Indonesia Embedded Finance Business Report 2024: Market To Grow By 40.8% To Reach $2.59 Billion This Year - Forecasts To 2029

(MENAFN- GlobeNewsWire - Nasdaq) Dublin, May 17, 2024 (GLOBE NEWSWIRE) -- The "Indonesia Embedded Finance Business and investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update" report has been added to ResearchAndMarkets's offering.
Embedded Finance industry in Indonesia is expected to grow by 40.8% on annual basis to reach US$ 2.59 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 32.4% during 2024-2029. The embedded finance revenues in the country will increase from US$ 2.59 billion in 2024 to reach US$ 10.54 billion by 2029.

This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

Indonesia's embedded finance market is experiencing explosive growth, fueled by a young, tech-savvy population, rising internet penetration, and a supportive regulatory environment. Embedded finance integrates financial services seamlessly within non-financial platforms. This creates a frictionless user experience, driving engagement and loyalty. In Indonesia, with its large unbanked population and growing digital adoption, embedded finance holds immense potential.
Key Drivers of Indonesia Embedded Finance Market

  • Increasing Digital Adoption: Indonesia boasts a high internet penetration rate, with over 70% of the population connected. This creates a fertile ground for digital financial services.
  • Unbanked and Underbanked Population: A significant portion of Indonesians lack access to traditional banking services. Embedded finance provides them with convenient financial tools. In Indonesia, Southeast Asia's largest economy more than 74% of the population is unbanked or underbanked.
  • Government Support: The Indonesian government actively promotes financial inclusion and innovation in the fintech sector, creating a supportive regulatory environment.
  • In 2023, Finfra, the one-stop shop for companies launching white-labelled lending products in Indonesia, has announced it raised $1 million in funding. The funding round was a collaborative effort by DSX Ventures and Seedstars International Ventures, regional fintech experts Cento Ventures and Fintech Nation, Baltic-based startup support incubators FirstPick and BADideas Fund, and Silicon Valley-based Hustle Fund
  • Rising Smartphone Penetration: The widespread use of smartphones facilitates easy access to embedded financial services. In 2022, a staggering 80% of Indonesia's population owned a smartphone, and over 212 million users accessed the internet from their mobile phones. With more than 7.7 billion downloads and a collective 179 billion hours on mobile in 2022, Indonesia is the fifth-largest mobile market in the world. Remarkably, Indonesian users spent the most time on mobile daily, surpassing 5.7 hours per day.
  • Demand for Convenience: Consumers increasingly seek seamless and integrated financial solutions within the platforms they already use.

Leading Players of Indonesia Embedded Finance Market: Several players are actively shaping the Indonesian embedded finance landscape:

  • Fintech Startups: Gojek, OVO, and Kredivo are prominent players offering embedded lending, payments, and wealth management solutions within their platforms.
  • Traditional Financial Institutions: Banks like Bank Central Asia (BCA) and Mandiri are partnering with tech companies to offer embedded financial services.
  • Telecoms Companies: Telkomsel and Indosat Ooredoo are leveraging their extensive user base to offer embedded financial services, particularly mobile payments.

Major Innovations and Deals of Indonesia Embedded Finance Market:

  • In Mar 2024, Qoala has secured $47 million in a new round co-led by PayPal Ventures and MassMutual Ventures, the five-year-old startup. MUFG Innovation Partners, Omidyar Network, and existing backers Flourish Ventures, Eurazeo, and AppWorks also participated in the Series C funding, which brings Qoala's total funding to more than $130 million since its inception.
  • The most notable deals, buy now, pay later company Kredivo announced a $270 million investment led by Japan's Mizuho Bank in March, while peer Investree raised about $231 million in Series D funding, led by Qatar's JTA International Holdings last month. Amartha, meanwhile, raised $25 million in debt funding in March from IFC, and $100 million from San Francisco-based investment firm Community Investment Management
  • In Jun 2023, Finfra, a platform for businesses seeking to launch white-labelled lending services in Indonesia, has disclosed a successful funding round. The company has secured an impressive $1m investment, further solidifying its footprint in the dynamic financial market of Southeast Asia. The capital injection was an outcome of a concerted effort from multiple investors including DSX Ventures and Seedstars International Ventures.

