1) Fintech in Indonesia faces both challenges and opportunities for growth. Challenges include outdated incumbent banks and infrastructure issues, while opportunities exist due to Indonesia's large unbanked population and rising internet usage. 2) Collaboration models between fintechs and incumbents like banks include incubation, capital investment, co-creation partnerships, and fintegration. However, both sides face hurdles like lack of experience, underestimating complexity, and difficulties with integration. 3) OVO has built an ecosystem in Indonesia through strategic partnerships with major companies, allowing it to expand its reach and better serve merchants and customers. Collaboration has been key to OVO's growth.

1. Collaboration as a
new way to win the
FinTech market
Johnny Widodo
CEO belimobilgue.co.id
2020

2. BINARACADEMY
01
Fintech in Indonesia:
Challenges
Offline shopping and cash behavior
Multiple loyalty cards
Multiple and frequent visits to banks
Incumbent banks are unprepared for the digital
shift
Digital ambition far excess the reality in most
cases
Many startups are build-focusing mainly still on
payment
High regulatory barriers to entry
Infrastructure in Indonesia is still considered
underdeveloped as compared to our neighbors
Government planned to build strong
infrastructure but it takes time and is delayed
unfortunately

3. BINARACADEMY
02
Fintech in Indonesia:
Opportunities
4th largest population (265 Mio)
Offline shopping and cash behaviorMiddle class increase 2x by 2030
GDP/capita increase 60% by 2030
Urban population increase 30% by 2030
>133 mio internet users
>370 mio mobile subscriptions
Expected e-commerce boom at 40 bio USD by
2022
Share of digitally active consumers in banked
population grew faster than Asia and more than
doubled in 4 years
>90 mio active mobile social users affordable
mobile data (50% from peer ASEAN)

4. BINARACADEMY
03
The rise of fintech has impacts across
all stakeholders
● Set regulations that reflect
today’s technology
● Foster but not hinder
● Tweak their offerings to stay
relevant
● Seek to collaborate with
disruptors
● Upgrade skills & knowledge for
changing business requirement
● New opportunities
More convenient and safer
way to pay
Equip the future generations
with necessary skills &
knowledge
Build digital capability
RISE OF
FINTECH
REGULATORS
BANKS
EMPLOYEES
RETAILERS
SCHOOLS
CONSUMERS
REGULATORS
BANKS
EMPLOYEES
CONSUMERS
SCHOOLS
RETAILS

5. BINARACADEMY
04
Collaboration models between
incumbents and fintechs
INCUBATION/
ACCELERATION
CAPITAL
INVESTMENT
CO-CREATION PARTNERSHIP/
DISTRIBUTION
FINTEGRATION
Incumbents form close
engagement (e.g mentorship,
co-working spaces) with
FinTechs through incubations
labs or acceleration programs
Incumbents participate in
a funding round raised by
the FinTech
Incumbent and FinTech
cooperate to develop and
display new product
Incumbent distribute its
products in collaboration
with FinTech
Incumbents procure
an existing
product/service
offered by FinTech
Cooperation, product
ideation, tech education
Equity share, debt
financing, strategic
investment
New product/ service Different options for the
same service
Stack refresh,
whitelabel product
MVP/ Angel/ Seed/
Early/ Growth
Early/ Mature stage Early/ Mature stage Scale-up Mature stage
CAPABILITIESOUTPUTMATURITY
Incumbent FinTech

6. BINARACADEMY
05
Challenges arise from both ends during
collaborations
Fintechs lacking industry knowledge/ experience
Generic value propositions & lack of live production experiences
undermine FinTechs’ credibility.
Fintechs underestimating complexity in collaborating
with FIs
Some FinTechs lack realistic expectations on what it takes to work
with FIs due to different standards of regulations/data protection,
on-boarding & procurement processes, etc.
Lack of internal framework and measurement
Some FIs don’t have a standard internal process of adopting and
working with FinTechs, they are also lacking of framework assessing
effectiveness of investments
‘The long maybe’
FIs tend have a complex decision-making structure and process and it takes
them too long to say ‘no’, many cases are stuck at a POC stage, due to various
reasons, such as further funding approvals.
Expensive and complex engagement
Some FinTechs, especially small players, have found it challenging to cope
with FIs’ long and complex legal & procurement process as well as stringent
requirements for compliance & data protection.
Integration with FI system & databases
Many FinTechs describe significant data and system integration
challenges, due to siloed data management, multi-layered architecture,
and other IT complexities at the FIs.
HURDLES FROM INCUMBENT’S PERSPECTIVE HURDLES FROM FINTECH’S PERSPECTIVE
1
2
3
1
2
3
Recommendations for incumbents to consider
● Demonstrate industrial experiences with live cases, not just
technical know how
● Create guidelines on POC engagements like stakeholder
mgmt, end timelines & investments
● Develop a standard working process & project management
with FI clients
Recommendations for incumbents to consider
● Create standard governance and internal process
● Publish guidelines & checklists for IT and compliance
requirements
● Develop a suite of quantitative and qualitative assessment
metrics

7. BINARACADEMY
06
Case study: OVO
Through strategic partnerships, OVO has built an ecosystem which can help
our merchants partners expand their reach
Biggest e-commerce in Indonesia
● 80+ mio users
● Sell to more peopler
#1 deal platform in SEA
● Impactful and customized deals
for merchants
#1 mall operator and largest
retail in Indonesia
● 60+ malls
● 25+ years of retail
experiences
● Own major retail brands
Leading insurance provide in Indonesia
● 2+ mio customers
● 250K agents in 160+ cities across
400+ offices
● Access to 430 bank branches
● 23 years serving Indonesia
#1 consumer app in Indonesia
● 50+ mio users
● 100+ cities
● GrabTransport, GrabFood,
GrabExpress, GrabFresh,
GrabRewards
Agent-assisted e-commerce
platform
● 1+ mio agents
● 500+ cities
● Sell anything on its platforms

8. BINARACADEMY
07
Conclusions
To grow more in the financial services industry in Indonesia,
we need to look up to all the opportunities and challenges we
might face. Even though FinTech has impacts on many
stakeholders, but it can’t stand alone no more. It needs to
collaborate more, and that’s what OVO does right now, they
realizes on how important collaboration is. So they can grow
even bigger and stronger!

9. BINARACADEMY
07
Speaker profile
Johnny Widodo
CEO belimobilgue.co.id
Johnny Widodo is the CEO of a startup in
automotive industry belimobilgue.co.id and before
that, he was the Director of the financial services
platform, OVO. With over 15 years of industry and
consulting experience in startup, fintech,
e-commerce, and many more experiences across
the landscape Mr. Johnny often shares his
experiences through many workshops.