Reinforcing itself as a Regional Digital Bank, KASIKORNBANK (KBank) will establish its presence in Indonesia market by holding 40 percent of shares in PT Bank Maspion Indonesia Tbk (Bank Maspion). The move aims to adopt digital innovations to provide services in order to reach out to local clients while also linking service network to Thai and foreign businesses and strengthening trade and investment connectivity within the CCLMVI bloc (comprising China, Cambodia, Lao PDR, Myanmar, Vietnam and Indonesia).
Mr. Pattarapong Kanhasuwan, KBank Executive Vice President and Chairman of KASIKORN VISION COMPANY LIMITED (KVision) said that KVision signed an agreement to acquire shares of PT Bank Maspion Indonesia Tbk (Bank Maspion) on April 13, 2020 bringing the total shares held by the company to 40 percent – the highest threshold set by the Financial Services Authority of Indonesia (Otoritas Jasa Keuangan - OJK) under bank ownership rules for ownership by a bank investor in an Indonesian bank.
The shareholding increase in this local bank rather than new investment is considered worthwhile. Though considered relatively small in size, Bank Maspion has an extensive branch network covering major cities and is a part of a leading conglomerate in Indonesia that has established relationship with various businesses in all customer segments. Moreover, its management has visions that are consistent with KBank’s strategic directions. After more than two years that KBank has conducted studies and worked with Bank Maspion, it has found that Indonesia offers significant opportunities for businesses thanks to its large and promising market in ASEAN. Through the asset-light business model, KBank will focus on its expertise in products and services while investing in digital banking development to capitalize on the changing behavior of consumers, who have increasingly embraced the digital banking services. This synergy marks a major milestone of the two banks in order to leverage their strengths in developing services to meet demand of customer segments as follows:
Corporate customer segment: Support will be given to Thai and international companies investing in Indonesia, including local conglomerates in Indonesia, via products and services that meet customers’ needs, namely loans and cash management services, while also developing internet banking channels and payroll products to offer consumers greater convenience and diverse services via digital channels.
SME customer segment: Focus will be placed on offering loans to SMEs by using data lending and formula lending model to enhance the efficiency and reduce costs of lending along with expanding merchant acquiring business to facilitate non-cash payment.
Retail customer segment: Innovation will be used to improve the existing mobile banking system while secured loan products, such as home and personal loans, will be promoted along with the development of data analytic lending platform via data obtained from merchant acquiring business.
KBank’s investment in Bank Maspion is made via KVision, being an investment holding company in which KBank holds 100 percent of shares, in the same manner as that of Ayeyarwaddy Farmers Development Bank (A bank) in Myanmar. The total investment in Bank Maspion will not exceed USD130 million. KBank’s acquisition of additional shares in Bank Maspion has already been approved by the Bank of Thailand and is in the process of being approved by Indonesia’s financial business supervisory agency, Otoritas Jasa Keuangan (OJK), which is expected to be finalized around mid-2020.