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Hong Kong’s WeLab to Launch Indonesian Digital Bank

Indonesia has about “180 million tech-savvy younger consumers” and is one of the largest financially underserved markets in Asia


WeLab founder Simon Loong. Photo: WeLab

 

WeLab, a Hong Kong-based fintech platform, said it would buy a commercial lender in Indonesia with a view to launching its second digital bank in Asia.

The company said the $240 million investment in Bank Jasa Jakarta (BJJ) would be used to acquire controlling stakes from its existing shareholders.

WeLab said Indonesia has about “180 million tech-savvy younger consumers” and is one of the largest financially underserved markets in Asia.

“It is estimated that 77% of its population are either unbanked or underbanked,” WeLab said.

WeLab plans to launch this second digital bank in Asia – after WeLab Bank in Hong Kong – in the second half of 2022.

BJJ has earned an excellent reputation for being a trusted retail bank,” WeLab founder Simon Loong said.

WeLab already has a presence in Southeast Asia since 2018 through a joint venture with Astra International to operate a licensed online lending app, Maucash, which already has more than three million Indonesian users.

WeLab said it already had a 24% stake in BJJ. “The remaining stake for majority control will be completed upon obtaining the relevant regulatory approvals, including from the Financial Services Authority of Indonesia,” a statement said.

“We are confident that BJJ can further improve our customers’ financial well-being with advanced banking technology,” Handrie Wirawan, president director of BJJ, said in a statement.

JP Morgan is acting as financial adviser to WeLab.

 

  • George Russell

 


 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.