Devoteam took the role as a solution and manpower provider in the migration project conducted by KoinWorks and helped the customer to scale the apps in order to improve financial access and education for Micro, Small, and Medium Enterprises (MSMEs).
This case study is also featured on Google Cloud website → KoinWorks: Overcoming cultural boundaries to improve financial access and education for MSMEs
About the customer
KoinWorks is a financial technology (fintech) company that was founded in Indonesia in 2016. The company initially started as a digital lending platform that aimed to provide credit to micro, small, and medium-sized enterprises (MSMEs) in the country. However, over the years, KoinWorks has expanded its offerings to become a neobank that provides business development solutions to MSMEs in Indonesia.
KoinWorks is known for its credit-led approach, which means that the company focuses on providing credit to MSMEs as a means of helping them grow their businesses. In addition to lending, KoinWorks also provides financial education to its users to help them better manage their finances.
One of the key features of KoinWorks is its cutting-edge online platform, which is designed to help multiple layers of the widespread public achieve their financial goals. The platform is user-friendly and provides a range of financial services, including saving accounts and investment products. The platform is also accessible via a mobile app, making it convenient for users to manage their finances on-the-go.
Since its inception, KoinWorks has grown rapidly and now boasts more than 2.2 million active users. The company has also expanded its operations beyond Indonesia. However, the company’s main office is located in Jakarta, Indonesia.
The Challenges
As the company expanded its operations, it faced challenges with its existing cloud-as-a-service infrastructure. KoinWorks needed a cloud platform that could help it scale its product and reduce its infrastructure and maintenance costs. Additionally, the company needed a solution that could ensure fast scoring to make the loan application experience seamless for MSMEs.
One of the key challenges that KoinWorks faced was the need to expand its operations quickly and efficiently. The company’s existing infrastructure was not designed to handle the increased demand for its services. This meant that KoinWorks had to invest in new infrastructure, which was costly and time-consuming.
Another challenge was the need to reduce infrastructure and maintenance costs. KoinWorks realised that it needed to find a more efficient solution that would allow it to reduce its infrastructure costs while still providing reliable and scalable services.
KoinWorks needed a cloud platform that could ensure fast scoring to make the loan application experience seamless for MSMEs. This was important because fast scoring meant that MSMEs could get their loans approved quickly, which was critical for their businesses.
In our initial year, KoinWorks worked exclusively with ecommerce MSMEs because they have a lot of data that we can use to underwrite their loans. This data includes transaction data, total warehouse inventory, and more, that mimics know-your-customer and know-your-business checks that banks usually do.
The Solutions
Devoteam helped KoinWorks migrate their existing cloud-as-a-service infrastructure to Google Cloud, which offered a more scalable, secure, and reliable solution for their needs.
The migration to Google Cloud allowed KoinWorks to scale their superapp quickly and efficiently. This was critical for the company’s growth because it allowed them to handle the increased demand for their services. Additionally, the migration provided faster duration in scoring MSMEs, which meant that loan applications could be approved quickly, improving the user experience for MSMEs.
Another benefit of the migration to Google Cloud was that it enabled KoinWorks to qualify loan underwriting more accurately. This was important because it allowed the company to assess risk more effectively, which helped to ensure that loans were granted to MSMEs who were most likely to repay them.
Finally, the migration to Google Cloud enabled KoinWorks to offer a variety of new financial products to its users , which helped to improve their financial well-being.
With GKE, we can enable cluster auto-scaling. So if we determine that one or several products or features are underperforming, we can easily review and reconfigure its utilization to suit our requirements. It’s also easy to stress test our system to find the right utilization amount for features and products.
The Results
After implementation of some strategic moves, KoinWorks achieves significant growth in its operations such as:
- KoinWorks managed to grow its staff from 20 to 900 in just 6 years, which indicates an impressive level of expansion. This growth was likely due to the company’s successful performance and increasing demand for its services, which required more staff to serve its 2.2 million users.
- KoinWorks has developed an internal scoring model that enables them to assess the creditworthiness of Micro, Small, and Medium Enterprises (MSMEs) quickly. This is a significant improvement from the traditional approach of assessing creditworthiness, which can take days or even weeks to complete. By being able to do it within minutes, KoinWorks is able to provide MSMEs with faster access to financing, which can be crucial for their operations.
- KoinWorks has been able to scale the capacity of a new product to handle traffic as it grew from 4 to 8 terabytes per month. This is a remarkable feat, as managing data traffic can be challenging, especially when it grows rapidly. By scaling the product’s capacity, KoinWorks can continue to provide reliable and fast services to its customers, even as the volume of traffic increases.
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