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Traveloka Continues to Expand Cooperation with Banking

Traveloka Continues to Expand Cooperation with Banking

After a week, Traveloka again announced its collaboration with Bank Jago. The goal is to expand credit distribution through Traveloka Paylater. This was done in the midst of the rapid growth of these financing services.

Traveloka Continues to Expand Cooperation with Banking

It is claimed that Traveloka Paylater has grown by 10 times since it was first launched in 2018 and is targeting the underbanked community who are constrained by financial problems.

The partnership with Bank Jago has expanded lending opportunities to the underbanked community in Indonesia, especially Traveloka Paylater users who often have difficulty accessing finance to meet their travel and lifestyle needs.

“Through this collaboration, we are optimistic that we will be able to contribute to financial inclusion and hope to increase the business value of both parties,” said Traveloka CFO & PT Caturnusa Sejahtera Finance President Doan Lingga.

PT Caturnusa Sejahtera Finance is a finance company under Traveloka that has a license to provide technology-based loan services.

Traveloka Continues to Expand Cooperation with Banking

Support Allo Bank’s digital debut

Earlier this year, Allo Bank received strategic support from various digital businesses, including Bukalapak, Carro, and Grab. Not wanting to be left behind, Traveloka is also involved in supporting the debut of digital bank products which will soon be launched to the public by Allo.

The support is not in the form of capital like from others, but there is the possibility of integration with the lifestyle superapp in the Traveloka ecosystem.

Traveloka Continues to Expand Cooperation with Banking

The fintech line has the potential to become a big business

More than just an OTA, Traveloka’s ambition to build a comprehensive lifestyle application continues to be shown. This is no exception through fintech innovation which continues to be strengthened to support the transaction system.

In addition to the three banks above, there are actually other parties that previously provided special support to Traveloka’s financial line, namely BNI, which also supports their paylater products.

On one occasion at the end of 2019, one Traveloka executive even boasted that Traveloka’s fintech line — including paylater — was close to becoming a $1 billion business.

Through PT Caturnusa Sejahtera Finance, Traveloka is also quite free to innovate with financing services and derivatives. In POJK 35 of 2018, the OJK explained that finance companies were given the freedom to add variations to financing products, namely multipurpose.

Multipurpose is a type of financing for goods and/or services required by the debtor for use/consumption and not for business purposes or productive activities within the agreed period.

The support of financial institutions such as banks can clearly give Traveloka more strength to optimize its fintech business potential.

Because collaboration with banks can also be realized in various forms, as has been done previously, including expansion of credit access and loan channeling.