Indonesia Fintech: E-Money, P2P Lending The Hotspots #Fitch_SolutionsMarch 11, 2019
The e-money and payments segment continues to show strong growth, and consolidation within the sector is positive to improve services and ease competitive pressures.
Cryptocurrencies show little potential for growth as the regulator remains apprehensive towards crypto-based assets.
Indonesia’s low financial inclusion makes it an attractive market for fintech companies, which have found traction from providing mobile-centric financial services.
The development of new use-cases for payment services has contributed to consumer uptake, while P2P microfinancing, with inherent lower borrowing costs and less stringent requirements, have increasingly appealed to both low and middle-income borrowers.
We believe that two independent players and one operator-led service currently lead the market: Go-Pay, OVO and TCash.
The service aggregates the e-payment subscribers of Bank Mandiri (e-cash), Bank BNI (UnikQu), Bank BRI (TBank) and Telkom (T-Money and T-Cash), into a single payment app, which can be utilised for mobile prepaid top-ups, point-of-sale (POS) payments online and offline, utility bill payments, public transportation payments and for money remittance.
Loans as little as IDR100,000 (USD7.07) are dispersed to borrowers with varying interest rates, while lenders are given high interest rates for their deposits.
Indonesia P2P Lending Statistics
Source: OJK, Fitch Solutions
FSG is an affiliate of Fitch Ratings Inc. (‘Fitch Ratings’).