Hara is an Indonesian startup that announces about its partnership with Bank Negara Indonesia (BNI) which is about to start its first project with the bank thus bridging the gap between the Blockchain and the banks present in the country. This is the great step taken by the company to ensure that the banks will now work with blockchain technology that could help to make their work effortless.
This partnership is to be considered as one of the most important because BNI is a well-established bank and the blockchain has successfully made it. It has never seen before that a bank like BNI has made a partnership with any firm.
About BNI (Bank Negara Indonesia)
It is one of the largest banks in Indonesia which has its branches all across the country. The government has appointed the bank to give the microcredit to smallholders and the farmers of the country in the rural area.
The Microcredit is an initiative taken by the government to help the Farmers and the small SME (Small Medium Enterprises) in terms of providing a financial support to them so that they can run their day to day life with ease.
Problems faced by Banks
Banks are facing a lot of trouble in giving the Microcredits to SME or the farmers in the rural area. They have to make lots of efforts as for providing the Microcredits the banks require a lot of personal information of an individual such as their ID proof or the land documents which they own or what are the ranges of the crop they plant. All these are making a tedious job for the banks to reach every individual in the rural area which is not possible.
According to Allan Bambang, the branch manager of BNI it can take around 1 week or more for manual acquisition as they have to visit the locations which take time. At times it is easier for them if the location is near to them but ones that are in the interiors usually takes a longer time to complete.
HARA’s role in solving the problem
As it is clear that the banks reach to an individual which consumes time and effort, it is here that HARA blockchain comes into picture which provides the solution to the banks. On this platform, the farmers have to input their individual data themselves for just once and it is now saved in the server.
Thus providing the efficient solution the banks which saves time, energy and money. This also provides farmers to apply for more credits.
Hara’s data collection model is the one-stop solution for the banks as they provide an individual record of the farmers which makes the job easier for the banks. Earlier BNI collect their data from the government which was not sufficient and it took a lot of efforts in remote areas.
The data gathered by HARA helps in the administrative process for the loan application of the farmers. It also helps BNI to analyze their risk assessment for the approval process.
Financial Institution and Government Favoring the technology
By this collaboration, it is very clear that the government and the Financial institutions are taking interest in the blockchain technology as they have adopted it and now applying in the business models for improving the process efficiency. The partnership of HARA and BNI will be a great step in future which will help the farmers and the poor people in the rural parts of Indonesia.