Allo Bank Maintains Prudent Lending Strategy Amid Economic Challenges

Cautious Approach to Credit Expansion

PT Allo Bank Indonesia Tbk is adopting a cautious approach to credit expansion amid ongoing economic uncertainty and subdued credit demand. As of October 2025, the bank's total credit disbursed reached Rp 8.36 trillion, representing a 5.28% year-on-year growth from Rp 7.94 trillion in October 2024 ¹

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Source 2

https://keuangan.kontan.co.id/news/kredit-tumbuh-moderat-allo-bank-fokus-jaga-kualitas-aset

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Prioritizing Asset Quality

The bank's management has emphasized maintaining asset quality as a key priority. Head of Digital Strategy Allo Bank, Destya D. Pradityo, stated that the moderate credit growth is a result of the bank's prudent and selective lending approach rather than weak demand ²

. This strategy aims to ensure sustainable growth while managing potential risks in the current economic environment.

Strategic Considerations

Allo Bank's cautious stance reflects broader industry trends where digital banks are becoming more selective in their lending practices. The bank's approach demonstrates a strategic shift towards quality over quantity in credit expansion, particularly during periods of economic uncertainty.

Market Context

The banking industry faces ongoing challenges from economic uncertainty and sluggish credit demand. Allo Bank's measured approach to lending aligns with these market conditions, prioritizing stability and risk management.