Case studies

Helping a bank sell more foreclosed assets by applying alternative selling solutions.

Challenge

A local Indonesian entity of a Korean Bank had in 2015 financed a property developer to build a 150 unit apartment in South Jakarta. In 2019 this developer ran into financial problems and has since gone bankrupt, still with 85 units unsold and in the bank’s foreclosed portfolio.

Between 2019 and 2022, the bank only sold 10 units because it had limited expertise in how to market and sell the units, even with the help of several top agencies.

Partnership Opportunity

Tanaku identified that although the apartments attracted many interested parties with good incomes, nearly everyone was rejected for their mortgage (KPR) due to lack of downpayment or blemishes on their credit bureau (SLIK) check.

Tanaku reverse engineered the captive buyer profiles and designed an instalment program based on rent-to-own (RTO) principles, so they could start their home

ownership journey quickly whilst being able to create quicker sales and clear pathway to a full exit for the bank.

Solution

Tanaku put in place a credit line from the bank to the RTO buyers (1) acquire these units, (2) on a low downpayment, (3) with immediate physical access to the units (4) start monthly instalments, (5) graduate to a mortgage when the RTO buyer is ready.

The program sold out the participating units quickly with RTO buyers graduating onto mortgage products with full legal ownership of their units within 13 months on average. The bank had no active operational or marketing role.