Logiq, Inc. (OTCQX: LGIQ), a global provider of award-winning eCommerce and fintech solutions, has launched its previously announced micro-lending pilot program in an exclusive strategic alliance with the country’s social security program provider, Koperasi Mona Santoso Berjaya (KMSB).
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Logiq and KMSB have agreed to jointly own and operate a new mobile fintech platform that will deliver mobile financial services. Logiq, through its Indonesian operations, will provide platform design and technology, management, ongoing hosting and technical support. KMSB will provide the financial institutional relationships for enabling the microlending program. The partners will then work together to launch a new marketing and advertising campaign that will encourage adoption and regular use of the mobile fintech offerings.
Using the new fintech platform, KMSB will provide micro-lending services to Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK), the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with a combined total of 48 million individual members.
The pilot program will provide mobile micro-lending and related services to 6,000 BPJSTK employees who will be able to borrow up to 20% of their annual salary.
“Our pilot launch is a first major step towards improving the lives of nearly 20% of the Indonesian population who do not have access to traditional financial services,” stated Logiq president, Brent Suen. “Since we first announced this effort, we have engaged key financial institutions for enabling the micro-lending program, with this allowing us to begin the pilot launch.”
Following the pilot program, the next phase will involve rolling out the program to 5 million contract/delivery drivers of Garda Digital Indonesia, a membership organization overseen by BPJSTK that handles pensions and health benefits for ride sharing drivers. Microloans will be made available to these members for personal or business use, such as purchasing, configuring, or repairing their mobile vehicles.
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