Indonesia lending and insurance industry outlook online at

Gurugram, India, September 27, 2021 (GLOBE NEWSWIRE) – While the Indonesian government has taken initiatives for reasons of industrial digitization, education and trade, the country still lags behind other emerging countries in terms of digital adoption. Indonesia is considered one of the largest economies in Southeast Asia, where over 60% of the population is unbanked. This proportion of the population is often looking for alternative digital financing options. However, part of the population continues to depend on traditional sources of finance (banks and informal channels like friends, family, informal lenders, etc.) for various reasons such as limited financial knowledge, inadequate collateral, a lack of confidence in alternative sources etc

Therefore, common ground with traditional and alternative financing solutions has been established with the introduction of online aggregators (commonly referred to as marketplaces). These are price comparison websites that make it easy to compare multiple credit / insurance options from different providers. Backed by a team of trained financial advisors and telemarketers, they provide assistance by suggesting appropriate loan / insurance options to clients based on their needs and meeting eligibility criteria. All of these services are provided free of charge to clients.

So, one might ask, where do aggregators make money from? With partnerships established with several banks and insurance companies, online aggregators operate on a commission / fee based system in which the commission rate is decided based on product complexity, regulations and business conditions. ‘OK. CekAja, one of the industry pioneers, introduced the concept of online aggregation in 2013. The company began by comparing loan and insurance products, then expanded to investment products for term deposits, unit-linked deposits, mutual funds, etc. On CekAja’s model, companies such as Aturduit, KreditGogo, Cermati, Futuready and CekPremi have entered the Indonesian market.

According to the Ken Research publication, Indonesia’s online loan and insurance aggregator market has grown over 15% annually. The industry is concentrated among the top 5 players contributing over 90% of industry revenue. In order to stand out from their peers, aggregators have invested heavily in technology, partnership building and product development. Relying on an in-house technology development team, Aggregators work with credit rating companies to perform credit rating and credit checks for unbanked customers. A credit score for these people is established after analyzing several factors, including purchasing habits, history of bill payments, consumption habits, etc. Such models help provide credit opportunities to the unbanked population, which would not have been possible otherwise.

Changing lifestyle and spending habits have led to increased traction of microinsurance products with a small premium and limited coverage scope. Sold at affordable prices as low as IDR 10,000, they have been a hit in Indonesia, with OJK registering 22 million policyholders in June 2019 with expansion expected. This has encouraged major insurers to embark on the development of other low-premium niche insurance products, such as digital device insurance, travel insurance, etc.

The COVID 19 pandemic has created a paradigm shift in consumer behavior with nearly 8 in 10 people now preferring online services. As people suffer from pay cuts, layoffs, and small business closings, there has been an increase in demand for short term loans and credit cards. The increase in the number of applications would have created a high growth opportunity in the industry. However, given the uncertain circumstances and the fear of NP loans, banks and aggregators have been very cautious in extending credit to new customers. But in the long run, the pandemic will act as an inflection point in demand for online aggregators and can be expected to be permanent.

Online aggregation services are considered to be a highly scalable business, which makes it possible to expand operations to other socio-demographically similar Southeast Asian countries (Philippines, Singapore, Malaysia) may be the first path to diversification. Second, customers prefer existing providers over trying new ones (especially for financial products), which creates a high potential for cross-selling for other services. Taking advantage of the established client database and advisory services, aggregators should strive to extend platform services to peer-to-peer lending and wealth management.

Covered companies:

  • Cermati
  • CekAja
  • CekPremi
  • To come up
  • Aturduit
  • KreditGogo
  • GoBear
  • Searcher

Period captured in the report: –

  • Historic period: 2015-2019
  • Forecast period: 2020-2024

Key topics covered in the report: –

  • Socio-demographic, economic, banking and fintech scenario in Indonesia
  • Insurance scenario in Indonesia with segmentation by insurance type including auto insurance, health insurance and life insurance
  • A lending scenario in Indonesia with segmentation by loan to government, private (individuals, NBFI, NFI) and others
  • Household / retail lending scenario with segmentation by general purpose loans, mortgages, credit cards, auto loans, MSME loans, home appliance loans and others
  • Gaps in the traditional lending sector filled by online loan aggregators
  • Indonesia Online Loan Aggregator Industry with Tracked Revenue Models
  • End-to-end customer journey followed
  • Technological and organizational structure followed
  • Regulatory landscape
  • Competitive landscape including overview, ecosystem and cross comparison between major players based on operational, loan / insurance characteristics, product portfolio and website functionality
  • Company Profiles – Cermati, CekAja, CekPremi, Aturduit, Futuready and KreditGogo
  • International Case Studies – PaisaBazaar & PolicyBazaar (India)
  • Future prospects for loans and insurance and online aggregators
  • Impact of COVID 19

For more information on the research report, see the link below:
Indonesia Online Loan and Insurance Industry Outlook to 2024: Driving Incumbents to Continue Growth Through Product Development and International Expansion

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