The number of personal loan APPs in Indonesia market has risen threefold in six months

December 29, 2017

The number of personal loan APPs in Indonesia market has risen threefold in six months
Loan products from China account for half of the global online personal loan industry

Looking back at the hottest Internet finance products in Asia this year, you will find personal loan Apps are second to none. Statistics show that at present, there are over 2,600 personal loan platforms in operation in China. When domestic competitions among multiple platforms in China are very fierce and government policy on China market are not supportive enough to personal loan products, many platforms sight on the Southeast Asian countries where Internet finance is still in its infancy. Among them, Indonesia, the country with the largest population and the largest number of young mobile Internet users in Southeast Asia, has become a hot market for personal loan products.

A set of data tell you how popular personal loans are in Indonesia?

Indonesia currently has over 100 personal loan products, of which 90% are from Chinese companies.

At present, over 30 Chinese personal loan APPs have been launched in Indonesia.

More than 70 Chinese Internet financial companies have already visited Indonesia for local visits.

Indonesia has a population of 260 million and owns the youngest mobile internet users in Southeast Asia. However, its financial system is relatively underdeveloped with low coverage of financial services. The credit market is about 150 billion U.S. dollars, accounting for only 34.77% of bank loans. According to Indonesia Credit Card Association statistics, in Indonesia, the credit card users are around 8 million. The credit card usage rate is very low. In addition, most of the Indonesians are moonlight clans. They spend a lot on social activities and shopping. Their low income can hardly cover the high cost of their consumptions. The majority of wages can only afford the daily expenses. To meet consumers’ demands, a large number of financial technology companies are emerging in Indonesia, hoping to promote the development of financial markets through technological change. At present, there are over 150 financial technology companies in Indonesia, among which personal loans are gradually becoming popular among young white-collar workers and blue-collar workers.

The amount of personal loans rose three times within six months Chinese products accounted for nearly half of the country Google Play TOP 100 App categories

Source: Noogenesis

Personal loan Apps on Google Play TOP list

Source: Noogenesis

Country distribution of personal loan APPs on Google Play TOP 500 list

Source: Noogenesis

According to Noogenesis data of December 12, 2017, the proportion of financial APPs in Indonesia on Google Play TOP100 is still low at around 5%, of which, there are only 2 personal loan Apps, which are far behind those of tools, communications and photography, the mainstream category of the market share. However, compared to the past six months, personal loan Apps still have a significant increase on Google Top 100 and Top 500 ranking.

In respect of the developers’ country of personal loan products, there are 6 products from Indonesia and 5 from China on the Google Play TOP500 APP list. Currently, Indonesia local financial credit products are mainly focusing on peer-to-peer loans and personal micro-loans for white-collar.

Personal loan products account for 50% of Financial TOP20 advertisers Admob favored by most of the personal loan advertisers
TOP100 Advertisers Distribution on Facebook & Admob Platform

Source: Noogenesis

Facebook, Admob have become essential ad platforms for overseas sales. Nowadays, tools, shopping, music and audio are the TOP3 categories winning the most impressions in Indonesia Facebook and Admob ad market. Financial products account for 5% of the total impressions, which is still lower than the mainstream products in the App market.

Indonesian Facebook & Admob Financial TOP20 advertisers in November 2017

Source: Noogenesis

Personal loan Apps, payment App and bank official Apps are the three main categories of financial TOP20 advertisers in Indonesian Facebook & Admob market. More than 50% are personal loan Apps. Top advertisers are as follows:

Source: Noogenesis

Among the 10 advertisers, 6 are local products in Indonesia, 4 are products from China. UangTeman, Kredivo from Indonesia and RupiahPlus from China ranked TOP3 in Indonesian Facebook & Admob advertising exposure.

Founded in April 2015, UangTeman, a local consumer loan startup in Indonesia, mainly provides small loans between $ 75 and $ 350 with a maximum repayment period of only 30 days. After a two-year manual loan process, UangTeman announced that it has obtained enough data to automate the system. Currently, the company has covered business in 14 cities in Indonesia. According to the report, a few months ago, the company has raised $ 12 million in Series A funding round. Its ambition on Indonesian loan market is obvious.

Kredivo, the second-largest Indonesian local-owned company, focused on consumer installment loans with 3C products, home appliances, apparel, toys, beauty, and travel and hotel reservations in a comprehensive business range. Kerdivo customers pay 30 days after online shopping Or up to 12 months in installments. The company won A-round financing led by Singapore-based venture capital firms Jungle Ventures and NSI Ventures two months ago. According to Noogenesis's statistics, Admob was the main ad platforms for the two local-base companies in Indonesia.

The third advertiser, RupiahPlus from China, is one of Indonesia's first unsecured credit loan platforms based entirely on mobile APPs. It provides blue-collar short-term micro loans on mobile end with a loan term of 7 days or 14 days, amount of 300 to 600 yuan, the daily interest rate 1%. The platform has ranked in TOP20 Indonesian financial Apps in just two months after it got live. Since the end of April, there are 230,000 registered users, loan applications 110,000, bad debt rate of less than 3%. Its business has covered Greater Jakarta and Bandung , Surabaya and other first-tier cities in Indonesia. It is reported that, RupiahPlus has completed the pre-A round of funding.

In addition to RupiahPlus, there are other consumer finance platforms from China such as Danacepat, Tangbull, Akulaku, Tunaikita and GoRupiah in Indonesia market. According to Noogenesis platform statistics, these advertisers are also basically based on Admob.

Source: Noogenesis

Noogenesis Summary

In the past year, Internet financial products have flooded to Southeast Asia. Indonesia is the first popular market for personal loans. As far as the overall market is concerned, Internet finance is still in its infancy in Indonesia. Compared with other mainstream categories, the market Share of financial APPs and personal loan APP is still small. Although growing personal loan Apps are reaching Indonesia, only limited products have won Indonesia market successfully. On the current speed of mobile Internet development in Indonesia and the support and expectation from local government, Chinese developers need to remember that enhancing the product quality and user experience is the only way to survive the fierce fighting in the market.