Fintech P2P Lending Market Share Surges by 28%, ALAMI Sharia Becomes Gen-Z and Millennial Favorite

JAKARTA, MONDAY, 03 JULY 2023 - YouGov, a reputable internet-based market research and data analytics company headquartered in London and operating across Europe, North America, the Middle East, and the Asia-Pacific region, conducted a study on the fintech industry in Indonesia. The study unveiled a 28% growth in the market share of P2P Lending in just 6 months, despite the economic challenges faced post-pandemic. This study further solidifies the position of fintech, particularly P2P Lending, as an attractive investment instrument for the public.

This positive response from the public is supported by the statement of the Financial Services Authority (OJK). Imansyah, Deputy Commissioner of the OJK Institute, in the webinar titled "Building customer confidence in digital assets against cyber risks" (30/05/2023), explained that the performance of P2P Lending fintech has significantly improved, with the current number of licensed P2P Lending platforms in Indonesia reaching 102, including seven Sharia-based P2P Lending platforms.

The total loans accumulated in the past six years have reached IDR 528.01 trillion, with an outstanding value of IDR 51.12 trillion as of December 2022. The number of P2P Lending users has reached 100.8 million users, encompassing both borrowers and lenders. This means that nearly half of Indonesia's population has used the fintech P2P lending platform.

In terms of assets, the overall assets of P2P Lending fintech amount to IDR 5.51 trillion, with IDR 5.38 trillion in conventional provider assets and IDR 133.64 billion in Sharia-based provider assets. The non-performing loan (NPL) rate stands relatively low at 2.78%.

Investing through Sharia-based P2P Lending has also demonstrated significant growth, contributing 33% to the overall expansion of the P2P Lending market share in Indonesia. Specifically, ALAMI Sharia, the largest Sharia-based P2P Lending platform, has firmly established itself amidst fierce competition. It has experienced an 11% increase in brand awareness and doubled its usage within six months, surpassing its rivals.

According to the latest research by YouGov, the P2P Lending market share has soared by 28% in just six months. ALAMI, as the leading Sharia-based peer-to-peer lending platform in Indonesia, has outpaced its competitors in terms of growth. This can be attributed to increased public exposure to ALAMI, with an 11% surge in usage within six months, indicating remarkable progress. Users perceive ALAMI Sharia to satisfy three (3) critical factors when choosing investment instruments: it's licensed and closely supervised status by OJK, transparency in providing information to users, and robust operational performance despite ongoing macroeconomic challenges. Furthermore, ALAMI's steadfast adherence to Sharia principles across all aspects of its business has contributed to its improved performance.

Harza Sandityo, President Director of ALAMI Sharia, revealed that as of May 2023, ALAMI has disbursed productive financing exceeding IDR 5 trillion, benefiting over 12,000 financing projects. "This disbursement would not have been possible without the support and trust of our funders/investors, who currently number more than 140,000 users," said Harza.

Social media platforms such as Facebook, Twitter, Instagram, YouTube, and Word of Mouth (WOM) serve as the three (3) primary effective channels for marketing P2P Lending products and services. To enhance public awareness, ALAMI Sharia consistently provides education and literacy on Sharia-based P2P Lending through various self-initiated efforts and collaborations with parties including OJK and the academic community, engaging with its users.

Imansyah also expresses hope for the ongoing improvement in the performance of P2P Lending fintech and its positive contribution to financing, particularly for micro and small enterprises (SMEs).