PT Bank Jago Tbk (Bank Jago) organized a virtual incidental Public Expose, as part of the process to disseminate information to shareholders on the company's performance and condition developments, especially after the implementation of the rights issue. On this occasion, the management also explained the bank's business model and business development plan in the future.
At the beginning of the presentation, the management explained that the Rp 1.3 trillion rights issue process had been completed in April 2020. The controlling shareholders, namely PT Metamorfosis Ekosistem Indonesia (MEI) and Wealth Track Technology Limited (WTT), have exercised their rights so that the ownership portion remains the same of 37.65% and 13.35%, respectively. They both become the controllers with a total ownership of 51%, while public shareholders account for 49%.
"The controlling shareholders are committed to develop Bank Jago into a technology-based bank that will serve the middle and mass market segments, by collaborating with all digital ecosystem players. Supported by a strong and experienced management, we are optimistic that we can actively participate in growing the digital economy and influencing the national banking industry,” said Bank Jago CEO Kharim Siregar.
Added by additional capital from the rights issue, Bank Jago was upgraded to BUKU II Bank with an equity of Rp 1.3 trillion and assets worth Rp 1.8 trillion as of April 2020. By March 2020, the bank’s capital adequacy ratio (CAR) was recorded at 116%, the loan to deposit ratio (LDR) was 58% and the non-performing loan (NPL) was 0.9%. “We are currently completing our business model and perfecting the application that we will launch before the fourth quarter of 2020. As Bank Jago business model operates, the company's current performance indicators will certainly change,” Kharim said.
Kharim explained that the management’s decision to design Bank Jago as a technology-based bank was based on a thorough study of shifting trends in digital financial services and the use of technology in everyday life. “Digital disruption that hit almost all economic sectors, including financial services sector, has changed the landscape of the banking industry. Therefore, the bank's ability to adapt and understand its customer needs is a key factor,” he said.
The people’s point of view on financial services and products has also changed significantly in the last five years. The climax was when the COVID-19 outbreak hit the world, including this country. The restrictions on social interaction and social distancing – which was aimed to break the chain of spreading the virus – have forced the people to adapt by using digital technology to meet their daily needs.
This extraordinary condition makes digital financial services are not just a trend, but has become a basic necessity. "For us, the application of digital technology is very important and inevitable. However, there is something much more important than that. We have to make sure that the application of digital technology can bring goodness and provide the greatest benefits for all of us,” said Kharim.
In serving the digital ecosystem, Bank Jago will collaborate with all platforms starting from e-commerce platforms, ride-hailing applications, travel industry, online shops, entertainment to digital payments and fintech lending. The management will also channel partnership-based financing by targeting the fintech ecosystem and supply chain. "Our target segments are medium and mass market, most of which are MSME players. We certainly have an aspiration to accelerate the digitization of MSMEs so that they have better competitiveness,” said Kharim.
