Post acquisition by Banten Global Development (BGD), Bank Pundi Tbk (BEKS) (also owned by Banten Province Government) will become Bank Banten. How would the owner of both Bank Banten and BPD (Regional Development Bank) Jabar Banten Tbk (BJBR) manage this? Will a tight competition occur between the two over the banking market in Banten?
For comparison, BEKS is similar to a small David faced against a giant Goliath, that is, BJBR. BEKS’ total assets are only 6% of BJBR’s. With poor asset quality, BEKS’ assets are unlikely to generate satisfactory revenue and profit. The first agenda of BEKS’ owner must be to improve asset quality. However, this strategy can only maintain BEKS’ status quo. What about its future?
Meanwhile, BJBR has a strong, excellent market in Banten, second strongest after West Java. BJBR’s assets in Banten reached Rp 17.4 trillion (18%) whereas customer savings reached Rp 13.1 trillion (16%). In the near future, BEKS should be able to build differentiation which has a value added for its customers so that banking customers in Banten would prefer BEKS over BJBR.
As it gets increasingly difficult to reach customers, BEKS’ closest alternative to adding a number of offices is to optimize its digital banking services. This becomes more and more possible following the involvement of MNC Group via BGD which could provide assistance in reliable infrastructure development.
Whatever strategy it will use, BEKS needs to be fast in grabbing BJBR’s market if it does not want a tight competition to occur between them and eventually face loss in the national banking market. (*)
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