As many aspects of our lives are going digital, so is finance. Financial technology or fintech startups are on the rise with breakthrough innovations which transform traditional transactions. In Southeast Asia alone, there are more than 100 fintech startups. Fintech companies basically provide financial services by utilizing modern technology. They compete directly with banks (although some partner up with banks) because they provide a more seamless process of payment, transfer, lending, etc. With digital as their plus point, fintech nowadays go beyond traditional banking services. And that includes charity.
Traditionally, donations are promoted explicitly and potential donors are made conscious of the amount they donate and the act of donating itself. The thing is, not all of us are naturally gifted with a philanthropic soul. So, when we consciously giving away a sum of money to charity for the sake of… well, being a good human, we can’t escape the slight thought of unwillingness. Furthermore, the next time a donation request come up to us, we would ‘think’ before making a donation. This is the challenge for the institution or organisation looking for donation because a moment of hesitation could end up in no donation at all.
Many fintech startups across the world innovate new ways on simplifying their users to make donations. In Indonesia, fintech startup OVO partnered with a local e-commerce Tokopedia and an online transportation service Grab Indonesia to launch a digital donation campaign called “Patungan untuk Berbagi” (“Joint to Share”). The campaign was held during Mei-June 2019 or the Ramadan month and had raised Rp11,5 billion. The three startups chose Rumah Yatim, a legal social institution focusing on caring for orphaned children in need, to distribute the funds for children under their care.
Another rival fintech startup in Indonesia, which is part of the life-changing local online transportation startup GO-JEK, GO-PAY make use of its QR Code payment and invite its users to donate for mosques and social organisations. The campaign GO-PAY FOR GOOD allow the users to scan the QR codes of each mosque or organisation through GO-JEK application. GO-PAY also partnered up with a fundraising social platform Kitabisa.com and was reportedly raised Rp11 billion throughout Ramadan 2019. The sum raised for each mosque or organisation is about double or triple times the amount they would usually get without digital donation.
Through digital donations, organisations find it easier to target the donors because their preferences are easily tracked. Moreover, donors (fintech users) are given options to donate a small amount of money. Have you ever had a pop up option to round up your bill and that the rounding money would be given to charity? Well, that’s only one of their ways to invite users to donate. By donating a small amount frequently, you won’t feel like you’re giving much, when in reality you are contributing to a greater good.