Get to know Superbank, a Digital Bank Owned by the EMTEK Group

Published on 27 Feb 2023

Photo credit: PT Super Bank Indonesia, Jakarta - PT Bank Fama International (Bank Fama) officially changed its name to PT Super Bank Indonesia (Superbank) as of February 20, 2023. This name change is a realization of expanding access to Superbank's financial services as a bank that provides digital-based services.

Main Director of Superbank, Tigor M. Siahaan said the change in the name of Bank Fama to Superbank became an important milestone in changing the banking business that provides digital-based services.

"We are very enthusiastic about the change of name to Superbank which is an important milestone in our journey to become a bank with digital-based services that has been fully supported by our ecosystem partners from the start," said Tigor in his official statement, Jakarta, Monday (20/2/2023).

The name change to Superbank was accompanied by a change in the company logo. The new Superbank logo consists of 3 elements. First, the letter S which is the initial of the name Superbank. Second, water droplets signify fluiditybank. Superbank adapts its products and services to meet customer needs. Third, an arrow indicating progress.

Tigor said Superbank is a bank for people who believe nothing is too big to achieve. Superbank is here for them or customers who are always looking and never stop being super optimistic.

"Superbank is here for you, to provide simple, transparent and flexible digital financial solutions needed to move forward," said Tigor.

Digital Bank

Photo credit: PT Super Bank Indonesia

For information, PT Super Bank Indonesia (Superbank) is a bank with digital-based services. Superbank is a new brand replacing PT Bank Fama International, a commercial bank which was founded in Bandung, March 5, 1993.

In 2021, the ownership of Bank Fama will be transferred to the Emtek Group, represented by PT Elang Media Visitama and PT Nusantara Berkat Agung. Followed by the joining of Grab through A5-DB Holdings Pte Ltd and Singtel through Singtel Alpha Investment Pte Ltd as shareholders to support the transformation of Bank Fama into a bank with digital-based services.

Superbank has received various awards, one of which won The Most Efficient Bank[ BUKU I category at the 2022 Bisnis Indonesia Financial Award (BIFA).

The presence of Superbank as a newcomer to Indonesia's digital banking has a mission to expand access to credit for MSME customers in managing their business, providing innovative solutions for retail customers, and developing collaboration through one of the widest ecosystems in the industry.

Rising Interest Rates, Digital Bank Languish

Bank Indonesia (BI) decided to raise the BI 7-Day Reverse Repo Rate (BI7DRR) by 0.25 percent. So that the latest reference rate is 5.75 percent, previously 5.50 percent.

In general, the increase in interest rates has had a positive impact on banks. But unfortunately this does not necessarily apply to digital banks.

Looking at history, Director of Panin Asset Management Rudiyanto observes that digital banks have indeed offered high interest rates even when interest rates have not risen as an attraction for new customers.

But keep in mind, most technology companies, including digital banks, often apply a money-burning strategy at the start of their operations. The money that is burned generally does not come from the company's cash, but comes from third parties or investors.

After there are no investors, it is necessary to question the continuation of the strategy of burning money, one of which is carried out by offering high interest rates.

"Before high interest rates have been offered high interest. 2021–2022 the interest is already high. At that time we still used people's money, venture capital, now everything is difficult without giving money anymore. So if they still dare to pay high interest that is not from their own money, how long will it take? Is it sustainable or not?” said Rudi in the Indonesia Investment Education webinar, Saturday (21/1/2023).

On the other hand, if the company relies on internal cash then there will be limits. Not without reason, as a relatively new industry, digital banks have homework (PR) to become a mature industry.

"So I see if they dare to give high interest money from where. From the outside, maybe it's still sustainable, from the money itself, how strong is it," said Rudi.

Previously, Infovesta Kapital Advisori Research Analyst, Arjun Ajwani said the same thing. He observes that an increase in interest rates will have an impact on increasing the operational costs of digital banks.

Apart from the fact that digital banks' operational costs are relatively higher than conventional banks, the increase in interest rates also forces digital banks to offer competitive deposit rates.

This article has been published on thebro title "Get to know Superbank, a Digital Bank Owned by the EMTEK Group" , 

Author: Arief Rahman Hakim