Jakarta, CNBC Indonesia – The development of digital banks in the midst of the digitalization trend has succeeded in attracting the interest of a number of banking investors. This year, several large banks have even declared that they are interested in entering digital banking services because of their great potential.
One of the state-owned banks that is reported to have acquired a small bank to support digital transformation is PT Bank Negara Indonesia (Persero) Tbk (BBNI). The management of this state-owned bank had stated that there was indeed a need for consideration to acquire a bank that was able to complement the company’s business.
Analysts see that the inorganic expansion carried out by state-owned banks, including BNI, in acquiring small banks needs to take into account a number of factors.
Head of Investment Avrist Asset Management Tubagus Farash Akbar Farich assesses that BNI has great potential to have new businesses such as digital banks. Moreover, BNI will be the main bank from Indonesia for markets outside Indonesia.
According to him, BBNI needs to strengthen its infrastructure, which could possibly be achieved through acquisitions. He assessed that acquiring a small bank or mini bank could be a strategic step for BNI.
However, he said the criteria for a bank that was ‘deserving’ to be acquired by BNI were those that had a foreign exchange license (foreign exchange), as well as other international transactions. That way BBNI can develop in accordance with the assigned assignments.
“BNI I think it needs a small bank but one that has a license for foreign exchange transactions and others, important international transactions. So according to the core competencies that have been established, I see that the strategy in BUMN is like that,” said Farash, when contacted. CNBC Indonesia.
“The important thing is that the bank license is right,” he added.
Previously, during the second quarter performance presentation some time ago, BNI President Director Royke Tumilaar said, strengthening capital to support business expansion both organically and inorganically. He said BNI have a digital image in line with the digital transformation carried out, so that the running one of them into a digital bank.
Although he has not detailed it in full, Royke has conducted a study and prepared certain criteria to smooth the company’s steps to become a digital bank. The important criteria for this step are the use of fast and agile technology to develop customer centric products and services. Changes in customer behavior today are becoming more dynamic compared to a few years ago.
Digital banks require human resources who are innovative and have a strong digital mindset and low cost to provide competitive products and services. In addition to paying attention to these criteria, the company will also look at the condition of capital. The company certainly wants to get a good potential return and capital allocated for acquisitions.
Thus, careful assessment and consideration is needed before the company decides to make the acquisition.
“We already have all the studies, only the criteria for becoming a digital bank must be well prepared, not just joining in,” said Royke to CNBC Indonesia, last July.
Meanwhile, Head of Research Samuel Sekuritas Indonesia Suria Dharma said that actually there are no special criteria that must be owned by a bank that will be acquired by BNI. However, he assessed that the small bank that was taken must be clean and free of problems.
“Of course, if it is clean, there will be no special characteristics, because of course BBNI will develop its own digital bank in accordance with BBNI,” said Suria.
BBNI itself was assigned by the government to work on the international banking business. One of the strategies that can be implemented is the addition of a network of overseas offices, either in the form of branch offices, sub-branch or representative offices.
Previously, BNI Finance Director Novita Widya Anggraini said: say To determine the new location, BNI uses a capture the flow strategy, both for trade finance transactions, investment, and the Indonesian diaspora.
The company will conduct feasibility studies in several countries such as the United States, Europe and the Middle East. Currently, BNI is preparing to open a representative office in Amsterdam, the Netherlands, to work on markets in Europe and Los Angeles, the United States.
“With the presence of the representative office, it is hoped that we can work on market potential on the west coast of America and Canada,” he said.
Commercial Bank Consolidation Becomes a Strengthening Effort
Deputy Commissioner for Public Relations and Logistics of the Financial Services Authority (OJK) Anto Prabowo said that the consolidation of commercial banks is an effort to strengthen the structure, resilience and competitiveness of the banking industry. That way you can support national economic stability and growth.
Consolidation can also be an effort to encourage the banking industry to reach a more efficient level towards higher economies of scale.
“So the bank is not only strong in the domestic sphere, but also competitive in the regional and global scope,” said Anto.
The news and news of BNI’s plan to acquire a bank have been heard among market players. The bank candidates targeted are banks that can complement BNI’s business going forward.
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