Amar Bank Company Profile

Background

Overview

PT Bank Amar Indonesia Tbk, commonly known as Amar Bank, is Indonesia's first and only pure-play digital bank. Established in 1991 as PT Anglomas International Bank in Surabaya, the bank underwent a significant digital transformation in 2014 under new ownership and management, rebranding to Amar Bank. This transformation aimed to provide accessible financial services to Indonesia's underserved and unbanked populations.

Mission and Vision

Mission: To deliver banking services to those who need them, not just to those who want them.

Vision: To bring smiles to 200 million people in Indonesia.

Primary Area of Focus

Amar Bank focuses on digital banking solutions, particularly targeting the retail sector and micro, small, and medium-sized enterprises (MSMEs). The bank's flagship product, Tunaiku, offers unsecured personal loans to individuals and MSMEs, aiming to enhance financial inclusion across Indonesia.

Industry Significance

As a pioneer in Indonesia's digital banking landscape, Amar Bank has played a crucial role in advancing financial technology and inclusion. Its innovative approach has set a benchmark for digital banking services in the region.

Key Strategic Focus

Core Objectives

Financial Inclusion: Provide accessible banking services to underserved and unbanked populations in Indonesia.

Digital Transformation: Leverage technology to offer efficient and user-friendly banking solutions.

Customer Empowerment: Enable individuals and MSMEs to manage their finances effectively through digital platforms.

Specific Areas of Specialization

Digital Lending: Offer unsecured personal loans through the Tunaiku platform.

Mobile Banking: Provide banking services via mobile applications, including savings, current accounts, and business loans.

Financial Management Tools: Develop tools to assist customers in budgeting, saving, and financial planning.

Key Technologies Utilized

Big Data and Predictive Analytics: Utilize data analytics to assess creditworthiness and personalize loan offerings.

Artificial Intelligence (AI): Implement AI to promote positive savings habits and enhance financial discipline among users.

Cloud Computing: Adopt cloud-based infrastructure to ensure scalability, security, and reliability of banking services.

Primary Markets Targeted

Retail Consumers: Individuals seeking accessible and convenient banking services.

MSMEs: Small and medium-sized enterprises requiring financial products tailored to their needs.

Financials and Funding

Funding History

Amar Bank has undergone several funding rounds to strengthen its capital and liquidity position. Notably, the bank completed a Right Issue in 2022, raising funds to bolster its financial standing.

Total Funds Raised

The exact total funds raised by Amar Bank are not publicly disclosed.

Notable Investors

Tolaram Group: The Singapore-based conglomerate acquired Amar Bank in 2014 and remains a significant shareholder.

Investree Group: Acquired an 18.4% stake in Amar Bank in 2022, becoming a significant minority shareholder.

Intended Utilization of Capital

The funds raised have been utilized to strengthen the bank's capital and liquidity position, supporting its digital transformation initiatives and expansion of financial services.

Pipeline Development

Key Pipeline Candidates

Tunaiku: An app-based digital lending platform offering unsecured personal loans up to IDR 20 million, with loan terms of 6-20 months. Applications are processed and approved within 24 hours.

Senyumku: Indonesia's first cloud-based mobile-only bank, launched in 2020, adopting AI technologies to encourage positive savings habits and enhance personal financial discipline.

Stages of Development

Tunaiku: Launched in 2014, it has disbursed over IDR 9 trillion in loans to more than 14 million applicants as of 2023.

Senyumku: Launched in 2020, it continues to evolve, integrating AI to provide personalized financial management tools.

Target Conditions

Tunaiku: Serves individuals and MSMEs seeking unsecured personal loans.

Senyumku: Aims to promote better financial habits and discipline among users.

Anticipated Milestones

Tunaiku: Continued expansion in loan disbursement and user base growth.

Senyumku: Further integration of AI features to enhance user experience and financial management capabilities.

Technological Platform and Innovation

Proprietary Technologies

Tunaiku Platform: An app-based digital lending platform utilizing big data and predictive analytics for credit assessment.

Senyumku Application: A cloud-based mobile-only bank employing AI to promote positive savings habits.

Significant Scientific Methods

Big Data Analytics: Used for credit scoring and personalized loan offerings.

Predictive Analytics: Employed to forecast customer behavior and financial needs.

Artificial Intelligence: Integrated into Senyumku to provide personalized financial advice and tools.

Leadership Team

Key Executives

Vishal Tulsian: President Director and Chief Executive Officer. With a background in multinational corporations, he joined Tolaram Group in 2003 and has been instrumental in Amar Bank's digital transformation.

Kevin Kane Wardhana: Director of Information Technology and Operations. Oversees the bank's technological infrastructure and operations.

Thio Sucy: Director of Compliance. Ensures regulatory compliance and risk management.

Abraham Christo Lumban Batu: Director of Retail Banking. Manages retail banking services and customer relations.

Elsa Enda Dwita Purba: Corporate Secretary. Handles corporate governance and communications.

Market and Competitor Analysis

Market Insights and Dynamics

The digital banking sector in Indonesia is rapidly evolving, with numerous entrants aiming to capture market share. Amar Bank's early adoption of digital banking and its focus on underserved segments provide it with a competitive edge.

Competitor Overview

Bank Mandiri: A state-owned bank offering a wide range of financial services.

Bank Central Asia (BCA): A leading private bank with extensive retail banking services.

Bank Negara Indonesia (BNI): A state-owned bank providing comprehensive banking solutions.

Strategic Collaborations and Partnerships

Google Cloud: Partnered to develop Senyumku, leveraging cloud infrastructure and AI technologies.

Investree Group: Acquired an 18.4% stake in Amar Bank, enhancing its digital lending capabilities.

Operational Insights

Amar Bank's focus on digital transformation and financial inclusion differentiates it from traditional banks. Its technological infrastructure, including AI and cloud computing, enables efficient and scalable operations.

Strategic Opportunities and Future Directions

Amar Bank aims to expand its product offerings, enhance AI capabilities, and strengthen partnerships to further its mission of financial inclusion and digital banking innovation.