Japanese messaging giant Line Corporation will roll out a digital banking platform in Indonesia this month, says a TechCrunch report.
This follows a partnership signed in 2018 between Line and Bank KEB Hana Indonesia, a subsidiary of South Korea’s Hana ZBank.
Line had announced the acquisition of a 20 per cent stake in KEB Hana back then, and said it would work on online banking services, including deposit accounts, microcredit products and remittance and payment services.
Also Read: Grab, Sea and Ant Group amongst 4 selected for Singapore digital banking licenses
Line already offers digital banking services in Thailand and Taiwan, two of its largest overseas markets.
Indonesia presents massive opportunities for digital banking services companies as a huge chunk of its population still remains unbanked or underbanked. Conventional banking services are still beyond the reach of a big chunk of its people.
The digital banking industry has kicked off in the archipelago. As per a Momentum Works report, downloads of digital banking apps in the archipelago grew 7 per cent in 2020. Southeast Asia’s tech honchos like Sea, Grab and Gojek are working on their own neobank services.
In Southeast Asia, the concept of digital-only banking has been gaining momentum for the past two to three years. Singapore has already awarded two digital full bank (DFB) licenses to a consortium comprising Grab and national telco, Singtel and a wholly-owned entity by tech giant Sea.
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Image Credit: Line Indonesia
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