BCA Digital Ready to Operate in June 2021, Focus on Ease of Payments and Loans

PT Bank Digital BCA (BCA Digital) is targeted to operate in June 2021. For more than a year and a half, this subsidiary of PT Bank BCA Tbk (BBCA) has prepared a number of products and services that will target the digitally literate user segment. digitally savvy.

DailySocial had the opportunity to interview the CEO of BCA Digital Lanny Budiati to find out more about the strategy and The roadmap company at this early stage.

Creating a new entity

BCA Digital is the result Branding the previous name, namely PT Bank Royal Indonesia. To transform into a digital bank, BCA as the parent company annexed Bank Royal Indonesia worth IDR 1 trillion in 2019. As of December 31, 2020, BCA Digital had a core capital of IDR 2,9 trillion.

Bank BCA Digital CEO Lanny Budiati said that his party established a new entity to become a digital bank so that its digital banking services do not collide with products and services that have been in operation for a long time holding companies, such as BCA Mobile and internet banking.

According to Lanny, service Existing BCA has already had a large user base from a wider age range and segment. With this situation, the majority of BCA customers feel quite comfortable using digital banking services Existing.

Besides that, BCA Digital can also act as an incubation "field" for the parent to experiment with new technologies, business models and different ways of working. BCA Digital can open up opportunities to be part of dynamic technological developments.

"If the implementation is successful and has a significant impact, we can adopt the business model and synergize it with BCA's parent company," said Lanny.

BCA Digital is expected to be faster and more flexible in developing innovative digital banking services and prioritizing the experience for its customers.

Aim digital savvy

Furthermore, there are a number of factors that encourage parent companies to establish digital banks. Lanny said the penetration of internet and smartphone users continues to increase from year to year. Based on the report "Digital 2021: Indonesia" released We Are Social and HootSuite, more than 59% of Indonesians are connected to the internet, while 66% are actively using smartphones.

Then, technological developments in Indonesia are considered to have led to greater demand, causing a shift in habits (behavioral shifts) consumer. This is especially experienced in the user segment digitally savvy who are considered to have high needs and expectations for banking transactions with different models.

Another factor is that the Covid-19 pandemic is a factor that triggers increased activity through digital, including banking transactions. In addition, a number of other research results show that there has been a tremendous increase in the number of transactions in digital and non-cash banking services over the past few years.

Referring data Bank Indonesia (BI), transaction volume digital banking throughout 2020 alone it reached 513,7 million transactions or an increase of 41,5% on an annual basis. Meanwhile, the transaction value was recorded at Rp2.774,5 trillion or grew 13,91% from the previous year.

"We hope that BCA Digital can accommodate the needs of the younger generation and digital savvy, become the market leader in the segment digital banking, and enlarge the market share already owned by BCA," he added.

Focus on payment and funding

BCA Digital carries the concept of branchless banking, when all products and services can be accessed through the application. It targets the market segment digitally savvy who are accustomed to or choose to transact digitally. However, this segment is not limited to young people.

According to Lanny, there are a number of products and services that are being prepared, including the ease of opening an account ( ). In addition, BCA Digital will also synergize with all channel owned by the parent company, the BCA ATM network and Halo BCA.

For the initial stage, BCA will focus on payment products (payment) to facilitate various transactions through the application and increase the user base. Besides that, BCA Digital will distribute loans (funding) to the public, especially the individual segment, individual business, MSMEs, and retail.

"BCA Digital will come with more display fresh to accommodate the needs of the digitally savvy in carrying out pleasant and optimal banking activities. That way, we can provide added value in responding to the financial needs of modern society," he said.

Not much was mentioned further about the strategy and business model of BCA Digital. However, Lanny revealed that the company will collaborate with various external parties who have the same vision and target market. Currently, BCA Digital is preparing the infrastructure to facilitate integration with the service ecosystem.

"We are also continuously making developments in the security aspect of all infrastructure and services support system. Periodic updating of technology systems is important to balance usage tools while preventing potential threats such as cyber attacks."

Digital banking rules

With the increasing number of bank transformations to digital this year, the Financial Services Authority (OJK) targets regulations related to commercial banks to be released in the first semester of 2021. The POJK will also regulate digital banks.

In a webinar titled "OJK Prepares Regulations for Digital Banks Without Physical Branches" a few days ago, OJK Banking Supervision Chief Executive Heru Kristiyana said that the establishment of a new bank must have a minimum capital of IDR 10 trillion, if it is not part of a larger banking ecosystem. According to him, this policy is not without reason.

Based on research conducted by OJK, a bank can be said to operate efficiently, generate profits, and contribute to the national economy if it has a capital of IDR 10-11 trillion. Meanwhile, in the previous POJK, which stipulates the establishment capital of IDR 3-4 trillion, it is considered to only generate profits, but is not efficient and contributes to the economy.

Not only capital, this new POJK will also regulate digital bankingg, starting from aspects of technology governance, data protection, to platform collaboration. From the results of other OJK research, around 56% are known to be ready to transform into digital banking. Then, as many as 56% of the 107 commercial banks already have the technology to go digital.