PT Krom Bank Indonesia Tbk (BBSI) is moving to capture a rapidly expanding segment of the Indonesian financial market by targeting the pawnshop industry.
The bank identified the sector as a key growth driver after outstanding financing in the industry jumped by more than 50 percent over the last twelve months.
In India, the gold loan sector is projected to reach ₹30 lakh crore (approximately $360 billion) by March 2028, up from ₹18 lakh crore a year earlier, according to assessments by domestic rating agency ICRA.
The strategic pivot highlights a broader trend among financial institutions in emerging markets to diversify lending portfolios beyond traditional banking products.
By entering the pawnshop space, Krom Bank aims to tap into a customer base that relies on asset-backed short-term credit, a segment that has demonstrated resilience and strong uptake despite broader economic fluctuations.
This development mirrors patterns seen in other Asian markets, such as India, where non-banking financial companies have aggressively expanded gold loan portfolios through mergers and acquisitions.
In India, the gold loan sector is projected to reach ₹30 lakh crore (approximately $360 billion) by March 2028, up from ₹18 lakh crore a year earlier, according to assessments by domestic rating agency ICRA.