting potential MSMEs with lenders. For six years running since 2016, Modalku Group has disbursed Rp 34.89 trillion worth of financing in five countries in Southeast Asia: Indonesia, Malaysia, Singapore, Thailand and Vietnam.

“It is an honor for Modalku to work with Bank DBS Indonesia. This is obviously also in line with the value of mutual cooperation that is part of Modalku's business model. We see that Bank DBS Indonesia shares the same mission of providing MSMEs access to capital to support their business growth. The collaboration is expected to contribute to efforts to enhance financial inclusion in Indonesia," said Modalku Co-Founder & CEO Reynold Wijaya.

Modalku, known as Funding Societies in Southeast Asia, has channeled funding to more than five million MSMEs. Fund distribution is not limited to Java as it also reaches areas outside Java through collaboration with various digital platforms as Modalku partners. Until now, more than 200,000 individual and institutional lenders have contributed to MSME financing through Modalku with individual lenders accounting for the bulk. In running its business, Modalku applies the principle of Responsible Lending by conducting assessments of MSME borrowers to provide accountability to lenders who lend money through Modalku. Modalku also maintains communication and dialogue with MSMEs to find the right business solutions to support MSMEs in developing their businesses during the pandemic.

"Although initially the Covid-19 pandemic posed a huge challenge, it looks like it has a positive aspect in terms of digital adoption. Obviously, this has made the prospects of the financial technology industry look brighter. Numerous innovations, including one developed through collaboration with Bank DBS Indonesia, can be a momentum for developing a healthier, high-quality, and sustainable industry," said Reynold Wijaya.

 

[SELESAI]

 

About DBS

DBS is Asia's leading financial services group, with a presence in 18 countries, headquartered and registered in Singapore. DBS is in Asia's three main growth axes: China, Southeast Asia and South Asia. DBS's "AA-" and "Aa1" credit ratings are among the highest in the world.

DBS is known for its global leadership, being named “World's Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. DBS is at the forefront of harnessing digital technology to shape the future of banking, being voted “World's Best Digital Bank” by Euromoney and “Most Innovative in Digital Banking” by The Banker. In addition, DBS received the “Safest Bank in Asia award from Global Finance for 13 consecutive years from 2009 to 2021.

DBS provides a complete range of services for customers, SMEs, as well as corporate banking. As a bank born and raised in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets. DBS is committed to building lasting relationships with customers and positively impacting society through supporting social entrepreneurs the Asian bank way. DBS has also set up a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

With an extensive operational network in Asia and an emphasis on staff engagement and empowerment, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.