Lately, financial technology or commonly known as FinTech is booming. People's increasing need for funding is the reason why FinTech industry is growing rapidly in opening up the widest possible access to finance.

According to Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI), currently, there are around 46.6 million Micro, Small, and Medium Enterprises (MSMEs) and 132 million individuals who yet have credit access. Meanwhile, every year the need for public financing is mounting up, with up to Rp. 1,600 trillion per year. Therefore, FinTech is expected to be a real solution as well as to strengthen our financial literacy.

What Is FinTech?

FinTech owners are monitoring BRIAPI performance

Bank Indonesia (BI) stated that FinTech is a combination between financial services and technology. Therefore, FinTech is able to change the company business model from conventional to modern.

Its presence is triggered by fast-paced lifestyle where people prioritize the use of information technology. Ultimately, it can solve various financial problems, whether as a payment tool, helping a more investment process, and providing a wider market for business actors.

BI has regulated FinTech legal basis in three regulations, namely:

  • Bank Indonesia Regulation No. 18/40/PBI/2016 regarding the Payment Transaction Processing Operations
  • Bank Indonesia Letter No. 18/22/DKSP regarding the Implementation of Digital Financial Services
  • Bank Indonesia Regulation No. 18/17/PBI/2016 regarding the Electronic Money.

FinTech Development in Indonesia

FinTech Development in Indonesia illustration

FinTech industry has been growing in Indonesia since 2006. Indonesia Baik, a platform developed by Ministry of Communication and Information, states that FinTech users in that year were only 7% and significantly rose up to 78% in the next ten years. 

The number of FinTech companies is also growing rapidly. In 2006, there were only six FinTech companies but in May 2022 the number had reached 352 companies. All of them are members of a FinTech community called Asosiasi Fintech Indonesia (AFTECH).

According to AFTECH, the market for FinTech companies is dominated by micro, small and medium enterprises (MSMEs). Throughout 2021, 62% of FinTech companies served MSMEs. In fact, 42% of FinTech companies said that their transaction value from MSMEs reached more than IDR 80 billion.

In addition, BI also predicts that by the end of 2022, digital banking transactions will extend to IDR 48 quadrillion, including those made by FinTech in the payment system sector. So, we can conclude that FinTech plays a major role in encouraging Indonesia's financial inclusion through digital financial services.

In line with the financial inclusion vision, BRI also supports FinTech development through BRIAPI, BRI's open banking technology. By integrating BRIAPI, FinTech companies can provide access to BRI digital banking services such as BRI Virtual Account (BRIVA), Direct Debit, to informational services such as Account Statement and Account Information. That way, BRIAPI facilitates FinTechs to reach up to more than 170 million BRI customers.

Types of FinTech and How BRIAPI Assist Them

In addition to the payment system type, there are other types of FinTech sectors and they are closely related to the provision of financial services where BRIAPI plays a huge part in it. Here are five types of FinTech according to Otoritas Jasa Keuangan (OJK):

1. Crowdfunding

Crowdfunding is a type of FinTech that focuses on fundraising. It is popular in various countries, including Indonesia. Through the crowdfunding platform, we can raise funds or make donations for certain programs.

One example of crowdfunding FinTech is To enhance their digital channel, integrates one of BRIAPI products, BRI Virtual Account (BRIVA) as a digital donation method. Thanks to BRIVA, users can donate more easily and safely.

2. Microfinancing

Microfinance sector provides financial solutions for the lower to the middle-class community by giving loans. It emerges as one of the transformative FinTech sectors since it bridges the gap between borrowers and lenders.

To meet operational needs, microfinance institutions need a core microbanking system, a system that can assist their financial activities at the micro-level. PT USSI stands as one of the best core microbanking providers in the country. 

They help their microfinance partners in presenting a digital payment system, mainly through BRIVA from BRIAPI. Now, PT USSI partners are able to provide access to the Virtual Account method so that their customers can conduct transactions quickly, easily, and safely.

3. P2P Lending Service

P2P Lending Service is a FinTech model in the form of an online lending platform. Originally built to fund MSMEs, the service is now commonly used by everyone to meet their needs.

Compared to bank loans, P2P Lending Service edges in terms of loan processing which is easier and faster. However, you should be aware of illegal lending companies that keep popping up and harming consumers by charging high-interest rates. So, if you want to use P2P Lending Service, make sure the company you choose is officially registered with the OJK.

4. Market Comparison/Market Aggregator

Market Comparison or Market Aggregator is a FinTech that allows users to compare various financial products from financial service providers at once. From credit cards to insurance, Market Aggregator has a wide range collection of financial data that serves as a thorough financial planner.

5. Digital Payment System 

Digital Payment System is a FinTech that provides digital payment services for various needs. Starting from paying electricity and credit card bills to purchasing online goods, digital payment services are proven very flexible and practical.

To support digital payment, BRIAPI provides financial services for its partners. Among them is the collaboration between BRIAPI and ShopeePay, a digital payment service from the number 1 e-commerce platform in Indonesia, Shopee. ShopeePay integrates various transactional APIs such as BRIVA, Direct Debit, Transfer to Other Banks, and BRIZZI to enrich their payment system.

There is also DOKU, a digital payment FinTech with payment gateway as its main service. To add BRI payment channels, DOKU integrates BRIVA and BRI Direct Debit from BRIAPI. As a result, the DOKU-BRIAPI collaboration assists DOKU merchants capture more customers, especially those who live in remote areas and only have BRI accounts.

BRIAPI Strongly Boosts Indonesian FinTech


BRI always strives to accelerate the digitalization of financial services with financial inclusion as the end line. Thus, the collaboration between BRI and FinTech companies is needed to increase financial literacy and build a digital financial ecosystem for all.

To do that, BRI optimizes the use of BRIAPI. BRIAPI is an open banking service that bridges BRI banking services with BRIAPI partners in providing digital financial services.

BRIAPI has collaborated with more than 570 partner companies, including FinTechs. Big names of Indonesian FinTech companies have already integrated themselves with BRIAPI, including Shopee, Tokopedia, Gopay, OVO, Traveloka, DOKU, and Investree. BRIAPI is also the first Open API platform in Indonesia that has acquired ISO:27001 and PADSS (Payment Application Data Security Standard) certifications to ensure customer data security.

The positive synergy between BRIAPI and FinTech in establishing a digital ecosystem for all gave a positive record for BRI. As of October 2021, there was an increase in year-on-year sales volume for BRIZZI top-ups to 889% as well as online acquiring numbers by 122% thanks to FinTechs that use BRIAPI. It is clear evidence of the use of BRIAPI products such as BRIVA, BRI Direct Debit, and BRIZZI top-ups by FinTech companies.

In the future, BRIAPI will continue to increase the number of collaborating FinTechs while crafting the right form of cooperation with the market segment. It cemented BRI's efforts in bolstering financial inclusion. Integrate BRIAPI today and become a thriving part of Indonesia's digital finance ecosystem.