Retail News CRM

Tag: Banking

  • Vietnam to adopt international financial reporting standards by 2025

    Vietnam to adopt international financial reporting standards by 2025

    Financial statements prepared under the new standards will give investors better insight into how companies perform. Vietnam will join most of the world by adopting the International Financial Reporting Standards (IFRS) by 2025 to improve transparency and boost investment.

    The decision was announced by officials at a seminar in Hanoi late last week.

    Vu Duc Chinh, director of the Accounting and Auditing Policies Department, said Vietnam has its own accounting standards but there are shortcomings and inconsistencies that hinder foreigners from investing in the country.

    Financial statements prepared under the international standards will give investors better insight into how a company actually performs, officials said.

    Globally, over 90 percent of all countries have publicly confirmed adoption or already followed the standards.

    It normally takes quite a long time before a country completes its transition to the new rules.

    “Adopting IFRS in a comprehensive and complete way often takes five to 10 years, depending on financial conditions of each country,” said Chris Fabling, senior financial management specialist at the World Bank.

    Under the current roadmap, the standards will be gradually rolled out and applied by 2020, with listed companies as the first group to be subjected to the rules. By 2025, all companies in the Vietnam will have to follow the new standards.

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  • Singapore Airlines partners with UOB for frequent flyer program

    Singapore Airlines partners with UOB for frequent flyer program

    United Overseas Bank Limited (UOB) has teamed up with Singapore Airlines’ (SIA) frequent flyer program to launch KrisFlyer UOB Account.

    Targeting those who prefer to use a debit card or millennials who may not yet be eligible for a credit card the account allows users to earn KrisFlyer miles whenever they save or spend. The miles can also be used for award flights and upgrades on SIA and SilkAir, or as travel vouchers on Scoot or Tigerair.

    The miles earned will depend on the customers’ account balance. Those who have an account balance of S$350,000 (US$249,377) and above, for instance, will earn 5.4 KrisFlyer miles for every dollar they spend using their KrisFlyer UOB account.

    “We have seen spending on UOB debit cards grow 40 percent over the past two years. Travel spend on debit cards also increased 15 percent in the corresponding period as our customers make more trips abroad,” said UOB head of personal financial services Singapore, Jacquelyn Tan, in a press release.

    The bank is targeting to open at least 200,000 KrisFlyer UOB accounts in the next five years.

    Meanwhile, SIA Marketing Planning senior VP Tan Kai Ping said, “The KrisFlyer UOB card leverages the wide reach of the KrisFlyer frequent flyer programme, giving card members access to all the airlines within the Singapore Airlines Group. This means seamless access to our four airlines – from full-service carriers Singapore Airlines and SilkAir to budget carriers Scoot and Tigerair – when they spend and save through this account.”

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  • Bitcoins are to be accepted in more than 260,000 stores in Japan

    Bitcoins are to be accepted in more than 260,000 stores in Japan

    Major bitcoin exchanges in Japan are teaming up with retailers to start a transaction revolution that would allow stores to accept Bitcoin payments.

    Bitcoin is an example of a cryptocurrency, i.e., a digital currency that’s based on a data structure called Blockchain. A blockchain is a digital ledger that allows for recording and keeping transactions in a decentralized and cryptographically secured manner.

    Each block in a blockchain is maintain by so-called “miners” through servers spread all over the world. These miners then receive cryptocurrencies in exchange. While most markets have been slow to accept cryptocurrencies, some retailers are beginning to test the new form of payment.

    According to the Nikkei Asian Review, Japanese consumer electronics retail chain Bic Camera is going to try out a payment system using Bitcoin in two of its stores in Tokyo. To do this, it will partner with Bitflyer, which is the largest bitcoin exchange by volume in Japan. At the same time, Recruit Holdings’ retail support arm Recruit Lifestyle plans to work with Coincheck bitcoin exchange to implement a similar system: “Bitcoin will be accepted at 260,000 shops by this summer,” the company stated.

