Indonesia has 1,500 BPRs across the archipelago. Although these BPRs are only allowed to channel credit in their respective provinces, they are allowed to source deposits nationwide – guaranteed by the government at ceiling rates of 2.5% higher than those of commercial banks. Yet these 1,500 BPRs combined only account for 1.5% market share of total country’s depositors as most of these BPRs are located in suburban areas and not equipped by digital channels – making their product inaccessible to urban depositors.
DepositoBPR enables societies nationwide to access the highest possible government guaranteed deposit rates from rural banks in any region without having to visit the bank. On the other hand, BPR can source deposits nationwide without incurring the hefty cost of opening additional branches and marketing effort to attract more deposits. In other words, BPR can source deposits regardless of the geographical boundaries and convert their higher fixed operational cost to lower variable fees to Komunal by using DepositoBPR platform.
“We believe strong partnership between funding agent and rural banks will boost the country’s financial inclusion tremendously. As BPRs have relatively smaller assets than commercial banks, they have dynamic changes between lending and funding needs. While we have seen many fruitful collaborations on the lending side, unfortunately BPRs don’t have many options to solve their funding needs although they offer attractive and safe products. During the pandemic, the irony was even clearer as commercial banks are overflowing with liquidity despite offering record low rates whilst many BPR had difficulty sourcing deposits just because 95% of the country’s depositors reside in urban areas. We hope this platform can bridge the gap. We appreciate OJK and BPR Association support and advice to sharpen this “first of its kind” product,” said Hendry Lieviant, Co-Founder of Komunal.
One of the main challenges of the platform is to standardize and optimize BPR’s fragmented processes to ensure depositor’s seamless experience, such as replacing current handwritten signature with digital signature, face-to-face KYC (Know Your Customer) via video call with eKYC vendor, and most importantly improving physical bilyet with e-bilyet, all of these never been done before in rural bank history.
By bringing digitalization into the ecosystem, Komunal is working to launch Indonesia’s first e- bilyet BPR deposit by the end of 2021. “The e-bilyet feature is rather revolutionary in the sense that, up to now, almost all BPR deposits are using physical bilyet/deposit certificate, which means BPR in Bali, for instance, will need to send the physical bilyet to its depositor in Jakarta (and vice versa when the depositor wants to withdraw his/her deposit), incurring relatively high logistics cost in the process. The e-bilyet, which is created digitally, will effectively eliminate this friction and help our vision to make the product accessible nationwide,” said Kendrick Winoto, Co- Founder of Komunal.
To date, Komunal has engaged with 60 BPRs across Java and Bali, and launched the beta version of DepositoBPR services in August 2021. The company focuses on doubling the BPR market share by offering a higher rate, as well as more seamless transactions to new and existing clients.