Top Indonesia Bank Bolsters Digital Arm to Fend Off Tech Giants
- BCA plans an IPO for digital banking unit Blu in two years
- Bank focused on gaining customers, partners ahead of Blu’s IPO
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PT Bank Central Asia will invest $200 million into its digital arm to fend off competition from tech giants Gojek and Sea Ltd. that are expanding into one of the world’s largest unbanked markets.
The Southeast Asian nation’s biggest lender by market value will use the funds to help Blu, its one-month old digital unit, to increase market share ahead of an initial public offering for two years’ time, BCA President Director Jahja Setiaatmadja said in an interview from Jakarta. He plans to increase Blu’s capital to 4 trillion rupiah ($278 million), from about 1 trillion rupiah currently.