2023 to be a lucrative year for digital banking in Indonesia

06 January 2023

Spire Chief Operating officer, Jeffrey Bahar, explains the importance of payment fronts for digital banking platforms in an interview with DealStreetAsia.

Indonesia’s digital banking space saw significant investments and buildout plans in 2022, with the competition expected to intensify further in 2023. According to Bank of Indonesia, the year-on-year growth of the value of electronic money transactions was 43.24% in August 2022, while the transaction value of digital banking increased 31.04% on an annual basis. Digital bank operators continue to invest in tapping the opportunity of offering their services to the nearly 90 million unbanked population in Indonesia.

Spire Chief Operating Office, Jeffrey Bahar, explains that payment is one of the most important features to capture market share. This will increase the choice and convenience of mobile banking for consumers. For companies, payment is an essential service that serves as a digital enabler for other products in the ecosystem.

Indonesia’s digital banks are evolving to 3 main models: conventional lenders, new units in mainstream lenders and tech companies-backed ecosystem players. While there are global uncertainty and recession fears, digital banks with a strong backing of conglomerates and business groups are likely to find raising capital relatively easier.

To read the article on DealStreetAsia, click here. This article requires a user subscription.

For media enquiries, please contact:

Marie Teo
Manager, Group Corporate Communications
Spire Research and Consulting
Phone: (65) 6838 5355
E-mail: [email protected]