Standard Chartered Bank Indonesia has partnered with digital credit platform Kredivo to offer buy now, pay later (BNPL) loans to the mass market.

The partnership is aimed at offering access to credit via digital channels to support the growth of both online and offline retailers.

The firms will enable fully digital customer onboarding and credit application processes, without face-to-face verification.

Standard Chartered head of consumer, private and business banking Indonesia Jeffrey Tan said: “While Standard Chartered already enjoys a strong position in the retail affluent segment, we are strengthening and expanding our distribution channels to serve mass-market customers more efficiently.”

According to Indonesia’s financial regulator, from July 2020 to July 2021 assets of fintech lending firms increased from $229m (IDR3.25 trillion) to $306m (IDR4.34 trillion).

For the same period, outstanding loan channelling assets increased from $796m (IDR11.94 trillion) to $1.7bn (IDR24.22).

Kredivo Indonesia CEO Umang Rustagi said: “This collaboration shows how fintech and banks are synergizing to achieve a harmonious objective to open the widest possible access to credit. With Standard Chartered’s experience and Kredivo’s expertise, we hope that this collaboration can further promote equity and national economic growth.”

Earlier this week, Indonesia’s Bank INA joined forces with cloud banking platform Mambu to offer digital banking services.

In August this year, Kredivo launched operations in Vietnam via a joint venture with family investment office Phoenix Holding.