Shinhan Bank Indonesia announced on March 14th that it has signed a strategic business agreement with the Indonesian e-payment company PT Artha Dana Teknologi Indodana (Indodana) to expand its digital platform lending market base.
Indodana is a digital payment solution company licensed by the Indonesian financial authorities to provide Buy Now Pay Later (BNPL) services and installment financing services through microloans after purchasing goods. Indodana has approximately 830,000 active customers in the Indonesian e-commerce market.
The loan Shinhan Bank Indonesia is launching with Indodana is a product based on Indodana's digital platform. When a customer who uses payment services on Indodana's platform applies for a loan, the loan will be initially underwritten by the platform and secondarily by Shinhan Bank Indonesia. Through the collaboration with Indodana, Shinhan Bank expects to further expand its retail customer base in Indonesia.
"After Kredivo, a leading company in the growing pre-purchase and post-payment market in Southeast Asia, it is significant to collaborate with Indodana to enhance the financial convenience of our customers," said Koo Hyung-ho, Head of Shinhan Bank Indonesia. "We will continue to expand our retail business by partnering with various platforms."
Meanwhile, Shinhan Bank Indonesia was established in 2016 and currently operates 35 branches. In particular, it has been praised for its rapid localization success, achieving assets of USD 1.54 billion last year, more than five times the growth in assets since its establishment.
