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.

Indonesian Broker Joins XTB Group

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 Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term 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.

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 Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term'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.