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Indonesia’s BNI Syariah plans to expand its banking services globally

BNI Syariah
The Islamic bank plans to add overseas representative offices to run trade finance and remittance services

Indonesia’s state-owned Islamic bank BNI Syariah plans is planning to launch its services in other markets, the media reported.

The Islamic bank is planning to add overseas representative offices to run trade finance and remittance services.

Reportedly, BNI Syariah will leverage the branch offices of its parent company, Bank Negara Indonesia, in Singapore, Tokyo, Seoul, Hong Kong, London, and New York.

In the month of Match, the bank received a non-cash capital injection of $17.5 million.

According to BNI Syariah president director, Abdullah Firman Wibowo, trade finance is an important and profitable segment for the bank as many of Indonesia’s diaspora are involved in export-import businesses and many foreign companies also operate in the country.

Abdullah Firman estimates that trade finance can offer BNI Syariah fee-based income of up to Rp50 billion to Rp70 billion per year.

He told the media, “Our holding company already has 6 overseas branch offices and we were given the privilege to leverage this. We will collaborate with them and place some of our trade finance experts and remittance representatives there.”

“We invested heavily in human resources and IT. We’ve recruited certified trade finance specialists and trade finance advisor specialists as well as remittance representatives to be attached to several remittance agencies including at our holding overseas branch offices to attract consumers for the trade finance, financial institutions and remittance segments.”

“Our representatives will also offer our hajj savings product, house financing, SME financing and so on. From our internal research, 86 percent of our international customers are already eager to shift to Shariah products.”

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