BCA Hits Jackpot in New Alliance With Nahdlatul Ulama
Bank Central Asia has signed a deal that makes it the preferred bank of Nahdlatul Ulama in a move expected to boost its lending business while financing thor BCAe projects of the country’s largest Islamic organization. BCA’s president director, signed the deal on Wednesday with officials from NU, which has about 70 million members nationwide. BCA will focus on growing housing loans as high as possible,” Jahja said on Wednesday. BCA, the country’s biggest bank by market value, aims to raise mortgage lending by 35 percent this year. Last year, its mortgage lending business increased by 39 percent to Rp 18.3 trillion ($2.1 billion) from Rp 13.2 trillion a year earlier. The 2010 figure represented around 13 percent of the country’s total mortgage market. The Jakarta-based lender, partly owned by American equity firm Farallon Capital Management, also aims to clinch NU customers who are working abroad, the backbone of the lucrative remittance market.
NU deal would be a good opportunity for BCA to establish microfinance services, or loans as low as Rp 500,000. currently, BCA don’t have microfinancing because its costly, It needs huge investment in employees and branches, because each request has to be evaluated individually. BCA expects lending to increase by 25 percent this year, higher than the central bank’s target of 24 percent for loans. In return, NU’s secretary general, said on Wednesday that the bank would finance health, education and entrepreneurship programs for its Muslim membership. Marsudi said the bank “could count on” NU members living in rural areas of Central Java and East Java to open a sizeable number of BCA accounts. BCA is planning to launch a computer literacy program for residents in rural areas to facilitate remittance claims. BCA will teach them how to operate a simple computer program for sending and receiving money, It’s cheap for BCA and for the customers because they don’t have to go to cities to receive remittances from family members abroad.
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