As Credit Slows, Banks Turn to Wealth Management Business

Global financial market volatility is beginning to reshape the direction of Indonesia’s national banking business. Amid pressures on the rupiah exchange rate, a fluctuating stock market, and increasingly tight liquidity competition, banks are no longer solely relying on credit growth to sustain performance.

Wealth management business is emerging as a new growth source. These services now extend beyond merely offering investment products to include asset management, protection, and family legacy planning.

This strategic shift is evident in PT Bank OCBC NISP Tbk’s acquisition of HSBC Indonesia’s International Wealth and Premier Banking business. The transaction is estimated to add more than 336,000 customers and nearly Rp90 trillion in assets under management to OCBC Indonesia.

OCBC President Director Parwati Surjaudaja stated that customer needs for financial services have evolved more broadly, particularly amid economic and market uncertainties.

“Wealth management services are now evolving in their ability to provide more comprehensive and relevant financial solutions tailored to customer needs,” Parwati said in a written statement on Wednesday (13/5/2026).

OCBC sees significant potential in the wealth management business in Indonesia, particularly from the growing affluent or upper-middle-class segment. Through the acquisition, OCBC aims to strengthen investment and asset management services while expanding its premium customer base.

Following the transaction’s completion, OCBC’s assets under management are estimated to increase by around 25 percent. The company also anticipates credit card business growth exceeding 150 percent.

OCBC’s move reflects a trend increasingly adopted across the financial services industry. Amid global economic slowdown and market volatility, banks are expanding commission-based and financial service revenues to maintain profitability.

This phenomenon is seen in the increasingly aggressive expansion of investment and asset management services by financial institutions in recent years.

Manulife, for instance, recently completed the acquisition of Schroders Indonesia to strengthen its domestic investment management business. Post-transaction, Manulife Asset Management Indonesia manages over Rp124 trillion in investment funds with more than 2.5 million customers.

Meanwhile, Bank DBS Indonesia, in partnership with Manulife, launched a cross-generational legacy planning product targeting high-net-worth customers. The product arrives amid rising needs for asset protection and long-term wealth planning in Indonesia.

Although aggressively pursuing wealth management, the banking sector continues to support credit growth to prevent the domestic economy from losing momentum. Bank Mandiri, for example, recorded 30.8 percent year-on-year infrastructure credit growth up to February 2026, reaching Rp491.63 trillion.

This financing flows into sectors such as roads, transportation, energy, and construction, which remain pillars of national economic activity.

At the same time, Bank Mandiri successfully issued global bonds worth US$750 million amid global geopolitical turbulence. The bonds saw oversubscription up to 3.3 times, indicating strong foreign investor interest in Indonesia’s banking sector.