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View all search resultsRI’s digital banks outperform peers in profitability, but lending risks remain
The latest e-Conomy SEA 2026 report published by Google, Temasek and Bain & Company in October highlights Indonesia as “the largest digital field of digital banks”, with a total of 17 entities operating since 2021.
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Online banking: A man opens a digital bank app on July 4, 2024, in Jakarta. Digital banks have thrived as an alternative to conventional banks. (JP/Muhammad Zaenuddin)
I
ndonesia’s fledgling digital-focused banks, many of which emerged after 2021, have turned profitable, outpacing their peers in other Southeast Asian markets, although challenges remain in managing lending risks and improving asset efficiency.
The latest e-Conomy SEA 2026 report published by Google, Temasek and Bain & Company in October highlights Indonesia as “the largest digital field of digital banks”, with a total of 17 entities operating for five years.
The figure is way higher than the Philippines’ seven digital banks, as well as five each in Malaysia, Singapore and Vietnam, while Thailand has only three.
Indonesia’s extensive lineup of new-generation banks has also delivered faster profitability compared to other regional peers.
“They leverage powerful first-party data alternatives to credit histories, like e-commerce purchases and ride-hailing behavior, to keep NPLs [non-performing loans] low,” reads the report.
Meanwhile, similar players in mature markets such as Malaysia and Singapore are still struggling to reach profitability.
Read also: Foreign banks seek stronger foothold in RI amid consolidation push
