Line to Launch Digital Banking Platform in Indonesia

Line Corporation Expands Digital Banking Services to Indonesia

Line Corporation, primarily recognized for its popular messaging application, is set to introduce a digital banking platform within Indonesia this month.

This expansion signifies that the Japan-based Line Corp. will be providing banking solutions in three key international markets: Indonesia, Thailand, and Taiwan.

Partnership with PT Bank KEB Hana Indonesia

The Indonesian banking platform developed by Line Corp. stems from a strategic alliance established in 2018 with PT Bank KEB Hana Indonesia, a component of South Korea’s Hana ZBank.

Line Corp. finalized an agreement to obtain a 20% stake in PT Bank KEB Hana Indonesia, positioning itself as the bank’s second-largest shareholder.

The collaboration focuses on the development of online banking services, encompassing deposit accounts, small loan offerings, and both remittance and payment functionalities.

Indonesia's Digital Banking Landscape

A report from Momentum Works indicates a 7% growth in downloads of digital banking applications in Indonesia during 2020.

Apps from well-established banks, such as BTPN Jenius, OCBC Nyala, and Permata, were at the forefront of this growth.

However, Momentum Works also noted a trend among Indonesian users to download and experiment with multiple digital banking apps, meaning no single dominant provider has yet emerged.

Furthermore, prominent technology firms including Sea Group, Grab, and Gojek are actively developing their own neobank services.

Expansion into Thailand and Taiwan

Line initially launched banking services for its Thai customer base last October through a joint venture with Kasikorn Vision Company, a subsidiary of Kasikorn Bank.

In Taiwan, Line’s subsidiary, Line Bank Taiwan, received a banking license from the Financial Supervisory Commission earlier in the year.

This allows Line to offer comprehensive banking services across a growing number of Asian markets.