Indonesia’s banks, backed by the region’s tech-savvy startups and major investors, are gearing up to transform the financial landscape of the severely underbanked nation, as they combine reach and financial heft. In the process, many of the country’s young fintechs may be forced to take the new competition head-on.
In February, Singapore’s sovereign wealth fund GIC said it will join Indonesian lender Bank Jago’s roster of investors, pumping in Rp3.15 trillion ($222 million) for a 9.67-10.23% stake. Bank Jago’s roughly $2 billion valuation in the deal can be seen as an endorsement of its ongoing evolution into a full-fledged digital lender.
