Get Hana Bank, LINE Bank Officially Present in Indonesia

KEB Hana Bank Indonesia (Hana Bank) and LINE Corporation officially launched LINE Bank by Hana Bank (LINE Bank) in Indonesia yesterday (10/6) which was marked by the launch of an application for the public. Indonesia is LINE Bank's third market, following Thailand (LINE BK) and Taiwan (LINE Bank).

The cooperation between the two companies began in October 2018, when LINE Financial Asia acquired a 20% stake in Hana Bank through an equity participation agreement. This was the beginning of the formation of the first foreign digital banking service, between banks and technology companies.

"LINEBank present in the Indonesian financial industry to provide digital banking services that are convenient and easy to use. [..] LINE Bank will provide various financial products and services fintech which is tailored to the needs and interests of our customers," said Bank Hana President Director Jong Jin Park in an official statement, Friday (11/6).

LINE Financial Asia COO Young Eun Kim, added, "We will do our best through the cooperation of LINE and Hana Bank, so that Indonesian people can use LINE Bank and enjoy more convenient financial services."

LINE Bank will provide financial services to a wider customer segment, including Generation Z, who make up the majority of LINE users. The entire process of registering a new Hana Bank customer who opens a LINE Bank account is done through the application, a debit card will be sent after the process is complete.

LINE Bank focuses on providing retail banking services, including deposits, savings and transfers. For savings, LINE Bank offers free transfer fees, cash withdrawals, and monthly admin fees. The balance can be used to pay electricity and credit bills at this time.

All LINE Bank transaction notifications are connected to the LINE Messenger application. Meanwhile, for deposit products, LINE Bank offers savings starting from IDR 1 million with competitive yields.

In Thailand, for example, LINE collaborated with Kasikornbank (KBank) to offer special rate account openings with interest rates up to 1,5% per year and debit card applications. This whole process is done in the LINE app so users don't have to switch apps or remember account numbers.

In addition, the Credit LINE personal loan product which can be applied at any time, the approval process is faster so that the funds needed can be immediately disbursed. In the future, LINE BK will offer a wider variety of financial solutions, such as insurance products and financial investments.

It is claimed that LINE BK is able to reach more than 2 million users in February 2021, four months after it was first operated. As many as 50 thousand new savings accounts are opened every day and the number of transactions has exceeded 21 billion Bath (around 9,8 trillion Rupiah).

After Indonesia, Thailand, and Taiwan, LINE Bank's next step is to enter Japan, as one of the largest LINE user base countries.

More and more banks are offering fully digital services to attract new customers digitally savvy and mass market. The ability to mix financial products that are in line with target consumers is an effective recipe.

OJK reports there are seven banks that are in the process of licensing to become digital banks. The seven banks are Bank BCA Digital, BRI Agro, Bank Neo Commerce, Bank Capita, Bank Harda Internasional, Bank QNB Indonesia, and Bank Hana.

In addition, there are already five banks that have established themselves as digital banks. They are Bank BTPN, Wokee from Bank KB Bukopin, Digibank belonging to DBS Bank, TMRW from Bank UOB, and Jago belongs to Bank Jago.