Innovation

Banking regulation is quite rigid, where people should do face to face to open an account. Although Regulator has do some breakthrough such as allowing several bank launched low limit saving account, however to open these account people still have to meet physically with Bank’s agent. Cooperative is an alternative of banking. However the problem is almost cooperative in Indonesia is still operated in classic way, where people should go to the office to open saving account, put their money or to withdraw their money. It is also difficult to transfer in or out the money to banking system from cooperative account KSP SMS is a modern cooperative who apply technology to service our customer and they want to grab those unbanking society with the help of technology. The main barrier of those unbanking society is the hesitation of them to coming to bank office / cooperative office. Some of them think that they are need to dress up to come to financial center office. Some of the is do not have time to come to the office. Sobatku account is allowed by regulator to open the account without face to face verification, where the verification of ID is doing by check the eKTP and eyeball verification on uploaded ID. This product is also allowed customer to deposit or withdrawal the money in major minimarket, transfer in and transfer out to banking account, free transfer between Sobatku account, buy telco prepaid and electricity voucher, and many other.

Inspiration

Indonesia is a unique country where many people still do not have bank account, but they have smartphone and internet connectivity. Other situation is bank regulation is quite rigid where to open an account one need to do a face to face verification.

Overall impact

It will help people who still do not have saving account in a bank to open Sobatku, an online saving account only using their smartphone and Internet connection. People will start to save their money in this account and got interest just like normal saving account in the bank. Money collected from this saving account will be used by KSP SMS to lend to those micro and small entrepreneur to grow their business by adding working capital or giving investment loan. At the end this cycle will improve Indonesia's economic growth.

Business benefit

KSP SMS got funding from this Sobatku saving online, and can use the money to lend money to micro and small entrepreneurs. KSP SMS will pay the interest to the saving but also get Interest income from the lending and have a profitable business model. More volume on funding raised from Sobatku mean more profit to the KSP SMS.

Social and environmental benefit

First Impact is help those people who do not have access to the banking saving account system to open an account in this Sobatku and get connected to the banking transfer system. Second impact is the funding at the end will help those entrepreneur who need more working capital or investment to grow their business.

Environment friendly since it is a digital product and it is paperless.

Interview

Ceppy Yana Mulyana, Chief (Ketua Pengurus)