PT Bank Central Asia Tbk plans to invest 200 billion Indonesian rupiah in fintech startups to expand its reach into the unbanked market, The Nikkei reported Jan. 28.
The bank will form a wholly owned, fintech-focused venture company called Central Capital Ventura, the news outlet reported, citing an exchange filing. The venture capital unit will collaborate with and invest in fintech companies to support the bank and its subsidiaries' financial services ecosystem
Indonesian banks have been in a race to reach unbankable customers through mobile phone accounts. In 2016, PT Bank Mandiri (Persero) Tbk launched its venture capital unit, Mandiri Capital Indonesia, with 500 billion rupiah to foster fintech startups.
As of Jan. 27, US$1 was equivalent to 13,358.00 Indonesian rupiah.