Singapore’s Shopee to Launch Digital Bank in Indonesia
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Shopee, the e-commerce arm of Singapore’s Sea Group, is planning on transforming Indonesian lender Bank Kesejahteraan Ekonomi (Bank BKE) into a digital bank, according to a «Reuters» report on Thursday.
An Indonesia’s Financial Services Authority (OJK) official said that Shopee has yet to make an official application with the banking regulators, but is «currently preparing the infrastructure» for the transformation.
The bank, which began operations in 1992, was acquired by Shopee in January from the Jakarta-based lender’s existing shareholders Danadipa Artha Indonesia and Koin Investama Nusantara through its subsidiary Tubro Cash Hong Kong.
Indonesia is in the midst of preparing regulations for new digital banks, which is expected to be released in mid-2021. A digital lender like Bank BKE would be expected to prepare 3 trillion rupiah ($213.64 million) in capital, the official said.
Sea – Southeast Asia’s most valuable startup – raised close to $3 billion in a stock offering in December 2020. The company was also one of two to be awarded a license to operate a full digital bank in Singapore.
Questions & Answers
Q.Which company originally owned Bank Kesejahteraan Ekonomi before Shopee acquired it?
Which company originally owned Bank Kesejahteraan Ekonomi before Shopee acquired it?
Bank Kesejahteraan Ekonomi was acquired by Shopee from its existing shareholders, Danadipa Artha Indonesia and Koin Investama Nusantara. Shopee completed the acquisition in January through its subsidiary, Tubro Cash Hong Kong.
Q.What is the expected capital requirement for a digital bank like Bank BKE in Indonesia?
What is the expected capital requirement for a digital bank like Bank BKE in Indonesia?
A digital lender such as Bank BKE would be expected to prepare 3 trillion rupiah in capital. This amount is equivalent to approximately $213.64 million, according to an Indonesian Financial Services Authority official.
Q.Has Shopee officially applied to Indonesia's banking regulators for the digital bank transformation?
Has Shopee officially applied to Indonesia's banking regulators for the digital bank transformation?
No, Shopee has not yet submitted an official application to the banking regulators in Indonesia. An official stated that the company is currently preparing the necessary infrastructure for the transformation.
Q.When are the new regulations for digital banks in Indonesia expected to be released?
When are the new regulations for digital banks in Indonesia expected to be released?
The new regulations for digital banks in Indonesia are expected to be released around mid-2021. Indonesia is currently in the process of preparing these guidelines for the sector.
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