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RI digital banks face tricky expansion despite ample growth potential
One of the newest players, Superbank, announced that it had reached its 1 million user milestone on Aug 12, less than two months since its mobile app officially launched.
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Digital society: A customer settles a transaction using the Quick Response Indonesian Standard (QRIS) code in Rangkasbitung, Banten, on May 3, 2023. Bank Indonesia has recorded 40 percent growth in the number of users of the digital payment method in Banten from 1.32 million in February 2022 to 1.72 million in February 2023. (Antara/Muhammad Bagus Khoirunas)
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ndonesian digital lenders are poised to continue growing at rapid pace over the next few years, partly driven by integration with parent companies’ ecosystems and strong capital reserves, but expansion could prove challenging given tight competition among players.
Major digital lenders in Indonesia, such as Bank Jago, Bank Neo Commerce and Seabank each has acquired more than 10 million users three years after launching their apps in 2021.
Allo Bank followed with around 9 million customers, accumulated within the two years since its launch in 2022.
One of the newest players, Superbank, announced that it had reached its 1 million user milestone on Aug 12, less than two months since its mobile app officially launched.
“It is faster than what we predicted in the beginning,” Superbank’s CEO Tigor Siahaan told The Jakarta Post on Aug. 12.
Jianggan Li, CEO of Singapore-based venture outfit Momentum Works told the Post on Aug. 14, he saw there was still ample growth potential for digital banks in Indonesia, driven by the large number of young people who are highly attuned to mobile experiences but have yet to develop banking habits.
Other analysts cited that many consumers still lacked access to traditional banking services, while many second- and third-tier cities were expected to see significant economic growth years in the future.
