Asia s Tech Juggernauts Zero In On Indonesia s Digital Banking Market forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
Here’s how digital banks in Indonesia will gain a foothold this year
By
Indonesia’s digital bank app downloads grew 7% in 2020, but new players strike hard and fast, at 2-5x growth
Indonesia’s financial services authority (OJK) is expected to announce new regulations for digital banking by mid-2021
The rising digital payments transactions reflect the evolving digital financial literacy of the Indonesian population
Three months ago, Indonesia’s Bank Jago got into a strategic partnership with ride-hailing and digital payment services firm Gojek, paving the way for the former to become the first fully digital bank in the country. The move was a significant one because, among all Southeast Asian (ASEAN) countries, Indonesia’s the only one that doesn’t grant licenses for digital banks.
With the
recent announcement that Indonesia’s Bank Jago will go fully digital, the trend
of digital banking is on track to open up financial services to populations
across the archipelago who have so far struggled to see benefits from
traditional banks.
Indonesia’s
Bank Jago is set to become the country’s first fully digitized bank. While the
bank will provide traditional services for accounts, deposits, loans and
investments, the bank will not have any physical branches or ATMs. Bank Jago
will provide services exclusively online.
In December
2020, the bank announced that it would expand its existing strategic
partnership with ride hailing service Gojek in order to collaborate on financial
By Reuters Staff
(Adds details)
JAKARTA, Feb 18 (Reuters) - Indonesia s Financial Services Authority (OJK) said on Thursday that Sea Group s e-commerce arm Shopee had acquired local lender Bank Kesejahteraan Ekonomi (Bank BKE) IPO-KSJH.JK with the aim of transforming it into a digital bank.
OJK official Anung Herlianto said that Shopee, Southeast Asia’s largest e-commerce platform, has yet to make an official application with the banking regulators to transform Bank BKE into a digital institution, but they are “currently preparing the infrastructure to do so.” He told reporters that OJK was preparing regulations for new digital banks, which would likely be released in mid-2021, but that a digital lender like Bank BKE would be expected to prepare 3 trillion rupiah ($213.64 million) in capital.
Mobile telephone number
E-mail address
Educational history, work experience and other information from your CV if you provide this to us
We may also collect information that we request from you regarding your use of our service or that we collect automatically about your visit to our sites. Please see our
Cookie Policy for more details.
Use and Disclosure of Personal Information
We use your Data for purposes which may include:
providing our users with a personalised service
processing orders, registrations and enquiries
conducting market research surveys
allowing users to participate in interactive features of our service, where they choose to