Indonesia Fintech: Looking back into The Future

1. Fast-growing Indonesian eWallets and digital payments space seeing massive supply-side activity

Published on: Aug 2019

Summary takeaways 

• Continued rapid growth (70-80% CAGR) in Indonesia e-wallets space is attracting the attention of major global players even as local players expand into new segments
• Given the expected intense competition, the market may be heading for consolidation

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2. Indonesian P2P lenders have driven high satisfaction in SMEs users in smaller cities- owing to fast and collateral-free disbursement

Summary takeaways

• Research with SMEs outside Jakarta indicates the strong positive impact of P2P lenders
• While there are concerns with the high rate of interest, in general, SMEs report high satisfaction with collateral-free loans that are quickly disbursed

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3. Satisfaction varies for P2P lenders; KreditPintar has high satisfaction and together with Modalku, also has the highest customer awareness in smaller Indonesian markets

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4. Indonesia’s international inbound remittance market has traditionally been highly informal and dominated by large banks and money transfer operators

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5. With growing digitization, the structure of Indonesia’s international inbound remittance market is changing- attracting many new players