Shares of PT Allo Bank Indonesia, which recently announced a new roster of investors, has more than doubled to 7,300 rupiah apiece in value on the Indonesian Stock Exchange since Dec 30, it was closed at 3,957.82 rupiah.
Earlier this month, Allo announced that CT Corp, e-commerce marketplace Bukalapak, consumer conglomerate Salim Group, ride-hailing giant Grab, and used car marketplace Carro are set to subscribe in its upcoming rights issue as the company carves out its expansion plans for the years to come.
Joining the top ranks of the country’s digital banking ecosystem, Allo has now set its sights on profitability, with the launch of its banking mobile application in March.
Through its pilot project, the lender has so far touched some 43,000 users. Going forward, it is targeting to cater to a million users within the first week of its commercial launch and 10 million in a year.
Chairul Tanjung, CEO at CT Corp, the parent company of Allo Bank’s controlling shareholder PT Mega Corpora, told reporters in Indonesia on Tuesday that the investors who have joined the bank’s cap table recently have agreed to lock up their shares for three years.
Tanjung also said that Allo Bank is set to overhaul its management team. “The current management is temporary because we need solid, strong management. We will combine talents in Indonesia and abroad,” he said.
There are several digital banks already operating in Indonesia, each with its own affiliations and ecosystem. Tech giant GoTo has a stake in Bank Jago, while Alibaba-backed fintech Akulaku owns Bank Neo Commerce and Sea has Seabank.
Most digital banks in the archipelago, however, reported losses in the first nine months of 2021 as they spend vigorously on customer acquisitions.
“The key to success for a digital bank is its ecosystem,” Tanjung said.
He noted that CT Corp has the Transmart retail network, Metro department store, high-end fashion brands, food and beverages brands, and also digital media with over 100 million unique visitors in total.
Allo Bank itself is part of bank business group Mega Corpora with Bank Mega as its lead bank, meaning the banks will collaborate closely for connectivity and things related to the money market and treasury.
Not only that, the lender is set to connect financial transactions to all parts of the ecosystem brought by its investors. While the features will be rolled out one by one based on priority, Tanjung said Allo Bank’s users can enjoy seamless online and offline shopping at CT Corp’s Trans Mart as well as opening a bank account through the company’s digital media in time.
“The ecosystem will be opened. We are still accepting more ecosystems to join us. They’re highly welcomed. Instead of exclusivity, we want collaboration with all to create a national ecosystem that would help the economy,” Tanjung said.
With the current ecosystem, Allo Bank users may benefit from Salim Group’s over 18,000 retailer Indomaret units across the country and Trans Retail groceries units under the Transmart brands.
CT Corp also controls the retail franchises of luxury brands such as Aigner, Boss, Furla, and Salvatore Ferragamo.
Similarly, Bukalapak President Teddy Oetomo ]recently mentioned that the e-commerce marketplace wants to collaborate with multiple partners and is “adopting an open ecosystem approach.”
Sucor Sekuritas Analyst Paulus Jimmy told DealStreetAsia that while Bukalapak is widely known to cooperate with media and tech conglomerate Elang Mahkota Teknologi and ride-hailing Grab, having Salim Group will be interesting for the e-commerce firm for additional products and better distribution channel.