Jakarta, CNBC Indonesia – 2021 is a promising momentum for digital banks in line with the digitalization trend and the hectic acquisition of a number of global investors to enter digital banks.
Not only banking investors, non-bank corporate investors, conglomerates to start-up companies aka startup competing to invest in digital banks.
This trend is also in line with the regulator’s plan to consolidate the banking industry to be stronger in terms of capital.
The Financial Services Authority (OJK), stipulates the minimum core capital provisions as set out in POJK Number 12/POJK.03/2020 concerning Consolidation of Commercial Banks. This regulation requires a minimum core capital of Rp 1 trillion for commercial banks in 2020, Rp 2 trillion in 2021 and Rp 3 trillion in 2022.
With this regulation, the consequence is that many small banks, in the BUKU I category (commercial business group banks, core capital below Rp 1 trillion), are sold and bought by large investors and conglomerates, including through private placements and rights issues (issuance of new shares with Pre-emptive Rights (HMETD).
Now many small banks are turning into digital banks, such as PT Bank Neo Commerce Tbk (BBYB) which has clearly prepared its business to become a digital bank after being acquired by the Akulaku Group, which is supported by Alibaba.
Then there is PT Bank Harda Internasional which is now PT Allo Bank Indonesia Tbk (BBHI) which was recently acquired by Mega Corpora owned by entrepreneur Chairul Tanjung and will become a digital bank. This plan will be carried out after the acquisition process by Mega Corpora is completed.
Another bank that will do the same is PT Bank QNB Indonesia Tbk (BKSW) which is currently focusing on developing digital innovations, from opening accounts to online time deposits.
PT Bank Central Asia Tbk (BBCA) also acquired Bank Royal which later transformed into a digital bank, BCA Digital Bank with the ‘blu’ platform.
The latest, namely PT Bank Negara Indonesia Tbk (BBNI), one of Indonesia’s top state-owned banks, is reportedly planning to acquire another bank as a digital transformation step.
Previously, during the presentation of the performance of the second quarter of 2021 some time ago, BNI President Director Royke Tumilaar said that his party has image digital as the digital transformation is carried out, one of the strategies that is running is becoming a digital bank.
“We are still looking at the subject, whether the capital is there, the capability is there, but the studies are already there. We all have the studies, only the criteria to become a digital bank must be well prepared, not just joining in,” Royke told CNBC Indonesia in July.
He added that his party has the criteria to become a digital bank, it must have criteria and not just take it. Royke emphasized that technology is an important consideration.
“If we don’t have technology, we won’t be able to become a digital bank. The key is in technology,” he said.
Responding to this trend, Head of Investment Avrist Asset Management Tubagus Farash Akbar Farich assessed that in the future the acquisition trend will still be relevant in the midst of banking consolidation.
This is mainly done to gather strength in dealing with difficult situations in 2020 and 2021 due to the Covid-19 pandemic.
“So I think the acquisition trend will still be relevant in the future, because this consolidation can be a strategy to deal with these difficult times,” he said.
For BNI, he assessed that the acquisition has the potential to be carried out as an effort for the digital bank business. Moreover, BNI will become the main bank from Indonesia in foreign markets.
At the beginning of the year, Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that this year it is hoped that more financial service institutions will carry out business mergers or mergers or acquisitions.
According to Wimboh, taking into account the competition in the financial services industry in the future, which will be increasingly tight with the digitalization era. Thus, the need for capital must also be stronger, especially in the banking sector.
“The trend [di 2021] there will be more banks making acquisitions and mergers,” said Wimboh at the time.
(bag bag)
– .
