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 from 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
byMultipurpose 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: –
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