Digital banking rights issue draws supporters

Car market Carro, a subsidiary of food delivery platform Grab, is among several companies set to participate in a 4.8 trillion rupiah (about $334 million) rights issue by Indonesian digital lender Allo Bank , Reuters reported on Wednesday (January 5th).

E-commerce company, conglomerate Salim Group, online travel startup Traveloka and Growtheum Capital Partners are also joining, according to the report.

Allo Bank, which is controlled by Indonesian tycoon Chairul Tanjung, is expected to sell more than 10 billion shares at 478 rupees (about 3 cents) from January 13 to 19, the report said, citing the rights issue prospectus Allo Bank filed with the stock exchange. exchange Monday (January 3).

Tanjung’s Mega Corpora will increase its investment in Allo by 1.3 trillion rupees (about $90.4 million) through the rights issue, according to the report. has agreed to buy 1.2 trillion rupees (about $83 million) of pre-emptive rights from Mega Corpora, and Salim Group’s Indolife Investama Perkasa will buy 623 billion rupees (about $43 million) from shares.

Mega Corpora has also sold its rights to Abadi Investments, H Holdings, Trusty Cars and CT Corpora in preparation for the rights issue sale next week, the report said. Upon completion of the rights issue, Allo Bank’s capital base will increase to over 6 trillion rupees (about $417 million).

Allo Bank will now have access to customers and merchants in retail, trade, transportation and delivery, travel and automotive through the issuance of rights, according to the report. The bank won its digital banking license last year, putting it in competition with the digital units of Bank Central Asia and Bank Rakyat Indonesia, as well as tech company GoTo’s Bank Jago, FinTech AkuLaku’s Bank Neo Commerce and SeaBank Indonesia. , based in Singapore.

Last month, Bank Indonesia unveiled a new retail payment system that BI Governor Perry Warjiyo promised would reduce the cost of money transfers while supporting the continued growth of the digital economy. Across the country.

Read more: Bank Indonesia launches new retail payment system



On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

Sylvia B. Polson