Shinhan Bank announced on Friday that its Indonesian subsidiary Shinhan Bank Indonesia signed a strategic business agreement with PT Artha Dana Teknologi Indodana, an Indonesian digital payment company, to expand its digital platform loan market in Indonesia.
Indodana, a digital payment solution provider licensed by Indonesian financial authorities, offers services such as Buy Now Pay Later (BNPL) and installment financing through small loans after purchasing goods. It has around 830,000 active customers in the Indonesian e-commerce market.
Shinhan Bank Indonesia and Indodana will launch the loans based on Indodana's digital platform, scheduled to be launched next month.
When customers using the payment services on the Indodana platform apply for a loan, the platform conducts an initial credit limit assessment, and Shinhan Bank Indonesia conducts a secondary assessment to provide the loan.