Key To Bank Jago's Business Growth: Innovation And Collaboration

JAKARTA - A technology-based bank that has a collaborative business model with a digital ecosystem, PT Bank Jago Tbk managed to record positive and sustainable growth until the second quarter of 2024. Innovation and collaboration are the keys to the success of Bank Jago's business growth.

"The spirit of innovation and collaboration with the digital ecosystem still plays an important role in realizing aspirations to increase the chances of growing millions of people through life-focused digital financial solutions," said Bank Jago President Director Arief Harris Tandjung in a virtual public expose, Thursday, August 29.

Arief said that from the start Bank Jago was committed to consistently collaborating with strategic partners. Such as the GoTo ecosystem consisting of Gojek, GoPay, and Tokopedia-TikTok as well as the digital finance ecosystem of Bibit and Stockbit.

"The model of a collaboration business with the digital ecosystem makes Bank Jago succeed in having more than 10 million funding customers through the Jago application as of July 2024," he said.

Of this number, continued Arief, as many as 66 percent came from ecosystem partners. If you take into account lending customers, the total number of Bank Jago customers reaches 12.5 million.

Furthermore, Arief said that the growth of Jago Application users was in line with the collection of DPK which reached Rp. 14.8 trillion until the end of the second quarter of 2024 or grew 47 percent compared to the same period last year of Rp. 10.1 trillion.

"As much as 61 percent of the total DPK or Rp9.1 trillion is the current account and saving account (CASA), while the remaining 39 percent or Rp5.7 trillion is the term deposit (TD)," he explained.

Arief said that through collaboration with various partners or partners, such as ecosystems and digital platforms, financing companies, and other financial institutions, Bank Jago managed to disburse loans of IDR 15.7 trillion at the end of the second quarter of 2024 or grew 40 percent from the same period last year of IDR 11.2 trillion.

"Credit distribution is carried out in quality and prioritizes the principle of prudence. This is reflected in the low ratio of gross non-performing loans (NPL) of 0.4 percent," he said.

Arief also explained that quality credit growth pushed Bank Jago's assets to IDR 24.2 trillion per semester I-2024 or grew 29 percent from the same period last year of IDR 18.9 trillion.

"The capital adequacy ratio (CAR) reaches 50 percent, showing the strong level of capital to support future business expansion," he said.

Furthermore, Arief said that consistency in maintaining quality business growth also boosted Bank Jago's profitability rate to be better. As of the end of June 2024, Bank Jago posted a net profit after tax (net profit after tax) of IDR 50 billion or grew 23 percent from the acquisition in June 2023 of IDR 41 billion.

"As a technology-based bank, Bank Jago will continue to innovate and collaborate with the digital ecosystem. We believe the combination of these two things with good risk management and governance is a strong basis and momentum for Bank Jago to grow even bigger sustainably," said Arief.