Jakarta. FinAccel Teknologi Indonesia, the company behind peer-to-peer company Kredivo and a subsidiary of Singapore-based FinAccel, has acquired a majority stake in an Indonesian publicly-listed lender Bank Bisnis Internasional for an undisclosed sum, paving the way for its further expansion in the largest economy in Southeast Asia. 

FinAccel said the acquisition marked a significant step in the company's expansion strategy to serve users by offering a wider variety of financial services, from digital credit and pay later today to digital banking and higher ceiling loans in the future.

"While Kredivo has been at the forefront of consumer credit digitization via our BNPL business over the last several years, the digitization of Indonesian banking services is only getting started," Akshay Garg, Group CEO & Co-founder of FinAccel, in a written statement on Monday. 

"In line with our mission to serve customers with products that are fast, affordable, and widely accessible, we look forward to serving customers with world-class banking products in the future," Garg said. 

"We are also very grateful to the Suriadi family for their support and cooperation during this year-long acquisition process," he said. 

FinAccel expected the acquisition process to be completed by the end of this week. FinAccel Teknologi Indonesia will own 75 percent of Bank Bisnis's shares. Meanwhile, the Suriadi family, the previous majority owner, still maintains a significant portion of minority ownership.

The company said the Financial Services Authority (OJK) had approved the acquisition. 

Bank Bisnis Internasional has a market capitalization of Rp 17.5 trillion ($1.2 billion) as its shares closed 0.4 percent lower at Rp 5,300 apiece on Monday. 

Bank Bisnis was established as Bank Ekonomi Nasional in Bandung in 1957. Today, it operates from a headquarters in Bandung and has three branches in Depok, Jakarta, and Surabaya and three sub-branches, according to the lender's latest annual report.  

The lender disbursed Rp 826.5 billion in loans last year, up 2 percent from Rp 810.1 a year earlier. Bank Bisnis generated Rp 122.6 billion in interest income, up 30.5 percent from Rp 93.9 billion, and managed to book Rp 65.7 billion net income, up 87 percent from 35.2 billion.  

"Bank Bisnis has a long and proud heritage,' Purnawan Suriadi, the lead shareholder representative for the Suriadis, said. 

"As the banking sector rapidly digitizes, we are very excited to bring in FinAccel Teknologi as the new majority shareholder of the bank and look forward to working with them in their vision of building the leading digital bank franchise in Indonesia,"  he said.