JAKARTA - The decision of PT Bank Central Asia Tbk (BCA) which wants to convert its subsidiary, Bank Royal into PT Bank Digital BCA (BCA Digital) brings its own challenges.
President Director of BCA Jahja Setiaatmadja said the company's strategic plan is the latest strategy in working on the growing millennial market. Nevertheless, he admitted that BCA Digital has not decided what market segmentation will be targeted in carrying out banking intermediation activities.
"Now this lending (credit) that we have to learn first really," he said while attending a virtual discussion held by CNBC Indonesia, Thursday, April 8.
Jahja added that the wait and see action is in line with the attitude of the Financial Services Authority (OJK) which has not issued standard rules related to digital bank business. Moreover, the interest of banking institutions is different from that of peer-to-peer lending financial technology (fintech) companies.
"P2P (peer-to-peer) is very easy to love lending but they love exorbitant interest and this has become a common secret. If the bank is different, there is an OJK that regulates what kind of interest rate platform, so you have to be careful," he explained.
To be known, BCA has been having a major market share of corporate customers and consumer segments. Jahja himself denied that BCA Digital would fall into the same category.
"No I think," he replied emphatically.
As a first step, BCA Digital will strengthen its payment business through various e-commerce applications that are now widely used by the public.
"First we will try to develop in terms of funding and payment, this becomes the initial basic," he added.
As VOI has reported some time ago, OJK set a minimum capital limit of Rp10 trillion for businesses who want to set up a new digital bank.
This rule was revealed by the Chief Executive Director of OJK's Banking Research and Regulation Department Anung Herlianto.
Nevertheless, Anung said that the provision may still change considering the authority still continues to poke the best scheme by asking for input from various parties, such as industry players, associations, and related stakeholders.
"The picture is we're like that and we're still looking for the best format so that it can really be accepted by all parties," he said in a webinar On Thursday, February 18.
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