Fintech
From The Report: Indonesia 2019
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An increasingly prominent and disruptive force in the financial services sector, financial technology (fintech) comprises any innovative or technology-based financial service offered to consumers or businesses. Often viewed as a competitor to traditional financial service providers, fintech fills gaps left by the formal sector, offering an important avenue to boost financial inclusion in a country where smartphone and internet penetration rates are rising quickly, even as much of the population remains unbanked. Supported by rapid expansion of e-payment platforms and peer-to-peer (P2P) lending activities, Indonesia’s fintech industry is in the midst of a period of significant growth. P2P lending recorded a triple-digit increase in 2018, while e-payment services have grown more than six-fold since 2012, prompting a surge of new foreign investment into a vibrant and increasingly diverse start-up community. This chapter also contains interviews with Aldi Haryopratomo, CEO, GO-PAY, and Jason Thompson, CEO, OVO.

Articles from this Chapter

Overview

Double digits: A broader array of services and players caters to a young and tech-literate population
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An increasingly prominent and disruptive force in the financial services sector, financial technology ( fintech) comprises any innovative or technology-based financial service offered to consumers or businesses. Often viewed as a competitor to traditional financial service providers, fintech fills gaps left by the formal sector, offering an important avenue to boost financial inclusion in a country where smartphone and internet penetration rates are rising quickly, even as much of the population…

Interview

Growing traction: Aldi Haryopratomo, CEO, GO-PAY, on increasing inclusion and the benefits of early adoption of financial technology (fintech)
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Interview: Aldi Haryopratomo How can fintech enhance financial inclusion across the archipelago in the short and medium term? ALDI HARYOPRATOMO: I see the role of fintech as the bridge between the banks and the unbanked. The advantage of fintech companies is that they are nimble in their ability to include the unbanked. Banks have been established with the specific purpose of managing risk and providing loans in a responsible manner. For these institutions to be able to reach the unbanked, it is…

Analysis

High demand and unparalleled returns drive growth in peer-to-: peer (P2P) lending, though regulatory challenges remain Peerless potential
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Peer-to-peer (P2P) lending in Indonesia recorded triple-digit growth in 2018 as a large unbanked population embraced sub-prime micro-lending services to meet a credit shortfall estimated at $75bn. P2P loans offer significantly higher returns to private investors, while government data shows that defaults are rare, leaving the segment well positioned for growth; however, a rising incidence of predatory lending practices has dampened the outlook somewhat. Recent Growth The P2P industry has…

Interview

Innovation to serve: Jason Thompson, CEO, OVO, on standardising access and overcoming hurdles to market entry
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Interview:Jason Thompson How do regional and global trends in the financial technology (fintech) space impact the market? JASON THOMPSON: In the global fintech space the Chinese and Indian markets are already rather saturated, which is why venture capital firms and tech innovators are aiming for the South-east Asian market. The Chinese and Indonesian markets are similar in the sense that both are currently moving from cash to e-money. The Indonesian market, however, saw e-money transactions…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
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Once reserved for ambitious start-ups and industry-leading operators, financial technology (fintech) has caught the attention of private sector firms and government planners alike, becoming a regular feature in budget speeches and development plans. As fintech plays a larger part in the lives of consumers, investors have come to recognise its growth potential. Tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and by some 30% in 2017 alone. Fintech is rapidly advancing across global markets. While the concept was pioneered in developed countries, the fluidity of international…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
OBG
plus

Once reserved for ambitious start-ups and industry-leading operators, financial technology (fintech) has caught the attention of private sector firms and government planners alike, becoming a regular feature in budget speeches and development plans. As fintech plays a larger part in the lives of consumers, investors have come to recognise its growth potential. Tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and by some 30% in 2017 alone. Fintech is rapidly advancing across global markets. While the concept was pioneered in developed countries, the fluidity of international…