    Currently, about 4,500 stores in Japan accept Bitcoin as payments. Furthermore, in a Bitcoin.com interview this January, said Kagayaki Kawabata, Coincheck’s Business Development Lead, disclosed that there are already more than 5,000 merchants and websites in Japan that accept Bitcoin payments using the company’s system.

    The move to adapt Bitcoin isn’t an arbitrary one, of course. Aside from security, another reason for opting for cryptocurrency is the relative ease with which transactions can be conducted. Bitcoin allows tourists to make purchases in Japan without having to go through currency exchange rates. Additionally, if more outlets accepted Bitcoin, more individual consumers would likely be persuaded to get Bitcoin accounts.

    The rise of cryptocurrencies like Bitcoin may be ushering in a new way of conducting financial transactions. To date, over 20 million people worldwide now use Bitcoin. Bitcoin is no longer seen as something to be hoarded — it’s used for shopping. As Japanese stores adapt Bitcoin, this cryptocurrency is steadily making its way into mainstream financial transactions.

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  • HSBC takes the long view with Guangdong strategy

    HSBC takes the long view with Guangdong strategy

    After two years of ploughing to become a universal bank in China’s southern Guangdong province that also serves the surrounding region, there is little sign of a full yield in near sight for HSBC Holdings. But HSBC stresses that it always knew the road to harvest would be long and treacherous, and is reiterating its commitment by pumping in more resources to expand services and hiring more staff this year.

    This is despite the fact that the lender made a loss of US$72 million in retail banking and wealth management in China last year. “The [Pearl River Delta] plan is on track,” said Kevin Martin, HSBC’s Asia-Pacific head of retail banking and wealth management. “What we’ve said is that in Guangdong we want to be a full universal bank. We feel that we are able to compete on the ground there, using digital capabilities, to bank the communities in Guangzhou and Shenzhen, and also the surrounds.” In fact, it was these efforts and investments to build out the Guangdong and Pearl River Delta plan that led to the loss last year. “It [the loss] largely reflects investment,” Martin said. “If you look at the underlying HSBC business in China retail, it is profitable. But as you invest into the future, your earnings are a tail.”

    HSBC’s choice of Guangdong and the Pearl River Delta to front its China strategy is hardly surprising, given their proximity to Hong Kong, which benefits the bank as far as Chinese consumers’ recognition of the HSBC brand goes. The bank, first called Hongkong and Shanghai Bank, was established 152 years ago in Hong Kong and a month later in Shanghai.

    “Guangdong residents don’t consider us to be the Bank of China, but when they look at their international needs… they know us and that we are well placed to meet those needs. And obviously for those who come to Hong Kong regularly, it makes sense,” Martin said. In Guangdong, HSBC has expanded its premier offering to mass affluent customers, grown out its mortgage book (though this has been affected by the Guangdong government’s cooling measures) and in December last year announced it would launch credit cards.

    Martin said there were currently 150,000 HSBC credit cards in the market by the end of April, or 5 per cent of the three-million-card target it aims to issue over three to five years that he announced in December when the card was launched. Currently, 600 million to 700 million credit cards are issued in China.

  • Korean banks expand in Vietnam

    Korean banks expand in Vietnam

    Following Shinhan Vietnam’s successful acquisition of ANZ Vietnam’s retail business, fellow Korean banks have also expanded their sizes and market share in Vietnam, seizing the lead in the foreign bank race on the Vietnamese market.

    Shinhan getting stronger

    Shinhan’s takeover of ANZ Vietnam’s retail arm has made its competitors worry, as Shinhan seems to get closer to becoming the champion of foreign banks in Vietnam, especially as the growth rate of the current leader HSBC Vietnam has been wildly fluctuating over the last five years.

    Despite a relatively low chartered capital of only VND4.547 trillion (US$200 million) and being less active than HSBC Vietnam—the number one foreign bank in Vietnam in terms of chartered capital, total assets, and profit, in 2016 Shinhan Vietnam’s profit exceeded VND1 trillion (US$44 million).

