Indonesia Online Loan and Insurance Industry Outlook to 2024
Compelling Incumbents to pursue growth via Product Development & International Expansion

About the Report

About the Report

The publication titled ‘Indonesia Online Loan and Insurance Industry Outlook to 2024-Compelling Incumbents to pursue growth via Product Development & International Expansion’ undertakes analysis of the Indonesia’s socio-demographic, economic, banking & fintech outlook; overall lending & insurance scenario; gaps in traditional distribution models filled by aggregator (financial marketplaces); unique operating models in the sector, organizational structure of major players and future outlook &trends expected to drive the Industry.

Among other South East Asian countries, Indonesia holds high economic growth potential with >60% of the population belonging to the working population, majorly concentrated in urban areas of Jakarta, Surabaya, Medan, Bandung, Bekasi. As of 2019, service sector was a major contributor (43.4%) to the country’s GDP with primarily driven from MSMEs. However with decreasing prices & increasing population, household consumption has been rising (8.4% for 2018-19) thereby increasing demand for household/retail credit in the country.

Given Indonesia’s topography, people have limited access to banking branches therefore majority of the population is still unbanked. Unbanked population relies on alternative lending methods, leading to the popularity of P2P Lending, Online Loan Facilitators etc.

Low Insurance Penetration Rate despite Sufficient Infrastructure:

With 150+ registered insurers, Indonesia lags behind other Asian countries in terms of insurance penetration rate (2.8% against global average rate of 6.1%). Insurance in Indonesia is usually purchased only out of regulatory requirements & those purchasing it out of need usually opt for packages providing extra benefits such as Repair Coverages, Covering for Cost of prescription Drugs etc. Out of the multiple insurance types provided in the country, life Insurance was observed to be leading with a market share of >40% primarily gaining traction from “Corporate Benefits & “Investment Linked Products.

Household Credit growing at Y-o-Y Growth rate of >5%

Household Credit in Indonesia comprises of Auto loans, Credit cards, Mortgage loans, Multipurpose loans, MSME loans, Home Appliance loans & Other loans with highest demand arising from loans to MSMEs with share of ~40%. However, real demand with ~75% of MSMEs still lack credit accessibility owing to factors such as limited financial awareness, insufficient collateral, lack of required reporting documents etc. With upcoming fintech lending options like P2P Lending, digital lending, crowdfunding etc demand & supply of retail loans in Indonesia are expected to further increase in coming 5 years.

Increased Adoption of Digital Services-Online Loan & Insurance Aggregators

Online Aggregators operate on supplying leads to banks & finance companies and providing comparison across multiple loan& insurance options on the basis of parameters such as interest rates, fees/charges, additional benefits provided etc thereby streamlining decision making process for customers. Factors such as high internet penetration rate, new affordable product development-microloans, microinsurance, awareness among customers for understanding before buying are some of the driving factors behind their increased traction.

Highly Concentrated Competitive Landscape

Competitive landscape in Indonesia Online Aggregator Industry is observed to be highly concentrated with ~90% of market share occupied by top players including Cermati, CekAja, CekPremi, Futuready, Aturduit competing on the basis of parameters such as Level of Traffic generated, Service Offerings, Exclusive partnerships with provider companies, Tips & Advisory services provided etc. In order to acquire a competitive edge in the industry, key players are investing heavily in technology & Product Development. Catering to majority of unbanked population in the country, companies are focused on developing diversifying their product portfolio with offerings such as P2P Lending & Wealth Management.

COVID 19 Impacting Loan Industry

Outbreak of COVID 19 pandemic is expected to impact almost across all industries. However, Loan & Insurance are expected to be one of highest demanded products during & post pandemic. With many companies laying off their workers & putting salary cuts, people are seen to rely on quick loans to meet their day-to-day expenses. Understanding the importance of insurance products, applications for health & life insurance products have been on a rising trend. However, banks have been following a cautious approach to surging loan applications with an expectation of high NP loans thereby undertaking limited disbursements after detailed background & credit scoring checks.

Online Aggregator Services Future Growth Potential

Analysts at Ken Research estimate the industry to experience a tepid CAGR of ~20% in next 5 years; attributable to increased demand from products including personal loan, credit cards, health & life insurance. This will further be supplemented by changing consumer preference to contactless services (post COVID) & increased cross selling opportunities. Key industry players are expected to further invest in product & international expansion and deploying increased role of technology in segregating customers & providing customized products/advisory services.

Companies Covered
Cermati
CekAja
CekPremi
Futuready
Aturduit
KreditGogo
GoBear
Finder

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
A 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
Regulatory Landscape
Competitive Landscape including Overview, Ecosystem & Cross Comparison among major players on the 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

Products

Products

Time Period Captured in the Report:-

Historical Period: 2015–2019

Forecast Period: 2020-2024


Companies

Companies Covered

Cermati

CekAja

CekPremi

Futuready

Aturduit

KreditGogo

GoBear

Finder

Table of Contents

Table of Contents

  1. Socio Demographic, Economic, Banking & Fintech Outlook

Socio Demographic Outlook (Human Capital, Monthly HH Consumption Pattern, Internet Accessibility, Adaptability to Financial Services)

Economic Outlook (Nominal GDP at current prices, Economic Indicators including HH Consumption to GDP, Inflation Rate, Labor Force, BI Rate, Aggregate NPL, 2014-2019)

Overview of Banking Sector (Banking Infrastructure Indicators including Number of Commercial Banks, Rural Banks, Bank Branches, Loan to Deposit Ratio, Number of EDC Machines etc (2014-2019) & Online Banking Trends)

