Indonesia

Bank Danamon and MUFG Partner to Boost Financial Inclusion in Indonesia Through Strategic Insurtech Investment

PT Bank Danamon Indonesia, Tbk. (BDMN) and MUFG Innovation Partners (MUIP) enter into a strategic partnership to strengthen financial inclusion in Indonesia.

The partnership was realized through an investment placement in Qoala , an insurtech startup company, through MUFG Innovation Garuda No. 1 Limited Investment Partnership (Garuda Fund). Garuda Fund, a collaboration between MUFG, MUIP, and Danamon, has allocated a total fund of US$100 million for the investment period of 2023-2028.

MUIP President and CEO Nobutake Suzuki stated, "Insurance penetration in Indonesia is still quite low, even when compared to regional markets. We appreciate Qoala's omni-channel approach to marketing insurance, which is very suitable for increasing access to untapped markets for insurance products.

Ivan Jaya, Consumer Funding & Wealth Business Head of Danamon, said that in the midst of private funding conditions which fall by more than 85% in 2023, Danamon together with MUFG and MUIP are continuing to strive to support startups by becoming local and global financial partners that provide various financial solutions and conveniences. "Through this initiative, we hope to be a real solution in providing banking products, one of which is insurance products that are more easily accessible digitally through the Qoala application, especially for customers who already have future financial plans such as young professionals, or customers who "new/already married which in the end is expected to encourage Indonesia's economic growth.”

Tommy Martin, Deputy CEO and Co-Founder of Qoala, welcomed the support provided by Danamon and MUIP. “We appreciate the support from Danamon and MUIP through the Garuda Fund. This support helps Qoala's development in realizing its mission of encouraging financial inclusion through the development of innovative technology. This is the first step in the collaboration between Qoala, Danamon and MUIP. "We hope that in the future we can provide financial solutions for the Indonesian people," said Tommy.

Garuda Fund's investment focus is on series A stage startups and above, with an average investment of US$ 5 million with the strategic objective of enhancing Danamon's business collaboration with digital and fintech players in Indonesia.