Bangkok Bank (BBL) is aiming for significant growth in the digital banking business in Indonesia after its acquisition of PT Bank Permata.
Permata, a leading digital banking service provider in Indonesia, can expand digital banking rapidly with a wide range of financial services, including 200 features, said BBL president Chartsiri Sophonpanich.
The Indonesian bank's digital lending has recorded strong growth, with 385,000 new loan approvals a month, of which 31,000 are home loans.
"Permata has a strong foothold in digital banking services and fintech, and BBL will support growth in this area," Mr Chartsiri said.
Permata, Indonesia's 12th-largest bank by assets at US$18 billion, launched its mobile banking app PermataMobile X 18 months ago with downloads hitting about 1 million.
The solid growth of Permata's digital banking business will aid BBL's business expansion in Southeast Asia's largest economy, which has high economic growth potential and low household debt, Mr Chartsiri said.
The bank's shareholders late Thursday approved BBL's acquisition of Permata.
BBL, Thailand's second-largest lender by assets, last December entered a conditional share purchase agreement to buy an 89.12% stake in Permata for $2.7 billion from UK-based Standard Chartered Bank, making it the largest purchase of an overseas lender by a Thai bank.
The acquisition aligns with BBL's strategy to become a leading regional bank with a bigger presence in Southeast Asia.
Indonesia's low family indebtedness (below 20% of GDP) will open opportunities for expansion, especially in the retail banking business, Mr Chartsiri said.
Indonesia's GDP amounts to $1 trillion, double that of Thailand's. On average, Indonesian GDP growth has exceeded 6% per year over the past decade, and 5% annual growth is expected for the next 10 years.
Indonesia is Southeast Asia's most populous country, with 270 million inhabitants. The figure is expected to reach 300 million in the next decade.
After the acquisition deal is completed in the third quarter, BBL Indonesia will merge with Permata.
BBL Indonesia has three branches with 100 staff, while Permata has 332 branches with about 7,000 staff, Mr Chartsiri said. There is no employee overlap.
Apart from digital banking there are several high-potential businesses in Indonesia, particularly trade finance, treasury and cash management. Permata's business operations and profit have increased over the past three years after the bank turned a corner.
Mr Chartsiri brushed aside Indonesian media reports that BBL is buying another bank there.
BBL has no plans to acquire another bank in Indonesia or in any other country in the near future, he said.
BBL typically focuses on an organic growth strategy, but it remains open to asset acquisitions depending on business opportunities.
BBL shares closed yesterday on the Stock Exchange of Thailand at 128.50 baht, down 1.50 baht, in trade worth 877.6 million baht.