BNI Yet to Decide on Venture Capital Subsidiary Plan

Bank Negara Indonesia (BNI) is to decide regarding digital banking business development, whether to acquire venture capital or setting up a new company. The company has not narrowed the options, resulting in unspecified time announcement for corporate actions.

"We are still in assessment level [to build a company]. It has not been narrowed down [on strategy to be taken]," BNI's Director of Strategic Planning and Operation, Bob Tyasika Ananta to DailySocial on Monday (20/11).

Even though the strategy is yet to be decided, BNI will focus more on developing digital banking business by launching a number of digital products. Some that already available in the market are BNI UnikQu, BNI Digital Loan, Dashboard Bansos, Agen46 BNI, and others.

BNI also embraces some fintech companies in developing its products. One of them is an intelligence platform made by (AI) BJtech, Bang Joni, for "Cinta: Personal Intelligent Banking" chatbot.

This product helps clients to manage banking purposes such as: sharing information, product registration, and UnikQu transaction through chat. Cinta can be accessed through BNI official account in Facebook Messenger and Twitter.

Based on the company's business plan this year, BNI allocates Rp4 trillion for inorganic growth plans. In order to strengthen existing business, BNI plans on setting up a new subsidiary engaged in insurance, venture capital, and asset management.

In contrast to BNI, other state-owned bank, BRI, is ready to execute the plan for local venture capital acquisition, Bahana Artha Ventura. The acquisition process is targeted to be completed in November 2017.

BRI prepared Rp4 trillion for the subsidiary business and the new subsidiary acquisition. Related to acquisition, the company will acquire Bahana securities and Bahana Artha Ventura for around Rp700 billion.

- Original article is in Indonesian, translated by Kristin Siagian