The Indonesia unit of Singapore’s UOB Group targets to raise its share in the group’s operating profit in Southeast Asia.
UOB Indonesia plans to contribute five percent to UOB Group’s operating profit in the Southeast Asia region, from currently 3.6 percent. The target will be on track after the completion of Citigroup’s consumer banking business by the end of 2023.
The bank’s growth should happen in a controlled manner. «We never chase growth for growth’s sake. We want to make sure it is sustainable and aligned with the group’s objective,» said Hendra Gunawan, president director of UOB Indonesia, as cited by «The Business Times».
Growing in Digital Space
Indonesia's banking industry is now experiencing tight competition, with the fintech firms that provide access to the unbanked population. However, UOB Indonesia chooses to woo customers who aspire to be wealthier through opportunities in the region.
The bank prefers to increase its investments in digitalization, to lower the barrier for all consumers, Gunawan said. One of the initiatives is to add a new remittance service to UOB Indonesia’s digital banking app. Currently, UOB has 122 branches in Indonesia, where 40 percent of them are in the greater Jakarta area.
