Indonesia’s Bank Jago is reportedly planning to start offering some services from this month in a bid to take early-mover advantage in the burgeoning digital banking industry.
The move was reported by Bloomberg.
The technology-based lender will start some banking services this month through the mobile app and subsequently expand its product portfolio to include loans and other services.
Bank Jago also plans to embed its services on the platform of Indonesian digital payments group Gojek, which invested fresh capital into the digital lender in December last year.
The investment increased Gojek’s stake in Bank Jago from 4.14% to more than 22%.
Bank Jago president director Kharim Siregar was quoted by the publication as saying: “We really foresee the change in the lifestyle through the phones.
Digital banking “needs to be easy, fast and secure. Whoever can do this well will come out as leaders. We want to be in that leadership position,” he added.
Notably, around 52% of the Indonesian population does not have a bank account making it one of the most underbanked markets in Asia.
However, more than 70% of its population possess a smartphone underlining the potentiality of digital banking.
Last month, Shopee, a subsidiary of Sea Group, acquired Bank Kesejahteraan Ekonomi (Bank BKE) in Indonesia with plans to transform it into a digital entity.