Bank DBS Indonesia and Kredivo increase joint financing ceiling to IDR1 trillion to encourage growth of digital financial services | Bahasa

Indonesia.05 Oct 2021.3 min read
Indonesia, 05 Oct 2021 - The rapid growth of the digital sector during the pandemic has become a spearhead of the next phase of Indonesia’s economic growth. According to the Blooming e-Commerce in Indonesia report published in June 2021, the GMV (gross market value) or transaction value of the large marketplaces in Indonesia increased by 91% to US$40.1 billion in 2020. This will certainly encourage digital transformation of the financial industry, one of which is through the adoption of open banking. [1]

In line with these changes and to support the initiatives of the Financial Services Authority and Bank Indonesia[2], today Bank DBS Indonesia (DBS Indonesia) announced a joint financing worth IDR1 trillion to be channeled to customers of Kredivo, a leading digital lending (fintech) company in Indonesia. The collaboration underlines DBS Indonesia’s commitment to open banking practices by collaborating with payment service providers, fintech companies, or other digital industry players. The collaboration also demonstrates Kredivo's commitment to expanding credit access and improving services to meet the target of serving tens of millions of users in the next few years.

Rudy Tandjung, Consumer Banking Director, PT Bank DBS Indonesia, said, "Since the joint financing collaboration between Kredivo and DBS Indonesia started in September 2020, we have maintained our commitment to continuing to provide the best and innovative services to meet the growing needs of customers, especially in channeling loan financing to the Indonesian people. With the ceiling of joint financing raised from IDR500 billion to IDR1 trillion, we hope to be able to reach a wider community and increase financial inclusion."

The collaboration between DBS Indonesia and Kredivo can be a financing solution to meet the financing needs of customers, notably the emerging affluent segment of society, through easy, fast, and affordable credit facilities. By combining bank skill sets and those of fintech, the collaboration enables both parties to provide innovative and more efficient financial products and services, and help customers realize their dreams and plan their financial future better.

Umang Rustagi, CEO, Kredivo Indonesia, said, “The common vision shared by Kredivo and DBS Indonesia to provide easy, fast, affordable financial services, as well as to utilize technology, is a strong foundation for this collaboration. The joint financing facility will accelerate growth of and expand services and credit access for millions of new customers across Indonesia. In addition, the collaboration is a tangible proof of trust in fintech and a form of real synergy between fintech and banking. Furthermore, this credit facility is a breath of fresh air and proof that Indonesia’s economy continues to improve in the midst of the pandemic. We are honored and very excited to be working with a leading bank that leverages digital technology and one of the best banks in the world.”

DBS Indonesia recognizes Kredivo as the pioneer of Buy Now Pay Later in Indonesia with a good track record and rapid business growth in the country. Besides being supported by strong business performance over the last 12 months, FinAccel, Kredivo's parent company, plans to go public in the US market through a special purpose acquisition company (SPAC) with Victory Park Capital (VPC). This demonstrates Kredivo's commitment to continuing to develop its business in Indonesia. Given these facts, the collaboration is expected to expand the company’s reach and lead to more innovation that can increase financial inclusion, open wider, faster, and easier access to financing for the public.

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About DBS
DBS is a leading financial services group in Asia with a presence in 18 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 Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. 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 13 consecutive years from 2009 to 2021.

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, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

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.

 

[1] Blooming Ecommerce in Indonesia_Part 1_MW_June 2021.pdf

[2]  POJK 12 2018 Chapter 15 dan BI – Blueprint SPI 2025

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