South Korean banking and financial group JB Financial Group has signed an memorandum of understanding (MOU) with CIMB Niaga and MITRA JASA LIMA for the open banking platform business in Indonesia.
The MoU will make JB Financial Group the first Korean banking group to export its open banking platform to Indonesia.
Last year, JB Financial launched its open banking platform Obank, which allows several fintech companies to cooperate with the bank’s banking affiliates by using open APIs.
JB Financial claims that through cooperation, customers will be able to use faster, cheaper and more convenient financial services such as P2P lending, international remittance and bill payment.
A bank using the Obank platform will be able to use third parties to act as its digital branches along with its current internet and mobile banking channel.
The bank can also acquire new customers from third parties being connected to core banking system through the platform. It will be allowed to implement diverse types of fee revenues by offering banking services to the third parties.
Indonesia Financial Supervisory Authority (OJK) banking supervisor deputy commissioner Roberto Akyuwen stated that through the JB Financial Group’s open banking platform, more than 1,600 local banks (BPRs) in Indonesia will be able to improve their banking processes in an efficient way and create fee-based revenues.
JB Financial stated that the project is scheduled to start in Jakarta and in the neighboring provinces at the beginning of next year and will expand to the whole of Indonesia.
CIMB Group is a Malaysian banking company which offers retail, corporate, investment and Islamic banking services.
Its Indonesian subsidiary CIMB Niaga is now claimed to be the second largest commercial bank with assets totalling $18bn. Its return on assets (ROA) is 1.87%, net interest margin (NIM) is 5.1% and Return on equity (ROE) is 9.76%.