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Home»Finance»For Indonesia’s Digital Banks, It’s All About Who You Know
Finance

For Indonesia’s Digital Banks, It’s All About Who You Know

August 31, 2026No Comments4 Mins Read
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For Indonesia’s Digital Banks, It’s All About Who You Know
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Indonesia has been one of the most supportive countries in Southeast Asia when it comes to the rise of digital banking. In 2016, the Jenius banking app was launched by Bank BTPN (later acquired by SMBC). It was one of Indonesia’s first large-scale digital banking apps, and grew very quickly. This coincided with a tech sector boom the government was keen to support, and financial services authority OJK quickly passed a regulation in 2018 allowing more commercial banks to provide digital banking services. This was followed by a 2021 regulation governing the launch of fully digital banks, which are standalone digital platforms rather than an offshoot of existing commercial banks.

Full digital banks perform the same functions as conventional banks – take deposits, make loans – but do so mainly through digital platforms. Because they do not need to maintain large networks of physical branches, they can theoretically operate with less overhead. Another potential advantage is that because most services are online, digital banks can offer a level of convenience and access that conventional banks can’t. This should allow them to scale faster and reach a wider customer base, including those who have never had an account at a traditional brick-and-mortar bank.

In recent years Indonesia has seen a proliferation of new, fully digital banks. The typical playbook is that a large tech company with deep pockets buys a small, existing regional bank and converts it to a fully digital outfit, then pumps it with capital and rapidly grows. Events, even in just a few short years, have moved very fast and made a few things clear.

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One is that the sector is now starting to consolidate around three leading firms: Bank Jago, Superbank and Seabank. Two of the very earliest entrants, Bank Neo Commerce and Allo Bank, have stagnated somewhat which suggests that with pure digital banking, at least in Indonesia, the first-mover advantage is not necessarily decisive. More important, as we shall see, is who is backing your digital bank.

Among the emerging digital-bank players, Bank Neo Commerce was the largest by 2020 with IDR 5.4 trillion in assets, including IDR 3.7 trillion in loans. Neo Commerce Bank’s largest shareholder is Akulaku, one of the early digital wallet and fintech companies to breakout in Southeast Asia. Other digital banks launched around that time include Bank Jago, backed by Go-Jek and Singaporean sovereign wealth fund GIC; Seabank Indonesia, which is part of Sea the parent company of e-commerce giant Shopee; and Allo Bank, backed by Indonesian e-commerce company Bukalapak and a major local conglomerate.

Together, these four digital banks had combined assets of $780 million in 2020 (using an exchange rate of 17,500 IDR to 1 USD). One year later their combined assets leapt to $2.2 billion as they began leveraging existing networks of e-commerce and fintech customers to take deposits and make loans.

They were soon joined by Superbank, which is backed by an international consortium, including GXS Bank (owned by Singapore’s Singtel and ride-hailing giant Grab), South Korea’s KakaoBank and Indonesian technology and media conglomerate Emtek. Emtek owns Indonesia’s largest home-grown streaming platform, among many other assets.

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The sector has experienced rapid growth, with totals assets of these five digital banks reaching $8.8 billion as of June 2026 including $5.5 billion in loans. Although all five banks reached profitably in 2025, the explosive growth has been increasingly driven by just the top three: Bank Jago, Sea, and Superbank. As of June 2026, Neobank’s assets were lower than in 2023, while Allo Bank also seems to be slowing.

By contrast, between 2023 and June 2026 assets rose 88 percent at Sea, 95 percent at Jago and 386 percent at Superbank. Sea has the biggest platform with $3 billion in assets, and Jago following with $2.3 billion. Amongst the three leading digital banks, loans and deposits are steadily growing, as are profits.

In a way, this shouldn’t be too surprising when we consider who the major shareholders are in these firms. Sea, Jago and Superbank are backed by some of the largest consumer-facing companies and investors in the region, with very large existing networks of e-commerce, media and telecom customers they can tap to onboard new digital banking customers. Allo and Neo Commerce Bank, meanwhile, are tied to firms like Akulaku and Bukalapak, which don’t dominate the consumer landscape in the same way.

The sector has grown rapidly in a very short period of time, and there are surely going to be new and surprising developments in the years ahead. But one thing is becoming increasingly clear: in Indonesia’s crowded digital banking race the size of your network and who is backing you may matter more than how quickly you can bring your app or product to market.

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