Private lending institution PT Bank Yudha Bhakti Tbk (BYB) has revealed that its partnership with Fintech solution provider Akulaku has enhanced the bank’s digital transformation strategy by delivering several key outcomes or results.
The two organizations have developed BYB’s Hands-on Application by Yudha Bhakti (HAY) The application consists of mobile banking solutions for online savings and credit services for active workers.
The HAY mobile phone apps allow BYB clients to view their financial information, perform transactions and digital payments and create new online banking accounts.
If the new system is approved by the Financial Services Authority (OJK) this year, then these digital banking solutions may be integrated with the HAY application.
Most of the bank’s clients are retired military and police officials, and retired civil servants and corporate workers. They will be able to apply for the institution’s financing plans through the app.
The bank aims to optimize and take advantage of its financing options that have reportedly been managing the consumer retail corporation sector for the past three decades.
BYB’s consumer retail corporation segment financing portfolio is valued at around Rp 3 trillion (appr. $216 million). The portfolio’s three most widely-used products and services include post-retirement credits, pre-retirement credits and credits for active workers.
The bank has developed and introduced the new app so that it can improve clients’ online banking experience, by making it easier and more intuitive for them to perform transactions. The app’s development will complement the institution’s goal to transform itself into an online banking service provider.
The app will also support the bank’s goal to improve its financing products and services, in order to benefit more users. The institution aims to reach a larger segment of the public by offering its new online banking services.
BYB is also working cooperatively with Akulaku to develop various funding and financing products. The funding products have acquired around Rp 126 billion in capital.
BYB and Akulaku’s financing product has channeled about Rp 220 billion. Both products have helped attract and onboard new clients. Notably, BYB recorded over 300,000 new accounts.
The institution’s September 2019 quarterly financial report revealed profits of about Rp 12.69 billion. The bank also achieved an asset growth of around Rp 5.2 trillion, up significantly from Rp 4.8 trillion registered for the same financial period last year.
The bank’s third party funds increased from Rp 3.9 trillion to Rp 4.1 trillion for the same period (year over year0.
The bank is reportedly preparing to conduct a limited public offer this year.