The majority of banks in Indonesia was felt threatened by Indonesia’s ride-hailing platform, Go-Jek.
A survey conducted by accounting firm PwC expressed concerns over banks in Indonesia that viewed Go-jek as a threat to their business.
72% of surveyed banks feel Go-Jek (with Go-Pay service) has entered the payment area and threatened their existence. 62% of respondents view Alibaba with Alipay payment service is also a serious threat in the future.
To anticipate the threat, 66% of banks implement digital strategies as part of corporate strategy to keep their market share. In fact, more than 56% of banks have targeted at 5% of their profits derived from digital initiatives.
The PwC survey was conducted with the involvement of bank executives in Indonesia, to understand their views on digital banking in Indonesia.
Go-Jek founded in 2015 as a ride-hailing app for motorbikes, has now evolved into a transportation, logistics and digital payments company. Last year, Go-Jek processed more than 100 million transactions worth US$ 5 billion.
The services of Alipay and WeChat Pay also began to expand into Southeast Asian countries after successfully dominating transactions in their China mainland home of US$ 5.9 trillion in Q4 only.
Source : Singapore Business Review