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More, BNI Will Enter Digital Bank Through Acquisition of Mini Bank

Taking advantage of the digital acceleration momentum during the pandemic by targeting the MSME segment

An increasing number of large banks will annex mini banks to enter the digital business. This time, PT Bank Negara Indonesia Tbk (IDX: BBNI) is rumored to be annexing Mayora Bank, which is a BUKU II bank with a core capital of less than IDR 2 trillion.

Quoting CNBC, BNI President Director Royke Tumilaar has confirmed the company's plan to acquire a bank. He said the company had completed the early stages of the process, but he was still keeping the name of the bank a secret.

"We have reached an initial agreement for the acquisition of a bank that has a strong business ecosystem to be developed into a digital bank," Royke said at a press conference some time ago.

According to him, this digital bank will target the MSME segment and collaborate with experienced strategic partners to develop financial technology. Royke assessed that technology plays an important role in managing digital banks, and can reduce operational costs more efficiently than conventional banks.

For information, Bank Mayora is a bank in the retail and financial sector consumer which offers a variety of financial products, ranging from loans (lending) and savings (funding). Some of the loan products offered include Motor Vehicle Loans (KKB), Multi-Use Loans (KMG), and Home Ownership Loans (KPR).

Meanwhile, BNI plays in the segment consumer and business, both through savings products, deposits, to credit. The bank with the 46 logo has a strong association as a banking product that is widely used by students/universities.

Quoting Investor.id, Royke previously gave a signal that the company will not 100% turn into a digital bank that does not have a branch office, but transforms in terms of services, business processes, and products.

Besides BNI already has legacy which is quite strong in Indonesia, he said that the Government as the majority shareholder mandated BNI to focus on strengthening its position going forward as an international bank or a global bank.

Struggle for the MSME market

Throughout this year, the Indonesian banking sector has been enlivened with the launch of digital banking services to corporate actions to seek strategic partners. Bank Jago, BCA Digital, and Bank Neo Commerce have already done this in the first semester.

Meanwhile, several other banks are looking for strategic investors to raise capital. Recently the media conglomerate PT Elang Mahkota Teknologi Tbk (IDX: EMTK) acquired 93% of the shares Fame Bank. Then, there Kredivo which gradually acquired the shares of Bank Bisnis Internasional until it became the controller with 40% ownership.

The corporate action is being pursued to meet the core capital obligation of IDR 2 trillion by the end of this year as stated in POJK No. 12.

Almost all of them are busy targeting the MSME segment in the midst of a surge in digital acceleration during the Covid-19 pandemic. Apart from being the foundation of the Indonesian economy, MSMEs are a segment that is quite difficult to access capital and on average has not been fully digitized.

Banking

Parent/IndividualAcquisition/SubsidiaryTransformation
BCAIndonesian Royal BankDigital BCA
Jerry Ng and Patrick WalujoArtos BankJago Bank
BRIBRI AgroRoyal Bank

More Coverage:

Non-bank

ParentAcquisition/SubsidiaryTransformation
SeaGroupEconomic Welfare BankSeabank
CT GroupInternational Harda BankHello Bank
EMTEKFame BankN/A
KredivoInternational Business BankN/A

This is one of the reasons digital banks cooperate with platforms that have a broad customer base and service ecosystem. That way, they can easily distribute financing and loan products with leverage The.

Based on data from the Central Statistics Agency (BPS), there were 65,5 million MSMEs in 2019 or an increase of 1,98% from 64,2 million in 2018. Meanwhile, only about 8 million or 13% of MSMEs are integrated or utilize digital technology.

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