Amartha, a platform for grassroots entrepreneurs in Indonesia, has announced its transition into Amartha Financial Group after receiving a digital wallet license from Bank Indonesia.

The development marks the company’s expansion from microloans into digital payments, micro investments and other technology-based financial services aimed at rural communities.

Andi Taufan Garuda Putra, Founder and Chief Executive Officer of Amartha, said:

“Our vision is to catalyse the sleeping potential of Indonesia’s rural economy. By combining digital technology with deep human understanding, we are committed to scale impact for the grassroots, supporting millions of grassroots users to grow income, build assets, and take charge of their future.”

Bank Indonesia’s Head of Financial Inclusion and Green Economy Department, Anastuty Kusumowardhani, stated: “

Bank Indonesia will continuously support efforts toward nationwide financial inclusion through policy measures and the implementation of financial inclusion education programmes targeting strategic groups, including women.”

Established in 2010, Amartha has channelled loans to more than 3.3 million women-led microbusinesses across 50,000 villages.

Its new services are intended to provide borrowers with access to credit, enable small-scale investment, and facilitate digital payments, with the aim of improving household productivity and reducing costs.

Central to Amartha’s approach is its AIcredit scoring system, which has been developed using more than a decade of community-level data to assess rural borrowers.

The company has attracted investment from the International Finance Corporation, Accion Digital Transformation Fund, Women’s World Banking, and European sovereign funds.

Featured image credit: Amartha