Bank Jago Increases Capital to Strengthen Transformation Towards a Digital Bank

PT Bank Jago Tbk again made additional capital to support the plan its transformation into a digital bank. This capital increase is carried out through the issuance of new shares (rights issue) the second announced through the Extraordinary General Meeting of Shareholders (EGMS).

As conveyed by the President Director of Bank Jago Kharim Siregar, companies are required to increase business scale and build a capable technology infrastructure in order to be able to compete and adapt to changes due to the Covid-19 pandemic.

"Since Covid-19, we have witnessed the acceleration of technology in meeting the needs of daily life. We want to be part of changing people's lives which are increasingly digital," Kharim said in an EGMS presentation, Tuesday (5/10).

Previously, Bank Jago had completed rights issue the first stage in April 2020, recorded funds of Rp. 1,3 trillion. Earned funds rights issue the second phase will be used to strengthen the company's capital so that it can meet the bank's minimum capital requirement of Rp3 trillion.

In addition, the funds will be used to increase the company's business scale, recruit relevant human resources in accordance with the company's vision, and develop technology.

As is known, Bank Artos officially changed its name to Bank Jago in June 2020. Rebranding This was done after the acquisition by an investor group led by Jerry Ng and Patrick Waluyo through PT Metamorphosis Indonesia (MEI) and Wealth Track Technology (WTT). In addition, Bank Jago will also target the SME and retail segments.

Bank Jago targets commercialization as a digital bank by the end of this year by launching the Life Finance Solution (LFS) application platform. Bank Jago's management ensures that the plan for this digital bank remains on the initial target.

At a virtual public expose last August, Bank Jago targeted the launch of LFS to coincide with a number of other digital financial products. The company is also preparing technology development, such as Open API, microservicesand cloud to strengthen its position in the digital ecosystem.

Realization of digital banking

A number of banks in Indonesia plan to become digital banks this year. BCA through BCA Digital Bank is targeted to launch around October or November this year with limited access, as quoted from Kompas.com.

Later, Bank Yudha Bhakti (BYB) also officially changed its name to Bank Neo Commerce. Contacted DailySocial, President Director of Bank Yudha Bhakti Tjandra Gunawan said that his party was still waiting for permission from the OJK for the platform mobile banking.

"Everything's target phase [development] mobile banking can be completed in the first quarter of 2021, including QRIS technology in blueprint us," he said in a text message.

Meanwhile, BRI also considering establishing a digital bank. Director of Digital, Information Technology, and Operations at BRI Indra Utoyo revealed that the company is still finalizing its current concept and strategy.

To DailySocial Some time ago, Indra said that BRI Agro had the opportunity to be converted into a digital bank. Product digital lending Pinang (Quiet Borrow) becomes test cases company's initial trial to the market.

"Related positioning new to Bank Agro, there will be an answer at the right time. We can't answer right now [whether there are new digital products other than Pinang]. However, our digital strategy will remain go smaller, go shorterand go faster. This means that we are entering a smaller segment, namely ultra micro,” he said.