    This amount far outstripped numerous, similar-sized domestic banks and all foreign banks in Vietnam. Shinhan Vietnam’s profit was lower than HSBC Vietnam’s only.

    According to the acquisition agreement with ANZ, Shinhan Vietnam will have eight ANZ’s branches and transaction offices in Hanoi and Ho Chi Minh City, carrying on the entirety of the ANZ retail banking staff and 125,000 individual clients in Vietnam, as well as AUD1.1 billion (US$824 million) in outstanding loans and deposits.

    With 20 years of experience on the Vietnamese market and the takeover of ANZ’s retail business, Shinhan Vietnam’s position is getting steadier.

    At present, Shinhan Vietnam has a large number of corporate clients, primarily made up of Korean investors in Vietnam.

    Before the agreement with ANZ, Shinhan Vietnam had been continuously expanding its network. At the middle of April 2017, the State Bank of Vietnam permitted it to open a representative office and four branches and transaction offices in Hanoi and Ho Chi Minh City.

    Korean banks make foray into Vietnam

    Following Shinhan Bank, many other Korean banks are increasing their influence in the Vietnamese market. This expansion is easy to understand, as Korea is the biggest foreign investor in Vietnam.

    Currently, two of the eight 100% foreign-owned banks in Vietnam are from Korea (Shinhan and Woori Bank). Besides, many big Korean banks are starting to join the Vietnamese market by establishing branches or representative offices.

    These include Kexim, KEB Hana, Industrial Bank of Korea, Kookmin, Busan, and Nonghyup.

    In terms of size and market share, Shinhan and Woori Bank are in the lead among all foreign banks in Vietnam. They are formidable competition even to well-established Vietnamese banks.

    By providing good services and competitive interest rates, Korean banks are luring away a large number of clients from domestic banks.

    For instance, in Shinhan Vietnam, the outstanding loan balance of Vietnamese corporate clients accounts for at least 50% of its total corporate credit.

    In addition, Shinhan’s interest rates for home loans, car loans and consumer loans are lower than in many domestic banks. This has attracted a huge number of individual clients, especially from the middle and high income bracket.

    Besides Shinhan, newbie Woori also plans to deploy plenty of retail products in Vietnam in the course of 2017, such as cards, unsecured loans, and mortgages.

    Abundant capital, modern technology inherited from parent banks, knowledge of the Vietnamese market, and the huge number of corporate clients make up the rare advantages for Korean banks to successfully join the Vietnamese retail market, likely making domestic and other foreign banks worry.

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  • Bank Mandiri posts net profit of Rp4.1 trillion in Q1

    Bank Mandiri posts net profit of Rp4.1 trillion in Q1

    State lender Bank Mandiri posted a net profit of Rp4.1 trillion in the first quarter of 2017, up 6.9 percent from Rp3.8 trillion in the same period last year.

    One of the factors increasing the profit was the rise in the amount of financing as reflected by credit growth, which rose 14.2 percent to Rp656.2 trillion in the first quarter of 2017, with the gross non-performing loan (NPL) ratio reaching 3.98 percent, Bank Mandiri President Director Kartika Wirjoatmodjo said here on Tuesday.

    “Although the gross NPL ratio rose 80 points year-on-year, its value was relatively good compared to Dec 2016,” he stated.

    In addition, the net profit hike was also fueled by net interest income and net premiums, which rose by 3 percent to Rp13.4 trillion, and fee-based income, which went up by 25 percent to Rp13.4 trillion.

    He added that the bank also managed to cut operating costs by 3.8 percent to Rp7.9 trillion, while operating profit before tax and reserves increased 11.9 percent to Rp10.8 trillion compared to March 2016.

    The banks total assets reached Rp1,034.4 trillion as of the first quarter of 2017, up 14.1 percent compared to the same period last year.

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  • Vietnam’s bank seeks $700 mln via stake sale to foreign investor

    Vietnam’s bank seeks $700 mln via stake sale to foreign investor

    Saigon Commercial Bank expects further talks with two potential investors from China and Indonesia as it plans to sell more than half of the bank at par value. Saigon Joint Stock Commercial Bank, Vietnam’s fifth largest by assets, is in talks to draw an investment of at least $700 million by selling a controlling stake to a foreign investor.

