Hong Kong’s WeLab takes its wealth management playbook to Indonesia

THERE is no shortage of companies buying traditional banks in Indonesia to begin a digital bank play, with the latest being Hong Kong-based fintech WeLab and Indonesian conglomerate Astra International.

WeLab and Jardine Matheson-controlled Astra have acquired Bank Jasa Jakarta for US$510 million with plans to transform it into a digital bank by end-2022.

With an estimated 77 per cent of Indonesia’s 270 million population remaining unbanked, the market, according to WeLab’s chief executive Simon Loong, is big enough for multiple players. Having competition too is a good thing, with customer education taken on by more parties allowing for the tipping point for digital banks to be reached much earlier.