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Fintechs Gain Ground on Traditional Banks in Indonesia
Jakarta, Indonesia - A new study has revealed that fintech players are narrowing the gap with traditional banks in terms of overall usage among consumers in Indonesia. According to the research, fintechs have gained a slight edge over banks in providing financial incentives, such as promotions and discounts, as well as access to additional financial products through cross-selling and value-added services.
Key Findings
- Fintechs have gained a slight edge over traditional banks in terms of overall usage among consumers in Indonesia.
- Fintechs are outperforming traditional banks in providing financial incentives, such as promotions and discounts, as well as access to additional financial products through cross-selling and value-added services.
- The user interface and user experience gap between fintechs and banks is narrowing, with fintechs still leading in customer experience metrics.
- Fintech companies must adopt a more innovative approach to user-friendly delivery while reducing their reliance on incentives and product promotions.
- Consumers have three key aspirations: assurance on security, one-stop-shop, and attractive financial incentives.
Future Growth Imperatives
To drive greater adoption, fintech companies must prioritize platform safety and security, offer a comprehensive range of financial services, and strike a balance between being attractive through incentives and maintaining sustainable unit economics. The study concludes that investing in platform safety and security is crucial to instill confidence in consumers and alleviate any apprehensions they may have regarding the trustworthiness of financial service providers.
Fintech Payments
The research also found that fintechs are closing the gap with traditional banks in terms of volume and frequency of payments processed among consumers. E-wallet players continue to capture the highest usage for fintech payments, owing to widespread acceptance of these payment formats among merchants.
Lending Products
In Indonesia, the market penetration of loan products remains low, with traditional lenders remaining the preferred channel for most customers. However, the emergence of buy-now-pay-later (BNPL) has increased the reach of lending products in the country, with fintech products dominating the BNPL space.
Access the Full Study
The full study can be accessed at [Research Firm’s website].