Mutiara Bank has launched its first Microfinance services kiosk at the bank’s Fatmawati branch in South Jakarta which marks the beginning of the bank’s aggressive expansion into the sector.

Over the course of 2012, the bank undertook a pilot project for microfinance services at five branches which proved to be highly successful in terms of loan performance and return on equity (ROE). Following the approval of Bank Indonesia in February 2013, Mutiara Bank will now rapidly expand into the microfinance sector in order to enhance the bank’s value and make the sector a significant contributor to overall revenue.

For the first year in 2013, the bank is targeting 45 billion RP of microfinance loans and to open 50 micro kiosks within its existing branch network over the next two years. The bank has invested in the latest technology for mobile loan repayments and has seen encouraging results so far with NPLs reduced from 4.5% in 2012 to 3.4% for 2013 to date.