“Our partnership with Jago marks the latest milestone in our drive to reduce daily friction for users and improve their lives through technology," Gojek co-CEO Andre Soelistyo said in a statement issued in Jakarta on Friday.
“It is a key part of our strategy and will underpin the growth and sustainability of our business in the long term,” he remarked.
Andre said that Jago’s tech-based banking solutions will supercharge Gojek’s ecosystem offerings and improve access to banking services for the mass market.
This would support Gojek and Jago’s common vision to accelerate financial inclusion in Indonesia, he added.
"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," Andre remarked.
Related news: Gojek's services generate positive margins, Co-CEOs say
Related news: Gojek eyes boosting MSMEs' digitalization, investment in technology
Under the partnership, Jago will provide access to its digital banking services through Gojek’s platform, he said.
This will allow millions of Gojek users to instantly open a bank account with Jago and better manage their finances via the Gojek app, he added.
The partnership will also act as a model through which Gojek will go on to partner with other banking institutions to help them reach more customers, he reiterated.
Meanwhile, Bank Jago’s president director, Kharim Siregar, said the bank is “proud and excited” to work with Gojek, whose user base comprises millions of consumers and businesses across the country.
This perfectly complements Bank Jago’s deep expertise and understanding of the financial needs of Indonesians, Kharim remarked.
He said he believes the strategic collaboration 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,” Kharim said.
The investment — made through Gojek’s payments and financial services arm — will give Gojek about 22-percent stake in Bank Jago. The deal will 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, he added.
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 a tech-based bank.
Indonesia, which is home to the world’s fourth-largest unbanked population, represents a huge opportunity for companies like Gojek and Jago.
Fifty-two percent of adults (about 95 million people) in the country do not own a bank account and another 47 million are either underbanked or have insufficient access to credit, investment, and insurance.
A high smartphone penetration rate of 70-80 percent also makes the Indonesian population ready for digital banking.
Gojek has pioneered the Southeast Asian ‘Super App’, while Jago offers digital banking services for the SME, consumer, and mass market segments in Indonesia. (INE)
Related news: Gojek denies rumors of merger with Grab
Related news: Gojek launches GoTransit to increase ease and safety of commuters
Translator: Citro A, Azis Kurmala
Editor: Yuni Arisandy Sinaga
Copyright © ANTARA 2020
