Logiq Launches Pilot Program to Provide Mobile Fintech Services in Exclusive Strategic Alliance with Indonesian National Cooperative, KMSB
NEW YORK, Nov. 18, 2020 (GLOBE NEWSWIRE) -- 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).
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.
Upon successful completion of the pilot, the program will be introduced to all BPJSTK’s 48 million members and 600,000 SMBs. They will also gain access to Logiq’s increasingly popular PayLogiq™ e-Wallet and GoLogiq™ hyper-local food delivery mobile platforms.
“We see many opportunities for creating new revenue streams from micro-lending, mobile payments, and our eCommerce solutions once our alliance with KMSB is fully launched,” added Suen.
PayLogiq (branded as AtozPay™ in Indonesia) allows users to top-up their phone, ay bills and make other financial transactions. Member SMBs will also be introduced to Logiq’s award-winning mobile app creation platform, AppLogiq™ (aka CreateApp™), giving them the ability to easily create a mobile presence with eCommerce and fintech functionality without technical knowhow or background. Logiq and KMSB plan to begin marketing subscriptions of AppLogiq to SMBs in the first quarter of 2021, and they expect to achieve 30% penetration of BPJSTK’s SMB membership by the end of the year.
Logiq and KMSB expect their new strategic alliance to benefit from Indonesia’s fast-growing digital financial services market, which is projected by SGE to grow at a compounded annual rate of 34% to reach US$8.6 billion by 2025.
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