This Is The Reason Of Blu BCA Digital, Hartono Brothers' Bank, To Refuse To Distribute Credit And Choose Payment As An Initial Business

Illustration (Photo: Doc. BCA)

JAKARTA - The decision of Blu BCA Digital, a subsidiary of PT Bank Central Asia Tbk (BCA), to enter the payment business in the early stages of doing business is not without reason. According to the President Director of BCA, Jahja Setiaatmadja, this strategy aims to reduce business risks that have the potential to occur in the future.

The reason is, the digital bank model is something new in the financial services industry in Indonesia. Therefore, the company chooses to play it safe through digital payment business activities.

"In Indonesia, this digital bank is new, so it must be really mature and also accompanied by an in-depth study," he told VOI, Friday, June 25.

This has also led BCA to be conservative in optimizing the banking intermediation function so that the company gets a market direction going forward.

"Credit (distribution) must be slow, not immediate," he said.

Furthermore, the boss of the largest private bank in Indonesia explained the different characteristics between conventional and digital banking institutions.

"In ordinary (conventional) banks, credit usually uses collateral, but in digital banks it is unsecured," he added.

Another reason for Blu BCA Digital's reluctance to immediately disburse credit is to anticipate the distribution of funds that will not have a positive impact on the company's performance.

"(credit) is fast, potentially become bad credit," he said.

According to VOI records, the Financial Services Authority (OJK) as the official regulator in the country has not yet issued regulations related to the requirements for the establishment of digital banks and the comprehensive scope of digital bank business activities.

In fact, the institution led by Wimboh Santoso had revealed that the 4.0 technology genre bank regulation would be completed in the first semester of 2021.

In an earlier report, the Chief Executive Director of the OJK Banking Research and Regulation Department, Anung Herlianto, had informed that the minimum capital required to set up a digital bank is Rp10 trillion.

"The picture is something like that and we are still looking for the best format so that this can be truly accepted by all parties," he said in a webinar in February.