KBBS said Thursday it signed an agreement with PT Surya Finansial Utama, the digital business unit of Muhammadiyah.
With the agreement, KBBS will support the digital applications used by affiliated organizations and individual members of Muhammadiyah, and integrate KBBS mobile banking into these apps to offer exclusive digital banking services. KBBS will also develop specialized products and services for Muhammadiyah members.
An Islamic bank operates in accordance with Islamic law "Sharia." Sharia prohibits interest, disallows financial products that do not involve spot transactions, and avoids investments in industries contrary to Islamic law.
Along with Nahdlatul Ulama, Muhammadiyah is one of the two major Islamic organizations in Indonesia, which has the largest Muslim population in the world. Founded in 1913, Muhammadiyah has around 60 million members, operates approximately 26,000 elementary and secondary schools, 173 universities, and over 360 hospitals. Its total assets are estimated to be around 320 trillion rupiah ($19.7 billion).
KBBS is one of the main banks used by Muhammadiyah. Recently, Muhammadiyah has been strengthening its cooperation with KBBS by deciding to transfer its deposits from Bank Syariah Indonesia (BSI), the largest Islamic bank in the Southeast Asian country, to KBBS.
"Through digitalization, KB Financial Group aims to support the improvement of financial welfare for Indonesian Muslims, who make up 87 percent of the population," said Lee Woo-yeol, president of KB Bank in Indonesia.
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