For Indonesia’s Digital Banks, It’s All About Who You Know

Indonesia has been a supportive country for digital banking, with the Jenius app launched in 2016 as one of the first large-scale digital banking apps. In 2018, a regulation allowed more commercial banks to offer digital services, and in 2021, rules were established for fully digital banks, which operate mainly through digital platforms. These digital banks can offer convenience, access, and lower overhead costs compared to conventional banks.

Recently, Indonesia has seen a surge in fully digital banks as large tech companies acquire small regional banks, convert them to digital platforms, and inject capital for rapid growth. Three leading firms have emerged: Bank Jago, Superbank, and Seabank. Earlier entrants like Bank Neo Commerce and Allo Bank have struggled, suggesting that first-mover advantage alone is not enough.

Bank Neo Commerce was the largest digital bank by 2020, with significant backing from Akulaku, a prominent digital wallet and fintech company. Other early entrants include Bank Jago, backed by Go-Jek and Singaporean sovereign wealth fund GIC; Seabank Indonesia, part of Sea, the parent company of Shopee; and Allo Bank, backed by Bukalapak and a major local conglomerate. Together, these four banks had $780 million in combined assets in 2020, which jumped to $2.2 billion by 2021.

These digital banks leveraged existing e-commerce and fintech networks to take deposits and make loans, resulting in a significant increase in assets to $8.8 billion as of June 2026, including $5.5 billion in loans. While all five banks were profitable in 2025, growth has been primarily driven by the top three: Bank Jago, Sea, and Superbank. Neo Commerce's assets declined by 2023, and Allo Bank appears to be slowing, highlighting the importance of strong backing and a large network in this competitive sector.