Shinhan Bank announced on March 14 that Shinhan Bank Indonesia has signed a strategic business agreement with Indonesian electronic payment company Indodana (PT Artha Dana Teknologi Indodana) to expand its digital platform-based lending market.
Indodana is a digital payment solutions provider that has received business approval from the Indonesian financial authorities. It offers services such as post-purchase small loans for Buy Now Pay Later (BNPL) payments and installment financing services. It boasts about 830,000 active customers in the Indonesian E-commerce market.
The loan product launched in collaboration with Indodana by Shinhan Bank Indonesia is based on Indodana’s digital platform. When customers using the payment service on the Indodana platform apply for a loan, an initial credit limit assessment is conducted on that platform, followed by a secondary assessment by Shinhan Bank Indonesia before the loan is issued. Shinhan Bank expects that the collaboration with Indodana will further expand its retail customer base in Indonesia. The loan product is scheduled to be launched in April.
Meanwhile, Shinhan Bank Indonesia was established in 2016 and currently operates 35 branches. It is particularly noted for its rapid localization success, having achieved more than a fivefold asset growth since its establishment, reaching 1.54 billion dollars in assets last year.