After
reaching the milestone of over 1 million retail clients, the Polish fintech XTB
is seeking new directions for expansion. To this end, it has acquired 90% of
the shares of an Indonesian derivatives broker, Finance Magnates has
learned.
XTB’s press
office confirmed this information, admitting that the company wants to
establish its presence in the local market. Moreover, it could “definitely
become a gateway to Asia” and a base for expansion in this part of the
world.
The report
summarizing the results for 2023, published by XTB this week, appears to show
that the company has not only exceeded the number of one million clients but
has also made an important acquisition in the markets where it wants to develop
more dynamically in the coming years.
On 17
January 2024, the fintech finalized the acquisition of 90% of the shares of the
derivatives broker brand Eagel Capital Futures, operated by PT Rajawali Kapital Berjangka, which is regulated in
Indonesia by the local Commodity Futures Trading Supervisory Agency (BAPPEBTI).
This is the finalization of the acquisition process, which was initiated last
year.
“As we
aim to build our presence in non-European markets, namely Latin America, Asia,
and Africa, this was a natural step towards accomplishing this goal,” XTB
representatives confirmed to Finance Magnates.
Website of Eagle Capital Futures
Although
the broker is regulated in Indonesia, XTB admitted that before it starts offering
services through the new entity, it must obtain independent licenses to operate
in this Asian market.
“Apart
from the regulatory aspect, it also requires integration performed by our
technology team to make sure that we are able to provide local investors with
the best possible solutions,” added the broker’s representatives.
According to the company’s report for 2023, it achieved a net profit of PLN 791.3 million, growing by several percentage points compared to 2022.
Indonesia as a Gateway to
Asian Markets
The
Indonesian financial market has been booming in recent years, significantly
increasing the number of active retail investors and interest in saving and
multiplying wealth. In this country of nearly 300 million people (which
constitutes 70% of the total population of the European Union), about 12
million invest. According to data from the Indonesia Central Securities
Depository from September 2023, this value grew 14% year-on-year.
As XTB
admitted, this is a “great moment to mark a presence in the region.”
The fintech ‘s representatives frankly stated that “Indonesia could
definitely become our gateway to Asia.”
Development
in this part of the world, as well as in Africa and Latin America, is part of
the company’s strategy, as attractive in terms of FX/CFD and stock markets with
“high growth potential.” Currently, the company focuses on developing
its business in 12 countries, having licenses in Poland, the UK, Cyprus,
Belize, and the UAE.
The
recently introduced XTB Social, which is part of the publicly listed company’s
roadmap for 2024, may be an opportunity to attract new customers. XTB is also
strongly committed to promoting passive investments, including through ETFs. To
this end, in February, it entered into a cooperation with BlackRock, one of the
largest issuers of this type of fund.
XTB isn’t the sole company recently turning its attention to Indonesia. At the end of 2023, the American-based retail trading platform Webull also made a similar move. This move continues its global expansion, following its debut in Singapore, among other locations.
After
reaching the milestone of over 1 million retail clients, the Polish fintech XTB
is seeking new directions for expansion. To this end, it has acquired 90% of
the shares of an Indonesian derivatives broker, Finance Magnates has
learned.
XTB’s press
office confirmed this information, admitting that the company wants to
establish its presence in the local market. Moreover, it could “definitely
become a gateway to Asia” and a base for expansion in this part of the
world.
The report
summarizing the results for 2023, published by XTB this week, appears to show
that the company has not only exceeded the number of one million clients but
has also made an important acquisition in the markets where it wants to develop
more dynamically in the coming years.
On 17
January 2024, the fintech finalized the acquisition of 90% of the shares of the
derivatives broker brand Eagel Capital Futures, operated by PT Rajawali Kapital Berjangka, which is regulated in
Indonesia by the local Commodity Futures Trading Supervisory Agency (BAPPEBTI).
This is the finalization of the acquisition process, which was initiated last
year.
“As we
aim to build our presence in non-European markets, namely Latin America, Asia,
and Africa, this was a natural step towards accomplishing this goal,” XTB
representatives confirmed to Finance Magnates.
Website of Eagle Capital Futures
Although
the broker is regulated in Indonesia, XTB admitted that before it starts offering
services through the new entity, it must obtain independent licenses to operate
in this Asian market.
“Apart
from the regulatory aspect, it also requires integration performed by our
technology team to make sure that we are able to provide local investors with
the best possible solutions,” added the broker’s representatives.
According to the company’s report for 2023, it achieved a net profit of PLN 791.3 million, growing by several percentage points compared to 2022.
Indonesia as a Gateway to
Asian Markets
The
Indonesian financial market has been booming in recent years, significantly
increasing the number of active retail investors and interest in saving and
multiplying wealth. In this country of nearly 300 million people (which
constitutes 70% of the total population of the European Union), about 12
million invest. According to data from the Indonesia Central Securities
Depository from September 2023, this value grew 14% year-on-year.
As XTB
admitted, this is a “great moment to mark a presence in the region.”
The fintech ‘s representatives frankly stated that “Indonesia could
definitely become our gateway to Asia.”
Development
in this part of the world, as well as in Africa and Latin America, is part of
the company’s strategy, as attractive in terms of FX/CFD and stock markets with
“high growth potential.” Currently, the company focuses on developing
its business in 12 countries, having licenses in Poland, the UK, Cyprus,
Belize, and the UAE.
The
recently introduced XTB Social, which is part of the publicly listed company’s
roadmap for 2024, may be an opportunity to attract new customers. XTB is also
strongly committed to promoting passive investments, including through ETFs. To
this end, in February, it entered into a cooperation with BlackRock, one of the
largest issuers of this type of fund.
XTB isn’t the sole company recently turning its attention to Indonesia. At the end of 2023, the American-based retail trading platform Webull also made a similar move. This move continues its global expansion, following its debut in Singapore, among other locations.
