Indonesian mobile wallet Ovo adds mutual funds investment feature

The move extends Ovo services beyond payment

In order to improve financial inclusion in Indonesia, the Lippo-backed cashless payment service Ovo is teaming up with Bareksa, an online mutual funds marketplace.

The partnership allows Ovo’s users to invest with interest rates of up to 5% to 6% per year. “Our main goal is to improve financial literacy in Indonesia, especially to increase awareness of the importance of investing,” said Bareksa CEO Karaniya Dharmasaputra in a written statament. “Only 0.3% of Indonesians are interested in investing due to the low level of trust and knowledge about investment.”

Ovo is the third party mobile wallet that’s integrated into two major digital platforms in Indonesia, Grab and Tokopedia.

Bareksa also has a partnership with Tokopedia competitor Bukalapak.

Founded in 2013, Bareksa is the pioneering online mutual funds platform in Indonesia. The company focuses on collaboration with major financial institutions and other fintech companies. By January 2019, the number of Bareksa mutual fund customers reached 380,000, which represents more than 30% of the number of mutual fund customers in Indonesia, the firm says.

Mutual funds investments have been heavily promoted in Indonesia lately. The Indonesian Mutual Fund and Investment Association targets a 50.25% growth this year, hoping to surpass the 500,000 mutual funds investors from December 2018. The young generation, or millennial investors, are a new target market expected to boost the growth of Indonesian mutual funds.

On the same occasion, Ovo also announced its collaboration with a lending service provider Do-It, following the acquisition of local P2p lending startup Taralite, one of the first online lending startups in the country.

Editor: Nadine Freischlad