Indonesia's Bank BRI's mobile app cuts loan approval process to 2 minutes

Loans can be between $35 to $1,417.

Indonesia’s first digital banking institution Bank Rakyat Indonesia’s (Bank BRI) mobile app Pinang has reduced its loan approval process to two minutes, the bank revealed.

The Indonesia-based digital loan contender reportedly has a 0% non-performing loan ratio due to Bank BRI’s AI-powered alternative credit checking method.

Borrowers in Indonesia need to download and register an app. Pinang requires users to have a valid ID that proves they are aged between 21 and 54. They also need to fill out a form and state their income details. The system then uses Bank BRI’s proprietary AI to run an alternative credit check and establish whether the user is a safe borrower.

Just minutes later the user will be approved for a loan, which can be between $35 (IDR 500,000) and $1,417 (IDR 20m). Pinang’s interest rate is at 1.24%.

P2P transactions in Indonesia skyrocketed 681.25% to reach $1.4b (IDR 20t) in 2018, according to Bank BRI. During this time, the number of debtors exceeded 4 million in the country alone.

Bank BRI, through its business unit BRI Agro, launched Pinang in February 2019 as an alternative to the P2P lending bubble in Indonesia.

Efficiency is the number one rule for these young drivers of the country’s economy. Pinang was created for busy people to be able to borrow money at their own convenience without having to queue in line for hours, particularly for their low-income consumers who they recognised are now busier than ever.