Parent Kredivo Officially Controlling 75% Shares of International Business Bank

PT FinAccel Teknologi Indonesia or known as the parent Kredivo, officially controls 75% of the shares of PT Bank Bisnis Internasional Tbk (IDX: BBSI) after previously submitting an additional share ownership to the Indonesia Stock Exchange (IDX). According to them, this corporate action is a significant step for the company to offer more varied digital financial products, from digital credit and credit paylater to loans with higher ceilings in the future.

Previously reported, FinAccel acquire shares in Bank Bisnis in stages. The first acquisition was carried out in May 2021 by 24% and to 40% in October 2021. Then, the company again increased its ownership portion by 1,15 billion shares or equivalent to 35% in February 2022.

Thus, the structure of share ownership after the acquisition of shares becomes as follows; FinAccel Teknologi Indonesia owns 75% with 2,48 billion shares, Sundjono Suriadi owns 4,91% with 162,4 million shares, PT Sun Antarnusa 4,17% (138 million shares), and the public 15,92% ( 526,3 million pieces).

In his official statement, Group CEO & Co-founder FinAccel Akshay Garg targets the acquisition process to be completed this week. All regulatory approvals for the acquisition of Business Banks, including from the Financial Services Authority (OJK), have been obtained.

"Even though Kredivo has been leading digital credit provider through business paylater In recent years, the digitization of banking services in Indonesia has just begun. In line with our mission to provide financial services quickly, affordably and widely, we are ready to serve users with world-class banking products in the future," said Akshay.

Meanwhile, a shareholder representative from the Suriadi family added, "Bank Bisnis has a long and proud history. At a time when the banking sector is rapidly moving towards digitization, we are very pleased to welcome FinAccel as the new majority shareholder of Bank Bisnis. We support their vision to build franchise the leading digital bank in Indonesia," said the statement.

Fenomena fintech bank acquisition

As described in the previous article, the acquisition of FinAccel will enable Business Banks to be able to utilize the technology, data, and customer base that has been owned by FinAccel to target markets that have not been served by online merchants in Indonesia.

Currently, FinAccel is overshadowing product paylater Kredivo and lending Kredifazz. Kredivo recorded to have 5 million users last year with the availability of services at more than 1.000 merchants in Indonesia.

Contacted by DailySocial.id, Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said there are a number of reasons why startups fintech aggressively acquiring banks in Indonesia, especially startups that channel loans, both to users and capital for MSME actors

As context, we noted there are several parent-like actions Kredivo, among them Akulaku and Neo Commerce Bank, WeLab and Bank Jasa Jakarta, and recently reported by Amartha and Bank Victoria Syariah (unconfirmed). Startup fintech In the investment sector, Ajaib also acquired Bank Bumi Artha in November 2021.

First, the OJK regulates the maximum limit for loans by of IDR 2 billion. If you borrow from a bank, the ceiling offered can be higher.

"Fintech You can't always rely on retail lenders because the interest rates given are quite expensive. Meanwhile, funding fintech sourced from institutional lenders limited by OJK. Therefore, fintech acquire a bank so that funding sources from bank customer deposits can encourage loan disbursement fintech," he explained.

If you look at it, most of the annexed banks are small banks. In addition to being easier to transform because of their small infrastructure and branch offices, small banks are sold cheaply because they are unable to meet the minimum capital requirements set by the OJK.

In the overall picture, the above corporate actions lead to the same mission, namely to encourage financial inclusion in the underbanked and unbanked segments. "Banks always find it difficult to push loans to the micro segment because operating costs are too expensive. Meanwhile, fintech a lot of working on the micro segment. So, the bank does not need report channeling micro-lending when merging with a startup."