Indonesia’s digital bank battleground in 6 charts

While young digital banks in Singapore are in the throes of profit-seeking, a majority of Indonesia’s digital banks are already gainful.

Many of the country’s digital banks were traditional players that had been around for decades, until they were recently acquired by large tech companies and given a facelift.

In 2024, net profit before tax – a measure of operating performance – was positive for all of the digital banks we compared in Indonesia, except for Superbank.

In its annual report, the bank said its net losses were in line with “previously established business plans” and were due to new products and services it launched last year.

SeaBank led the pack in net interest income, which measures the difference between the interest a bank makes from loan products and what it pays depositors on interest. This bank attributed its higher profits – compared to 2023 – to loan growth and higher fee income.

See also: Singapore’s digital banking battle in 8 charts

At US$355 million, SeaBank’s total income was roughly a third of the combined figure for all the other players we compared.

That said, it was Bukalapak-backed Allo Bank that came out on top in net profits before tax, while Bank Neo Commerce saw the biggest surge in net profits before tax in 2024.

SeaBank takes the lead

SeaBank was also number one in deposits, followed by Bank Jago.

The Sea-owned digital bank has consistently offered some of the highest interest rates on savings in Indonesia, notes David Jimenez Maireles, who advises fintech firms and banks at market research firm D19 Advisory.

It also offers features like daily – instead of monthly – interest payouts even on small balances and free interbank transfers. The platform also doesn’t require a minimum balance from users.

Key to its leading position is also its deeply embedded services within Shopee’s ecosystem. For instance, a Shopee user can open a SeaBank account directly through the ecommerce app and pay for their purchases directly from the bank account.

Tamma Febrian, director at Fitch Ratings’ financial institutions team, notes that this reduces customer acquisition costs. It also allows for cross-selling of loans, while still attracting deposits at a relatively cheaper cost than many other digital banks, he adds.

That said, there’s also potential for other newer players to do the same. Grab customers, for example, can open Superbank savings accounts directly on the Grab app as of mid-2024, and the bank can then cross-sell loans to Grab users.

See also: Amid losses and market decline, can Superbank justify an IPO?

Loan books creep up

Targeting efficiency

Credits