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Jakarta Post

Fintech partnerships enable banks to unlock technological capabilities at lower costs

  • Adrian Wail Akhlas

    The Jakarta Post

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Jakarta   /   Wed, November 6, 2019   /  02:19 pm
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People get information about services from online lending company KoinWorks in Jakarta. Many banks have cooperated with financial technology (fintech) companies to boost their financial services (The Jakarta Post/Dhoni Setiawan)

Instead of competing against each other, banks and financial technology (fintech) companies are joining hands and combining their resources to tap into the country’s growing financial services market. In an effort to stay up-to-date with recent technology and stay relevant amid the latest changes in financial services, many banks have signed partnership deals or bought into nimble start-ups as an alternative to building costly technology projects. For the banks, the logic behind a partnership with fintech companies is simple: It gives them the opportunity to reach a wider customer base, unlock their technological capabilities without having to buy one of their own and penetrate the country’s unbanked population — all without having to spend too much money. “We are partnering with 12 fintech companies from peer-to-peer [P2P] lending and payment apps to SME...