JAKARTA – Now targeting B2B segment, PT Bank Amar Indonesia Tbk (AMAR) has officially launched its Embedded Banking service today (5/12) to support the scaling of micro, small, and medium enterprises (MSMEs).

Embedded banking itself refers to banking technology integrated within non-banking platforms, thus allowing users to access financial services, such as account opening and credit distribution, directly from the platform.

Benyamin Tampubolon, Special Project Retail Banking Function Head at Amar Bank, highlighted that the new service focuses on empowering MSMEs, especially micro- and solo entrepreneurs, by offering them seamless financial management.

“For instance, a small business owner can access working capital directly through the commerce platform they use for sales, bypassing the delays and complexities of traditional financial systems,” Tampubolon explained.

On the other hand, Bank Amar acknowledges the higher risk of non-performing loans (NPLs) within the micro and small business segment. However, Amar Bank has implemented risk mitigation measures, including customizing credit disbursement for different industries based on their nature and unique cash flow cycles.

“There will be steps, along the way, throughout the lending process—requirements for disbursement, proof of certain activities, and repayment schedules tailored to the anticipated cash inflow timeline from the business,” Tampubolon elaborated.

So far, Bank Amar has partnered with seven platforms across various sectors, including logistics, travel, and commerce. According to the official website, its Embedded Banking platform has been featured in prominent partners like eFishery, a local aqua-tech start-up; Tokban, a marketplace for construction materials; and SAHARA, a retail network for basic necessities.

While not revealing specific figures, Tampubolon stated that Bank Amar aims to expand its partnerships optimally, across diverse industries, by 2025 and 2026.

“We aim to reach as many different industries as possible instead of one. If we were focusing on just one sector, we might be exposed [to the risks] if that industry faces challenges,” he added.

“Looking ahead, embedded banking represents a significant step forward in creating a more integrated and efficient digital economy. By addressing the unique needs of each platform and business, this solution may not only enhance usability, but also drives economic growth and financial inclusion,” Tampubolon concluded. (ZH)