BRI on driving digital banking in Indonesia
BRI has set out a vision to support financial inclusion efforts in Indonesia, and the bank's digital transformation strategy is one way of helping it achieve this goal. In an interview, Agus Noorsanto, BRI director of wholesale and institutional business discusses BRI’s vision, expansion plans and how it's leveraging digital technologies to enhance the customer experience and drive growth.
Q: BRI has a vision to become ‘the most valuable banking group in Southeast Asia and champion of financial inclusion’ by 2025. What steps has the bank taken to achieve this goal?
This is a key priority forBRI and we are determined to achieve this vision through our transformation strategy, Brivolution 2.0.
As we focus our efforts on achieving this goal by 2025, we will continue to increase our acquisition of low-cost funds, focus on assets with high yields and accelerate new sources of growth. Additionally, we will grow our subsidiaries and expand the business scope of the parent entity. Furthermore, we will implement environmental, social, and governance (ESG) principles in our lending practices.
Second, we will implement business management principles that adhere to the values of good business governance and create a positive impact on the environment. Our goal is to deliver value beyond profit.
Third, we will continue to invest in human capital, service reliability, extensive networks coverage, as well as data analytics to ensure we meet customers’ expectations.
Q: What innovative products and services has BRI launched? How successful have they been so far?
Through our digital transformation strategy, we are committed to providing comprehensive access to banking services for both individuals and the corporate segment.
Our long-term ambition is to expand our products and services to the wider Indonesian market, and in the micro segment, our hybrid banking platform, BRILink will help us achieve this goal.
At the end of 2022 there were more than 600,000 BRILink agents across Indonesia, resulting in a 16% increase in financial transactions year-on-year.
For the retail segment, BRI has deployed two mobile apps for consumers, BRImo SuperApp and CERIA. BRImo app downloads rose by 68.46% year-on-year at the end of 2022, with an overall increase in the transaction value by nearly 100% year-on-year.
In the same year, CERIA has contributed to the 45% growth in credit card and digital lending via transactions made on e-commerce platforms such as Shopee, Gojek, Tokopedia.
There has also been significant growth across BRI’s corporate segment. Our BRI cash management platform has recorded a 35% year-on-year increase in transaction volume. Furthermore, the number of clients is growing by 15% year-on-year.
Q: BRI’s digital transformation strategy focuses on three pillars: core digitisation, digital ecosystem and new digital proposition. How is this strategy helping to drive the bank’s financial performance?
Our digital transformation strategy features three key components; core digitisation, digital ecosystems and new digital propositions.
Core digitisation will focus on digitising business processes and aims to deliver products and services to our clients in an efficient manner.
The second pillar, digital ecosystems, will enable BRI to reposition itself in the banking value chain through the support of digital platforms.
While our third pillar, new digital propositions, focuses on combining financial technology with new business models for a fully digital approach to improve the efficiency of services.
Q: Banks are embracing digital transformation to remain competitive. Please describe how BRI has set itself apart from its competitors in the region?
Through our digital transformation strategy we aim to provide easy and reliable corporate access to banking services.
Our strategy combined with our extensive network of more that 8,000 branches and 14,000 ATM channels, enables us to cater to the end-to-end needs of our customers, especially multinational companies trying to reach their customers across Indonesia.
We have recently launched an integrated corporate solution platform, QLola by BRI. The platform, which can be accessed using a single sign on, will enable our clients to access various BRI wholesale products and services: financial dashboard, cash management, trade and guarantee, supply chain management, foreign exchange and investment.
Q: For many banks being customer-centric is key to their success. How is BRI tailoring its products and services to its customers?
Our focus on customer-centricity is a key part of our success. We are strengthening our employees’ capabilities, system reliability, services and networks, as well as data analytics, as part of a greater effort to provide customer-centric services.
BRI is providing added value through process improvements, business model innovation, and the adoption of the latest technology.
Our trade digitisation initiative enables our clients' trade processing time to be reduced from an average of two days to three hours. By replacing manual trade underwriting process with a digital solution, clients are able to issue trade documents, monitor, draft and check the documents online in real-time.
Q: Looking ahead how will BRI continue to drive growth, for example, is the bank planning to launch any new products?
BRI aims to increase profitability through strengthening the business of each of the segments it operates in; micro banking, retail banking (including consumer and SME segment) and wholesale banking.
Over the next three years our wholesale business will focus on improving the quality of business processes in operational lines, driving growth and the quality of corporate loans, as well as developing products and business models to create new sources of income.
Therefore, in line with our focus we aim to develop new products around our customers' needs, improve cash and trade capabilities, and launch a new business model to diversify our revenue streams by the end of 2023.