At the recent World Economic Forum (WEF) event, held in Davos, Switzerland, fintech company DANA Indonesia participated in a panel discussion on the role that global fintech plays in fostering resilient and inclusive growth.

The report, a collaboration between WEF and Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School, was based on a survey conducted with 200 global fintech companies in five industry verticals: digital lending, financing, payments, banking and savings, and insurtech in five regions.

It emphasized the contribution of the global fintech industry in expanding access to financial inclusion for unbanked and underbanked societies, which is considered as an integral part of the consumer base and total transaction value of fintech services.

In the panel discussion, DANA Indonesia CEO Vince Iswara discussed how fintech services have introduced unbanked societies to the convenience and practicality of managing their finances through digital transactions.

“We continue to see positive growth trends in fintech usage among individuals and businesses. Despite uncertain times like the pandemic, the use of fintech services has continued to grow. DANA observed over 100% increase in transactions on its platform and a 30% increase in the number of DANA Bisnis users compared to the previous year,” Iswara shared.

He also shared the success story of one of the participants in the company’s SisBerdaya program, Dituta, who experienced a 900% growth with IDR 90 million in revenue after joining the program.

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Strategies to reach out to underbanked society

During the panel discussion, DANA Indonesia explained the approaches taken by fintech companies to reach out to underbanked societies, especially in accessing insurance and investment products. One approach involves easing the limitations to purchase insurance and investment products.

For DANA Indonesia, this is exemplified through their micro-scale insurance and investment products DANA Siaga and DANA eMAS.

“This approach makes it easier for users to see the benefits of using fintech services and integrating these instruments into their daily lives. As a result, this can serve as an entry point for unbanked societies to become inclusive and financially healthy,” Iswara explained.

Established in 2018, DANA Indonesia achieved unicorn status in 2022 following a US$554 million funding round.

At WEF, the company participated in a panel discussion alongside Bryan Zheng Zhang (Executive Director and Co-Founder, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge), Drew Propson (Head, Technology and Innovation in Financial Services, World Economic Forum), and John Rwangombwa (Governor of the National Bank of Rwanda), moderated by Naoko Tochibayashi (Japan Communications Lead, World Economic Forum).

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Image Credit: DANA Indonesia

This article was first published on January 23, 2024

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