The people leading Indonesian fintech unicorn Akulaku

IN FOCUS

In today’s newsletter, we look at:

• The decision-makers at Indonesia-based fintech firm Akulaku
• GXBank’s foray into microinsurance
• The players in Singapore’s crowded fintech space

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Hi there,

I’m probably in the minority for never having tapped on a buy now, pay later (BNPL) service, although I did choose to pay in installments for my iPhone and iPad.

Despite the headwinds in recent years, it is possible to run a profitable BNPL business – Atome Financial’s operating income rose to US$170 million in 2023.

While its largest user base is in Indonesia, the company expressed excitement about Malaysia and the Philippines, where it said there is “much less competition.”

One of Atome’s biggest competitors in Indonesia is Ant Group-backed Akulaku, though it has faced its fair share of challenges.

In this week’s Big Story, my colleague Budi maps out the decision-makers at Akulaku and notes that its BNPL offerings were found by Indonesia’s financial services authority (OJK) to have violated supervisory obligations.

The fintech unicorn, which was seeking a US listing in 2022 via a SPAC merger that would value the combined entity at US$2 billion, was prohibited from offering BNPL services from October 2023. But these restrictions were lifted in March this year.

Meanwhile, the share price of Bank Neo Commerce (BNC) – Akulaku’s affiliated digital bank, in which it owns a 27% stake – is down 90% from its peak in late 2021.

The responsibility of turning things around now falls on Eri Budiono, who was appointed CEO of BNC last week.

On the topic of digital banks, in this week’s Hot Take, we take a closer look at the Malaysia-based digibank GXBank – a subsidiary of GXS Bank in Singapore – which announced a partnership with Zurich Malaysia.

Together, both firms aim to provide microinsurance products to underserved Malaysians. Why launch a microinsurane product in Malaysia? Read on to find out.

— Simon

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THE BIG STORY

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THE HOT TAKE

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NEWS YOU SHOULD KNOW

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FYI

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