    As the first Vietnamese bank granted government approval to seek such foreign investment, the lender plans to sell more than half of the bank at par value through the issuance of new shares, Chief Executive Officer Vo Tan Hoang Van was quoted as saying.

    “We’re really looking for a partner who would not only put money into the bank but also has the same vision about this market,” Van told Bloomberg. “”More importantly, they need to help our clients to complete their real estate projects so that we can solve the bad debt issue in a shorter time.”

    Saigon Commercial Bank slashed its bad debt ratio to 0.68 percent by the end of last year from 7.25 percent in 2012, the lender said at its April 18 shareholders’ meeting.

    Van said the bank has been in talks with banks, equity funds and insurance companies from China, Indonesia, Norway, and Taiwan over the stake sale. It expects intensifying negotiations with two potential investors from China and Indonesia.

    The bank plans to submit its stake sale plan to the central bank for approval early next year and close the deal in mid-2018, he said.

    The Vietnamese government currently sets a 30-percent cap on total foreign ownership in banks.

    Prime Minister Nguyen Xuan Phuc told in January that he plans to raise the cap in banks to accelerate restructuring Vietnam’s banking system.

    The government established the Vietnam Asset Management Company in 2013 to deal with bad bank loans, mostly incurred due to a slowdown in the country’s real estate market in the early 2010s.

    State Bank of Vietnam’s data showed the bad debt ratio was cut to 2.46 percent of total loans in November last year, from 17.2 percent in September 2012.

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  • Bank Indonesia (BI) reported that lending grew 8.4 percent

    Bank Indonesia (BI) reported that lending grew 8.4 percent

    Bank Indonesia (BI) reported that lending grew 8.4 percent year on year (YoY) to Rp4,333 trillion in February 2017, or an increase compared to January 2017 at 8.2 percent YoY.

    Working capital loans (KMK) and investment loans grew by 11.8 percent YoY and 9.7 percent YoY, respectively, BI spokesman Tirta Segara stated in a written statement in Jakarta on Sunday, April 2, 2017.

    “KMK in February amounted to Rp2,042 trillion, whereas Investment Loans amounted to Rp1,119 trillion,” Tirta said.

    Bank Indonesia reported that working capital loans, particularly in processing sector grew by 8.2 percent YoY compared to 1.2 percent YoY in January 2017, and financial sector, such as real estate and services grew by 21.8 percent YoY compared to 13.5 percent YoY in January 2017.

    As for investment loans, according to BI, significant growth of 15.8 percent YoY in trade, hotel and restaurant took place in February 2017 compared to 10.9 percent YoY in January 2017. The financial sector, such as real estate and services, also grew by 15.9 percent YoY compared to 13.5 percent in January 2017.

    Moreover, Bank Indonesia noticed that micro, small and medium-sized enterprises (SMEs) grew significantly by 29.8 percent YoY or Rp946.3 trillion compared to 8.5 percent YoY in January 2017. “Lending growth in SMEs occurred in working capital and investment loans,” Tirta said.

    Meanwhile, property sector tumbled in February 2017 with 15 percent YoY growth or Rp706 trillion compared to January 2017 at 15.1 percent YoY.

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  • UOB AM Goes For Tech Growth

    UOB AM Goes For Tech Growth

    Singapore’s UOB Asset Management has partnered with a prominent U.S fund manager to tap into the current enthusiasm around all things tech.

    UOB Asset Management (UOBAM) has partnered US-based T. Rowe Price International Ltd. (T. Rowe Price) to offer retail investors in Singapore the opportunity to tap the long-term growth prospects arising from technology and innovation.

    Under the partnership, UOBAM will invest in T. Rowe Price’s Global Technology Equity Strategy (the Strategy) through the United Global Technology Fund. This is the first time retail investors in Singapore would be able to invest in T. Rowe Price’s highly-rated technology portfolio.

