The battle lines of Indonesia’s digibank space

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Hello there,

​​Although I consider myself a millennial who is up to date on current trends, I didn’t realize how conservative I was about managing my money until I had a recent debate with my niece.

You see, she and her friends – fresh out of high school – wanted to apply for a digibank account. I insisted, however, that decades-old conventional banks with established names were better.

After comparing the upsides and downsides of each option, I finally respected her decision to use digibank services.

One thing I realized during our discussion was how many new digibank players have connections with tech companies from other industries such as ecommerce. Allowing users to conveniently access banking services through tech partners seems to be a big draw for younger consumers.

In this week’s Big Story, my colleague, Melissa, maps out just how many prominent tech companies in the region – like Sea Group and Gojek – have formed alliances with banks (if not conducted outright acquisitions).

But traditional banks with abundant capital like Bank Central Asia and Bank Mandiri have also extended their reach in the industry as they aim for millions of digitally savvy and credit-hungry users – exactly like my niece.

In this week’s Hot Take, meanwhile, my other colleague, Putra, looks at how the recent downturn in US insurtech startups has little bearing in emerging markets like Indonesia.

— Budi

THE BIG STORY

Image credit: Timmy Loen

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