Line Launches Digital Bank in Indonesia
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The country – the world’s fourth most populous – is its third overseas market, following launches in Thailand and Taiwan.
Japan-headquartered mobile and internet services firm Line has launched a digital banking platform in Indonesia in collaboration with Bank KEB Hana Indonesia, a subsidiary of South Korea’s Hana Bank, and LINE Financial Asia.
Line Bank by Hana aims to make banking easier and expand access to financial services in a country that counts one of Southeast Asia’s largest unbanked populations. Its product line includes savings accounts, time deposits, debit cards, and bill payments. Line said it plans to expand the range of products to include loans, partnership loans, and QR payments.
In Indonesia in particular, due to this market’s unique geographical characteristics, we believe bringing banking services to people’s mobile phones will greatly increase their availability and convenience,» Young Eun Kim, Line Financial Asia CEO, said in an announcement on Friday.
Founded in 2011 as a messaging app in Japan, Line has since grown into a global ecosystem that includes AI technology, fintech, and more. The company has lay the groundwork in Indonesia since 2018, when it became the second-largest shareholder of Hana Bank Indonesia when it acquired 20 percent of the company through a Share Subscription Agreement.
Line has its work cut out in the country: it is competing in a crowded market with giants such as Gojek with Bank Jago, Sea Group with Seabank Indonesia, Akulaku with Bank Neo Commerce, and Kredivo.
Questions & Answers
Q.What is Line Bank by Hana offering to customers initially?
What is Line Bank by Hana offering to customers initially?
Line Bank by Hana's initial product line includes savings accounts, time deposits, debit cards, and bill payments. The company plans to expand this range to include loans, partnership loans, and QR payments in the future.
Q.Why does Line believe mobile banking is particularly important for Indonesia?
Why does Line believe mobile banking is particularly important for Indonesia?
Line believes bringing banking services to mobile phones will greatly increase their availability and convenience in Indonesia. This is due to the market's unique geographical characteristics, which can make traditional banking access difficult.
Q.How did Line establish its presence in Indonesia's banking sector before this launch?
How did Line establish its presence in Indonesia's banking sector before this launch?
Line laid the groundwork in Indonesia since 2018. It became the second-largest shareholder of Hana Bank Indonesia by acquiring 20 percent of the company through a Share Subscription Agreement that year.
Q.Who are Line Bank by Hana's main competitors in the Indonesian market?
Who are Line Bank by Hana's main competitors in the Indonesian market?
Line Bank by Hana faces competition in a crowded market from several major players. These include Gojek with Bank Jago, Sea Group with Seabank Indonesia, Akulaku with Bank Neo Commerce, and Kredivo.
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