    Exponential Growth

    In the ten years between February 2007 and February 2017, the Strategy has seen annualised returns of 15.39 per cent versus the benchmark MSCI All Country World Index Information Technology’s 9.08 per cent over the same period.

    «The role of technology has grown exponentially over the past decades to become an essential part of global economies and industries. I am pleased to bring on board T. Rowe Price, an accomplished partner with extensive experience in investing in the technology sector,» said Thio Boon Kiat, CEO, UOBAM.

    T. Rowe Price has been managing dedicated technology portfolios since 2000. As at 31 December 2016, the Strategy has $5.6 billion of assets under management.

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  • Some banks in Vietnam enter new rate race

    Some banks in Vietnam enter new rate race

    VPBank announced it has offered a rate of 9.2 per cent per year for five-year certificates of deposit. VietA Bank has also listed a high rate of 8.2 per cent per year for certificates of deposit with tenure of just six to 18 months.

    The rate at Sacombank is also at 8.2 per cent per year; however, it is applicable for certificates of deposit with tenure of 5-7 years.

    The rate is much higher than the average deposit interest rates offered by other commercial banks. Currently, State-owned commercial banks offer a rate of 6.5-6.8 per cent per year for long-term deposits, while it is 7-7.5 per cent at large-sized joint stock commercial banks and 8-8.2 per cent at small-sized banks.

    Analysts attribute the hike to factors such as the need for medium- and long-term funds to grow lending this year.

    Many experts anticipated the scenario and warned there would be rising demand for long- and medium-term funding after they saw the economy clearly recovering and the Government signing a series of bilateral and multilateral trade agreements, which is likely to increase businesses’ demand for funds.

    Another reason is that 80-90 per cent of deposits currently are short-term while demand for long- and medium-term loans is growing rapidly.

    State Bank of Viet Nam (SBV)’s HCM City branch reported that last year the ratio between short-term and long- and medium-term loans was 44:56 per cent. It is normally 50:50.

    In addition, SBV’s amendments to Circular 36/2014/TT-NHNN reducing the ratio of short-term deposits that can be used for medium- and long-term loans from the current 60 per cent to 40 per cent has caused deposit interest rates to rise.

    Besides this, the risk weight for loans to the real estate sector has also been raised to 250 per cent from 150 per cent since 2017.

    As a result, banks have been forced to hike interest rates on long-term deposits so that they have enough funds to provide long- and medium-term loans.

    Expert Bui Quang Tin said the interest rate hike would put pressure on the central bank’s monetary management this year, especially when the central bank has to meet the three targets of controlling inflation, keeping foreign exchange rate and interest rate stable.

    Tin was also concerned it would be hard for lending interest rate, especially medium and long term, to be steady in the wake of the deposit rate hike. Both lending and deposit rate would rise by roughly 0.5-1.5 per cent per year this year, he forecast.

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  • ANZ Vietnam to sell retail banking business

    ANZ Vietnam to sell retail banking business

    Three foreign banks and two domestic banks, which have not been named, were reported by SaigonTimes as being interested in acquiring the retail businesses of the 100 per cent foreign-owned bank.

    Last October, ANZ Group CEO Mr. Shayne Elliot was quoted as telling foreign media that the bank would look to exit its retail and wealth assets in the Philippines and Vietnam but had no plans to do likewise in Cambodia and Laos.

    “Further investments do not make sense for us given our competitive position and the returns available to ANZ,” he said.

    In the same month, Singapore’s largest bank, DBS Bank Ltd (DBS), acquired the wealth management and retail banking business of ANZ in five markets for $77.7 million more than the book value.

    The businesses acquired were in Singapore, Hong Kong, China, Taiwan and Indonesia, with total deposits of $1.2 billion, loans of $7.77 billion, investment assets under-management (AUM) of $4.6 billion, and total revenue of $582.7 million in FY 2016.

    They serve about 1.3 million customers, of which 100,000 are affluent and 1.2 million are retail customers.

