The process of applying for a mortgage can be time consuming and disorganized. IDEAL simplifies the process with a platform that allows users to compare mortgage products from multiple banks at the same time. The startup announced today that it has raised $3.8 million in pre-seed funding.
The funding will be used to hire and expand. IDEAL eventually wants to expand into more Southeast Asian countries.
The founding team of IDEAL includes Albert Surjaudaja and Ian Daniel Santoso. He was the former head of operations strategy at OVO.
IDEAL was founded by Albert Surjaudaja and Ian DanielSantoso.
The founder of IDEAL thought that consumer lending in Indonesia is broken.
Credit is important for the growth of economies. He said that it acts as a multipliers. Indonesia has one of the lowest credit to GDP ratios in the region as a sign that there is a lot of economic value potential that can be unlocked. There are a number of reasons for this, but the main reason is the lack of good, accessible options for lending products.
Traditional retail banks have a poor digital experience for their consumer lending products. On the other side, there is P2P lending, but their products are more focused on smaller loans.
There is a clear gap in the market for larger ticket size consumer lending products offered on a user-friendly digital platform.
According to Bank Indonesia, the country's mortgage industry is valued at $39 billion, with a projected 17% CAGR over the next five years. Gen Z and Gen Y are expected to be the main audience for home ownership.
One of the lowest mortgage penetration rates in Southeast Asia can be found in Indonesia.
The traditional mortgage process is very manual and takes a lot of time and effort from the customer.
A lot of people don't know how the mortgage process works. There is a manual and unstandardized document submission process with multiple parties involved. Consumers suffer from lack of transparency in rates and availability of different options, as well as an opaque application process that requires them to contact their agent many times.
IDEAL wants to solve these challenges. IDEAL allows buyers to choose their own mortgage products. IDEAL Checking allows people to check their credit instantly.
Users can choose a mortgage by calculating costs and installments, as well as applying to multiple banks with one set of data and a real-time tracking system. Human error and data leaks can occur during paper-based or messaging-app based mortgage processes.
A short questionnaire that helps the platform understand what a customer needs and produces a simulation of monthly payments is one of the features.
The startup is currently focused on primary housing marketing, but plans to expand to secondary housing and takeover products in the future. Users will be able to monitor and manage their mortgage on a dashboard. IDEAL wants to enter more Southeast Asian markets like Thailand, the Philippines and Vietnam in the future.
The majority of Indonesia's mortgage market is below the secondary housing category. There is a strong need and demand from Indonesian consumers for a way to easily takeover/refinance their current mortgage since the gap between fixed and floating mortgage interest rates in Indonesia can be quite large.
Every successful loan application through the platform is monetized by banks and property developers with commission. Several of Indonesia's largest property developers, like Sinar Mas Land and Agung Sedayu Group, are also partners with it. The data-gathering process is simpler thanks to the platform.
Pinhome and Cekaja are some of IDEAL's rivals. Pinhome provides an end to end solution related to property from home discovery to home financing. He describes IDEAL's business model as customer-centered and leans more toward financial technology. They are not fully digital, do not provide contextual data, and still require an online-to-offline process without a credit scoring pre-check.
Adrian Li said that Indonesia's mortgage penetration is at 3% of the GDP. It's low compared to Malaysia and Singapore, which are at 30% or higher. Indonesia has a US$30 billion opportunity if it can double its mortgage penetration to six percent. In order to build a one-stop shop for mortgages in Indonesia, IDEAL brought in domain expertise in real estate and financial technology.
Fundraising tips for early and midstage startups in 2022
All Rights Reserved © 2024
