●        Initially granted to Kredivo with a limit of Rp300 billion in 2022, this continued increase in credit limit serves as an ongoing channeling facility from Hana Bank.

●        The increase in the channeling limit is primarily driven by Kredivo's positive performance and the promising prospects of the Paylater industry.

●        Kredivo will utilize this channeling facility to expand access to easy, secure, and affordable credit for the public, especially in tier 2 and tier 3 cities.

Jakarta, May 29 2024 – PT. Bank KEB Hana Indonesia (Hana Bank) announced an increase in the channeling facility limit by raising the credit limit to Rp700 billion for Kredivo Indonesia, a leading Buy Now Pay Later (BNPL) services company with a multifinance license, and its sister company, KrediFazz, a leading P2P lending fintech in Indonesia. This channeling facility disbursement continues the initial channeling provided by Hana Bank to Kredivo with a credit limit of Rp300 billion in 2022. The increase in the channeling limit reflects the commitment of both parties to collaborate in expanding easy and inclusive credit access to society, especially in tier-2 and tier-3 cities.

President Director of Hana Bank, Jong Jin Park explained, “Since the initial distribution, we have seen that Kredivo has strong business prospects and fundamentals in providing flexible and safe credit access for Indonesians people. Reflecting on this, we decided to have the second phase on distributing this channeling facilities. This step is part of our strategy to expand financial inclusion, especially for people who are difficult to reach by banking credit products and be oriented towards customer needs.”

In the midst of very challenging economic and market conditions, it needs to be appreciated that Hana Bank's asset growth is supported by an increase in credit distribution of Rp35.20 trillion in the first quarter of 2024 year-on-year (yoy) or an increase of 12.82% compared to the first quarter of 2023 amounting Rp31.20 trillion. The positive quality of Hana Bank's credit distribution is also demonstrated by the reduction in the ratio of non-performing loans (NPL) on 0.75% as of March 2024, which is still below the industry average.

In response, Umang Rustagi, Co-Founder and President Director of Kredivo Indonesia expressed his appreciation for Hana Bank's trust in Kredivo, “We are delighted by this trust, as it reaffirms Kredivo's strategic position as a key partner for leading financial institutions like Hana Bank. We will optimize this channeling facility to expand Kredivo's reach, particularly in tier-2 and tier-3 cities, and also to fulfill various needs of the underserved community. This collaboration is also expected to help us achieve Kredivo's vision of serving tens of millions of users in the upcoming years, accelerating financial inclusion in this part of the world.”

The prospects of the Paylater industry remain promising as adoption rates among consumers continue to rise. This is reflected in the Financial Services Authority (OJK) report, which states that the outstanding Paylater financing receivables as of March 2024 amounted to Rp6.13 trillion, an increase of 23.9% compared to last year.  In line with this, Kredivo continues to innovate by offering Paylater service features that meet the needs of the people, such as longer tenors up to 24 months and limits of up to Rp50 million. To be able to offer these features, Kredivo consistently applies risk management metrics through proprietary AI-enabled decisioning models, which can analyze credit scores, verify data, and predict the performance of prospective debtors more accurately in real-time.