Key Attributes:

Report Attribute Details
No. of Pages 130
Forecast Period 2024 - 2029
Estimated Market Value (USD) in 2024 $2.6 Billion
Forecasted Market Value (USD) by 2029 $10.5 Billion
Compound Annual Growth Rate 32.4%
Regions Covered Indonesia

Indonesia Embedded Finance Market Size and Forecast

Embedded Finance by Key Sectors

  • Retail
  • Logistics
  • Telecommunications
  • Manufacturing
  • Consumer Health
  • Others

Embedded Finance by Business Model

  • Platforms
  • Enabler
  • Regulatory Entity

Embedded Finance by Distribution Model

  • Own Platforms
  • Third Party Platforms

Indonesia Embedded Insurance Market Size and Forecast

Embedded Insurance by Industry

  • Embedded Insurance in Consumer Products
  • Embedded Insurance in Travel & Hospitality
  • Embedded Insurance in Automotive
  • Embedded Insurance in Healthcare
  • Embedded Insurance in Real Estate
  • Embedded Insurance in Transport & Logistics
  • Embedded Insurance in Others

Embedded Insurance by Consumer Segments

  • B2B
  • B2C

Embedded Insurance by Type of Offering

  • Embedded Insurance in Product Segment
  • Embedded Insurance in Service Segment

Embedded Insurance by Business Model

  • Platforms
  • Enabler
  • Regulatory Entity

Embedded Insurance by Distribution Model

  • Own Platforms
  • Third Party Platforms

Embedded Insurance by Distribution Channel

  • Embedded Sales
  • Bancassurance
  • Broker's/IFA's
  • Tied Agents

Embedded Insurance by Insurance Type

  • Embedded Insurance in Life Segment
  • Embedded Insurance in Non-Life Segment

Embedded Insurance in Non-Life Segment

  • Motor Vehicle
  • Fire and Property
  • Accident and Health
  • General Liability
  • Marine, Aviation and other Transport
  • Other

Indonesia Embedded Lending Market Size and Forecast

Embedded Lending by Consumer Segments

  • Business Lending
  • Retail Lending

Embedded Lending by B2B Sectors

  • Embedded Lending in Retail & Consumer Goods
  • Embedded Lending in IT & Software Services
  • Embedded Lending in Media, Entertainment & Leisure
  • Embedded Lending in Manufacturing & Distribution
  • Embedded Lending in Real Estate
  • Embedded Lending in Other

Embedded Lending by B2C Sectors

  • Embedded Lending in Retail Shopping
  • Embedded Lending in Home Improvement
  • Embedded Lending in Leisure & Entertainment
  • Embedded Lending in Healthcare and Wellness
  • Embedded Lending in Other

Embedded Lending by Type

  • BNPL Lending
  • POS Lending
  • Personal Loans

Embedded Lending by Business Model

  • Platforms
  • Enabler
  • Regulatory Entity

Embedded Lending by Distribution Model

  • Own Platforms
  • Third Party Platforms

Indonesia Embedded Payment Market Size and Forecast

Embedded Payment by Consumer Segments

  • B2B
  • B2C

Embedded Payment by End-Use Sector

  • Embedded Payment in Retail & Consumer Goods
  • Embedded Payment in Digital Products & Services
  • Embedded Payment in Utility Bill Payment
  • Embedded Payment in Travel & Hospitality
  • Embedded Payment in Leisure & Entertainment
  • Embedded Payment in Health & Wellness
  • Embedded Payment in Office Supplies & Equipment
  • Embedded Payment in Other

Embedded Payment by Business Model

  • Platforms
  • Enabler
  • Regulatory Entity

Embedded Payment by Distribution Model

  • Own Platforms
  • Third Party Platforms

Indonesia Embedded Wealth Management Market Size and Forecast

Indonesia Asset Based Finance Management Industry Market Size and Forecast

Asset Based Finance by Type of Asset

  • Hard Assets
  • Soft Assets

Asset Based Finance by End Users

  • SME's
  • Large Enterprises

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