October 3, 2022

The founding team of the Indonesian wealth management app PINA

While many investment apps in Indonesia focus on attracting first time investors with low fees and an initial deposit, PINA Aimed at middle to upper classes with wealth management services. The app announced today that it has raised $3 million in seed funding from AC Ventures, Vibe.VC and Y Combinator, with participation from XA Network.

The company was founded in 2021 by Daniel van Leeuwen, the former head of country marketing for Grab Indonesia. He was joined by Vagar Kuntoro, Technical Co-Founder, formerly Head of Technology and Engineering at Indonesian digital agency Mirum, Christian Hermawan, Founder of Trust Securities, and Hendry Chu, previously Head of Product Design at educational technology startup Zenius.

Van Leeuwen told TechCrunch that PINA was created due to founders’ own challenges with personal finance. As a result, they wanted to ensure that all Indonesians had access to financial advice, not just people who could afford the minimal fees that personal wealth advisors charge.

He said that the middle and upper class in Indonesia now includes 52 million people, and PINA was created to give them access to investment services without minimum and high fees as they invest to achieve goals including buying a home, retirement and the education of their children.

“Our first-hand experience working with private financial service providers has made us realize that change will never come from existing providers,” Van Leeuwen said. “Chu and I and a fugitive worked in [Indonesian conglomerate] Mirum where we consulted big financial services brands on how to digitize and transform their businesses. It opened our eyes to the problems and opportunities in enabling wealth management, but it was also frustrating when we saw the inability of our clients to bring viable products to market due to outdated infrastructure and business models. “

PINA is among the many Indonesian investment apps that have recently increased their venture capital. Some examples include Pluang, GoTrade, Bibit, Ajaib, Pintu, and Pluang.

Van Leeuwen said the existing solutions are great for new investors and new investors by enforcing low minimums, but PINA stood out for its focus on integrating planning, money management and planning into one platform. “By bringing everything together in one platform, we aim to provide an experience that can never be replicated with a human advisor or with a financial folder on their phone filled with point solutions apps,” he said.

The use of PINA’s money management tools and advisors is free, and they generate income by charging fees when clients make an investment through the platform. Features include automatically managed portfolios, investment that needs more involvement from users. PINA also has personalized financial advice, automated money management and investment tools in its apps. To use PINA, users link all their financial accounts to the app, and set their savings and investment goals.

PINA’s automatic diversified portfolios work first by defining the user’s investment objectives, time horizon, risk tolerance, and priorities. Then you invest in a portfolio of low-cost mutual funds. Van Leeuwen said her software automatically rebalances investments, selling investments that rise above the target allocation to users and buying more investments that fall below. This is done when users fund their wallets or when wallet drift reaches 5%.

In terms of wealth management features, Van Leeuwen said PINA “aims to bridge the so-called ‘advice gap’ by providing financial advice that is affordable and personalized. By linking their financial accounts, including their bank accounts, e-wallets, and government pension and investment accounts, users can see their net worth, monthly cash flow, and how their budget has fluctuated over the past few months.The app also allows them to book a place with a certified financial advisor.

PINA plans to use its funding to acquire users, build its advisory and investment features, and complementary services such as access to professional training and exclusive member events.

In a prepared statement, Adrian Lee, founder and managing partner of AC Ventures, said: “The growing adoption of cashless transactions combined with the increase in the numbers of affluent individuals in Indonesia has opened up multibillion-dollar new opportunities to emerge for wealth management platforms offering a full range of Services including money management and investment. The PINA team brings deep knowledge and connection to the financial services industry – making PINA one of the most promising companies in the field.”

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