Indonesia Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

Indonesia Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

According to PayNXT360, the embedded finance industry in the country is expected to grow by 17.4% annually to reach US$2,162.6 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 32.4% from 2024 to 2029. The country's embedded finance revenues will increase from US$2,162.6 million in 2024 to reach US$8,791.6 million by 2029.

Indonesia's embedded finance sector has experienced significant growth, a phenomenon largely attributed to the rapid digital adoption and the integration of financial services into various non-financial platforms. This trend, marked by the expansion of digital payment solutions and lending services, particularly within the e-commerce and ride-sharing sectors, has significantly improved consumer access to financial products and enhanced convenience.

Indonesia's embedded finance sector has seen significant growth in the past few months, driven by digital adoption and the blending of financial services with non-financial platforms, especially in the e-commerce and ride-sharing industries. New product launches and strategic partnerships have broadened access to financial services, improving consumer convenience. Supportive regulatory measures by the Otoritas Jasa Keuangan (OJK) and Bank Indonesia (BI) have fostered a conducive environment for innovation while maintaining consumer protection. With the growing demand for seamless financial experiences, Indonesia is set to become a prominent leader in the embedded finance market in Southeast Asia.

The next few months are poised for continued growth in Indonesia's embedded finance sector, buoyed by the support of regulatory bodies and technological advancements. This expansion, driven by a focus on financial inclusion and the rising demand for seamless financial experiences among consumers, is set to position Indonesia as a leading player in the embedded finance market in Southeast Asia.

Product & Innovations

• National Bank of Indonesia's Digital Payment Solutions: In December 2023, the National Bank of Indonesia introduced a new range of digital payment solutions to improve e-commerce transactions. This initiative enables merchants to integrate payment options directly into their platforms, providing a smoother customer experience. The introduction of these solutions has significantly reduced transaction times and increased the volume of e-commerce transactions, thereby boosting the growth of the e-commerce sector. Fawry's Embedded Financial Services: In January 2024, Fawry launched a suite of embedded financial services, including digital lending and insurance products, integrated within its existing payment platform. This development aims to offer users comprehensive financial solutions directly through the Fawry app.

Thndr's Investment Features, launched in February 2024, are a significant step towards democratizing investment opportunities. These new features allow users to invest in fractional shares and access embedded financial advisory services, making financial markets more accessible to a broader audience. These product launches highlight the growing trend of integrating financial services into various digital platforms in Indonesia, thereby increasing accessibility and convenience for consumers in the evolving embedded finance landscape.

Strategic Partnerships

Over the last few months, strategic partnerships have significantly shaped Indonesia's embedded finance sector. A notable collaboration between GoTo Group and Bank Jago resulted in the launch of GoPay Tabungan by Jago, allowing users to seamlessly access a range of banking services integrated into their everyday transactions. This partnership aims to enhance financial inclusion by providing easier access to savings, loans, and insurance products.

Moreover, Finfra, a platform for launching white-labeled lending products, raised $1 million through partnerships with regional fintech experts and venture capital firms. This investment signals growing interest in embedded finance solutions tailored for unbanked and underbanked populations. These partnerships illustrate the increasing collaboration between fintech companies and traditional financial institutions to deliver innovative financial services in Indonesia.

Regulatory Changes

In the past few months, significant regulatory developments have occurred in Indonesia's embedded finance sector, aimed at fostering innovation and enhancing financial inclusion. The Otoritas Jasa Keuangan (OJK) and Bank Indonesia (BI) have continued to advance their regulatory sandbox initiatives. These initiatives, led by the OJK and BI, allow fintech companies to test new products and services in a controlled environment, essential for the growth of embedded finance. Their proactive approach to regulation has fostered a conducive environment for fintech innovation.

Additionally, BI has introduced regulations to reform the digital payment landscape, enabling the participation of non-banking entities and broadening the ecosystem for embedded finance solutions. These regulatory efforts demonstrate a commitment to fostering a supportive environment for fintech innovation while ensuring consumer protection and financial stability in the rapidly evolving digital economy.

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

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

PayNXT360's 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.