Strong economic growth in recent years has made Indonesia one of the most lucrative markets for consumer financing in Asia. Furthermore, Bank Indonesia’s regulation concerning Loan-To-Value (LTV) ratio aims to increase lending primarily within mortgages and automotive loans. Bank Victoria is well-positioned to serve the wide-ranging demands of Indonesian consumers through its retail banking services for mortgages, automotive, multipurpose loans as well as credit ‘implant’ banking – this particular service offers consumer loans to employees of a company which has an agreement in place with Bank Victoria. This further demonstrates Bank Victoria’s ability to forge strategic partnerships with housing developers and local companies for its retail banking services.
Through Bank Victoria’s focus on retail banking, the bank aims to build its brand recognition across Indonesia as a reliable, trustworthy financial institution that can cater to Indonesia’s strong domestic market as well as the latest consumer demands from the country’s affluent middle-class. As of 2015, Bank Victoria’s consumer lending totalled to 544,281 million IDR, an increase of 0.35% from 2014. This is reflective of the growing dynamic needs of Indonesian consumers and Bank Victoria’s ability to adapt to those needs. Furthermore, Bank Victoria’s customer-orientated services are a key factor to its continued growth in Indonesia’s highly-competitive retail banking industry. As a boutique bank renowned for its close relationships with its clients, the company focuses on offering products that cover the needs of its diverse customer segments.
With retail banking being a key business driver for Indonesia’s economy, the sector is becoming more competitive and developed. As such, Indonesian consumers are seeking more specialised services from banks that utilises technological advancements coupled with excellence in financial expertise to satisfy their financial needs. Through the bank’s good corporate governance principles, the company undertakes controlled risk taking when disbursing loans through its retail banking arm. As such, this prudent approach has enabled the bank to maintain sustainable growth and continue to cater towards customers utilising its retail banking services.