BNI or Bank Negara Indonesia, the major state-owned Indonesian bank, is looking forward to acquiring Bank Mayora to build digibanking strength. The latter is jointly owned by the World Bank’s IFC (International Finance Corporation) and Mayora Group.
The deal is yet to be finalised, but once completed BNI will be the primary shareholder of Bank Mayora. They plan to purchase one billion shares of the latter bank along with existing IFC shares. This will allow BNI to have a 63.9% stake in Bank Mayora. Mayora Group, earlier the primary shareholder, will now hold only 36.1% shares.
BNI aims to enter the digibanking space through this acquisition and use Bank Mayora to primarily serve the digibanking needs of SMEs. The digibanking sector in Indonesia has been growing exponentially, with various big names such as Sea Group, Kredivo, Grab, etc. entering the market. Now, one of the largest state-owned banks will be serving the sector as well with a view towards the SMEs. Reports state that BNI plans to completely convert Bank Mayora into a digibanking partner.
While the news was published last December, a shareholder meeting is yet to take place following which the deal is expected to be closed in May 2022. Reports also state that Sea Group will be playing a role in this acquisition process, however, details of such a deal have not yet been disclosed.
The digibanking sector in South Asia overall has been growing at a rapid pace, especially due to the growth of the SME sector. Due to the unavailability of reliable native digibanking platforms, many foreign players had been taking up space in this market. One can expect that following this acquisition most SMEs in Indonesia will be turning to the state-owned BNI for their digibanking needs.