BCA: Unpredictable Economy Drives Demand for Wealth Protection
Jakarta (ANTARA) - Indrawan B, Executive Vice President of Wealth Management at BCA, stated that the increasingly unpredictable economic conditions are driving the bank’s clients’ need for long-term wealth protection solutions.
Indrawan noted that rapid economic changes are making it increasingly difficult to accurately project economic conditions for the next five to ten years.
“When we talk about this, it is uncertainty. It is quite difficult for us to predict, for example, what the next five years or ten years will look like, because the changes are very rapid,” Indrawan said during the Wealth Prestige Protection press conference in Jakarta on Friday.
According to him, current global and domestic economic conditions are becoming more interconnected, meaning changes occurring in one country can impact others.
In this context, the need for wealth protection is becoming increasingly relevant as the public needs to anticipate various long-term risks, including inflation and exchange rate fluctuations.
Indrawan noted that the nominal value of wealth may have different purchasing power in the future due to inflation.
“One billion Rupiah now and one billion Rupiah ten years from now might be very different,” he remarked.
He explained that the trend of the Rupiah against the US Dollar, as well as potential inflation, are several factors that must be considered when the public plans long-term wealth protection.
Based on this, BCA is presenting protection solutions such as Prestige Pro, in collaboration with AIA Indonesia, which is designed to provide long-term protection up to the age of 99.
According to Indrawan, the use of US Dollar denominations in this product is also an effort to anticipate the long-term uncertainty of the Rupiah’s value.
He added that wealth protection solutions need to be designed by considering various risks so that the value obtained by clients is not only expected to be stable but also able to grow to offset inflationary pressures.
“It must go up so that it can cover inflation and all that. Including the currency,” he said.
Furthermore, Indrawan stated that BCA does not set specific product sales targets that must be pursued by marketing staff.
According to him, this approach is taken to ensure that client needs remain the basis for offering wealth management solutions.
“We do not want our sales to be driven by our desire to sell. What we want is to sell based on the figures our clients need,” he said.
Indrawan added that with a client-centric approach, solutions can be more targeted and aligned with the preferences and character of the intended clients.