(in trillion Rupiah)
Mortgage Vehicle Loans Credit Card
2022 2021 2020
31.9 37.4 32.7
2022 2021 2020
97.5 108.3 90.1
2022 2021 2020
12.1 13.8 11.5
BCA SOLITAIRE & PRIORITAS
For more than a decade, BCA has offered exclusive BCA Solitaire and Prioritas banking services for High Net Worth Individual (HNWI) and Affluent customers. This service provides various advantages, ranging from excellent products and services to special communication platforms, as well as specialized branch office services and exclusive lounges.
BCA Prioritas banking services are available in 182 branches across Indonesia and online, supported by specially trained Bank staff, including a 24-hour call center service through Halo BCA Prioritas. For Solitaire customers, BCA provides two BCA Solitaire lounges in premium locations in Jakarta, which can be used for business needs and banking transactions. Relationship Officers stationed in the BCA Solitaire lounge are ready to assist customers in providing quality banking solutions and services.
In the midst of the COVID-19 pandemic, BCA strived to maintain comfort for its customers by ensuring the continuous provision of Solitaire and Prioritas servces.
Adjustments and developments continue to be made, including the use of digital technology. For millennial customers, Individual Banking builds a 2nd generation customer community, the BCA Young Community, holding various events with interesting and inspiring topics, and providing special benefits through the millennial solution program.
Furthermore, BCA collaborates with trusted partners to provide special programs for customers in the fields of health, education, business networking, travel and lifestyle. The Bank also provides an interactive communication network through the Prioritas website to ensure customers have access to up-to-date banking information.
BUSINESS REVIEW
Individual Banking
MORTGAGES
In 2022, BCA recorded solid growth in mortgages, with a portfolio of Rp108.3 trillion, a growth of 11.0% YoY as of December 2022. Government policies also contributed to growth in the property sector. LTV relaxation, gradual disbursement of pivot properties with developers, as well as VAT incentives borne by the government for house purchases until the end of September 2022 were some of the external factors that supported the increase in BCA’s mortgage portfolio.
Along with the return of community activities, BCA again held hybrid expos, combining offline events with online access, namely the BCA Expoversary Hybrid 2022 and BCA Expo Hybrid 2022. These events helped BCA to meet the needs of the community during economic and social recovery from the pandemic. The total number of mortgage applications that came from the two expos reached more than Rp31 trillion, a testament to the community’s enthusiasm for the events.
The BCA Mortgages team consistently monitors the quality of mortgage loans and successfully maintained the NPL level at 0.8% up to December 2022.
As a market leader in the non-subsidized mortgage industry, BCA continues to develop its digital service infrastructure and data-analytic capabilities for marketing and credit processing. Supported by a strong customer database, this strategic move is expected to become the new standard in the post-pandemic and digital era. BCA is optimistic that prospects for the property sector are even greater for the coming years considering that the housing backlog is still significant, as well as the increasing workforce, mortgage financing is still the people’s main choice.
VEHICLE LOANS
In 2022, the distribution of BCA Vehicle Loan (KKB) showed improvement. Compared to the decline over the previous two years, in 2022 Vehicle Loan grew by 17.3% YoY. This achievement was inseparable from the incentives for luxury goods tax (PPnBM) provided by the government, as well as the easing on down payments by Bank Indonesia.
These various policies stimulated demand for four- wheeled and two-wheeled vehicles, as well as increasing demand for financing. BCA continues to strengthen partnerships with dealers and showrooms in collaboration
with BCA Finance (BCAF) and BCA Multi Finance (BCAMF), to offer motor vehicle financing. BCAF and BCAMF have also developed a mobile application to provide vehicle financing information, which is integrated with the Halo BCA call center.
BCA Vehicle Loan has collaborated with various well- known car brands and more than 400 car dealers from all over Indonesia. In 2022, BCA held two hybrid expo events.
In 2022, the total distribution of new bookings increased 35% to Rp29.3 trillion compared to Rp21.7 trillion in 2021.
Going forward, BCA will continue to develop vehicle financing through strong synergies and partnerships with subsidiaries and leading industry players.
CREDIT CARDS
BCA is one of the leading credit card providers in Indonesia, and the only bank in Indonesia that offers proprietary cards on its local private label, which is not affiliated with other local or international networks. To increase its capabilities, BCA periodically carries out a number of strategic initiatives, as well as credit card cooperation with various international principals such as Visa, Mastercard, AMEX, JCB and UnionPay as well as co- brand collaboration with various e-commerce platforms.
In 2022, the implementation of contactless credit cards began. Transactions continue to grow in line with wider acceptance, continuous education and attractive promotions, especially at various strategic merchants.
BCA recorded credit card transactions amounting to Rp146,1 trillion, a growth of 47.7% YoY in 2022. BCA’s credit card market share reached more than 28%, up from the previous year 24.7%.
WEALTH MANAGEMENT
BCA always strives to improve products, investment and insurance services through bancassurance partnerships, in line with developing customer needs for Wealth Management products. In 2022, BCA customers were able to conduct investment transactions through the myBCA digital platform, with Welma, BCA’s wealth management application, integrated into this platform.
In addition, BCA presents a series of investment educational events for mutual funds and bond products
through various webinars and customer gatherings and provides monthly market updates through BCA House View. In addition, BCA also organizes various related CSR activities, including working with AIA’s insurance partner company in the form of administering a COVID-19 booster vaccine in Jakarta.
With a strong commitment to presenting the best wealth solutions for customers, for the first time BCA held the offline Wealth Summit, which was attended by more than 1,500 customers. In order to reach a wider range of customers, the Wealth Summit was extended with online access, through the website wealthsummit.bca.co.id.
This online summit was attended by more than 1 million visitors. The event was able to provide broader insights for the public and customers, especially regarding the latest topics around wealth management: from wealth protection, wealth accumulation to wealth transfers.
Presentations were delivered by more than 60 trusted sources in their fields, including from partner companies, both from within and outside the country.
By the end of 2022, BCA managed to achieve a total asset under management (AUM) of Rp123.6 trillion, an increase of 58% YoY.
During the economic recovery period, the convenience of digital transactions remain the main attraction for the public. Therefore, BCA keeps improve digital wealth management features in order to reach more customers.
BCA will also continue to improve Wealth Management services for premium BCA customers, including working with trusted partners to provide consulting services related to Wealth Transfers in relationships across generations of customers
FUTURE PLAN
With an increasing customer base, Individual Banking will focus on deepening its understanding of customer behavior, especially for the Mass segment, as well as identifying customers who have high potential. With these various efforts, BCA remains optimistic that we are
“Still Relevant Across Generation” for all of its customers.
These efforts are supported by providing solutions according to customer needs, by collaborating with product managers and subsidiaries, strengthening relationships through both PIC and digital channels, and continuously developing the tools used by PIC Relationships.