Australian fintech Tapp provides life-changing micro-loans in Indonesia


Mr. Wang quickly found that millions of Indonesia’s ‘unbanked’ rural citizens were comfortable with mobile phones, but lacked access to bank accounts, loans or e-commerce that could reverse their fortunes. and bring them closer to the more cosmopolitan life led by these people. in Jakarta.

Back in Australia, he created Tapp, an app that partners with Indonesian banks to offer micro-loans between $50 and $100 to small business owners, as well as connect with Indonesian manufacturers looking to sell. their products to those living in rural villages.

After a six-month pilot this year, Tapp has processed 7,000 loans and generates around $20 million in revenue annually.

“We’ve aggregated all of this data, so we can see what types of transactions they’re doing, how many customers are being served, and we can create,” Wang said.

Advancing innovative, inclusive and collaborative growth is a core objective of the B20 Summit. Economic research shows that microloans to the world’s poorest people lead to profound changes in a country’s income, longevity and GDP.

These economic indicators become more impressive if microloans are specifically granted to women, who tend to head households.

Mr. Wang has found that most of his customers are housewives who use their mobile phones to order products directly from Indonesian manufacturers and sell them from homes in their villages, where they often raise their children.

“They are turning their homes into stores,” he said. “And we can see they’re growing fast, selling more and more stuff every time.”

Mr. Wang’s strategy is to provide low-cost micro-loans, which have generated a default rate of less than 5%, and a market that connects Indonesian electronics manufacturers who cannot reach rural customers. because the distribution network is underdeveloped.

“The end customer who wants to buy the phone charger lives in an unnumbered house on an unnamed narrow street in a village far from the city center,” Wang said.

By building a platform, Tapp already connects 100 manufacturers to the 80,000 small businesses on its platform, who can order products securely. He said around 150,000 units are sold on the app each month and he hopes to grow the existing 500 SKUs this year to around 4,000 next year.


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