Bank Jago is Ready for Business Expansion in 2022, Continue Integration with Gojek

Following its strategic partnership with Gojek, PT Bank Jago Tbk (IDX: ARTO) will continue the integration of its second service ecosystem in 2022. A number of use case have been prepared, such as the GoPay and Jago e-KYC process to transaction payments merchant from Kantong Jago via GoPay.

As stated by the President Director of Bank Jago Karim Siregar, currently his party is preparing to launch GoPay integration as one of the Pockets in the Jago application. GoPay Pocket is estimated to be coming soon.

Karim was reluctant to elaborate on his integration plan with Gojek post-merger with Tokopedia (GoTo). Even so, he ensured that he would continue to develop the Jago application so that it could serve the retail, MSME, and consumer segments mass market.

"This year we focus on strengthening the product and user foundation. The current number of Bank Jago users close to 700 thousand," he said during Bank Jago's business presentation, Thursday (28/10). The Bank Jago application has been downloaded more than 1 million on Android devices.

As it is known, Gojek Group through GoPay (PT Dompet Anak Karya Bangsa) annexed 22% stake in Bank Jago. After the GoTo merger action, Bank Jago is currently exploring its synergy more broadly because it enters a large ecosystem of proprietary services Gojek and Tokopedia.

Digital Sharia and financing partnership

In other plans, Bank Jago also targets digital sharia services to be available in the Jago application in the first quarter of 2022. Currently, the Sharia Business Unit is operational, just waiting for the realization of digital services. It is waiting for permission from the Financial Services Authority (OJK).

"Sharia and conventional [financial] services are always identified differently, when in fact they are not. Moreover, there is no sharia financial service that has been fully digital in Indonesia," he added.

Jago Syariah will offer digital financial solutions that focus on the lives of customers (life centric) by optimizing the latest technology, equivalent to conventional Jago applications.

Referring data Financial Fervices Authority (OJK), the market share of Islamic banks was only 6,33% as of October 2020. The increase was not too significant compared to the market share in 2017 which was only 5%.

Furthermore, Bank Jago also plans to strengthen the digital ecosystem by encouraging service partnerships, especially for financing (lending). In total, Bank Jago has collaborated with 19 partners from various verticals, ranging from e-commerce, lendingand investment.

Currently, all Bank Jago financing is still channeled through the loan channeling with third parties, either through financial services companies or P2P platforms lending.

"Banks are based on interest income, so we should not focus on transactional [products], but also on credit or financing," he said.

Based on the third quarter 2021 financial report, Bank Jago has disbursed Rp3.727 trillion, an increase of 502% from the same period last year which amounted to Rp619 billion. Most of these loans are disbursed through schemes loan channeling

In a previous interview, Karim had revealed that he would target MSMEs as the target market for financing. In 2020, the number of MSME actors in Indonesia is estimated to reach more than 65 million, which are recorded as contributing more than 50% to Indonesia's GDP, and absorbing 97% of the active work budget in Indonesia.