Shariah compliant fintech platform Ethis Indonesia has finalized its partnership with two Indonesian Islamic rural banks, or Bank Pembiayaan Rakyat Syariah (BPRS) as they are locally known.
Ronald Yusuf Wijaya, the co-founder of Ethis, signed one of the agreements — the partnership with BPRS Wakalumi — with Rudi Yanto, the director of the bank, on the sidelines of the recent Indonesia Shariah Economy Festival 2022 hosted by the Indonesian central bank.
In a LinkedIn post, Umar Munshi, the co-founder and group managing director of Ethis Group, shared that the confirmed partnerships were a result of many months’ worth of efforts and the support and encouragement of the Financial Services Authority, or Otoritas Jasa Keuangan (OJK).
“Over the years, we have approached many, many incumbent financial institutions. Initially most of them didn’t happen, and a few pilots ended as only pilots. Times have changed, and now Ethis is more known and more experienced,” Umar said. He added that rural banks stand to gain from the high returns of Ethis’s P2P projects on offer. “Beyond returns, our strict Shariah compliance and focus on responsible and sustainable projects are key points of attraction.”
The P2P financing platform expects its collaboration with BPRS Wakalumi to increase its network for the disbursement of funds for Islamic financing.
Ethis Indonesia secured its permit from the OJK in October 2021, and earlier this year in May 2022 closed a pre-Series A funding worth US$3 million, according to media reports.