Bank CTBC Indonesia Enters the Online Loan Segment Through "Dana Cinta"

PT Bank CTBC Indonesia (Bank CTBC) officially launched the Instant Unsecured Credit (KTA) platform Love Fund. Through this web-based platform, customers can apply for loans digitally with an approval process in 60 seconds.

In a press statement, President Director of Bank CTBC Indonesia Iwan Satawidinata said, the launch of this digital KTA marks a new milestone for the company in facing digital economic disruption in the Indonesian financial and banking industry.

"This step is our commitment to support the government's program to increase financial inclusion for people who do not have access to banking services," said Iwan.

In addition, loan opportunities online considered still large in Indonesia, especially with the increasing education of the public with this product. This is further strengthened by changes in people's lifestyles which have begun to prioritize non-physical activities during the Covid-19 pandemic.

Previously, several other banks also released a similar KTA Online platform, for example Amar Bank with My Cash App, or BRI with betel nut which is currently being prepared to become a digital bank. Meanwhile, in the current market, startups offer similar services  .

Based on data from the Financial Services Authority (OJK), loan disbursement through in 2020 it was recorded at Rp74,4 trillion, up 24% from the achievement in 2019, which was Rp58,84 trillion.

Meanwhile, Executive Director of Retail Banking PT Bank CTBC Indonesia Bambang Simon Simarno believes that the growth of the KTA business in Indonesia can reach 24% in 2021. He said that CTBC Indonesia is the only bank that offers instant principal approval for unsecured personal loans with limit reached Rp. 200 million.

Since the initial stage of the trial process, Bank CTBC Indonesia has recorded that it has received as many as 20 thousand loan applications online in less than four months. It targets loans online KTA Instant Dana Cinta can get a 50% market share in the next five years.

For information, Bank CTBC Indonesia is collaborating with Dukcapil and PEFINDO to support the loan application process online, from eKYC verification to credit scoring. Users can get loan approval in just 60 seconds, where the loan has an option of a tenor of 6-36 months with interest flat 0,85% per month.

For your information, PT Bank CTBC Indonesia was previously named PT Bank Chinatrust Indonesia. Currently, the shares of Bank CTBC Indonesia are controlled by CTBC Bank Co. Ltd by 99% and the remaining 1% by PT Bank Danamon Indonesia Tbk.