Indonesia-based Bank Victoria International has expanded into the wealth management business to add income to its retail banking and fee-based services.
Eko Gindo, president, director and CEO of Bank Victoria, told Jakarta Globe, that the bank’s entry in the wealth management business would be through partnerships with insurance companies.
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By GlobalDataHe added that the bank aims to diversify its banking business for commercial lending and loans to small- and medium-sized enterprises.
"We hope the contribution of fee-based income will increase with the wealth management business," Gindo said.
Bank Victoria has partnered with Asuransi Jiwa Generali Indonesia to offer a life insurance product linked to investment, reported Jakarta Globe.
Gindo said that the wealth management business will contribute 5% to 10% of its fee-based income in the first year of operation and reach 20% by the third year.
Anthony Soewandy, deputy CEO of Bank Victoria, said that Bank Victoria is targeting IDR200 billion in premium income from bancassurance products with Generali.
Soewandy also said that the bank is also in the process of obtaining a license from the Financial Services Authority (OJK) to distribute mutual funds products through its branches.