Accelerate financial inclusion, Bank DBS Indonesia and Home Credit Indonesia present financing solutions for underbanked customers | Bahasa
Indonesia.05 Dec 2023.3 min read
Bank DBS Indonesia and Home Credit Indonesia's joint financing arrangement reaches customers not yet exposed to formal financial services
Indonesia, 05 Dec 2023 - The rapid development of technology has brought significant changes to the order of life, including changes in consumption patterns as people now purchase consumption goods digitally. These changes have also encouraged the banking industry to accelerate digital transformation in banking. Bank Indonesia data showed that the value of digital banking transactions increased by 11.6 percent year-on-year (yoy) to IDR13,827 trillion in the second quarter of 2023. However, Indonesia still faces challenges in its digital transformation journey, with 81 percent of Indonesians aged 15-35 years still do not have access to financial institutions (unbanked) and some of them also do not have access to services that meet their needs such as credit cards, insurance, long-term savings (underbanked).
One of the characteristics of the underbanked is their penchant for using alternative financial solutions such as technology-based financial services (fintech), credit cooperatives, or microfinance institutions. Aware of this phenomenon, Bank DBS Indonesia in 2019 established a strategic partnership with Home Credit Indonesia (Home Credit) to provide loans under a joint financing arrangement for Home Credit Indonesia customers.
The collaboration has until October 2023 successfully reached 618,867 unbanked users that can be classified into the following demographic categories:
Commenting on the achievement, Consumer Banking Director at PT Bank DBS Indonesia Rudy Tandjung said, "We understand that the underbanked segment also needs banking services. Bank DBS Indonesia's partnership with Home Credit helps accomodate that need. In the spirit of being 'More like an innovator, less like a bank', Bank DBS Indonesia continues to innovate to provide banking services that are easy, practical, safe and sustainable, as well as providing financial solutions that help partners grow their business. Going forward, we will expand through collaboration with various multifinance and fintech companies to reach more people so that our presence can benefit all equally. In addition, as a purpose-driven bank, we hope this collaboration will accelerate financial inclusion and contribute positively to society and economic progress in Indonesia."
Financial inclusion is an area of Bank DBS Indonesia’s focus in accordance with the first sustainability pillar, Responsible Banking. Bank DBS Indonesia actively provides financial literacy education to reach the underbanked, including through the 'Kedai Belajar DBS' programme that involves Bank DBS Indonesia’s employees as informal educators, and 'Live & Learn' sessions held in collaboration with various partners to provide education on investment and installment management for individuals, and business capital and cash flow management for SMEs.
Home Credit Indonesia Director Volker Giebitz said, "Home Credit and Bank DBS Indonesia share the same mission, to increase financial inclusion in Indonesia through financing for the underbanked. This collaboration demonstrates the high trust of banking partners like Bank DBS Indonesia in the innovative and reliable financing activities carried out by Home Credit for more than 10 years in Indonesia. With services available in more than 22,000 partner stores in Indonesia, we believe that our collaboration with Bank DBS Indonesia will open up new opportunities for people to live a better life in the future."
Home Credit Indonesia is a technology-based financing company that has been in operations since 2013 and has been utilised by more than 6.1 million customers. Home Credit's financing services are accessible to the public through the My Home Credit app, which has been downloaded by more than 17 million registered users. In addition to providing consumer financing for the purchase of items such as smartphones, furniture, laptops, electronic equipment, and car accessories, Home Credit's services are also completed with cash, paylater, e-wallet, and protection options through collaboration with partners who are licensed by the relevant authorities.
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.
One of the characteristics of the underbanked is their penchant for using alternative financial solutions such as technology-based financial services (fintech), credit cooperatives, or microfinance institutions. Aware of this phenomenon, Bank DBS Indonesia in 2019 established a strategic partnership with Home Credit Indonesia (Home Credit) to provide loans under a joint financing arrangement for Home Credit Indonesia customers.
The collaboration has until October 2023 successfully reached 618,867 unbanked users that can be classified into the following demographic categories:
- By gender, the share of male users (54 percent) is higher than female users (46 percent)
- By marital status, there are more "Married" users (73 percent) than "Unmarried" ones (24 percent).
- By region, the highest share of the underbanked segment is concentrated in Sumatra (19 percent), followed by Sulawesi (8 percent) and Kalimantan (8 percent). However, there is still a sizable number of the underbanked in the provinces of West Java (17 percent) and East Java (11 percent).
Commenting on the achievement, Consumer Banking Director at PT Bank DBS Indonesia Rudy Tandjung said, "We understand that the underbanked segment also needs banking services. Bank DBS Indonesia's partnership with Home Credit helps accomodate that need. In the spirit of being 'More like an innovator, less like a bank', Bank DBS Indonesia continues to innovate to provide banking services that are easy, practical, safe and sustainable, as well as providing financial solutions that help partners grow their business. Going forward, we will expand through collaboration with various multifinance and fintech companies to reach more people so that our presence can benefit all equally. In addition, as a purpose-driven bank, we hope this collaboration will accelerate financial inclusion and contribute positively to society and economic progress in Indonesia."
Financial inclusion is an area of Bank DBS Indonesia’s focus in accordance with the first sustainability pillar, Responsible Banking. Bank DBS Indonesia actively provides financial literacy education to reach the underbanked, including through the 'Kedai Belajar DBS' programme that involves Bank DBS Indonesia’s employees as informal educators, and 'Live & Learn' sessions held in collaboration with various partners to provide education on investment and installment management for individuals, and business capital and cash flow management for SMEs.
Home Credit Indonesia Director Volker Giebitz said, "Home Credit and Bank DBS Indonesia share the same mission, to increase financial inclusion in Indonesia through financing for the underbanked. This collaboration demonstrates the high trust of banking partners like Bank DBS Indonesia in the innovative and reliable financing activities carried out by Home Credit for more than 10 years in Indonesia. With services available in more than 22,000 partner stores in Indonesia, we believe that our collaboration with Bank DBS Indonesia will open up new opportunities for people to live a better life in the future."
Home Credit Indonesia is a technology-based financing company that has been in operations since 2013 and has been utilised by more than 6.1 million customers. Home Credit's financing services are accessible to the public through the My Home Credit app, which has been downloaded by more than 17 million registered users. In addition to providing consumer financing for the purchase of items such as smartphones, furniture, laptops, electronic equipment, and car accessories, Home Credit's services are also completed with cash, paylater, e-wallet, and protection options through collaboration with partners who are licensed by the relevant authorities.
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.