Blowing harder, there are rumors that BNI will acquire a bank

Jakarta, CNBC Indonesia – This year is a promising momentum for digital banks, as they become the center of attention. Not only banks, but also corporations, conglomerates to start-ups aliases startup compete to enter.

This trend is also in line with the plan from the regulator about consolidating the banking industry to be stronger in terms of capital. Consequently, many small banks, categorized as BUKU I, were sold and bought by large investors and conglomerates.

Now many small banks are turning to digital banks, as they do PT Bank Neo Commerce Tbk (BBYB) which has clearly prepared its business to become a digital bank after being acquired by Akulaku.

Then there is PT Bank Harda Internasional which is now PT Allo Bank Indonesia Tbk (BBHI) which has just been acquired by Mega Corpora to become a digital bank. This plan will be carried out after the acquisition process by Mega Corpora is completed.

Another bank that will do the same is PT Bank QNB Indonesia Tbk (BKSW) which is currently focusing on developing digital innovations, from opening accounts to online time deposits.

PT Bank Central Asia Tbk (BBCA) also acquired Bank Royal which later transformed into a digital bank. The latest is PT Bank Negara Indonesia Tbk (BBNI) which is rumored to be acquiring another bank as a digital transformation step.

Previously, during the presentation of the performance of the second quarter of 2021 some time ago, BNI President Director Royke Tumilaar said that his party had a digital image in line with the digital transformation carried out, so the strategy running one of them into a digital bank.

“We are still looking at the subject whether the capital is there, the capability is there, but the study is already there. We all have the study, only the criteria to become a digital bank must be well prepared, not just joining in,” said Royke to CNBC Indonesia in July.

He added that his party has criteria to become a digital bank, it must have criteria and not just take it. Royke emphasized that technology is an important consideration.

“If we don’t have technology, we won’t be able to become a digital bank. The key is in technology,” he said.

Head of Investment Avrist Asset Management Tubagus Farash Akbar Farich said that in the future the acquisition trend will still be relevant in the future, and consolidation will continue. This is done mainly to gather strength in the face of difficult situation in 2020 and 2021 due to the Covid-19 pandemic.

“So I think the acquisition trend will still be relevant in the future, because this consolidation can be a strategy to deal with this difficult time,” he said.

For BNI itself, he assessed that the acquisition has the potential to be carried out as an effort for the digital bank business. Moreover, BNI will become the main bank from Indonesia in foreign markets.

At the beginning of the year, Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that this year it is hoped that more financial service institutions will carry out business mergers or mergers or acquisitions.

According to Wimboh, taking into account the competition in the financial services industry in the future, which will be increasingly tight with the digitalization era. Thus, the need for capital must also be stronger, especially in the banking sector.

“The trend [di 2021] there will be more banks making acquisitions and mergers,” said Wimboh at the time.

[Gambas:Video CNBC]