Brankas Partners with 2C2P, Strengthens the “Open Banking” Platform in Indonesia

Safe, technology provider open finance, announced that it has entered into a strategic partnership with a 2C2P payment platform developer to launch a solution open banking in Indonesia. Through the integration of the two services, consumers from outlets that utilize 2C2P will be directly connected to various major banks in Indonesia, including BCA, Bank Mandiri, BNI, and BRI -- a total of 14 banks currently working with Brankas.

Based on principles open banking, this partnership helps businesses in Indonesia to offer the option of using debit cards directly by consumers. Thus, when consumers want to complete a payment, they can use their personal bank account. Because payments are authenticated directly between the consumer and the bank, outlets can avoid higher transaction fees, and reimbursement costs due to fraud or difficulty receiving funds.

"Brankas and 2C2P have a vision to simplify payment technology, and bring new digital experiences to stores and consumers in Southeast Asia. Together, we are accelerating this realization open banking, expand access, and help a new generation of business people in Southeast Asia," said Safe Founder & CEO Todd Schweitzer.

Potency open finance in Indonesia

In a separate interview the Safe team said, open finance Indonesia is currently experiencing explosive growth. One of the factors is the growth in spending online 30% per year -- the platform supports both payments and credit. As a result of the pandemic, millions of SME players have turned to online channels online expect easier solutions related to financial transactions starting from collection, disbursement, reconciliation, and credit.

On the other hand, many financial institutions are realizing the potential revenue and additional customers gained from API products. Safe as one of the players who play a role in optimizing this potential. They recently announced a partnership with Visa's digital product team through their participation in an accelerator program. In the near future, Safe will launch their first Visa API.

The Safe team is quite confident that its usage statistics will continue to grow. They show statistics, currently there are more than 50% of Indonesians who do not have a bank account, credit card penetration is still below 5%. Openfinance has the potential to fundamentally change the financial services business model. On the other hand, regulators have also begun to take proactive steps and include open finance into its roadmap for 2025.

"By partnering with fintech and managing APIs instead of branches, financial institutions can build products faster, reach customers they couldn't reach before (too expensive or too far away), and provide a better overall customer experience."

Services open finance in Indonesia

The existence of this potential makes the ecosystem open finance/banking in Indonesia continues to grow. At least in the last few years some players keep popping up. The latest to get funding is Brig and Finantier. On the other hand, banks also continue to be encouraged to be more open to digital innovation by give birth to API service accessible by third parties.

The open competition makes each player need to present a unique approach as a player value proposition-his. Brankas himself conveyed four points related to what made him different from his competitors.

First, they focus more on the "supply side" of open finance, namely helping financial institutions to become "API-ready". The solutions presented help banks to deliver commercial API products in 6 weeks or less. Second, Brankas seeks to help the government create an economy open finance which is competitive and well regulated, thus choosing to be actively involved and chair the relevant associations for consultation.

Third, the ongoing regional strategic partnership to bring new technologies and solutions to Indonesia; including with Visa, APIX, and Proxtera. And lastly, Brankas wants to always ensure that the API aggregation presented is always reliable in terms of performance and security.

Based on the information we have gathered, lastly, Brankas managed to book series A funding for its participation in the accelerator program Plug and Play batch first in Indonesia. Regarding the current fundraising, the Safeguard team only said, "Wait for some big fundraising info soon."

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