The Jakarta Post
State-owned lender Bank Tabungan Negara (BTN) has reiterated its commitment to expand its digital banking service as part of its strategy to become a global player by 2025.
The transformation to digital banking is important so that the bank can gradually reduce its cost of funds, said BTN finance and treasury director Iman Nugroho Soeko in Jakarta on Tuesday.
The bank, which specializes in housing loans, saw its cost of funds stand at 5.99 percent, much higher than private lender BCA at 2 percent or state-owned lender Bank Mandiri at around 3 percent.Read also: State lender BTN reaps Rp 5t from bonds issue
“The main purpose of this digital banking transformation is to make our business process smoother and to allow us to have a lower cost of funds,” he said after BTN’s public expose.
The bank appointed the Boston Consulting Group to guide the company toward shifting to digital banking so it could better compete with other banks.
BTN allocated around Rp 1 trillion (US$75 million) in capital expenditure to develop its digital service. “We will manage our digital service [leasing data center] in collaboration with Telkomsigma, so the cost will be less,” he said. (bbn)