PayMongo CEO faces misconduct allegations while company struggles

In The Top Up this week, we look at allegations of misconduct against PayMongo CEO Francis Plaza and analyze the recent GoTo-Bank Jago tie-up. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Budi Sutrisno Journalist Hello {NAME} ​​ I used to write about harassment cases in households, colleges, and even religious schools in Indonesia. These stories all shared a similar theme: an abuse of power against victims. However, there’s a lot more at stake when it happens at a workplace. The fear of losing their jobs and the food on their table if they come out against their superiors may push victims deep into the dark. In the Philippines, PayMongo CEO Francis Plaza is being investigated by the fintech startup’s board of directors for his alleged inappropriate conduct toward an employee and his alleged abuse of power as chief executive. This follows “multiple reports” of harassment from PayMongo employees against former CFO Jay Olos, who was dismissed from the company earlier this year. The startup is now reeling from multiple C-suite departures and internal strife even as its performance comes under strain, as my colleague Melissa highlights in this week’s Big Story. Meanwhile, for the Hot Take, I examine why the latest collaboration between GoTo Group and Bank Jago in Indonesia is significant in their two-year relationship. When Gojek’s merchants have access to Jago’s credits, who knows how far both companies can grow? -- Budi (Note: Sorry for the delay in today's edition of The Top Up, but our Big Story is hot off the presses!) THE BIG STORY  [Fallout at PayMongo: alleged harassment by CEO, founder departures, growth woes]( PayMongo has grown fast amid the pandemic. Now, with C-suite leader departures and allegations of harassment, it faces its biggest test yet. THE HOT TAKE A new chapter in GoTo and Bank Jago’s relationship Here’s what happened: - GoTo Group’s financial arm, GoTo Financial, is [collaborating]( with Bank Jago to feature the latter’s services on the GoBiz app. - The banking services are expected to help GoBiz partners - including GoFood merchants, among others - manage their finances better. - GoBiz partners can enjoy payouts on the same day they make their sales. Previously, they had to wait a day to do so. Here’s our take: While this is not GoTo and Bank Jago’s first collaboration, the key difference is the focus on GoBiz, the app where GoFood and GoMart merchants manage their operations. Previously, the emphasis was more on consumers: Gojek users with verified GoPay accounts could open Bank Jago accounts through the Gojek app. Meanwhile, Bank Jago customers could pay bills, transportation services, and enjoy food delivery services through Gojek without additional transaction fees. However, the SME sector is a different beast altogether. This latest integration could open up opportunities for providing business loans and other SME-related solutions. Compared to consumer-focused agendas, this may mean more money, providing more data for credit scoring, and potentially bigger loan disbursements. The tie-up is undoubtedly beneficial for GoTo, considering that SMEs are a prime driver of its business. Last year’s GoFood gross merchandise value (GMV) [came in at 30.65 trillion rupiah (US$2 billion)]( or 39% of the industry value, according to a survey conducted by business and investment research institute Tenggara Strategics. GoFood outperformed competitors ShopeeFood and GrabFood, which brought in 34% and 27% of the total industry GMV, respectively. Meanwhile, Bank Jago’s corporate banking strategy will also likely get a boost from the move. The company already has partnerships with 34 companies and financial firms - mainly for disbursing loans - but the ratio of corporate to individual loans is unclear. Generally speaking, though, corporate banking is a top profit driver for banks. For example, Bank Central Asia (BCA), one of Indonesia’s largest private banks, [booked 286.97 trillion rupiah (US$19.4 billion)]( in loan disbursements to the corporate segment in the first quarter of 2022, accounting for 45% of the bank’s total loans. It seems that speed is Bank Jago’s main consideration when it comes to partnerships across industries. Its recent integration with local investment platform Bibit allows investors to withdraw money from certain mutual funds within seconds - something not as easily replicated by traditional banks. However, although Bank Jago can lure MSMEs with the same-day payout sweetener, it has to compete with BCA and other banks for relatively bigger or more profitable SMEs. Merchants with longstanding banking relationships already enjoy perks like the high-net-worth BCA Prioritas status, which offers [business partnership directory]( and merchant discounts. See also: [The tech companies bankrolling Indonesia’s digital banks]( Ultimately, the hope is that this partnership will help boost Bank Jago’s credit disbursement volume, which [lagged behind SeaBank’s]( in the first half of 2022. It is unclear if the latter is eyeing similar partnerships to cater to the SME segment. But, at the same time, it would make sense for SeaBank to make full use of its Shopee connections. And with that, the SME segment could quickly become the next battleground for Indonesia’s digibanks. – Budi Currency converted from Indonesian rupiah to US dollar: US$1=14,760 rupiah. NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the fintech scene [here](. 1️⃣ [Bank of Thailand partners with 2C2P, others to launch CBDC trial]( However, the Thai central bank currently does not have any plans to issue an official retail CBDC. 2️⃣ [Indonesian e-wallet Dana raises $250m from Sinar Mas]( At the same time, Alibaba-backed ecommerce firm Lazada also spent US$304.5 million to buy around 4.8 million Dana shares from its existing investor, Emtek. 3️⃣ [Apple Pay lands in Malaysia]( This marks Apple Pay’s second Southeast Asian market after Singapore. 4️⃣ [China extends digital-yuan loans to more cities]( The cities of Suzhou and Guangzhou, along with the province of Shaanxi, have begun issuing digital yuan loans, Forkast reported. 5️⃣ [Dubai BNPL firm secures $150m in debt financing]( Tabby will use the funds to support and expand its product offerings, reported Bloomberg. That’s it for this edition - we hope you liked it! 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