KONTAN.CO.ID - JAKARTA. PT CIMB Niaga Auto Finance (CNAF) targets single digit asset growth in the first quarter of 2024.

President Director of PT CIMB Niaga Auto Finance Ristiawan Suherman saw that the first quarter was quite tough if we were targeting double digit figures for asset growth. According to him, apart from short working hours due to lots of holidays plus democratic parties or elections, there are also changes to a number of regulations which are still being discussed with regulators so that they are in line with the spirit of growth in the financing industry in 2024.

"In terms of growth, CNAF has set a growth target but it is in the single digit range for the first quarter of 2024," said Ristiawan to Kontan, Monday (29/1).

Previously, the Financial Services Authority (OJK) said that the total assets of the financing industry in the first quarter of 2024 were projected to grow in the range of 10%-11%.

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Responding to this, Ristiawan saw various challenges in the first quarter, especially related to the alignment of various new regulations that were in effect.

"The first quarter of 2024 will grow conservatively," he explained.

Meanwhile, for the growth of assets under management in 2024, Ristiawan is targeting growth of IDR 12.5 trillion or an increase of 18% from the target for assets under management in 2023. Apart from that, according to him, used vehicle financing and multipurpose financing will be the main support for increasing financing.

"Around 70% of the 2024 target will be distributed to the two segments mentioned above," said Ristiawan.

In order to achieve these targets in 2024, Ristiawan said that CNAF will strengthen its Customer Value Proposition (CVP) Speed and Simplicity so that CNAF becomes the first choice of people who need financing.

In addition, the implementation of competitive interest rates based on risk-based pricing also strengthens distribution services as CNAF's strategy in 2024.
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