Modalku launches mobile app for lenders

By Digital News Asia July 21, 2017

P2P lending business model connects SME borrowers with lenders through a digital marketplace
Lenders can start with US$75 for each SME loan, earning monthly repayments and risk-adjusted returns

Modalku launches mobile app for lenders

MODALKU, a peer-to-peer (P2P) lending platform in Indonesia, has announced the launch of its mobile app for alternative investment.

The app, named Modalku, offers more ease and practicality for lenders. All activities, beginning from sign-up to crowdfunding for alternative investments, can be done via smartphone anytime and anywhere. The app is available on iOS App Store and Google Play Store.

Activated Modalku lenders can start crowdfunding for alternative investments straight away. The app has an ‘Auto Allocation’ feature, where lenders can crowdfund Small and Medium-sized Enterprise (SME) loans according to their personal preferences, based on criteria like return rates, loan duration, and allocation per loan.

The Auto Allocation feature was designed with active lenders in mind. With it, the app generates hassle-free passive income without lenders having to manually allocate their funds every time an attractive alternative investment opportunity is available. The feature also maximises portfolio diversification and minimizes risk.

New users can apply and sign up to become lenders with a semi-automated process. For example: the app will autofill address details from postal codes for easier application. Additional features, such as notifications for every SME loan ready for crowdfunding and low balance reminders, ensure that lenders will not miss an investment opportunity.

As proof of Modalku’s commitment to consumer protection, the app incorporates state-of-the-art data security measures, including fingerprint login, advanced encryption, and auto-logout.

“Modalku offers a win-win relationship for our users, both SME borrowers and lenders seeking alternative investment opportunities. In a diversified portfolio, P2P lending has proven to be an excellent investment alternative. Lenders can start from funding Rp1 million [US$75] for each SME loan, earning monthly repayments and good risk-adjusted returns. Our new app will give lenders greater access to peer-to-peer lending as an alternative investment option” said Modalku co-founder and CEO Reynold Wijaya.

Financial Services Authority (OJK) Regulation, Licensing and Supervision of Financial Technology director Hendrikus Passagi added, "We warmly welcome the launch of Modalku’s mobile app as we believe the technology will support financial inclusion in Indonesia, along with the development of a cashless society.

“Data from the Indonesian Internet Service Providers Association (APJII) shows that nearly 73% of Indonesian internet traffic happens on mobile devices and tablets. The app can increase the broader public’s interest in funding Special Needs Business (Puberku), such as Indonesian SMEs.

David Ng, one of Modalku’s lenders added “I have gained attractive returns from my alternative investments in Modalku. Their products provide good risk-adjusted returns (through diversification), with a concept that is easy to understand. The Modalku app makes managing my portfolio even easier. I have activated the Auto Allocation feature to automate my alternative investments; all activities can practically be done via smartphone.”

Modalku’s P2P lending business model connects SME borrowers with lenders through a digital marketplace. By financing SME loans, registered lenders gain an alternative investment with higher returns compared to term deposit and bonds.

Modalku is the largest P2P lending platform in Indonesia, with loan disbursement totalling over Rp215 billion into 400 SME loans.

This app follows the release of their Modalku Dana Usaha app, launched in January 2017 for SME borrowers.

Modalku Dana Usaha is the first app to provide working capital loans in Indonesia, providing a quick, safe, and user-friendly process.