Hana Bank forms Indonesian internet-only bank with Line

Image of Line Bank by Hana Bank's mobile app and debit card for Indonesian customers [HANA FINANCIAL GROUP]

Bank KEB Hana Indonesia and Line have formed an internet bank in Indonesia, with services available from June 10.

It’s called Line Bank by Hana Bank, and the app is available via Google Play and the Apple App Store.

Line Bank is run by Bank KEB Hana Indonesia but operates independently of it, as the Line messaging app has high brand recognition in the country, Hana Bank says. Line Bank services are only available online, and customers cannot access their accounts at branches of Bank KEB Hana Indonesia.

The internet bank will try to gain customers in the highly competitive market by providing convenient digital banking services. It has started with savings and deposit accounts, bill pay and debit cards featuring characters from Line Friends.

It plans to move into fintech and more sophisticated financial products customized for the market. The bank also plans to offer loans and QR payments.

Indonesia is the third market which Line Bank is operating. It is already established in Thailand and Taiwan.

"We plan to expand our user base in Indonesia and raise brand awareness of Hana Bank there by offering digital banking services with global mobile platform Line," said Hana Financial Group Chairman Kim Jung-tai.

Tokyo-based Line is owned by Z holdings, in which Naver and Softbank share a 65 percent stake, and Bank KEB Hana Indonesia is 69.01 percent owned by Hana Bank. Line Financial Asia, a Hong Kong subsidiary of the Japanese company, acquired 20 percent of the Indonesian bank in October 2018, becoming its second-largest shareholder.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]