A proportion of the population still relies on traditional sources of financing including banks, friends, relatives & other informal channels owing to reasons such as limited accessibility to banking services, lack of financial awareness, lack of collateral, etc. These reasons prompt individuals to look for alternative sources of financing options. With an internet penetration rate of ~40%, Indonesia lags behind by 2-3 years in digital adoption when compared to other emerging countries. The concept of online loan & insurance aggregation in Indonesia was introduced by CekAja in 2013 by providing price comparison across multiple loans & insurance products. Following a similar model, new players including Cermati, Aturduit, CekAja, etc entered the industry is currently placed in a growth phase recording a Y-o-Y growth rate of >15% (2018-2019). Leading players have been investing heavily on product & technology development. Yet, they still lag behind when compared to its global peers
Paisa Bazaar, one of the leading Online Loan Aggregators in India undertakes ~2Mn inquiries & ~27 Mn visitors per month. Witnessing similar demand pattern in Indonesia as in India, leading players can focus on certain key adoption areas. Firstly, the company has always aimed at becoming a one-stop solution provider. It has been working with a network of financial service providers to provide multiple financial solutions such as loan, insurance, Mutual funds, investments, etc. In the case of financial products, customers often prefer existing vendors instead of trying new ones thereby creating high cross-selling potential. This further helps the aggregator in marginally reducing its customer acquisition cost & increases per client ticket size for the firm. Once the database is maintained, the company can further use predictive analysis to suggest customized solutions to customers thereby attracting them again to the platform.
Aggregators players in Indonesia follow a commission/fee-based revenue model wherein commission is provided on the number of loans disbursed or policy sold. While the aggregator runs dedicated marketing campaigns for providers (lump sum amount paid for a certain number of leads), it is suggestive for them to follow a “Hybrid Revenue Model” for the same. This would enable the company to generate “Reward” for every lead supplied above the target provided thereby, creating an opportunity to earn higher revenue.
Lastly, Aggregator platform involves a major role play of technology. Aggregators around the world have been deploying highest of AI & Machine Learning modules to create advisory systems (in-house), reducing human role as much as possible thereby saving up on the majority of its operational cost (Telesales). Automated advisory services on these platforms are provided via chat-bot services using AI & predictive modeling to analyze the customer’s background & requirements, matching customer’s needs to options available thereby suggesting most suitable ones. This is observed to be a much-streamlined process, involves much less cost & enables usage of human advisory services (if required) to those in actual need of the product.
Following the approach to become a one-stop solution provider, aggregators must consider diversifying into segments of Wealth Management and P2P lending as this could enable them to undertake efficient utilization of customer data and generate higher returns.
Companies Covered: –
Time Period Captured in the Report: –
Historical Period: 2015–2019
Forecast Period: 2020-2024
Key Topics Covered in the Report: –
Socio-Demographic, Economic, Banking & Fintech Scenario in Indonesia
Insurance Scenario in Indonesia with segmentation by Insurance type including Motor Insurance, Health Insurance & Life Insurance
Lending scenario in Indonesia with segmentation by Loan to Government, private (Individuals, NBFIs, NFIs) and Others
Household/Retail Lending Scenario with Segmentation by Multipurpose Loans, Mortgage loans, Credit Cards, Auto Loans, Loans to MSMEs, Home Appliance Loans & Others
Gaps in Traditional Loan Industry fulfilled by Online Loan Aggregators
Online Loan Aggregator Industry in Indonesia with Revenue Models followed
End-to-End Customer Journey followed
Technological & Organizational Structure followed
Competitive Landscape including Overview, Ecosystem & Cross Comparison among major players on basis of Operational, Loan/Insurance Providers, Product Portfolio and Website Features
Company Profiles- Cermati, CekAja, CekPremi, Aturduit, Futuready & KreditGogo
International Case Studies-PaisaBazaar& PolicyBazaar (India)
Future Outlook of Loans and Insurance & Online Aggregators
Impact of COVID 19
For More Information on the Research Report, refer to below links: –
Related Reports by Ken Research: –
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Ankur Gupta, Head Marketing & Communications