Bank DBS Indonesia collaborates with Kredivo, a financial technology (fintech) startup, to disburse loans to more than one million accounts (or account holders) under a joint financing arrangement. The loan is disbursed to recipients in various regions across the country in accordance with Bank DBS Indonesia’s commitment to improving Indonesia’s financial inclusion index for people who are below banking standards.

According to Bank Indonesia 2023 data, 97.7 million Indonesians, or about 48% of the total population have no adequate access to financial services and products (underbanked). This is due to various obstacles, including a lack of understanding of banking products and services, which often makes it difficult for them to plan and manage their finances well. Unstable income, limited access to loans, and a lack of or insufficient credit history are factors that prevent people from accessing loans from conventional financial institutions.

These facts highlight the enormous potential for leveraging technology to improve financial inclusion. Recognising this opportunity, Bank DBS Indonesia and Kredivo have collaborated since 2021 to provide access to innovative technology-based financial service. As a result, by October 2023, this collaboration has successfully financed over one million transactions conducted by Kredivo users with salaries of Rp3 million at a minimum. This means that the loan service provided by Bank DBS Indonesia and Kredivo reaches individuals from various economic backgrounds.

Kredivo Indonesia CEO Umang Rustagi said, "We have the vision to become a financing company that is successful in aligning economic and social aspects to its business activities. Through our collaboration with Bank DBS Indonesia, we are committed to not only providing financial access but also helping the underbanked population across Indonesia to become bankable in the future. With this innovative joint financing, we aim to empower more people to reach their financial goals and build an inclusive financial ecosystem, in line with our goal to serve tens of millions of users in the coming years."

This collaboration not only embraces economic diversity but also benefits people of different age groups. Approximately 47% of transactions are carried out by users in the 20-30 age group, followed by 37% in the 30-40 age group, and 12% in the 40-50 age group. The joint financing initiative has created an inclusive environment that allows individuals with diverse social and economic backgrounds to access credit for various needs, from daily necessities to investing in higher education, and tertiary needs such as gadgets, hobbies, sports, entertainment, and more.

Melfrida Gultom, Deputy Head of Consumer Banking at PT Bank DBS Indonesia said, "Our partnership with Kredivo is a tangible manifestation of Bank DBS Indonesia’s first sustainability pillar, Responsible Banking. We focus on delivering innovative and responsible banking products to accelerate financial inclusion in Indonesia. In this digital era, we believe that technology is not only a solution but also the key to bringing a positive impact to the broader community, especially the underbanked. To benefit even more people, Bank DBS Indonesia and Kredivo periodically increase the limit of the joint financing, from Rp300 billion at the initial stage to Rp2 trillion by mid-2022. We hope that this collaboration will be a concrete step towards economic empowerment and the well-being of the community."

In the spirit of being 'More like an innovator, less like a bank,' Bank DBS Indonesia continues to innovate to meet customer aspirations for banking activities that are easy, practical, safe and sustainable, and provide financial solutions to support the growth of all its partners.

About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

Bank DBS Indonesia and Kredivo promote financial inclusion, give more than 1 million Indonesians access to loan