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Banks try to increase profits through non-interest revenue
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E-money cards are prepared for distribution at a Mandiri branch in Jakarta on Sept. 18. (Antara/ Rivan Awal Lingga)
B
anks are trying to boost their profits from non-banking interests amid unstable economic conditions and following Bank Indonesia’s reference rate increase to 5.5 percent.
State-owned lender PT Bank Mandiri's senior vice president for transaction banking and retail sales, Thomas Wahyudi, said the bank was trying to boost transactions through electronic data captures (EDC).
He acknowledged that many players were involved in the business. “But the market is very large. Banks, financial technology and other institutions should team up to develop the system,” he said as reported by kontan.co.id on Monday.
He said the number of EDC transactions increased by 17.5 percent from its position in August of last year, while its value increased by 12 percent year-on-year (yoy) to Rp 80 trillion (US$5.37 billion).
While waiting for Bank Indonesia to complete its regulation on the QR code system, Bank Mandiri prepared QR code infrastructure that would be implemented in the fourth quarter of 2018, Thomas said, adding that, as of August, the bank had cooperated with 190,000 merchants.
Meanwhile, private lender CIMB Niaga targeted its EDC transactions to increase by 25 percent by the end of this year, compared to its position in 2017, while its total value is expected to grow by 35 percent.
“So far, we are on track in terms of transaction numbers,” said CIMB Niaga business commissioner Lani Darmawan.
He said the performance of the company was supported by retail, wholesale and travel transactions, while its online business had grown 30 percent, as of August. (bbn)