    DBS, however, will not be allowed to acquire ANZ Vietnam’s retail banking business, according to a source, who added that the Singaporean bank is not among the five potential suitors.

    ANZ Vietnam was not available for comment at the time of writing.

    Last November, an ANZ Vietnam representative told local media there were no plans to sell its retail and wealth businesses in Vietnam but it would continue to examine ways to improve its retail and wealth operations.

    Regardless, the exit is reasonable given its modest figures for the first half of 2016.

    During the January-June period, interest income fell 17.3 per cent year-on-year to VND578 billion ($25.4 million) and fee and commission income was down 5.6 per cent to VND153.3 billion ($6.7 million).

    The bank would have made a loss if drastic changes in other income sources had not saved the day.

    From a net loss of VND21.7 billion ($953,000) during the first half of 2015, foreign currency exchange recorded a net gain of VND163.3 billion ($7.2 million) for the bank in the first half of 2016, securing an after-tax profit of VND176.8 billion ($7.7 million) as at June 30, up 30 per cent year-on-year. Its bad debt ratio rose to 1.25 per cent from 1.16 per cent as at the beginning of the year.

    ANZ Vietnam now has eight transaction offices in Hanoi and Ho Chi Minh City, providing Retail & Wealth, Consumer Finance, Corporate, Financial Institution, and Public Sector services to customers.

    Last year, the State Bank of Vietnam (SBV) withdrew the business license of the ANZ Banking Group Limited – Hanoi Branch (ANZBLG), which opened in 1993, at the request of the ANZ Group, to bring together the two entities of the bank operating in Vietnam.

    In 2009 the ANZ Group established a fully foreign-owned local bank called ANZ Bank Vietnam Limited and has since continued to operate the latter.

  • Indonesia’s BCA posts record annual profit, buoyed by tax amnesty

    Indonesia’s BCA posts record annual profit, buoyed by tax amnesty

    Bank Central Asia (BCA) on Monday reported an all-time high annual net profit, as Indonesia’s key tax amnesty programme helped to lower cost of funds for the country’s biggest lender by market value.

    BCA posted a 2016 net profit of 20.6 trillion rupiah (S$2.17 billion), up 14.4 per cent from a year ago. This was a record high and also slightly above an average estimate of 20.0 trillion rupiah from 21 analysts.

    Indonesia’s tax amnesty scheme, launched last July and aimed at bringing back billions of dollars stashed abroad by citizens, boosted the funds at BCA’s current accounts and saving accounts (CASA) in the second half of 2016, the bank said in a statement.

    “Tax amnesty funds were parked at CASA,” BCA President Director Jahja Setiaatmadja told reporters. “What’s positive is that our cost of funds is low because our interest rate is low.”

    However, some of those funds were only “transitioning” at BCA and would likely be placed eventually in assets including property and government bonds, Mr Setiaatmadja said.

    At the end of 2016, BCA’s gross non-performing loans (NPL) stood at 1.3 per cent, one of the lowest in Indonesia’s banking sector.

    BCA’s rival, Bank Mandiri, last month reported its lowest annual net profit in five years due to an increase in provisions. Mandiri’s gross NPL of 4.0 per cent was the highest since 2008.

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  • CIMB Niaga Syariah reports 165.5 percent rise in profit

    CIMB Niaga Syariah reports 165.5 percent rise in profit

    CIMB Niaga Syariah, the sharia unit of PT Bank CIMB Niaga Tbk recorded a 165.5 percent increase in its net profit to Rp305.43 billion in 2016 from Rp115.03 billion in the previous year.

    Director of the sharia unit of CIMB Pandji P. Djajanegara attributed the surge in profit to 40.2 percent rise in sharia financing to Rp10.21 trillion in 2016 from Rp7.28 trillion in 2015.

    “An increase was recorded in all business segments,” Pandji said here on Monday.

    He said the non performing financing (NPF) of the sharia unit of the bank dropped to 1.15 percent from 1.86 percent despite the surge in financing.

    “The performance of the sharia unit was in line with the management adoption of prudential banking principle while expanding its financing portfolio,” he said.

