Investment made through Gojek’s payments and financial services arm, with ambition to provide millions of users with greater access to digital banking services
Gojek, Southeast Asia’s leading mobile on-demand services and payments platform, has invested in Bank Jago, an Indonesia-listed technology-based bank, as part of a strategic partnership that will accelerate financial inclusion in Indonesia.
The partnership marks a collaboration between two exciting technology-focused companies: Gojek, pioneer of the Southeast Asian ‘Super App’; and Jago, an innovative technology-based bank that delivers digital banking services for the SME, consumer and mass market segments in Indonesia. It also builds on the partnerships that Gojek – and its digital wallet and payments platform, GoPay – has formed with various Indonesian financial institutions to offer financial services to merchants and drivers since 2017.
The ultimate aim of this partnership is for Jago to provide access to digital banking services through Gojek’s platform, allowing Gojek’s millions of users to instantly open a bank account with Jago and better manage their finances via the Gojek app. The partnership will also act as a model through which Gojek will go on to partner with other banking institutions to support them in reaching more customers.
Indonesia – home to the world’s 4th-largest unbanked population where 52% of adults (about 95 million people) do not own a bank account and a further 47 million adults are underbanked or have insufficient access to credit, investment and insurance – represents a huge opportunity for companies like Gojek and Jago. That it has a high smartphone penetration rate of 70-80% also makes the population infrastructurally ready for digital banking.
The investment – made through Gojek’s payments and financial services arm – will mean Gojek holds around 22% of Bank Jago. The deal also does not alter the control of Jago, with Metamorfosis Ekosistem Indonesia and Wealth Track Technology continuing to be Jago’s controlling shareholders with a combined ownership of 51 per cent.
Gojek Co-CEO Andre Soelistyo, said: “Our partnership with Jago marks the latest milestone in our drive to reduce daily friction for users and improve their lives through technology. It is a key part of our strategy and will underpin the growth and sustainability of our business in the long term. Jago’s tech-based banking solutions will supercharge Gojek’s ecosystem offerings and facilitate access to banking services for the mass market, thereby supporting our common vision to accelerate financial inclusion in Indonesia.
“This is the start of a new way of offering financial services to Gojek users as the collaboration will enable us to develop a process through which we can work with other banks. Our aim is to leverage more partnerships like this, to ultimately make the Gojek app a reliable resource for everyone’s financial needs.”
Bank Jago’s President Director, Kharim Siregar, said: “We are proud and excited to work with Gojek, which has a digital footprint that encompasses millions of consumers and businesses throughout the country. This perfectly complements Bank Jago’s deep expertise and understanding of the financial needs of Indonesians.
“We believe that this strategic collaboration – between a tech-based bank like Bank Jago and a Super App like Gojek – is the first of its kind in Indonesia and Southeast Asia and represents a new way to spur growth in digital economies. As a bank designed with an open API, we will go on to work with multiple digital ecosystems to reach a wider audience and drive our aspiration to enhance the finances of millions of people through digital financial solutions.”
Bank Jago was founded in 1992 under the name PT Bank Artos Indonesia. In 2020, Bank Artos changed its name to PT Bank Jago Tbk as part of its transformation to become an innovative tech-based bank with the aspiration to enhance the growth of millions through digital financial solutions.