Indonesian bank looks to fintech to reach customers
(30 January 2017 – Indonesia) Indonesia’s largest private bank, Bank Central Asia (BCA) has announced that it will invest 200 billion rupiah (A$19.5 million) in financial technology (fintech) firms in a bid to on-board hard to reach customers.
BCA is to own 100 percent of a new company, Central Capital Ventura, according to a statement submitted with the country’s stock exchange. The new firm will invest in and collaborate with fintech companies "that will support BCA's financial service ecosystem as well as that of our subsidiaries."
BCA has one of the largest retail banking operations in Indonesia – comprised of around 1,200 branches and 17,000 automated teller machines, and runs the country's most advanced payments system.
BCA is competing with other banks as well as non-bank firms such as telecommunication providers in a race to on-board new customers. Last year, state-owned Bank Mandiri established a 500 billion rupiah venture capital unit Mandiri Capital Indonesia with an aim to foster fintech startups, particularly those catering to smaller businesses.
Meanwhile, state-owned Telekomunikasi Indonesia, has its own mobile payment service as well as a venture capital arm called Metra Digital Innovation that incubates "payment solutions" startups.
MDI has offices in Jakarta, Singapore, and Silicon Valley supporting incubation and accelerator programs.
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