This study is based on the suspect that the lower segment or what BCA's consultant Mckinsey categories them as un-bankable segment is not profitable. McKinsey advise BCA to exit from this segment. We study these segments carefully with a focus on the relationship among segment.

From the study we found a very strong relationship among segments with formulation as follows:

1. The relation between affluent and upper is strong in financial terms

2. The relation between upper, mass, and lower is strong in term of number of customers and transaction frequency

3. There is no direct relationship between affluent and lower segments

Lower and mass segments at BCA have become a community that cannot simply be separated each other. Therefore the suggestion 'exit' from the community as advised by Mckinsey was not in the proper way. BCA should value these segments in a way to make the segments become profitable.



Legal Disclaimer and Confidentiality.

The information contained in this document represents the current view of BCA on the issues discussed as of the date of publication. Because the industry of banking respond to changing market conditions, it should not be interpreted to be a commitment on the part of our study, and we cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only.



Reseach Location: PT. Bank Central Asia Tbk

Supervisor: Rudianto Prabowo, MSIS.

Accepted on 26 August 2002