Bank Victoria has gained renown as a commercial bank within the sphere of MSME financing, differentiating it from its competitors and enabling it to tap into this highly lucrative yet under-served segment. The bank offers a broad range of commercial and multi-finance lending products, making available between 10-25 billion IDR in commercial loans for more well-established MSMEs as well as 1.5-10 billion IDR in medium enterprise loans. Furthermore, the bank provides 250 million IDR and up to 1.5 billion IDR for micro-enterprises.
Indonesian MSMEs are integral to the country’s economy in terms of sustainable growth and employment; contributing approximately 57% to the country’s GDP (ICSB.org). With plans of creating regional economic integration of the financial sector in the AEC in 2020, the Indonesian government is determined to push for the growth of MSMEs so as to spur innovation and greater competitiveness among its ASEAN peers.
Going forward, Bank Victoria will prioritise the growth of MSMEs and commercial lending as part of its growth strategy. As a bank renowned for rapid and efficient processing of the credit application process, Bank Victoria will encourage greater lending throughout its branches to support MSME financing in Indonesia, setting a target of up to 10 billion IDR for MSME loans and 25 billion IDR for commercial loans. Furthermore, the bank is placing efforts to develop MSME credit segmentation by providing greater empowerment to the Business Division to control its business strategies and increase the growth of MSME lending. The bank will implement these strategies through prudent and controlled risk management so as to maintain sustainable growth.