[THE INVESTOR] JB Financial Group said on Dec. 14 it has signed a strategic partnership with CIMB Niaga, the Indonesian commercial bank and unit of Malaysian banking giant CIMB Group, to introduce its open banking platform in Indonesia.
JB Financial is taking the lead as the first Korean banking group to export its own open banking platform, unlike other banks that usually enter overseas markets after acquiring local banking licenses.
Executives of JB Financial Group and CIMB Niaga pose after signing a memorandum of understanding on Dec. 14.
CIMB Group is one of the leading banking groups in the ASEAN capital market. Its Indonesian unit CIMB Niaga is the second largest private commercial bank in the country with total assets of US$18 billion. Its ROA, NIM and ROE stand at 1.87 percent, 5.1 percent and 9.76 percent, respectively.
JB’s open banking platform, called Obank, was launched last year with aims to support smaller fintech firms to better cooperate with its banking affiliates. Under the extending partnership, customers can use faster, cheaper and more convenient financial services such as P2P lending, international remittances and bill payments.
“Through JB’s open banking platform, more than 1,600 local banks in Indonesia will be able to improve their banking services in an efficient way and cerate fee-based revenues,” said Roberto Akyuwen, deputy commissioner of banking supervisor at the Indonesia Financial Supervisory Authority.
“The cooperation will drive greater financial inclusion in Indonesia and contribute to building financial stability in the financial services industry.”
JB said the joint project will start operations in Jakarta and neighboring provinces from early next year and then expand across the nation.
By Lee Ji-yoon (firstname.lastname@example.org)