BCA Group’s blu app expands digital ecosystem through BaaS

The strategy has successfully fostered transactions and built customer trust by 53.4% throughout 2023.

The blu platform, a unit of the BCA Group, is taking a unique approach in the digital banking scene. Unlike most other digital banks that obsess on drawing customers in large numbers, the blu app is focused on enhancing customer satisfaction and creating a digital ecosystem through Banking as a Service (BaaS).

Since being launched in Indonesia, the blu app has captured the key market for BaaS. Interviewed by Asian Banking & Finance, Yoga Halim, who heads Corporate Planning at BCA Digital, acknowledged how blu has fostered greater accessibility and promoted financial inclusion for 1.7 million customers.

“With enhanced services, addition of various features and latest products, and the expansion of the digital ecosystem with partners, blu BCA strives to support the community and customers in achieving financial maturity,” said Halim

Financial maturity

The blu app’s support for customers and the community to achieve financial maturity is manifested through a commitment to enhancing financial literacy and inclusion.

“Blu has recorded literacy growth through the bluAcademy education class initiative, which has been attended by more than 3,500 participants, where almost 40% of participants say they have gained the necessary financial literacy,” said Halim.

Financial inclusion also saw an increase in 2023, with transaction frequency reaching 73.7 million times year to date, and a transaction volume reaching IDR 181.9 trillion (US$11.64b), growing more than threefold compared to the previous year.

“This volume increase is also evident from the increased transaction activities, ranging from a 215% increase in transfer transactions, a growth of more than 367% in payments using QRIS, and a 282% growth in e-money top-up transactions,” said Halim.

Latest products and features 

All these growths are supported by the introduction of various new products and features that support customers’ financial transaction needs to achieve financial maturity. These include the launch of the bluDebit Card to complement customer transaction needs, and bluInvest in collaboration with trusted investment partners Moduit and FUNDtastic.

“There is also the bluInsurance feature in collaboration with BCA Life, where customers can purchase insurance directly through the blu app,” Halim told Asian Banking & Finance.

“Then, there’s bluBisnis to support customer business transactions, loan applications through bluExtra Cash, payment of utility bills (electricity, water) to BPJS insurance and top-up of flazz BCA cards directly from the blu app,” he added.

Besides supporting customer financial transactions through attractive products and features, blu has also expanded its digital ecosystem services and in-app payments to facilitate customers in making financial transactions from partner applications without needing to exit the app.

Various partnerships

On to partnership, the blu BCA has launched its blUnion with partners from various sectors, ranging from gold investment needs to education.

Blu also collaborates with vehicle credit payment partners like BAF (Bussan Auto Finance), so that all payments can be easily made by linking the blu account to each partner application.

Halim pointed out that as the digital ecosystem successfully developed through BaaS, the bank will be able to provide convenience for customers to transact without switching between different apps, expand financial service access, and make customer acquisition costs more efficient.

“This is reflected in the net profit achieved by blu by BCA Digital in 2023, reaching IDR 46.04 billion (US$2.96m), transaction growth to customer trust reflected through a customer growth of 53.4%, or now reaching more than 1.7 million customers,” Halim said.