Indonesia Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update

According to the publisher, the 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.

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.

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.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in Indonesia. Below is a summary of key market segments:

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

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.