BRI Wants to Swipe Your Card, Collect Fees
Jakarta. Bank Rakyat Indonesia, Indonesia’s biggest micro-lender, is aims to boost its fee based income by adding 35,000 new point-of-purchase card swipers across the country.
Fee based income — which lumps together commissions, provisions, and fees from transactions — accounted for 7 percent of the lender’s revenue last year, lagging behind peers Bank Mandiri and private lender Bank Central Asia.
BRI targets to boost the number of its card swiping gizmos to 166,204 in total, from 131,204 last year.
It also seeks to book 14 million in non-cash transactions worth Rp 13 trillion ($1 billion).
This compares to 6.8 million transactions worth Rp 2.7 trillion last year.
“We want our e-channel, which grew very impressively last year in terms of customers, transaction numbers and volume, to grow [faster] this year,” said Budi Satria, BRI’s corporate secretary, on Monday.
Budi said that the lender expects the initiative would, in part, help its fee-based income to expand by 20 percent to 25 percent this year.
BRI’s revenue from fees, commissions, and provisions rose 25 percent to Rp 6.1 trillion last year. Still, this accounted for less than a tenth of BRI’s Rp 84 trillion in revenue last year, mainly coming from its micro-loan business.
Rivals Mandiri booked 12 percent of its revenue from the fees and commissions, while BCA sourced 13 percent of revenue from the fees, in line with their strategy to boost its payments service technology.
Source: The Jakarta Globe