How a multinational financial services firm entered the P2P lending space in Indonesia and acquired market share of ~3%

Background and Challenge
Client’s Background:
  • The client is one of a global credit intelligence provider and fastest-growing credit management company in the country managing several different asset classes, including unsecured loans such as payday, buy-now-pay-later, point-of-sale and motorcycle and car, as well as mortgages and SME commercial loans 
Challenges Faced by Client:
  • Challenges in accessing Market Assessment: The client wanted to undertake the comprehensive market assessment and identify major trends in the Peer-to-Peer Lending Space in Indonesia. Hence, they contacted Ken Research to execute the exercise for them
  • Difficulties in accessing competition assessment : In addition, the client wanted assistance in competition assessment and identify competitor offerings prior to tapping the space, hence they outsourced this activity to Ken Research
Peer-to-Peer Lending Industry at Glance:
  • In 2022, Indonesia boasted a thriving peer-to-peer lending industry with 102 players and a remarkable IDR 51.1 trillion in disbursed loans
  • The industry is regulated by the Financial Services Authority (OJK) to ensure consumer protection and mitigate risks. It has emerged as an alternative financing option, contributing to financial inclusion and economic development in the country.

Approach and Recommendations
Phase 1: Provided the Ecosystem and Market Assessment
  • Ken Research’s team assessed the Indonesia MSME segment and market size (in terms of loan disbursed and number of players) of the Indonesian Peer-to-Peer Lending sector, aiding the client to assess the possibilities of entering the market.
  • Ken Research’s Team also curated a list of major players and types of loans offered by each of them operating in peer-to-peer lending operator services across the country to build up a quality Ecosystem of the market.
  • In-depth and detailed discussions were carried out with the top decision making authorities.
  • These discussions gave the client possible opportunity windows to know-how of the P2P Lending Industry in Indonesia.
Phase 2: Key Analysis of Industry and  competition scenario
  • The second phase of work focused on analyzing the detailed landscape on competition across major competitors and cross compared them across 15 operational and financial parameters to understand penetration.
  • Ken Research’s team interviewed each of the competitors and was able to ascertain their loan disbursed, number of borrowers and lenders by type, including assessment on their business models, loan sizes, duration and future plans which competitors have
  • Through comprehensive analysis, the client gained a profound understanding of the strengths and weaknesses within the market. Furthermore, they identified numerous untapped opportunities that could be leveraged to their advantage.
Phase 3: Quality Recommendations and advisory for the client
  • Ken mapped out the customer journey in a P2P lending process, identifying key touchpoints and devising potential strategies for each stage to help client develop targeted strategies
  • Providing detailed case study on best practices, various expansion strategies adopted by top global players in the market along with some potential pitfalls through failure case studies
  • The provision of overall growth strategies empowered the client to capitalize on emerging opportunities within the market.
Result and Conclusion
Providing the Right Value-add to Client's Requirements
  • Ken research value-add enabled the client to understand the current models in demand and upcoming models which is expected to impact the service providers in future
Valuable Insights on white space and gaps in the industry
  • Ken Research’s team has conducted customer survey and was able to support the client to understand the white space and gaps that exists in the demand.
To the Way Forward
  • The client was able to understand 360 degree view of P2P Lending market in Indonesia and helping them understand historical and future sales expected by loan type, medium, borrower and lending type
Business Impact
  • pie-chart


    Market share was acquired

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