How Fired Up Is BCA's Strategy for AEC 2016 Banking Regime?

Abstract

Bank BCA as the largest transactions payments bank in Indonesia has a lot of competitive edge compared with domestic rivals. It is the leading bank in adoption of latest technology in areas that range from traditional banking services, mobile banking and internet banking services, transactions payments, to bank security. And thanks to its corporate governance structures and risk management capabilities the bank that ranks as the second largest bank by assets in the US$800 Billion Indonesian economy, rarely suffers from financial fraud. Nonetheless, with the coming into force ASEAN economic community and the ASEAN financial services market in 2020, the key factors that have sustained the bank’s competitive advantage may not hold any longer as competitors from Thailand, Singapore, Malaysia, and other ASEAN members will also be allowed to establish their services in the country. The challenge the bank faces then include the need to reorient its competitive strategy from one that is domestically focused to that that traverses the entire ASEAN region as the potential market for its services; the need to diverse its customer base; enhance its human resources to meet the demands of an increasingly diverse, demanding, mobile customer base. The new economic and financial landscape that will take shape after 2016 demand a revisiting of the business strategy, and positioning, for the bank to not only maintain its competitive advantage but also explore and expand its market share to financial markets in other ASEAN member economies. Recommendations drawn are basically driven by that perspective in mind.