JAKARTA - PT Home Credit Indonesia, a technology-based finance company, received funding of US$10.4 million from Deutsche Bank. The Rp156 billion fund will be used by Home Credit for the distribution of environmental, social and corporate governance (ESG)-based sustainable financing.
Director of Home Credit Indonesia Volker Giebitz said the target was focused on increasing financial inclusion, especially increasing the number of consumers using formal financing services for the first time (first time borrowers) and the number of female consumers. According to Volker, this is in line with the government's agenda to increase financial inclusion to 90 percent by 2024 from 83.6 percent in 2021.
In addition, the target in this loan collaboration is also related to the use of digital technology by Home Credit in the financing distribution process. This is in line with the financing application process, which now consumers can do easily and quickly through the My Home Credit application, which has been downloaded by more than 11 million registered users.
"We understand the importance of running a company in a responsible and sustainable way. ESG principles have been embedded in our business where we have served more than 5.5 million consumers throughout Indonesia," said Volker in his statement, Friday, July 22.
Volker added that his party is also implementing ESG principles into innovative funding strategies. Through a funding partnership with Deutsche Bank, Home Credit strengthens its commitment to ESG and innovative funding at the same time.
Volker also said that this funding will always open wider opportunities for the Indonesian people, especially those who have not been reached by formal financing services, to be able to improve their economy and welfare through Home Credit services. Not only through financial services that are affordable, transparent, and in accordance with the needs of the community, Home Credit is also committed to continuing to encourage the level of financial literacy of the Indonesian people.
As has been going on for a long time, Home Credit continues to provide education to improve public financial literacy in Indonesia, which only reached 38.03 percent in 2019 according to the results of the National Financial Literacy and Inclusion Survey released by the Financial Services Authority (OJK).
On the same occasion, Director, Head of Global Transaction Banking & Securities Services, Deutsche Bank Samir Dhamankar said, transactions with Home Credit were first in the Philippines and now in Indonesia. This transaction enables Home Credit to strengthen its consumer finance footprint in Asia, while continuing its commitment to achieving a sustainable and financially inclusive agenda to advance societal and economic well-being.
"This transaction also demonstrates the strength of our global transaction banking platform in one of Deutsche Bank's rapidly growing coverage areas, particularly in serving multinational corporations in the region," said Samir.
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