The publication titled ‘Indonesia Online Loan Aggregator Industry Outlook to 2024-Compelling Incumbents to pursue growth via Product Development & International Expansion’ undertakes an analysis of Indonesia’s socio-demographic, economic, banking & fintech outlook; overall lending & insurance scenario; gaps in traditional distribution models filled by an aggregator (financial marketplaces); unique operating models in the sector, organizational structure of major players and future outlook &trends expected to drive the Industry.
Among other Southeast Asian countries, Indonesia holds high economic growth potential with >60% of the population belonging to the working population, majorly concentrated in urban areas of Jakarta, Surabaya, Medan, Bandung, Bekasi. As of 2019, the service sector was a major contributor (43.4%) to the country’s GDP with primarily driven by MSMEs. However, with decreasing prices & increasing population, household consumption has been rising (8.4% for 2018-19) thereby increasing demand for household/retail credit in the country.
Given Indonesia’s topography, people have limited access to banking branches therefore the majority of the population is still unbanked. Unbanked population relies on alternative lending methods, leading to the popularity of P2P Lending, Online Loan Facilitators, etc.
Low Insurance Penetration Rate despite Sufficient Infrastructure:
With 150+ registered insurers, Indonesia lags behind other Asian countries in terms of insurance penetration rate (2.8% against the global average rate of 6.1%). Insurance in Indonesia is usually purchased only out of regulatory requirements & those purchasing it out of need usually opt for packages providing extra benefits such as Repair Coverages, Covering for the Cost of Prescription Drugs etc. Out of the multiple insurance types provided in the country, life Insurance was observed to be leading with a market share of >40% primarily gaining traction from “Corporate Benefits & “Investment-Linked Products.
Household Credit growing at Y-o-Y Growth rate of >5%
Household Credit in Indonesia comprises of Auto loans, Credit cards, Mortgage loans, Multipurpose loans, MSME loans, Home Appliance loans & Other loans with the highest demand arising from loans to MSMEs with share of ~40%. However, real demand with ~75% of MSMEs still lack credit accessibility owing to factors such as limited financial awareness, insufficient collateral, lack of required reporting documents, etc. With upcoming fintech lending options like P2P Lending, digital lending, crowdfunding etc. demand & supply of retail loans in Indonesia are expected to further increase in the coming 5 years.
Increased Adoption of Digital Services-Online Loan & Insurance Aggregators
Online Aggregators operate on supplying leads to banks & finance companies and providing comparison across multiple loan& insurance options on the basis of parameters such as interest rates, fees/charges, additional benefits provided, etc. thereby streamlining decision making process for customers. Factors such as high internet penetration rate, new affordable product development-microloans, microinsurance, awareness among customers for understanding before buying are some of the driving factors behind their increased traction.
Highly Concentrated Competitive Landscape
The competitive landscape in Indonesia Online Aggregator The industry is observed to be highly concentrated with ~90% of market share occupied by top players including Cermati, CekAja, CekPremi, Futuready, Aturduit competing on the basis of parameters such as Level of Traffic generated, Service Offerings, Exclusive partnerships with provider companies, Tips & Advisory services provided etc. In order to acquire a competitive edge in the industry, key players are investing heavily in technology & Product Development. Catering to the majority of the unbanked population in the country, companies are focused on developing diversifying their product portfolio with offerings such as P2P Lending & Wealth Management.
COVID 19 Impacting Loan Industry
The outbreak of the COVID 19 pandemic is expected to impact almost across all industries. However, loans & Insurance are expected to be one of the highest demanded products during & post-pandemic. With many companies laying off their workers & putting salary cuts, people are seen to rely on quick loans to meet their day-to-day expenses. Understanding the importance of insurance products, applications for health & life insurance products have been on a rising trend. However, banks have been following a cautious approach to surging loan applications with an expectation of high NP loans thereby undertaking limited disbursements after detailed background & credit scoring checks.
Online Aggregator Services Future Growth Potential
Analysts at Ken Research estimate the industry to experience a tepid CAGR of ~20% in the next 5 years; attributable to increased demand from products including personal loan, credit cards, health & life insurance. This will further be supplemented by changing consumer preference to contactless services (post-COVID) & increased cross-selling opportunities. Key industry players are expected to further invest in product & international expansion and deploying increased role of technology in segregating customers & providing customized products/advisory services.
Companies Covered: -
Cermati
CekAja
CekPremi
Futuready
Aturduit
KreditGogo
GoBear
Finder
Time Period Captured in the Report: -
Historical Period: 2015–2019
Forecast Period: 2020-2024
Key Topics Covered in the Report: -
Socio-Demographic, Economic, Banking & Fintech Scenario in Indonesia
Insurance Scenario in Indonesia with segmentation by Insurance type including Motor Insurance, Health Insurance & Life Insurance
Lending scenario in Indonesia with segmentation by Loan to Government, private (Individuals, NBFIs, NFIs) and Others
Household/Retail Lending Scenario with Segmentation by Multipurpose Loans, Mortgage loans, Credit Cards, Auto Loans, Loans to MSMEs, Home Appliance Loans & Others
Gaps in Traditional Loan Industry fulfilled by Online Loan Aggregators
Online Loan Aggregator Industry in Indonesia with Revenue Models followed
End-to-End Customer Journey followed
Technological & Organizational Structure followed
Regulatory Landscape
Competitive Landscape including Overview, Ecosystem & Cross Comparison among major players on basis of Operational, Loan/Insurance Providers, Product Portfolio and Website Features
Company Profiles- Cermati, CekAja, CekPremi, Aturduit, Futuready & KreditGogo
International Case Studies-PaisaBazaar& PolicyBazaar (India)
Future Outlook of Loans and Insurance & Online Aggregators
Impact of COVID 19
For More Information on the Research Report, refer to below links: -
Related Reports by Ken Research: –
India Online Loans Market Outlook to 2019 - Industry Transformation by the Advent of Web Aggregators
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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