Amartha, an Indonesian fintech company focused on rural financial services, has secured a digital wallet license from Bank Indonesia, the country’s central bank.

It has also rebranded as Amartha Financial Group and launched new digital offerings, which now provides digital payments, micro-investments, and other technology-enabled financial services aimed at rural communities.

Since its founding in 2010, Amartha says it has distributed loans to more than 3.3 million women-led microbusinesses across 50,000 villages.

Amartha’s new services include an AI-based credit scoring system designed for rural borrowers, using data collected over more than a decade.

The expansion is supported by international investors such as the International Finance Corporation, Accion Digital Transformation Fund, and Women’s World Banking.

Bank Indonesia and industry observers have identified a continued gap in financial inclusion between rural and urban areas, with innovation in rural financial services seen as essential for economic growth.

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🔗 Source: Amartha

🧠 Food for thought

1️⃣ Rural fintech represents a massive untapped market in Indonesia

While most Indonesian fintech companies chase urban customers, rural areas present a largely ignored opportunity with over 100 million potential users.

According to a 2024 survey by the Indonesian Fintech Association, 96% of fintech companies focus exclusively on big cities in Java1, despite rural Indonesia having a population exceeding 100 million people who remain underserved.

The scale of this market gap becomes clear when considering that 81% of Indonesians still lack full access to formal financial services, with rural areas particularly underserved compared to urban counterparts1.

Indonesia’s rural economy employs over 40 million informal workers according to the Central Statistics Agency, yet these communities have been systematically overlooked by the fintech sector’s urban-centric approach1.

This concentration on urban markets has created an opportunity for companies willing to invest in understanding rural customer needs and building appropriate infrastructure.

2️⃣ Long-term community trust building enables sustainable rural fintech profitability

Amartha’s 15-year journey demonstrates how patient capital and community-focused approaches can create profitable rural fintech businesses.

The company has served more than 3.3 million women-led microbusinesses across 50,000 villages since 2010, building the deep community relationships necessary for rural financial services1.

This extensive ground-level presence has enabled Amartha to achieve profitability since 2021, contrasting with many fintech startups that struggle with sustainable unit economics1.

The company’s success attracted backing from major global investors including the International Finance Corporation, Accion Digital Transformation Fund, and multiple European sovereign funds, indicating that rural-focused fintech models can scale while remaining profitable1.

Their AI-powered credit scoring system, built on over a decade of community-level data, shows how technology combined with local market knowledge can create competitive advantages in underserved segments.

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