Entering the Emtek-Grab Ecosystem, Bank Fama is Ready to be a Digital Bank

Published on 12 Dec 2022

Bisnis.com, JAKARTA – Not heard for a long time, PT Bank Fama International. finally surfaced with a myriad of plans. The bank, whose majority shares are owned by the Emtek Group, is currently preparing to switch to becoming a digital bank. Since being acquired by PT Elang Mahkota Teknologi Tbk. (EMTK) or Emtek through its subsidiary PT Elang Media Visitama in December 2021, Bank Fama continues to improve internally to improve its capabilities.

President Director of Bank Fama International Tigor M. Siahaan explained that this step was in line with the company's plan, which is ready to enter the arena of digital bank competition in Indonesia. A number of preparations were then carried out.

"So we have really carried out a transformation in terms of process, technology and human resources,"

Tigor said when met in Jakarta, Thursday (8/12/2022). Tigor said that if nothing goes wrong, Bank Fama will start rebranding early next year, followed by moving its head office from Bandung, West Java, to Jakarta. In addition, the company will launch its product in mid-2023. Not only internally, Bank Fama will also strengthen the digital banking foundation through utilizing the ecosystem of its shareholders, namely Emtek, then A5-DB Holdings or a subsidiary of Grab Holdings, and Singtel Telecommunications Limited.

Based on Bank Fama's financial reports in the third quarter of 2022, Emtek through PT Media Visitama has a share of 62.76 percent. Meanwhile, A5-DB-Holdings and Singtel both hold 16.26 percent shares in Bank Fama.

"Where's the target? We will target the ecosystem of these shareholders,"said Tiger.

The presence of Emtek, Grab and Singtel as shareholders will indeed benefit Bank Fama. All three are noted to have a large number of MSME service users. Emtek, for example, through one of its e-commerce businesses, PT Bukalapak.com (BUKA), has 14.2 million registered shopkeepers and other MSMEs as partner users as of June 2022. BUKA also has an MSME development program. Meanwhile, Grab also has the provision of a ride-hailing ecosystem which contains millions of MSMEs. The majority are in the culinary business line. By 2025, Grab estimates that its ecosystem will reach more than 11 million MSMEs.

Aim for Underbank

Specifically, Bank Fama will indeed focus on working on the retail and MSME market segments, which so far still have limited services or are underbanked. In addition, the credit gap has not been optimally reached by financial industry players. The Ministry of Cooperatives and SMEs noted that MSME access to banking has only reached 20 percent. This number is still behind neighboring countries, such as Malaysia which has reached 50 percent, Singapore by 39 percent, and South Korea by 82 percent.

In fact, at the same time, MSMEs contribute to 40-60 percent of the GDP of Southeast Asian countries, including Indonesia. This means that the space available for Southeast Asian banks to boost their credit in this segment is quite wide open. For this reason, with the high population of underbanked people and the MSME credit gap, Bank Fama will start a digital banking journey by expanding financial services. Tigor said that if the MSME and underbanked segments in Indonesia could get banking services optimally, their productivity would grow manifold so that they would be able to contribute more to Indonesia's GDP.

"We feel that with the financial service gap that exists at the moment, and we can try to fill it, this can lead to the vision of Indonesia Gold 2045,"concluded Tiger.

Through complete and integrated financial solutions and ecosystems, Bank Fama is known to have a long-term commitment to provide underbanked communities in Indonesia access to financial experiences through digital banking services. The hope is that with more underbanked people realizing the great potential of digital banking, Bank Fama's big mission to support people's productivity and economic growth can be realized.

This article has been published on Bisnis.com with the title "Entering the Emtek-Grab Ecosystem, Bank Fama is Ready to Turn into a Digital Bank", click here in full article.

Author: Dionisio Damara
Editor: Feni Freycinetia Fitriani