Shinhan Bank on Friday said that its Indonesian subsidiary has teamed up with an Indonesian financial technology company to bolster its presence in the digital platform-based loan market in the Southeast Asian country.

Bank Shinhan Indonesia and PT Artha Dana Teknologi Indodana signed a memorandum of understanding at the bank's headquarters in Jakarta on Thursday.

PT Artha Dana Teknologi Indodana is a licensed digital transaction solution provider with 830,000 active users, offering installment loan services and buy-now-pay-later solutions that enable customers to instantly purchase products and pay for them in recurring installments.

Bank Shinhan Indonesia plans to launch a loan product on Indodana’s digital platform in April, hoping the collaborative work will help expand Shinhan's customer base.

"This collaboration enhances banking efficiency for customers, and we aim to broaden our retail business by fostering partnerships with various platforms," Bank Shinhan Indonesia President Director Koo Hyung-hoe said.

Established in 2016, Bank Shinhan Indonesia currently operates 35 offline branches across Indonesia.