BCA-Indepay Signed Cooperation Agreement to Implement Branchless Financial Services

As a financial institution that has been exist in the business of banking services in the country, PT. Bank Central Asia Tbk. (BCA), which is better known as a bank that is more active in urban centers, especially in business, is now starting to work on customers from the general public layer in areas outside the habitat over the years. With this program, the wider community, including in remote areas may hope soon to get low cost of financial services from the Bank through its agents were recruited from the community itself. So in the absence of any branch office BCA services such as saving or withdraw money can be made.

To support the plan, Bank BCA took Indepay Network, a company which has headquarter in Singapore, as a strategic partner. Indepay Network has long experience especially in India in expanding bank services by utilizing its well proven technology in community base banking services. Indepay signed a Cooperation Agreement with Bank BCA this Monday (21/12/05).

Signatories of this cooperation is done in the BCA Building Nusantara, Jalan MH Thamrin, Jakarta. The BCA was represented by the Director of BCA, Suwignyo Budiman and Indepay Network represented Rajib Saha, the CEO of Indepay Network. The signatories also witnessed by Independent Commissioner of BCA, Cyrillus Harinowo, BCA Director, Henry Koenaifi and Vice President of Indepay Network, John Lee.

In his speech after the signing of the cooperation, Suwignyo explained that BCA and Indepay has long been exploring each other to ensure that this cooperation can provide maximum benefits for BCA customers in Indonesia. In fact, to ensure customer service system without branches can be run on the field, the BCA and Indepay create a pilot project in two places namely Grobogan in Central Java anda Cigugur situated in West Java. BCA financial services currently carried out by Bank Agents in both places, among others, the opening and closing of accounts, deposits, cash withdraws, inquiry of account mutation, and checking account balances.

Cooperation with Indepay, according to Suwignyo include the use of technology, control systems and databases. "We do this to reduce trial and errors in using Kartu Layanan BCA or LAKU BCA," said Suwignyo.

Suwignyo added that through the cooperation between BCA and Indepay, financial services to the public through LAKU BCA program can better serve customers in remote area.

"In this early stage we focused on socializing KARTU LAKU BCA to the community in Java and then gradually we will expand to the entire territory of Indonesia," said Suwignyo.

Government policy

What was done by the BCA, Suwignyo explain in his speech, is to support the government's policy as much as possible in implementing Indonesia National Staretgy on involving as much as people in banking financial services.

Rajib Saha, CEO Indepay Network in his remarks estimated that around 82% of Indonesia's population is not currently enjoy banking services. Seeing the need is so great, but realize the magnitude of the costs required and the lack of infrastructure of BCA to conduct services in remote area, since BCA focused on urban banking services for long time, then Indepay provide banking services solutions without having fully rely on the existence of branch offices. Therefore, branchless banking seems to be the best solution at this time, and Indepay Network has substantial experience in various countries in implementing such service.

"So people who are very far from BCA services office can easily open accounts, saving, transferring or withdrawing money from Bank to the distance that can be taken from their homes."

"This is done by utilizing the nearest Bank Agents that are operated by trained member of society itself while maintaining the confidence level and standard of service of Bank BCA.," said Rajib. 

It is undeniable that in addition to these services which involve the community called Bank Agent, would be a little incur additional charges. "But the service costs incurred are relatively small compared to the benefits derived services." Added Director of BCA, Suwignyo Budiman reply media questions related to the costs that are likely to be borne by the customer. 

As known, the Financial Services Authority (OJK) formed by the government a year ago to oversee the operation of Executing Banks, issued a policy called LAKU PANDAI, stands for “Branchless Financial Services in the framework of Inclusive Finance (LAKU PANDAI).

The policies outlined in the OJK Regulation No. 19 / POJK.03 / 2014 concerning LAKU PANDAI in order to support the government's National Strategy for the Finance program Inclusive (SNKI) essentially aims to involve the public as widely as possible in utilizing a wide range of financial services without having constrained by distances and various burdensome rules. 

As a private bank that has been go public, Bank BCA called to the success of the government strategy quickly and professionally, so took Indepay Network in order to synergize in providing excellent service to the wider Indonesian community. Bank BCA implement its program through the KARTU LAKU BCA.

Some observers assess strategic move of Bank BCA is very precise and will provide great benefit to the future government's policy to disburse a trillion rupiah of fund to villages throughout Indonesia. Since the policy involves huge amount of fresh money, the villagers should be supported with professional financial services, not just from the the State Owned Banks but also by private banks such as Bank BCA. (Ben - @bens369 – email: ben.bnur@gmail.com)