BTN Sets Ambitious CASA Target for 2026

Strategic Shift Towards Low-Cost Funding

Bank Tabungan Negara (BTN) is setting an ambitious target to increase its Current Account Saving Account (CASA) ratio to 60% of total third-party funds (DPK) by 2026. This move represents a strategic shift towards low-cost funding, which is crucial for improving the bank's overall funding structure and competitiveness in the Indonesian banking sector.

Priority on CASA Growth

According to Rully Setiawan, BTN's Director of Network & Retail Funding, growing CASA is the bank's top priority for the coming year. While specific numerical targets were not disclosed, the emphasis on CASA indicates BTN's commitment to optimizing its funding mix. The bank recognizes that increasing the proportion of low-cost CASA funds will help reduce funding costs and potentially improve profitability.

Implications for BTN's Business Strategy

The decision to focus on CASA growth reflects BTN's broader business strategy to enhance its retail banking capabilities. By increasing the share of current and savings accounts, BTN aims to create a more stable and cost-effective funding base. This approach is particularly important in the context of Indonesia's competitive banking landscape, where banks are continually seeking ways to optimize their funding structures and improve operational efficiency.

Market Context and Future Outlook

BTN's target aligns with industry trends where banks are increasingly focusing on CASA growth as a means to achieve better funding stability and reduce reliance on more expensive term deposits. The success of this strategy will depend on BTN's ability to innovate its product offerings and enhance customer engagement through digital channels and branch networks.