Gojek produces a digital wallet and payments platform called GoPay. Jago’s home country, Indonesia, has one of the largest unbanked populations in the world – about 95 million adults, or 52 percent of adults in the country, are unbanked and 47 million are underbanked, according to World Bank Data cited by Gojek.
“The ultimate aim of this partnership is for Jago to provide access to digital banking services through Gojek’s platform, allowing Gojek’s millions of users to instantly open a bank account with Jago and better manage their finances via the Gojek app,” the release states.
The parties did not disclose precise terms of the investment, but said Gojek now holds about 22 percent of Bank Jago.
After the transaction, according to the companies, Bank Jago remains majority-owned by Metamorfosis Ekosistem Indonesia and Wealth Track Technology, maintaining their combined ownership stake of 51 percent.
Gojek Co-CEO Andre Soelistyo said in Friday’s news release: “Our partnership with Jago marks the latest milestone in our drive to reduce daily friction for users and improve their lives through technology. It is a key part of our strategy and will underpin the growth and sustainability of our business in the long term. Jago’s tech-based banking solutions will supercharge Gojek’s ecosystem offerings and facilitate access to banking services for the mass market, thereby supporting our common vision to accelerate financial inclusion in Indonesia.
“This is the start of a new way of offering financial services to Gojek users, as the collaboration will enable us to develop a process through which we can work with other banks,” he continued. “Our aim is to leverage more partnerships like this, to ultimately make the Gojek app a reliable resource for everyone’s financial needs.”
Bank Jago’s President Director Kharim Siregar said in a prepared statement: “We are proud and excited to work with Gojek, which has a digital footprint that encompasses millions of consumers and businesses throughout the country. This perfectly complements Bank Jago’s deep expertise and understanding of the financial needs of Indonesians.
“We believe that this strategic collaboration – between a tech-based bank like Bank Jago and a Super App like Gojek – is the first of its kind in Indonesia and Southeast Asia and represents a new way to spur growth in digital economies. As a bank designed with an open API, we will go on to work with multiple digital ecosystems to reach a wider audience and drive our aspiration to enhance the finances of millions of people through digital financial solutions.”
Gojek was founded in 2010 and Bank Jago, using the name PT Bank Artos Indonesia, was founded in 1992.
Gojek said in the announcement that it hopes the arrangement with Jago will serve as a model for future relationships with other institutions.