A fintech specialized in solving debt problems of consumers and business owners has launched its services in Malaysia, a country whose total overdue consumer loans is second highest in Southeast Asia.
Indonesian Fintech amalan International announced on Wednesday that it has started operations in Malaysia, expanding its footprints in Indonesia and Singapore. In Malaysia, the total balance of overdue or almost overdue consumer loans is estimated to be $15 billion, the second highest in Southeast Asia.
«In many cases, amalan is able to reduce the outstanding balance and/or the monthly installments by 50 to 90 percent in Indonesia – this would be also our target for our Malaysian clients. We want to offer a fresh start to our clients so that they can build a better financial future,» says amalan’s founder and CEO, Arne Hartmann in a statement to the media.
amalan says that its key differentiator lies in working for borrowers to find the best solution with their lenders. As a social enterprise, amalan does not ask for upfront fees and instead uses a success fee model where the borrower only needs to pay after a restructuring plan has been agreed. The amount of the success fee is based on the savings generated through the restructuring.
So far, the fintech said it has restructured more than 1,000 loans with all major banks in Indonesia and saved its clients more than $800,000 in the process.
For each borrower, a restructuring plan is generated that takes into account all of the borrower’s loans to then reduce the debt balance and the monthly installments to an affordable level. These debt management programs use proprietary data and technology to get the borrowers out of debt faster, paying less.
amlan Indonesia was selected as one of the 30 best start-ups in MaGIC (Malaysian Global Innovation & Creativity Center), a business accelerator program of the Malaysian government.