Bank Rakyat to enter Indonesia mart in Q2 this year
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Bank Rakyat will enter the Indonesian market in the second quarter (Q2) of this year after getting approval from the authorities, including Bank Negara Malaysia.
To this end, the bank said, it had signed a memorandum of understanding with Indonesia’s largest bank, Bank Rakyat Indonesia (BRI), today.
In a statement, the bank said, the collaboration would enable both banks to provide money order services to over 700,000 Indonesians in Malaysia.
Its Chief Retail Banking Officer, Mohd Shahril Isa, said Malaysia has the highest number of money order transactions worth US$1.9 bilion (US$1 = RM4.44) to Indonesia in 2016.
“This is one of the main factors for Bank Rakyat to expand its banking services to the country,” he said.
BRI was set up in 1895 and has 50 million retail clients, with over 10,612 business and services branches all over Indonesia, while Bank Rakyat is the largest Islamic cooperative bank in Malaysia with 147 branches.
Questions & Answers
Q.What is the primary service Bank Rakyat and Bank Rakyat Indonesia plan to offer through their collaboration?
What is the primary service Bank Rakyat and Bank Rakyat Indonesia plan to offer through their collaboration?
The collaboration between the two banks aims to provide money order services. These services are intended for the more than 700,000 Indonesians residing in Malaysia, facilitating financial transactions between the two countries.
Q.Why is Bank Rakyat specifically targeting the Indonesian market for expansion of its banking services?
Why is Bank Rakyat specifically targeting the Indonesian market for expansion of its banking services?
Bank Rakyat is expanding to Indonesia because Malaysia recorded the highest volume of money order transactions to Indonesia in 2016, valued at US$1.9 billion. This significant financial flow makes Indonesia an attractive market.
Q.How does Bank Rakyat's operational scale compare with that of Bank Rakyat Indonesia?
How does Bank Rakyat's operational scale compare with that of Bank Rakyat Indonesia?
Bank Rakyat is Malaysia's largest Islamic cooperative bank with 147 branches. In contrast, Bank Rakyat Indonesia is a much larger entity, established in 1895, boasting 50 million retail clients and over 10,612 business and services branches across Indonesia.
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