Line Launches Digital Banking Service in Indonesia
 
Jun 03, 2021
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Line, the messaging app division of South Korea’s online platform Naver , is launching a digital banking service in Indonesia which will include deposit accounts, microcredit offerings, debit cards and remittance and payment services, the company said on May 31.

The offer will complement its already established digital banking services in Thailand and Taiwan, it added. The service for Indonesia is expected to start on June 10.

In Indonesia, the Line banking services are offered in collaboration with KEB Hana Bank Indonesia, a subsidiary of South Korea’s Hana ZBank. Line acquired 20 per cent of KEB Hana in October 2018, making it the bank’s second-largest shareholder, and said it would develop online banking services.

Millions of unbanked people, millions of app users: The right recipe

Indonesia is seen as a huge market for banking apps. Indonesia has 196 million Internet users, and nearly 40 per cent of them use banking and financial services apps, a study by Canadian social media management firm Hootsuite showed.

According to a 2019 report by Google, Temasek and Bain & Company, Indonesia out of its total population of about 275 million still has around 47 million underbanked and 92 million unbanked adults, translating into a huge opportunity for fintech companies

Line introduced banking services to its Thai users in October last year as part of a joint venture with Kasikorn Vision Company, a subsidiary of Kasikorn Bank. In Taiwan, its subsidiary Line Bank Taiwan was granted a banking license earlier this year by the country’s Financial Supervisory Commission.