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Bank Yudha Bhakti boosts digital transformation
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P
rivate lender PT Bank Yudha Bhakti Tbk (BYB) is happy to announce that its partnership with local financial technology provider Akulaku has accelerated the bank’s digital transformation via several tangible outcomes.
The latest brainchild of the two parties’ collaboration has been BYB’s Hands-on Application by Yudha Bhakti (or HAY for short): mobile banking comprising applications for online savings and credit services for actively working employees.
The HAY smartphone applications mentioned above allow BYB customers to access their financial information, make financial transactions and online payments and open new bank accounts online.
Hopefully, upon getting approval by the Financial Services Authority (OJK) in 2020, all these online banking services can be integrated under one HAY application.
A majority of the bank’s customers comprise retired military and police officers, as well as retired civil servants and corporate employees. Now they can also apply for the bank’s financing services via the application.
The bank seeks to optimize and leverage its financing services that have been managing the consumer retail corporation segment for about 30 years now.
As of September 2019, BYB’s consumer retail corporation segment financing portfolio amounted to approximately Rp 3 trillion (US$216 million), with its three most popular products: post-retirement credits, pre-retirement credits and credits for active employees.
The bank hopes that the application can enhance customers’ digital banking experience, making their transactions easier along the way. The development of the application is aligned with the bank’s commitment to change and transform itself into a digital bank.
The application also reflects the bank’s commitment to boost its financing services to benefit more customers. Thus, the bank strives to reach a wider segment of the public using its new digital banking services and products.
Besides the applications, BYB also worked together with Akulaku to churn out new funding and financing products. As of September 2019, the collaborative funding product has channeled Rp 126 billion in funds.
In terms of their financing product, BYB and Akulaku have channeled Rp 220 billion as of September 2019. Both products have contributed positively to attracting new customers toward BYB: As of September 2019, BYB recorded more than 300,000 new bank accounts, mostly with those in the retail segment as primary customers.
The bank’s quarterly financial report in September 2019 recorded a net profit of Rp 12.69 billion. During the same period, the bank also recorded an asset growth worth Rp 5.2 trillion, up from Rp 4.8 trillion recorded during the same period year on year (yoy).
The bank’s third party funds also increased to Rp 4.1 trillion from Rp 3.9 trillion during the same period yoy. The bank’s corporation credit performance, meanwhile, declined to Rp 3.8 trillion compared to the Rp 4 trillion during the same period yoy, as part of the bank’s austerity plans to mitigate credit risks.
The bank’s gross non-performing loans fell to 4.72 percent in September 2019, down from 5.39 percent during the same period yoy. At the same time, the bank’s intermediary ratio and loan-to-funding ratio was 93.07 percent, a change from 101.91 percent in the same period yoy.
The bank’s corporate capitalization grew by 46.18 percent to Rp 937 billion from Rp 641 billion during the same period year on year. The bank is also planning to conduct a limited public offer with a maximum of 3 billion stocks to upgrade its status to a commercial bank based on business activities with core capital of between Rp 1 trillion and Rp 5 trillion.
The bank plans to conduct the limited public offer in 2020.
Moving forward, with the bank’s synergy with Akulaku as a new investor that has the financial technology sector as its background, BYB hopes to establish an exemplary collaboration between the banking sector and the financial technology compound, which can hopefully result in innovative digital banking breakthroughs.
All in all, the collaboration ultimately seeks to boost customer satisfaction.
