- For Kredivo, the additional limit will support the company in opening credit access for tens of millions of potential users in the next few years
- For Bank DBS Indonesia, this strategic partnership will accelerate lending in the retail sector, while at the same time strengthening the growth of the company’s loan portfolio
- The continued joint financing collaboration between the bank and the fintech player is backed by the growth of Paylater users that reached 38% in the last one year, showing the promising growth potential of digital credit penetration in Indonesia
Jakarta, July 20, 2022 – Kredivo, the leading digital credit platform for retail consumers in Indonesia, and PT Bank DBS Indonesia have increased their joint financing limit to 2 trillion IDR (USD 133.5 million). The increase in the joint financing limit underlines the long-term commitment of both parties to provide inclusive credit access for all Indonesians.
Digital credit industry players, including Paylater, continue to show positive growth trends. The 2022 Indonesian E-commerce Consumer Behavior Report by Kredivo and Katadata Insight Center shows that Paylater has skyrocketed in terms of usage, with 38% of consumers using Paylater when shopping at e-commerce in the past year, an increase from 28% in the previous year. In addition, there is an increase in the share of consumers who use Paylater more than once a month from 23% to 27% this year. This is a good sign as Paylater is foreseen to become a catalyst for a more inclusive digital economy in Indonesia.
Rudy Tandjung, Consumer Banking Director at Bank DBS Indonesia, said, “Along with market developments, Bank DBS Indonesia is also committed to play an active role in supporting the growth of financial access and inclusivity of credit distribution in Indonesia through a joint financing partnership with Kredivo. In the last two years, we have seen a significant impact in accelerating financial access in the retail sector through Kredivo and it has become a strong foundation for Bank DBS Indonesia to increase the joint financing limit to 2 trillion IDR. Furthermore, considering that both parties shared the same vision to provide innovative financial access through technology, we see many strategic opportunities to strengthen our collaboration with Kredivo, which is in line with Bank Indonesia’s SPI 2025 blueprint for the development of open banking through interlinks between digibank by DBS and fintech via the Open API Standards.”
Meanwhile, Umang Rustagi, CEO of Kredivo Indonesia, said, “We are thankful for our continued partnership with Bank DBS Indonesia, one of the leading banks in the world. This additional joint financing facility is a validation of the potential of the fintech industry in opening up access to digital credit that is fast, easy, and affordable. This partnership also allows us to continue to provide top-notch credit services to our more than five million users, which will continue to grow to tens of millions of users in the next few years. Through solid collaboration with banks such as Bank DBS Indonesia, we are optimistic that in the future, access to digital financial services in Indonesia will be more inclusive and can be beneficial to various levels of society.”
Since the two companies started the collaboration in 2020, Bank DBS Indonesia and Kredivo have successively added its joint financing limit, which proves the optimism of the world-class bank towards the strategic role of fintech in accelerating retail lending. In 2021, Bank DBS Indonesia and Kredivo increased the limit to 1 trillion IDR, after having 500 IDR billion for the first time in 2020.
DBS is Asia’s leading financial services group, with a presence in 18 markets, headquartered and registered in Singapore. DBS is in Asia’s three main growth axes: China, Southeast Asia, and South Asia. The group’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Kredivo is Indonesia’s leading digital credit platform that provides instant credit financing to customers for e-commerce and offline purchases, as well as cash loans, based on real-time decision making. Kredivo users can buy now and pay later with one of the lowest interest rates among digital credit providers in Indonesia. Kredivo’s trading partners benefit from instant point-of-sale financing, backed by unique 2-click payments. Kredivo is operated by FinAccel, a fintech company headquartered in Singapore with a mission to provide fast, affordable, and accessible financial services. FinAccel is supported by leading investors such as Victory Park Capital, Mirae Asset, Naver, Square Peg Capital, Telkom Indonesia, and Jungle Ventures. Kredivo is overseen by the OJK’s multifinance division in Indonesia. To learn more about FinAccel and Kredivo, visit www.finaccel.co and www.kredivo.com.