GoTyme Bank: A contender for the Philippines' banking crown?

In The Top Up this week, we look at the rise of the Philippines’ GoTyme Bank and dive into the rebranding of Indonesia’s iGrow. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every fortnight 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](. IN FOCUS In today's newsletter, we look at: - [GoTyme taking advantage of the ecosystem of its parent, Gokongwei Group, to expand in the Philippines]( - IGrow changing its name to Modalin amid ongoing controversies in Indonesia - [Indonesia’s BCA exceeding Singapore’s DBS and UOB in brand value]( --------------------------------------------------------------- Hello {NAME} Collaboration emerged as the predominant theme during the ASEAN Summit in Jakarta last weekend. The consensus was clear: Growth doesn't always have to be about competition, as emphasized by panelists from across the region. In the dynamic startup landscape, collaboration becomes indispensable, especially during challenging times like the tech winter. Notably, in Indonesia, there's been a growing trend of fintech companies venturing into the banking sector through investments in public banks. Across the seas in the Philippines, the Gokongwei Group, a local conglomerate, has joined hands with Singapore-based digibank Tyme Group to establish GoTyme Bank. This tie-up has enabled Tyme to tap into Gokongwei's extensive network of 4,000 consumer-facing outlets. Within just four months of its soft launch in October 2022, GoTyme Bank garnered 300,000 sign-ups, as highlighted by my colleague Simon in this week's Big Story. The company aspires to be the largest bank in the country. Meanwhile, in this week’s Hot Take, I look into the rebranding of iGrow, a peer-to-peer lender in Indonesia, following recent controversies that may have marred its reputation. With the company facing a pending lawsuit from lending partners and lingering financial risks, the pressing question is: Will this rebranding alone be enough to address these challenges? -- Budi  --------------------------------------------------------------- THE BIG STORY [GoTyme digibank taps into Gokongwei ecosystem in bid for top spot in Philippines]( GoTyme has over a million customers in the Philippines, and an expansion into Vietnam might be on the cards.  --------------------------------------------------------------- THE HOT TAKE IGrow's rebrand: A fresh start or a Hail Mary to salvage reputation? Here’s what happened: - Indonesia-based peer-to-peer (P2P) lending firm iGrow has officially changed its name to LinkAja Modalin Nusantara, [announced]( the country’s Financial Services Authority (OJK). - This affirms the previous [statement]( from LinkAja, the parent company of iGrow, about transforming the P2P lending firm into “Modalin,” which will continue to provide lending services to consumers. - The decision to change the name comes in the wake of a [lawsuit]( brought forth by 40 former lending partners who seek redress for the losses they incurred on the iGrow platform. Here’s our take: The name change is undoubtedly a rebranding effort carried out by LinkAja for iGrow, which it acquired in April 2021. That year, iGrow also obtained a P2P lending license from OJK. Since then, the journey of iGrow, a platform that connects lenders with farmers or farming groups seeking capital, has been marked by adversity, particularly controversies surrounding the financial returns for lenders. As of now, iGrow's TKB90 stands at 53.4%. This metric represents the payment success rate within 90 days beyond the due date. Notably, the current number is a substantial decline from last year. Things escalated earlier this year when iGrow found itself embroiled in a lawsuit brought by 40 former lending partners, who collectively sought recompense for substantial losses totaling over 503 billion rupiah (US$33 million) due to funding defaults. A [mediation session]( between iGrow and the lending partners who filed the lawsuit took place last week, but it did not result in an agreement between the parties. It's evident that this has damaged the company’s reputation and consequently taken a toll on iGrow's financial health. According to iGrow, the cumulative amount of disbursed loans currently reaches 682.4 billion rupiah (US$45 million), with outstanding loans amounting to 309.2 billion rupiah (US$20 million). Throughout this year, the company has disbursed a mere 7.7 billion rupiah (US$504,400) in loan funds. On its [website]( the company reported losses of 9.2 billion rupiah (US$603,300) as of the end of 2021. Acknowledging the gravity of the situation, iGrow has [publicly expressed]( its commitment to adhering to relevant legal frameworks and engaging in the resolution process regarding the lawsuit. Integrating the LinkAja brand into its new name is a strategic move to leverage the reputation and trust associated with that brand in order to rejuvenate iGrow’s image and instill renewed confidence in its services. See also: [IGrow’s sprouting credit issues disquiet P2P investors]( However, beyond the lawsuit and the associated reputational risks, iGrow faces the bigger challenge of overhauling its internal business systems and demonstrating that past issues will not recur. As an agricultural financing startup, its primary concern should revolve around its ability to accurately forecast production targets for farmer borrowers and mitigate crop failure, which could lead to delayed repayments. The true litmus test lies in its ability to address these underlying operational issues. Failure to do so could result in a continued erosion of credit performance and a lingering deficit of trust among consumers and lending partners alike. -- Budi Currency converted from Indonesian rupiah to US dollar: US$1=15,263 rupiah.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the fintech scene [here](. 1️⃣ [Ant Group expands Alipay+ integrations in the Philippines]( This adds support for three new mobile wallets: AlipayHK from Hong Kong, Kakao Pay from South Korea, and Touch ‘n Go eWallet from Malaysia. 2️⃣ [TANGGapp raises $2.5m to make remittance easier for Filipinos overseas]( The company lets users transfer money from the US to the Philippines quickly and with a low minimum amount. 3️⃣ [Thailand’s Line Man Wongnai acquires majority stake in local payments platform]( Line Man Wongnai CEO Yod Chinsupakul and CFO In Young Chung were also appointed to the same roles in the Rabbit Line Pay platform. 4️⃣ [Superbank, Genesis to provide $40m financing for Indonesian startups]( The companies will primarily target firms at the series B and series C stages. 5️⃣ [India’s PhonePe enters stock broking with new platform]( Called Share.Market, the service offers investments in stocks, mutual funds, exchange-traded funds, and wealthbaskets for retail investors.  ---------------------------------------------------------------  FYI 1️⃣ [How BCA’s digital drive helped it become SEA’s most valuable brand]( The Indonesian bank is the only brand from the region to break into the world's top 100 most valuable brands.  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preferences center. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you in a fortnight! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894