    In 2017, apart from expanding consumer financing, CIMB Niaga Syariah wanted to increase financing of business segment including corporation, micro, small and medium enterprises (UMKM) and commercial financing, he said.

    He said the sharia business is expected to account for 10 percent of the credits to be provided by PT. CIMB Niaga Tbk.

    The third party fund held by CIMB Niaga Syariah rose 40.2 percent to Rp10.63 trillion in 2016 from Rp7.58 trillion in 2015.

    Pandji attributed the increase in the third party fund partly to the status of the unit as a recipient of hajj pilgrimage payments including regular hajj and special hajj pilgrimage.

    CIMB Niaga Syariah has a product of hajj saving that includes hajj plan saving, and hajj pahala (merit) saving and iB Mapan Wakaf saving.

    With the financing and the third party funds , the assets of CIMB Niaga Syariah rose 40.34 percent to Rp12.78 trillion in 2016 from Rp9.11 trillion in 2015.

    The sharia unit contributed 5.45 percent to the total assets of Bank CIMB Niaga in 2016 , up from 3.90 percent in 2015.

    PT CIMB Niaga is the countrys fifth largest bank in assets controlled by the CIMB Group of Malaysia.

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  • DBS to launch mobile-only banking service in Indonesia

    DBS to launch mobile-only banking service in Indonesia

    The Development Bank of Singapore (DBS) plans to introduce a smartphone-based mobile banking option for the Indonesian market as a way to further digitalize the banks’ operations and utilize digital innovation to its advantage.

    Digital transformation is part of a larger agenda for DBS, seeing that the need for digitalization is no longer seen by the banking industry as a threat to its business but as a tool of cooperation to innovate services, said Bank DBS Indonesia’s head of digital banking, Leonardo Koesmanto.

    DBS will open a new mobile-only bank in Indonesia in the early part of the second quarter of 2017 to promote a more digital, branchless and signature-less experience for its customers in this market. The system will function through biometrics and will require the presence of an electronic ID (e-KTP) to register or use its operations.

    “We are taking the more scalable digital route because these days, bigger banks are shrinking their number of branches. With this investment we can serve more people more effectively,” Leonardo said on Wednesday.

    It is likely that DBS’s mobile-only banking option in Indonesia will be rolled out through a soft launch around next month, in order to assess the feasibility of the technology and root out teething faults. The idea has already been tried by DBS in India.

    DBS currently has around 30 physical branches in Indonesia. Leonardo commented that in order for banks to truly achieve growth in a market, they would need 300 to 400 branches.

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  • Royal Bank of Scotland Ends Business Activities in Indonesia

    Royal Bank of Scotland Ends Business Activities in Indonesia

    Although the bank started under the name ABN AMRO BANK NV Indonesia, the majority of its shares was acquired by the Royal Bank of Scotland Plc in 2010. After this acquisition the bank’s name changed to RBS NV.

    Earlier, in December 2015, the bank’s branch in Surabaya (East Java) had already been closed. The ending of all of RBS NV’s business activities in Indonesia is part of the bank’s overall business strategy. Besides Indonesia, it decided to end its business networks in 24 other countries. Due to the RBS Group’s losses across the world, it decided to focus on the domestic market of the United Kingdom (UK) in order to improve its earnings. RBS NV’s corporate activities in Indonesia were profitable until the end of 2014. After that year its activities in Indonesia resulted in net losses and therefore it decided to end its businesses here gradually.

    Through OJK Board of Commissioners Decree No. 7/KDK.03/2017 on the Revocation of the Permit of The Royal Bank of Scotland NV’s Branch in Indonesia, dated 28 February 2017, the license of the bank has been revoked. According to the OJK, RBS NV Indonesia has completed all its obligations and therefore its request for the license revocation was approved. However, those who still (claim to) have rights and obligations with the local branch of Royal Bank of Scotland in Indonesia can contact the disclosure team, located at the Indonesia Stock Exchange (IDX) building (Tower 2, second floor) in South Jakarta until 31 March 2017.