Online lending platform for personal loans introduced by CTBC Indonesia bank
CTBC Indonesia Bank, which functions as a special unit of CTBC Bank, a private bank based in Taiwan, recently revealed that it has introduced a digital lending platform for a personal loan product, known as KTA Dana Cinta.
The KTA Dana Cinta The product allows you to borrow up to 200 million rupees (approximately $ 13,800) without having to provide collateral. Applicants can receive a decision within one minute as to whether they will receive the loan (or not). The company claims that it is the only banking service provider in Indonesia that provides instant approval in principle for all unsecured personal loans with this type of limit.
Although other banking institutions in Indonesia have offered fully digital financial services like savings accounts, the management of Bank CTBC Indonesia made the decision to provide a loan product (as a first step).
A company representative told Tech in Asia that they understand their place in the market as a small bank – which is why they adopted their business strategy.
In statements share with Tech in Asia, Ryan koesuma, the company’s digital lending manager, said every other virtual bank is starting to come up with some kind of super app that aims to provide almost every banking and non-banking service imaginable. However, this can be a complicated issue, and loans are most likely lower in the service line, Ryan noted while adding that this is why they try to go straight into business by staying “nimble.” “.
The company has announced plans to create an updated KYC process that won’t require face-to-face or in-person contact, or even a video callback.
During the testing or trial phase of their 60-second loan service, Bank CTBC Indonesia claims to have received around 20,000 digital loan applications in just a few months. Bambang Simmon Simarno, executive director of the company’s retail banking, noted that the company is looking to expand the share of its digital loan product to the institution’s unsecured personal loans in the coming years.
OJK, the national financial services authority, reported that there has been an increase in requests for digital money lending since last year. Loan applications were valued at a total of $ 5.1 billion, which is 24.5 percent from 2019 figures, the OJK confirmed.