Snapshot of Fintech Industry in Indonesia (Market Sizing, Traction for Fintech Lending, Major Lending Platforms)

2. Insurance Sector in Indonesia

Overview of Insurance Sector in Indonesia (Comparison of Insurance Penetration of Indonesia with other Countries, GWP collection (2014-2019), Key Industry Trends, Insurance Infrastructure, Segmentation by Insurance Sector & segmentation by Distribution)

-Life Insurance Industry Indonesia (Life Insurance Infrastructure, Key Trends, Segmentation by Offline/Online Distribution, Segmentation by Distribution Channels, Major Insurance Providers with their unique strategy)

-Motor Insurance Industry Indonesia(Net Premium Collected, Key demand Indicators, Product & Premium Pricing, Consumer Trends, Regulatory Challenges, Segmentation by Distribution, Recommended Adoption Model)

-Health Insurance Industry Indonesia (Premium Collection, Role of Mandatory Insurance, Online vs offline distribution, Total Premium collection by Aggregators

3. Loan Sector in Indonesia

Lending Scenario in Indonesia (Gross Loan Outstanding (2014-2019), Segmentation by Usage, Segmentation by Debtor)

Household Credit/Retail Lending in Indonesia (HH Credit to GDP Ratio in comparison to other countries, Household/Retail Credit Outstanding (2014-2019), Segmentation by Type of Retail Loan, Key driving trends)

-Auto Loans in Indonesia (Auto Loans Outstanding (2014-2019), Pre requisites, Key Trends, Auto Loans Process, Recommended potential for Online)

-Multipurpose Loans in Indonesia (Multipurpose Loans Outstanding (2014-2019), Demand Trends, Process, Eligibility Conditions)

-Credit Card Industry (Credit Cards Loans Outstanding (2014-2019), Key Statistics & Driving Trends)

-Mortgage Loans in Indonesia (Mortgage Loans Outstanding (2014-2019), Key Considerations, Other Charges, Conditions for Expats, Residential Property Index (2017-2019), Key Statistics, Process)

-Loans to MSMEs (MSME Loans Outstanding, Purpose of Loan, Key Trends, Demand & Supply Side Challenges, Potential Role of Aggregators)

4. Online Loan & insurance Aggregator Industry in Indonesia

Gaps Fulfilled by Online Aggregators (How are Aggregators Solving these Problems?)

Overview of Loan & Insurance Aggregators in Indonesia (Meaning, Features, Drivers, Challenges, Market Sizing by Revenue, Revenue Segmentation by Loan & Insurance)

Customer Journey on an Aggregator Platform

Revenue Streams

Organizational Structure

Working of Telesales Department (Structure, Qualification, Role, Number & Salary)

Technology Stack of Aggregator Platforms (Website Platform and CRM)

Marketing Strategies Followed (Common Strategies Followed, Marketing Campaign Details)

Regulatory Landscape for Online Aggregators in Indonesia (Registration Process, Governance, Reporting&Consumer Data Protection)

5. Competitive Landscape of Aggregators in Indonesia

Ecosystem (Online Loan & Insurance Providers, Aggregators)

Timeline of Aggregators in Indonesia

Competitive Scenario (Nature of Market, Competing parameters, Key Strategy used by Major Players, market Share basis Revenue)

Cross Comparison among major players basis:

-Operational Parameters (Average New Monthly Leads Generated (Credit Cards, Personal Loan, Motor Insurance, Health Insurance), Approval Rate of Leads (Credit Cards, Personal Loan, Motor Insurance, Health Insurance), Yearly Credit Cards Sold(2019), Yearly Revenue attributable to Credit Cards/Personal Loans/Motor Insurance/Health Insurance, Total Revenue from Banking Segment (2018-2019), Yearly Policies Sold (Motor & Health Insurance), Premium Collection (Motor & Health Insurance), Annual Number of Microinsurance policies sold, Total Premium Collection, IDR Mn (2018-2019), Total Revenue from Insurance segment (2018-2019, Number of Employees, Telesales Employees, Funding Scenario)

-Loan Providers

-Insurance Providers

-Product Portfolio

-Website Features

Company Profiles (Basis Company Overview, Services Offered, Operating Model, Business Strategies, Funding Scenario, KPIs, Revenue):

-Cermati

-CekPremi

-CekAja

-Aturduit

-Futuready

-KreditGogo

6. Success Case Study-PolicyBazaar & PaisaBazaar India (Company Overview, Product Offerings, Business Model, Focus Area, KPIs, Key Adoption Trends)

7. Future Outlook of Loan & Insurance Aggregators Indonesia

Future Outlook of Loan & Insurance Industry (Loans Outstanding (2019-2024F), GWP Collected Outstanding (2019-2024F), Key Trends expected to drive their demand)

Future Outlook of Online Loan & Insurance Aggregators Indonesia (Market Size for Online Loan & Insurance Industry, Market Size for Online Aggregators, Key Trends driving their demand)

8. Analyst Recommendations

Proposed Business Framework (Product Diversification, Geographical Expansion, Why and where should aggregators expand, Ideal model to be followed)

Key Recommendations for Aggregators in Indonesia

9. COVID 19 Impact

How Covid-19 has proved to be a tipping point for aggregators?

10. Research Methodology

Definitions Used

Abbreviations Used and Sample Sizing Inclusion

Primary Research Approach

Market Sizing Approach

Future Forecasting & Research Limitations

Disclaimer

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