Parent Kredivo Annexed Shares of International Business Banks Worth 551,3 Billion Rupiah

PT FinAccel Teknologi Indonesia which oversees the platform paylater Kredivo, officially annexed 24% shares owned by PT Bank Bisnis Internasional Tbk (BBSI). In the disclosure of information on the Indonesia Stock Exchange (IDX), FinAccel purchased 726.367.057 shares of Bank Bisnis Internasional (IDX:BBSI) worth $38,4 million or equivalent to 551,2 billion rupiah.

No official information has been released by either side. However, it is certain that this corporate action is an attempt by the company to seek quick capital to transform into a digital bank. Moreover, Bank Bisnis Internasional only sold its shares for Rp. 759 per share, lower than the market price of Rp. 3.000 per share.

For your information, Bank Bisnis Internasional was established in 1957 and targets the retail segment. Meanwhile, FinAccel manages the platform fintechpaylater Kredivo  and Kredifazz. Quotes Bisnis.com, user Kredivo has reached 2 million users or 25 percent of the total credit card users in Indonesia.

Recently, Kredivo also reportedly considering an IPO option on the New York stock exchange through the SPAC channel. Platforms paylater The plan is to collaborate with one of the units of Victory Park Capital, an investment company that provides facility debt funding worth $100 million in November 2020.

Digital platforms go to the bank

Parent entry Kredivo to the International Business Bank adds a row of a number of technology platforms become shareholders in the banking sector. Several similar corporate actions in Indonesia, among others Akulaku Silvrr Indonesia to Bank Neo Commerce (BNC), Gojek Group to Bank Jago, and the parent company Shopee Sea Group to the Economic Welfare Bank (BKE).

In this context, parent involvement Kredivo at the International Business Bank gives a signal of efforts to transform into a digital bank. The technology platform, on average, goes to banks that do not have bank accounts legacy large banks such as BUKU III and IV banks. International Business Banks only have 1 head office, 1 branch office, and 3 sub-branches.

That is, there is a possibility that the International Business Bank will change Branding with a new identity and expand its market segment byleverage existing technology and user base Kredivo with a wider range of products.

A similar thesis was also delivered by Jerry Ng, a senior banker and founder of Bank Jago when he annexed Bank Artos and changed his identity to Bank Jago. This was also carried out by Neo Commerce Bank, previously known as Bank Yudha Bhakti (BYB).

This is also reinforced by the regulation of the Financial Services Authority (OJK) where the establishment of a new bank must have a minimum capital of Rp. 10 trillion, provided that it is not part of a larger banking ecosystem.

Based on the results of the study, the Chief Executive of OJK Banking Supervision Heru Kristiyana said that 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.

While the previous POJK, which only regulated the establishment capital of Rp. 3-4 trillion, was considered only able to generate profits, but it was not efficient and contributed to the Indonesian economy.

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 about: digital banking, starting from aspects of technology governance, data protection, to platform collaboration.