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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