In this conversation with Bank Central Asia’s (BCA) president director, Jadja Setiaatmadja, he recounted to me how he rebuilt the bank from the 1997 Asian financial crisis into one of the strongest banks in the world by capitalization, deposit base and the use of digital platforms to achieve customer intimacy.
BCA was recognised as the Bank of the Year in Asia Pacific at The Asian Banker Future of Finance Summit held in Thailand in June. Bp Jahja was named CEO of the Year in Asia Pacific.
BCA’s story is intertwined with the transformation of Indonesia itself. Setiaatmadja, who has been with the bank since 1990, witnessed firsthand the challenges posed by the Asian financial crisis; BCA not only weathered the storm but emerged as a leader in the industry.
One of the key elements of the bank’s success lies in its strong grasp of the fundamental asset and liability management of the banking business, and its ability to adapt to changing customer expectations and market dynamics. BCA realised that banking is no longer just about intermediating savings and credit but about facilitating transactions and providing superior payment capabilities and services. By transforming savings accounts into transactional accounts, the bank tapped into a growing base of merchants and customers who were primed for the digital revolution.
While many digital banks cater primarily to millennials, BCA’s customer base spans in age from 17 to 95 years old. The results of BCA’s digital transformation are impressive. Today, a staggering 99.7% of transactions occur outside of branches. This resulted in 80% of its deposit base being cheaper and stable time deposits from its loyal customers.
Bp Jahja mentioned something that perked my attention – he said that he built the deposit business by changing the focus from competing on interest rates to “utilization”. This was something that I too was saying on the shift of the deposit business, especially in the age of digital wallets. Watch the video.
