How BCA’s digital drive helped it become SEA’s most valuable brand

At US$23 billion, Indonesia’s Bank Central Asia (BCA) is the most valuable brand in Southeast Asia in 2023, according to a recent report by global data and consulting firm Kantar.

This exceeds the brand value of BCA’s peers such as Bank Rakyat Indonesia (BRI) as well as DBS and United Overseas Bank (UOB) in Singapore.

Moreover, BCA is the only brand from Southeast Asia to secure a place in the global rankings. It took the 74th spot in the top 100 most valuable brands, with tech titan Apple leading the pack.

Kantar has been assessing brand equity globally since 1998, interviewing a total of 4.2 million consumers and involving 20,300 brands to date. According to the firm’s estimates, brands that make its lists have shown substantial long-term growth in their share prices, surging by 321% from 2006 to April 2023.

While the global brands’ overall value dropped by 20% compared to 2022, BCA was among the few to see yearly growth. It had the fourth-highest increase in brand value at 12%, following Indian telecom giant Airtel and US-based beverages Pepsi and Fanta.

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BCA hit all these milestones even though it has generated less money than its regional banking competitors this year so far.

The bank has credited this success to its “massive digital transformation,” which includes innovations like mobile banking, cardless cash withdrawals, online bank account opening, and e-wallet services.

Lower profits but stronger brand equity

To determine brand value, Kantar looks at two elements. One is financial value, which refers to how much of the company’s total worth – both now and in the future – can be linked to the brand. The other is brand contribution, which is the proportion of the financial value that comes directly from brand equity.

Brand equity refers to the brand’s capacity to create value for the company. This can happen by “influencing consumers to have a demand and to choose the brand over other brands or to pay more for the brand based purely on perception,” says Adji Saputro, who leads Kantar’s brand guidance solutions for Indonesia and Asia Pacific.

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An intriguing finding from the Kantar research is that Southeast Asian brands tend to prioritize their home market over global expansion, Saputro adds.

BCA is a case in point: It’s an Indonesian bank that largely serves customers in the country, a market with a high gross domestic product growth rate. He believes that these factors positively influence the bank’s financial performance.

Despite this, BCA has not been the most profitable brand when compared to others on the list. For example, it posted a net profit of 40.7 trillion rupiah (US$2.7 billion) in 2022, lower than BRI’s 51.4 trillion rupiah (US$3.4 billion) and DBS’ S$8.2 billion (US$6 billion).

A growing digital presence

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