BNI to Acquire 63,92% Shares of Bank Mayora, Strategic Step to Build Digital Bank

PT Bank Negara Indonesia Tbk (IDX: BBNI) will acquired PT Bank Mayora through share acquisition by 63,92%. This corporate action is a strategic step for BNI to establish a digital bank.

Based on the acquisition prospectus issued on January 22, 2022, BNI will take over the shares of Bank Mayora through the issuance of new shares of a maximum of 1,02 billion shares or 54,9% of the issued and fully paid shares.

BNI will also take as many as 169,08 million shares of Bank Mayora owned by BNI International Finance Corporation (IFC). Thus, BNI will pocket 1,19 billion shares of Bank Mayora, equivalent to 63,92% of the total shares issued and paid up to Bank Mayora.

Previously, IFC had invested through a capital investment of Rp290 billion to Bank Mayora to support the financing of MSMEs in Indonesia.

BNI management representatives revealed the trend of the emergence of digital products, especially in financial services, encouraging companies to annex Bank Mayora. With this inorganic strategy, his party can encourage financial transactions among the public with digital services.

"To be able to support digital transactions and in line with BNI's transformation, the company will form a digital bank through an inorganic strategy, namely taking over Bank Mayora which will then be transformed into a digital bank," wrote BNI management.

Meanwhile, currently the remaining 36,98% of Bank Mayora's shares are owned by Bank Mayora (80%) and IFC (20%). The share takeover agreement has been approved by the directors and the board of commissioners of the two banks concerned.

BNI will hold a General Meeting of Shareholders (GMS) on March 15, 2022 to seek shareholder approval regarding the acquisition of Bank Mayora. His party targets to get the OJK permit in April 2022 so that its acquisition of Bank Mayora can be effective in May 2022.

For information, Bank Mayora is a retail and consumer bank that 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).

MSME financial product development

As revealed by BNI President Director Royke Tumilaar some time ago, this new digital bank will target the MSME segment and collaborate with experienced strategic partners to develop digital financial products.

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.

When it comes to acceleration strategies, this new digital bank can take advantage of the supply chain network ecosystem owned by the Mayora Group through products lending and saving as a first step.

In fact, to quote Cash, Director of IT & Operations at Bank BNI, YB Hariantono, said that he would cooperate with Sea Group as a strategic partner. He also said that the Shopee parent company would become a shareholder in BNI's digital bank. This becomes interesting considering that Sea Group had previously entered digital banking by annexing Bank Kesejahteraan Ekonomi (now SeaBank).

If mapped within the scope of state-owned banks, BNI follows BRI, which uses bank vehicles with small capital to set up digital banks. Previously, BRI transformed its subsidiaries BRI Agro becomes Bank Raya. Unlike BNI's digital bank, Bank Raya is targeting the informal worker market or the gig economy in 2022.

Meanwhile, Mandiri Bank choose to go full digital transformation without converting to neobanks through the acquisition of a new bank. Mandiri will strengthen the retail and wholesale banking segments by rebranding the Mandiri Online platform to Livin' by Mandiri. Mandiri will add a number of features and a service ecosystem to improve the concept "great app".