grip Akulaku Bringing Bank Yudha Bhakti Towards a Digital Bank

Bank Yudha Bhakti (BBYB) is in sight to transform into a digital bank. The change of identity to become a Neo Commerce Bank is one of the strategies.

To DailySocial, President Director of Bank Yudha Bhakti Tjandra Gunawan said, in this transformation the company shifted the entire work process and business model as a conventional bank to digital. The number of branch offices will be limited and transformed into attractive spots to attract customers to experience what digital banking is like and how.

In preparing the whole thing, he said internally prepared a solid and open professional team to recruit more new talents in various expertise in the field of technology. It is also assisted by collaborating with two well-known technology companies from China, namely Huawei and Sunline.

"We believe that with this collaboration, BBYB can be more innovative in creating digital products, especially by providing complete infrastructure and system integration. "So that in the future we can provide good support for BBYB's digital development, and can guarantee future growth," said Tjandra.

He admitted that this transformation process was not an easy matter, especially for a bank that was 30 years old and served the retired TNI segment. Even though digitalization is actually a positive thing, change is always a challenge in itself.

“We are responding with an open mind and with careful planning. Gap Demographics, class and generation are the most important things that must be bridged. Therefore, we continue to carry out socialization, communication and evaluation on an ongoing basis."

From the start, he continued, the company's initial vision was to become a solid retail bank, growing and developing sustainably. Its mission is to create optimal value for shareholders and stakeholder in general.

"This vision and mission is still in line with BBYB's plan to become a digital bank, namely continuous and sustainable technology development in improving existing retail products and increasing user acquisition wider."

Requires strong capital

Playing in the digital business, of course, requires a lot of capital. Akulaku play a role within the company to inject it so that the vision and mission are realized.

BBYB has been upgraded to BUKU II bank (core capital IDR 1 trillion-IDR 5 trillion) after carrying out this rights issue or Limited Public Offering III (PUT) with funds of IDR 150 billion in July 2020. This additional capital allows for business expansion plans related to digital technology.

As of last June, BBYB's core capital was still at IDR 936,43 billion. Gradually BBYB's core capital continued to increase from the same period in the previous year amounting to IDR 702,75 billion.

Every performance rights issue done, always followed by Akulaku as a standby buyer to increase his share ownership. Akulaku First time holding shares BBYB in March 2019 with 8,9% ownership purchased from the controlling shareholder at that time PT Gozco Capital.

As of July 2020, the share ownership structure in BBYB consists of PT Akulaku Silvrr Indonesia (24,98%), PT Gozco Capital (20,13%), PT Asabri (Persero) (18,62%), Yellow Brick Enterprise Ltd (11,10%), and the public (25,17%).

Quoting from IDX information disclosure, the company is holding another event rights issue LPO IV next September. The company will sell 5 billion new shares at IDR 100 per share, the targeted fresh funds from this round is IDR 500 billion.

Tjandra said Akulaku will re-enter as a standby buyer here and soon become the majority shareholder. "That's the plan. Indeed, they are very serious about working with us to build BNC (Neo Commerce Bank) to become a reality The Best Digital Bank in Indonesia. We may not be the 1st Digital Bank in Indonesia, but we are aiming to be the best."

Influence Akulaku and subsequent product development

The digital banking wave not only targeted by BBYB, but also other banking at the same time. Tjandra admitted that the company has a different proposition compared to others, especially supported by the presence of one of its main shareholders, namely Akulaku who join into its ecosystem.

Joint company Akulaku will combine market segments, so far it has only focused on retirees and employees, and will expand into micro and retail financing. Therefore, the company is currently preparing to optimize technology development and digitization of the Loan Origination System and Online Financing related to the approval and credit distribution process.

“BBYB is also developing open banking in the payment system through the formulation of the Open API Standard, then it becomes one competitive advantages we. And of course, in the future our transaction processes and consumer identification will be much more extensive seamless pattern and transaction costs for consumers it will be very minimal.”

Don't forget, applications mobile banking is also being prepared. According to Tjandra, the presence of this application will open things up pintu widening further synergies between the company and its shareholders.

"Where cross selling system The respective platforms or applications will also be more integrated. This is what happens at the same time pintu BBYB enters into collaboration with other similar companies, so that our ecosystem will become wider."

Other agendas together Akulaku is that system testing is underway for BBYB financial products which can later be accessed via the platform Akulaku soon.

Both applications and open banking This API is planned to be released in the fourth quarter of this year. "Of course there will be several phases in the implementation, but it is hoped that everything will be completed in the first quarter of next year," he said.

Currently, based on the company's performance as of July 2020, it is stated that BBYB has credit products, including commercial, consumer and SME loans. Not all consumer credit is distributed to Akulaku, but rather in form channeling through PT Akulaku Finance Indonesia. Credit channeling This strengthens BBYB's credit performance. As of July it reached IDR 53,67 billion with an NPL of 0,47%.