Bukalapak, Standard Chartered launch digital banking service in Indonesia

INDONESIAN e-commerce company Bukalapak has tied up with Standard Chartered to launch BukaTabungan, a digital banking service targeting Bukalapak’s users and Indonesia’s underbanked segment.

BukaTabungan, which will be a service within Bukalapak’s all-commerce platform, will leverage the international banking group’s nexus technology, a banking-as-a-service (BaaS) solution, both parties said in a joint press statement on Monday (Sep 5).

It looks to serve the e-commerce company’s 110 million users and 20 million business owners. Users will be able to open their accounts in 5 minutes and benefit from no administrative fees for savings, up to 20 free transfers and cash withdrawals, as well as higher interest rates on savings.

The digital banking service has received approval from Indonesia financial services authority Otoritas Jasa Keuangan (OJK). Standard Chartered, meanwhile, is licensed and supervised by the OJK.

By offering banking access, Bukalapak and Standard Chartered are also looking to support micro, small and medium enterprises (MSMEs). At present, the e-commerce group serves around 6.8 million online merchants through its marketplace.

It also serves 14.2 million businesses, including small family-owned kiosks known as “warungs” and phone credit stores through its online-to-offline platform, Mitra Bukalapak.

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Bukalapal president of commerce and fintech Victor Lesmana, said: “BukaTabungan will be an interesting product because now, everyone in Indonesia within all levels of society will be able to access world-class digital banking services seamlessly and securely.”