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StanChart to offer pay-later feature with Kredivo
In another tie-up between conventional banking and fintech, Standard Chartered Bank Indonesia has teamed up with Kredivo to offer consumers a pay-later feature.
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S
tandard Chartered Bank Indonesia and online lending company Kredivo launched on Wednesday a buy-now-pay-later (BNPL) feature to increase financial inclusion.
Jeffrey Tan, head of consumer, private and business banking (CPBB) at Standard Chartered Indonesia, said the collaboration would allow the bank to offer affordable loans that could help small and medium enterprises (SME) selling goods on both e-commerce platforms and offline.
“Standard Chartered has a strong position in the middle-to-upper retail banking segment, so we now want to expand our services to the mass segment,” he said in a press release.
Financial Services Authority (OJK) data shows that fintech lending companies’ assets grew to Rp 4.34 trillion (US$305.5 million) in July from Rp 3.25 trillion a year earlier. Meanwhile, lending platforms’ total outstanding loans more than doubled to Rp 24.22 trillion over the same period.
“As the number of [COVID-19] vaccinations increases and market sentiment and retail sales continue to improve, demand for loans is also expected to continue to grow,” the statement reads.
Meanwhile, Kredivo Indonesia CEO Umang Rustagi said the partnership with Standard Chartered showed banks and fintech firms had the same goal of making loans more accessible by offering a fully digital application process.
“We hope that with Standard Chartered’s experience and our expertise, we can boost national economic growth and inclusion further,” he said, adding that Kredivo aimed to cater to tens of thousands of consumers.
Kredivo has around 2 million users in Indonesia or about 25 percent of credit card users. Operating in Indonesia, Singapore and Vietnam, Kredivo’s parent company Finnacel has set itself a target of having 10 million customers across Southeast Asia by 2025.
Read also: Credit lender Kredivo expands to Vietnam
The company has also announced plans for an initial public offering via a merger with a special purpose acquisition company (SPAC), which would put its valuation at about $2.5 billion.
Kredivo in May announced it was partnered with e-commerce Bukalapak to allow pay-later feature on the latter’s platform. Meanwhile, Bukalapak said in January that it would launch a digital banking feature in the country with Standard Chartered.
