The bank aims to transform itself into a “tech-based banking institution” but that is not the end of the story

There are many reasons why I am always excited about the conversation in the e27 Telegram Group. But most often, it is because of the mentally stimulating discussions and thrilling leads that we might uncover there.

This morning, a member posted a news article by Bisnis Indonesia about a recent plan of an Indonesian private bank to fundraise through rights issue mechanism. Called Bank Artos Indonesia, the bank is set to issue a maximum of 15 billion shares (priced IDR100 per shares).

With the new funding, the bank aims to transform itself into a “tech-based banking institution”.

Okay. But why is this so special?

It is special because official documents stated that 51 per cent of the bank’s shares will be acquired by Jerry Ng (through PT Metamorfosis Ekosistem Indonesia) and Patrick Walujo (through WTT), two investors who have been known as prominent tech investors in the country –and perhaps the region.

Senior banker Jerry Ng led Bank Tabungan Pensiunan Nasional (BTPN) for a decade, in which he managed to grow its assets by ten folds.

Also Read: gojek introduces local content streaming GoPlay, adding more to its super-app ambition

BTPN itself can be considered as one of the most successful banks in Indonesia in terms of transforming itself into the digital era. According to a research by iPrice Group, its mobile banking platform Jenius is in the top five list of most used e-wallet services in the country, beaten only by the likes of Go-Pay, OVO, DANA, and LinkAja.

Ng is also listed as one of the investors in New Retail startup Warung Pintar’s Series B funding round.

Patrick Walujo himself was a former investment banker at Goldman Sachs & Co and an associate at Ernst & Young. He founded Northstar Group, who is widely known as an early investor in ride-hailing giant gojek.

Can you see why we are excited already? If not, I will give you a minute.

Done? Okay.

First of all, it is important to note that Bank Artos is only set to have its extraordinary general meeting on September 30.

No details have also been announced about how Bank Artos’s “tech-based banking institution” is going to look like.

Also Read: AIA Indonesia takes part in gojek’s Series F funding in a strategic partnership

But if we are looking at gojek’s past acquisitions, particularly with consideration of their super app ambition, there is an apparent pattern of its ambition to build a fintech ecosystem. Its e-wallet service Go-Pay already reached the top position of Indonesia’s most popular e-wallet platforms; it seems only natural for them to look towards digital banking next.

Especially since recently its competitor Grab has been reported to consider merging its e-wallet service OVO with DANA, the result of a joint venture between Ant Financial and Emtek Group. They will definitely need an extra punch in their attack plan.

Warung Pintar itself is a promising startup that merges the offline and online sphere by enabling digital transactions for warung owners. Apart from that, it also counted OVO as an investor.

This acquisition might lead to the rise of a more powerful digital banking ecosystem, led by these two startups.

Yes, several challenges remained. Indonesian regulators have not reached the level of openness like its counterpart in Singapore, who have announced the upcoming issuance of five digital bank license, aimed for banks who services are done completely on an online platform.

There might be some limitations in how a digital bank can operate in the country. But it has finally taken the first step to get there.

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Image Credit: Uray Zulfikar on Unsplash

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