1. Startups

Bukalapak, Carro Grab, and Traveloka Support Allo Bank; The Trend of Digital Startups Going to Banks Continues

Some of these startups entered through a rights issue that was just announced by the company

After doing rebranding from Bank Harda last June 2021, Allo Bank experiencing positive growth. Various strategic actions continue to be intensified to accelerate its business, including establishing partnerships with CT Group, Salim Group, Bukalapak, Grab, Carro and Growtheum Capital Partners via rights issue which was just announced.

Bank Allo was acquired by CT Corp through its parent company in the field of financial services PT Mega Corpora in March 2021. Its mission will be to turn it into a digital banking application. In its initial phase, the Allo app will be connected to various merchant and services in the CT Corpora ecosystem. However, until now the application has not been officially launched to the public.

Bukalapak itself acquired the largest percentage of shares in this action, which is equivalent to 11,49%. Abadi Investment itself is an entity owned by the Salim Group. While H Holdings is indicated to be an affiliated investment arm Grab.

"For Bukalapak, through the Partner business and its connectivity with new verticals in the MSME market, this collaboration can expand its offerings and access credit for business actors in rural areas," said the Acting President Director of Bukalapak. Willix Halim.

Currently Bank Allo is a fully licensed bank that offers personal, business and joint account products. This additional fund increased Bank Allo's main capital to more than IDR 6 trillion and made Allo one of the digital banks with strong capital in Indonesia.

“We are excited to launch our loan service in Indonesia, where there are nearly 280 million people, but 50 percent of them are unbanked and 15 percent are underbanked with limited access to loan, investment and insurance products. Bank Allo hopes to provide easy access to financial products for all levels of Indonesian society through a brand they know and trust," said Bank Allo Commissioner Ali Gunawan.

Traveloka is also included as a strategic partner

This partnership between a number of companies is also seen by Managing Partner of Growtheum Capital Partners Amit Kunal as a key driver to have a positive impact on the business and individual needs of Indonesian society.

Complementary partnerships between trusted companies such as CT Corp and Salim Group with leading technology players such as Bukalapak, Carro, Grab, and Traveloka will provide Allo access to consumers and merchants from all relevant categories viz retail, commerce, ride hailing, delivery, travel, and auto.

"We are enthusiastic to work with management and shareholders to create credit products according to the needs of the Indonesian people and help develop sustainable businesses across economic cycles and generations," said Amit.

The Country Managing Director also expressed the same thing Grab Indonesia Neneng Goenadi. According to him, an open ecosystem approach can accelerate the digitalization of the financial industry and encourage financial inclusion throughout Indonesia. "This partnership will benefit the people of Indonesia, including business people and small businesses by helping them grow together in line with the development of the digital economy.

Meanwhile, Traveloka Co-Founder & CEO Ferry Unardi shared their goals in this collaboration. “I am excited to welcome Allo to Traveloka. As super app lifestyleWe are an independent platform with various credit providers in Indonesia and we will work closely with Allo to tailor these loan products to the lifestyle needs and aspirations of our users."

As a platform, Carro claims that so far it has always tried to innovate and create products according to the needs of partners and consumers. This partnership is seen as a continuation of Carro's journey in providing experiences digitalfirst strong and use big data to provide benefits to consumers.

"This partnership will give us access to exciting digital banking products to meet the needs of our partners and consumers in Indonesia," said Carro Co-founder & CEO Aaron Tan.

Digital bank and tech startup support

Startup or technology company support for the realization of digital banks continues to roll in Indonesia. Draft open ecosystem become one of its characteristics, in order to enable the financial services carried by the bank to be integrated and become a support system on the related technology platform.

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This strategy is also considered to be the best way to reach a large customer base. By being integrated into certain consumer applications, these banks have the potential to attract more adopters -- especially the process on-boarding It's also fully digital. This began to be seen with the event of embedding the bank registration process into certain digital applications.

 

Name BankStrategic Partner (Technology Company)
Hello BankBukalapak, Grab, Traveloka, Carro
UpbanxFazz Financial Ecosystem
Jakarta Service BankWeLab
Sampoerna BankCoinworks
Jago BankGoTo Ecosystem, Seeds
Artha Earth BankWonderful
Hijra BankExperience
Neo CommerceAkulaku
Economic Welfare BankSea Group Ecosystem
Hana BankLINE
Business BankKredivo

Investments in digital banks by technology platforms also have strong reasons, because financial platforms will become an important foundation in their business processes. In the initial trend, all of that is still quite accommodated with the service e-moneyHowever, due to the potential for greater money circulation, direct integration with the banking system is considered more promising.

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