Bank Raya’s Pinang Paylater platform is Indonesia’s first fully digital lending product for blue collared workers.
Indonesia’s Bank Raya has been recognised in the Best Core Banking System Initiative category at the 14th Annual Retail Banker International Asia Trailblazer Awards for its digital lending platform, Pinang Paylater. The platform offers fast and secure short-term loans to Indonesia’s gig workers, including informal service providers, contractors and freelancers, addressing their urgent need for short-term loan approvals.
By identifying the requirements of this particular customer segment, Bank Raya has secured a market lead that gives it an edge against competitors.
Instant access to funds
Pinang Paylater, Indonesia’s first fully digital lending product for blue-collared workers, gives Bank Raya’s BRILink agent bankers instant access to funds of up to IDR25m ($1,633), and offers borrowers a repayment period of seven days. The bank has also enabled these agents to borrow up to five times a day and the repayment amounts are directly deducted from the agents’ accounts.
In less than six months of launching the platform, Bank Raya onboarded more than 17,000 BRILink agents and disbursed more than IDR1.5 trillion-worth of intraday loans to them, with a non-performing loan ratio of 0 per cent.
The Finacle Core Banking solution enables Pinang Paylater to run hourly and daily computations of net interest margin. The app leverages the Finacle Lending Module, a component of Finacle Core Banking, along with the Finacle Digital Engagement Hub. These solutions enable Bank Raya to automate the end-to-end lending process, facilitating intra-day loans through its network of BRILink agents.
Advanced technology
Pinang Paylater incorporates facial recognition, digital signatures and machine learning-based credit scoring to digitise the lending process from loan origination to disbursement. The entire process takes less than five minutes to complete.
Likewise, Bank Raya has significantly improved the efficiency and effectiveness of all its other services by conducting detailed customer profiling and analysis of credit and fraud scores. The bank has developed an AI-based analytics foundation to power its digital vision and has created digital customer journeys from scratch. As a result, the average time for customer verification and onboarding has reduced to 10 minutes and the ratio of mobile to internet banking customers is now 89 per cent.
Bank Raya has recorded an 85 per cent increase in its customer base through digital means, while maintaining a cost-to-income ratio of under 40 per cent from Pinang Paylater. The lender plans to expand its customer agents to new platforms in various sectors such as telecoms, ride-sharing, insurance, fintech and e-commerce, thereby further strengthening Indonesia’s gig and service economy.