Indonesians Unbanked With MasterCard And Ayoconnect
Mastercard is working with Ayoconnect, an open finance platform, to help more people in Indonesia get access to financial services.
With open banking, the unbanked population in Indonesia will have access to various financial products. On Tuesday, Ayoconnect revealed on LinkedIn that customers may be responsible and aware of their digital financial footprint to completely grasp their financial condition and spending patterns to monthly payments (Jan. 31).
The business planned to test the solution this year utilizing Mastercard’s tokenization, security, and anti-fraud technologies and Indonesia’s top banks’ open banking APIs.
Ayoconnect is based in Jakarta, which is the capital of Indonesia. It is Southeast Asia’s most significant open finance API platform.
On the first anniversary of Ayoconnect’s Series B, which raised $15 million, the company made a deal with Mastercard.
“After six years of building new rails for Indonesian finance, today Ayoconnect is the most robust and in-demand open finance platform in the country,” Ayoconnect CEO and Co-founder Jakob Rost said at the time. “We are building the AWS of available finance with the complete offering globally to power the companies of today and the tech unicorns of tomorrow. We are proud to receive the backing of some of the world’s most renowned investors.”
Indonesia has one of the most significant numbers of unbanked or underbanked people worldwide. The country has about 275 million inhabitants, therefore 140 to 180 million is a lot.
PayU Global Payments CEO Mario Shiliashki recently told PYMNTS’ Karen Webster that to get underserved people to use financial services and move away from cash-based transactions, traditional and nontraditional financial service providers and regulators will have to work together on a large scale.
Shiliashki said technology alone won’t assist the 1.7 billion individuals and 200 million small companies without bank accounts or who need more money.
He said, “It takes an ecosystem.”
Regulators must alter their opinions and make data collection and usage easy for this ecosystem to work. Shiliashki reminded Webster that not only FinTechs create innovative goods and services to fulfill client demands.
“Banks are trying not just to catch up but to collaborate with FinTechs to provide better services,” he said.
These combined initiatives make it easier for consumers and companies to create bank-backed accounts that aren’t “managed” by banks. So, transaction accounts are the starting point for new things and services.
Shiliashki said that Standards need to catch up if they want more people to use these services and for FinTech to grow. This would make it possible for many more people to use new services.
