This article provides you with three popular digital banking stocks in Indonesia. Nowadays, Indonesian can enjoy various innovative services offered by their national digital banking companies. The development of technology continues to transform the banking landscape in Indonesia. Digital banking companies in Indonesia have sprung up in the last few years. According to McKinsey PSF Asian Survey 2017, Indonesia’s banking customers are among Emerging Asia’s most enthusiastic adopters of digital banking. It will drive the industry to grow over the next few years positively.
The Indonesian Financial Service Authority defined a digital banking company as a legal entity that carries out its main banking business through electronic channels. Besides, the companies only operate through one office building or a limited number. In other words, they do not have branch offices (branchless) like their traditional counterparts. The authority requires specific capital for these digital banks. Furthermore, some digital banking companies have been listed on Indonesia Stock Exchange. Here we introduce you to the three popular digital banking stocks in Indonesia.
1. Bank Jago (ARTO)
In 2020, the company changed its name from PT Bank Artos Indonesia Tbk to PT Bank Jago Tbk. In the same year, an Indonesian unicorn company, Gojek, became one of its shareholders, owning 21.4% of the total shares. Bank Jago then received a capital injection from GIC Private Limited (a Sovereign Wealth Fund from Singapore) in 2021, to strengthen the company’s innovation in providing digital banking services for markets. The company went public on January 12, 2016, offering 214,25 million shares at a price of IDR132 per share.
2. Bank Neo Commerce (BBYB)
PT Bank Neo Commerce Tbk., formerly PT Bank Yudha Bakti Tbk, is an Indonesia-based company engaged in the banking business. The company operates as a technology-based bank with a mobile app called Neobank. Accordingly, its customer segments include Small Medium Entreprises (SMEs), retail, and mass market. Akulaku, an Indonesian fintech company, became its shareholders through private placement and right issues. Today Akulaku owns 24.98% of Neobank’s total shares. Some stock analysts consider the presence of Akulaku has strengthened Neobank’s ecosystem as the fintech is backed by a giant fintech Alipay. Furthermore, Bank Neo Commerce went public on January 13, 2015. The digital bank issued 300 million shares with pricing at IDR115 per share.
3. Bank Aladin Syariah (BANK)
On April 7, 2021, Bank Net Syariah officially changed its name to Bank Aladin Syariah (PT Bank Aladin Syariah Tbk) through an Extraordinary General Meeting. The company went public this year on February 1. It issued 5,000 million shares at a price of IDR103 per share. Additionally, the stock prices show a positive trend in the first three months since the issuance.
In addition, Aladin is the brand of the company. Although they have run their digital services, but the mobile app is not available yet. Thus, the bank still relies on the website-based platform. However, Indonesian people seem to positively receive its presence, considering Aladin is the only digital bank holding Shariah principles.
Those are digital banking stocks in Indonesia. According to Musaffa halal stock screening platform, Bank Aladin is the only Shariah compliant bank among others. Muslim investors who are interested to invest the Shariah-compliant digital bank in Indonesia, they can opt Aladin stock.
To read more about Islamic Finance related topics, please click here and visit our academy.
Also, feel free to sign up for our free stock screening services at musaffa.com.