How Fintech Platforms Build Trust with Unbanked Customers in Indonesia

Fintech platforms in Indonesia are solving financial inclusion by serving the 64% of the population that remains unbanked. These platforms, like Pinjam.co.id, focus on trust, simplicity, and partnerships to reach customers who cannot access traditional banks.

How do fintech startups build trust with unbanked customers?

The core challenge is trust. When users deposit money or collateral with a startup, they need to believe the company will honor its obligations. Teguh B Ariwibowo, founder of Pinjam.co.id, explains that early on, the company focused on transparency. They listed all company details on their website—legal name, address, contact center, and registration number. This made it easy for users to verify the business was real.

"We made everything transparent because if people can access information, they can build trust."

They also built physical presence through a small shop and a pickup service. Even though users could not use the pickup service at first, the option existed. This signaled professionalism. The company also partnered with insurance providers to cover the value of pledged items, reducing risk for users.

What role does technology play in trust-building?

Technology is not just about the product—it’s about accessibility. Pinjam.co.id uses a lightweight, fast-loading website built with open-source tools. The site is designed to work on slow internet connections, which is critical in rural areas.

"We want to serve people in rural areas. Internet speed is 96 out of 100. We built for that."

The platform uses QR codes for payments and is integrated with mobile banking apps. This means users don’t need to download a new app. They can use their existing bank app to complete transactions. This reduces friction and builds trust by using familiar systems.

How do fintech startups overcome regulatory barriers?

Regulation is a major hurdle. In Indonesia, the regulatory body OJK controls fintech. Pinjam.co.id worked with OJK to push for new regulations, such as the 2015 Regulation on Pawn Financing (POJK). They advocated for clearer rules to help the entire industry grow.

"We didn’t just wait. We pushed for new regulations to support the market."

This proactive approach helped legitimize the industry. By engaging regulators early, startups can shape rules that support innovation while protecting consumers.

Why do partnerships matter for fintech growth?

No fintech company can scale alone. Pinjam.co.id partnered with physical pawn shops, gold stores, and mobile payment providers. These partners brought trust and reach. For example, a gold store owner might not have known about online pawn loans, but once they saw that the platform brought additional income, they joined.

"We didn’t replace their business. We added income."

Similarly, Pay by QR, led by Brata Rafly, connects to banks and mobile wallets. Instead of competing with banks, it works with them. This allows the platform to reach millions of users without building its own banking infrastructure.

What is the next step for fintech in Indonesia?

The next phase is moving from collateral-based lending to unsecured loans. Pinjam.co.id is developing a product that does not require collateral, targeting users with no credit history. This requires new risk models and deeper data analysis.

"We’re not just building a product. We’re building a system to serve the unbanked."

This shift will require more collaboration with banks, insurers, and regulators. The goal is not to replace traditional finance but to extend it to those left behind.

Key Takeaways

• Transparency in company details builds trust with unbanked users.
• Lightweight, fast technology works better than complex apps in low-connectivity areas.
• Partnerships with physical businesses and banks extend reach and credibility.
• Proactive engagement with regulators helps shape supportive rules.
• The future is unsecured lending, but it requires new risk models and collaboration.