BCA is the largest publicly listed private bank in Indonesia. Its move into digital banking started when it acquired a local lender, Bank Royal, in 2019 for nearly IDR 1 trillion (USD 68.6 million). Before it developed Blu, several other major banks formed their own digital bank subsidiaries, such as Jenius, by Bank BTPN; Digibank, by Bank DBS; TMRW under Bank UOB; and Wokee of Bank Bukopin. Other banks like BRI Agro and QNB Indonesia are also reportedly preparing similar transformations. While conventional financial institutions build their web-based capabilities to retain existing clients and lure new customers, neobanks with tech origins offer financial services and tout the convenience that comes with banking without branches. A litany of players already operates in this manner, including Bank Neo Commerce, which was created after the acquisition of Bank Yudha Bakti by Alibaba-backed fintech firm Akulaku; Jago, a firm backed by Gojek; Sea Group’s Seabank; and Line Bank by Hana Bank. Moreover, e-commerce unicorn Bukalapak is in the process of obtaining a license to launch a digital banking platform with Standard Chartered Bank.
Several traits make BCA a formidable contender as it adds new internet-based financial services. The institution has a long history and good track record, which makes it a draw for users, according to Adhinegara. BCA is one of the first movers in the banking sector; it was the second bank that had ATMs in the 1980s, so digitization is not a new thing for the firm. It also has high trust from customers, so there is little doubt over security, which could be an issue for new players from non-major banks. Digital banks must offer services that are currently in demand, such as invoice financing for small businesses and mutual fund investment or gold savings for Gen Z and millennial investors. In addition, they must be agile in adapting to regulatory developments as authorities plan to launch new regulations for this sector soon.