GIC-backed Bank Jago races to upend mobile banking in Indonesia

JAKARTA (BLOOMBERG) - Bank Jago will begin offering some banking services via mobile app this month before extending full-fledged products including loans, securing early-mover advantage in Indonesia's booming digital banking industry. The lender, which received fresh capital from ride-hailing and payments giant Gojek and Singapore sovereign wealth fund GIC, will then embed its services on Gojek's platform this year, president director Kharim Siregar and commissioner Anika Faisal said in a joint interview from Jakarta. That would let Gojek's tens of millions of users instantly open a bank account with Jago and manage their finances via the Gojek app. "We really foresee the change in the lifestyle through the phones," Mr Siregar said. Digital banking "needs to be easy, fast and secure. Whoever can do this well will come out as leaders. We want to be in that leadership position." Bank Jago went from obscurity to Indonesia's fourth most-valuable listed bank in recent months. Gojek and GIC's investment has swelled optimism that a small bank with total assets of just US$116.2 million (S$155.4 million) in September could become the first technology-based lender catering to the masses. It...

Read More

Sea acquires Indonesian bank to gain fintech foothold

SINGAPORE (BLOOMBERG) - Singapore's Sea Ltd, the tech start-up that's become South-east Asia's most valuable company, has acquired Indonesia's Bank Kesejahteraan Ekonomi, according to people familiar with the matter. Sea has gained full control of the Jakarta-based lender, better known as Bank BKE, after buying stakes from existing shareholders Danadipa Artha Indonesia and Koin Investama Nusantara through its subsidiary Turbo Cash Hong Kong, said the people who asked not to be named as the matter is private. The move accelerates the company's ambition to establish itself as a leader in financial technology and services across its region, much as it has done with mobile gaming and online shopping. Sea raised almost US$3 billion (S$3.98 billion) in a stock offering last month, saying it intends to spend the proceeds on business expansion. Representatives of Sea and Bank BKE declined to comment. Bank BKE began operations in 1992 with the primary goal of supporting the welfare of civil servants, according to its website. South-east Asia's biggest internet companies are all vying for a share of a growing digital banking arena. Sea secured a licence to open a digital bank in Singapore in...