The global lender has struck a fintech deal to offer loans to the mass market segment via digital channels.

Standard Chartered Bank Indonesia and Indonesian credit platform Kredivo have struck a partnership to offer Buy Now, Pay Later (BNPL) loans to mass-market clients and open up wider credit access.

Both parties also cited the venture's capacity to promote financial inclusion and spur further economic growth.

Jakarta-based Kredivo, founded in 2016, will provide fully-digital onboarding and credit application processess to Standard Chartered’s retail banking clients. StanChart has one of the oldest footprints across Asia and set up in Indonesia more than 150 years ago.

The country presents a strong expansion case, with the largest GDP of ASEAN members at roughly US$1.1 trillion and the demographic advantages of a population of 267 million.

Many global banks are seeking to capitalise on fast-moving market modernisation. The assets of fintech credit providers in the country grew from IDr3.25 trillion ($228.5 million) in July 2020 to IDr4.34 trillion ($306 million) in July 2021, according to the Indonesian Financial Services Authority; loan provisioning platforms are expanding at a similar rate.   

Jeffrey Tan, head of consumer, private and business banking for Indonesia at StanChart, said that while the global lender has already staked out a strong position in the retail affluent segment, it was keen to open up distribution channels for mass market customers, and do so efficiently. “We are delighted to partner with Kredivo, which shares our desire to increase financial inclusion in Indonesia, and offer point-of-sale financing via digital platforms,” Tan said.