OCBC - DBS Research 2018-09-28: Digital Quest To Grow Indonesia Market Share

OVERSEA-CHINESE BANKING CORP (SGX:O39) | SGinvestors.io OVERSEA-CHINESE BANKING CORP SGX:O39

OCBC - Digital Quest To Grow Indonesia Market Share

  • OCBC NISP embarking on mobile-first strategy and partnerships to grow Indonesia market share.
  • Good traction in mobile app transactions over last year.
  • To offer up to 90% of physical branch functionalities on OCBC NISP ONe Mobile app.
  • Sees highest potential in Indonesia amid scaling up of digital efforts across core markets.



What’s New


Embarking on mobile-first strategy and partnerships to grow Indonesia market share. 

  • OCBC NISP will increase its digital services by embarking on a mobile-first strategy and partnerships with non-bank partners and fintechs to grow its market share in Indonesia, as it continues to see increasing digital transactions.

~ SGinvestors.io ~ Where SG investors share

Good traction in mobile app transactions over last year. 

  • Currently, there are more than 21 mobile transactions rose 46% y-o-y. 
  • Notably, customers are also beginning to open deposits online as time deposits opened in digital channels grew 8x faster than traditional channels openings with total deposits opened through digital channels rising 62.75% compared to the previous period.

To offer up to 90% of physical branch’s functionalities on OCBC NISP ONe Mobile app. 

  • OCBC NISP will be offering health industries among others.

Highest potential in Indonesia amid scaling up of digital efforts across core markets. 

  • OCBC believes that Indonesia offers the highest potential across all its existing core markets outside of Singapore, as Indonesia has relatively low mobile internet penetration rate. 
  • OCBC NISP is the ninth largest profit before tax (1H17: 7%).

Continues to leverage on digital capabilities to grow existing franchise, deepen relationships and drive loyalties. 



Our thoughts

  • The step forward is positive for OCBC NISP’s strategy as OCBC can complement its mobile strategy with its existing branch network of more than 300 branches across Indonesia as OCBC NISP continues to step up its private banking efforts, leveraging on its existing SME customers.





Sue Lin LIM DBS Group Research | https://www.dbsvickers.com/ 2018-09-28
SGX Stock Analyst Report HOLD Maintain HOLD 12.400 Same 12.400



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