The Jakarta Post
Standard Chartered Bank Indonesia aims to boost its fee-based income from transactions by working with third-party companies such as multi-finance, telecommunications and insurance companies.
The bank on Tuesday inked an agreement with Saratoga-owned multi-finance company MPM Finance (MPM) to facilitate the company’s daily clearing business such as auto debit for loan payments.
The system is based on Bank Indonesia’s (BI) national clearing system (SKN) generation II.
Under the agreement, Standard Chartered can withdraw money from MPM customers even though they do not have a Standard Chartered bank account.
“As the customer has already agreed for the auto debit payment, we as biller bank will work with the ‘payer’ bank [which is the customer’s bank],” Standard Chartered Bank Indonesia head of transactions banking Michael Sugirin said during a press conference in Jakarta on Tuesday.
Currently, only 10 banks, including Standard Chartered, have implementing the SKN BI-based collection system.
The banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Mega, Deutsche Bank, HSBC and Citibank.
As of March, the bank’s fee-based income has increased 20.68 percent year-on-year to Rp 324.41 billion (US$24.36 million). (bbn)