ATM Indonesia’s Less Cash -...
Transcript of ATM Indonesia’s Less Cash -...
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ATM
Description Things To Do Supported By
Melakukan support terhadap Direct Marketing dengan bekerja sama oleh pihak merchant lokal atau menambah potensi channel lokal bagi setiap ATM sesuai lokasinya
1. Menilai potensi merchant dengan melihat beberapa faktor seperti customer merchant, jumlah outlet, jumlah transaksi, dan brand equity serta dilengkapi dengan informasi mekanisme penukaran point.
2. Mengirimkan analisa potensi merchant ke EBMD untuk proses approval 3. Setelah approval di dapatkan, maka dilakukan PKS dengan merchant 4. Development sistem penukaran point merchant dan uji coba sistem 5. Melakukan review setelah merchant berhasil live di sistem direct marketing secara berkala
dengan menganalisa penukaran pointnya
Memberikan referensi terkait lokasi yang representatif untuk dijadikan tempat disediakannya ATM, bila ada penyebaran mesin ATM baru.
1. Membuat analisa SWOT serta analisa biaya yang timbul untuk lokasi penempatan ATM apabila ada ATM yang di relokasi atau ada penambahan ATM baru
2. Berkoordinasi dengan cabang dan memaparkan hasil analisa SWOT untuk mendapatkan approval
3. Mengirimkan analisa hasil SWOT ke EBMD untuk proses approval atau rekomendasi atas lokasi penempatan ATM
4. Proses pengajuan yang sudah mendapatkan approval dari kantor pusat, EBMD area berkoordinasi dengan cabang untuk proses kelengkapan administrasi dan memastikan proses pemasangan ATM telah sesuai dengan prosedur
Indonesia’s Less Cash Market Transformation Adrian Gunadi, Managing Director Retail Banking Openway 2015
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BANK MUAMALAT:
Corporate Profile
BANK MUAMALAT: Building In-Roads to
Less Cash Society
INDONESIA: Burgeoning
Demographics
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Agenda
1 2 4 BANK
MUAMALAT: Groundbreaking to
Branchless Banking
LANDSCAPE: Growing Less Cash
Society 3
Wonderful Indonesia: A Place of Cultural Heritage, World’s Famous Cullinary and Explore the Diversity of Indonesian Forest..it’s more than BALI
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A Place of Cultural Heritage
Traditional Dances: Indonesia has unique, various and famous traditional dances Kecak & Saman Dance Traditional Music Instruments: Indonesia has unique traditional music instruments Angklung & Sasando
World’s Famous Cullinary Rendang & Nasi Goreng is two of most popular food in Indonesia and Rank #1 & #2 based on polls from CNN World's 50 best foods
A Place of Cultural Heritage Batik: UNESCO name Batik, Indonesia's traditional process of dying cloth through wax resist methods, as an intangible cultural heritage. Collonial Heritages: Collonial structures in Indonesia from Dutch Colonization era Fatahillah Museum & Lawang Sewu
Explore the Diversity of Indonesian Natural Forrest Forest Adventure: Indonesian forrest adventure Protected wildlife: Orang Utan Endemic Flower: Anggrek
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Bank Muamalat– Indonesia’s 1st Islamic Bank
– Assets Rp62.3 tn or USD 4.8 bio(a)
– Financing Rp43.0 tn or USD 3.3 bio (a)
– Customer deposits Rp51.0 tn or USD 3.9 bio (a)
– Customer Base 4 mio
– Market Share 30% market share in Shariah (a)
– Size #17 local bank in Indonesia(b)
Major banking
presence
Diversified
business mix (b)
– 83 branches across Indonesia
– 461 outlets(c) and 2,000 ATMs
– Access to 4,141 Post Office outlets and 4,000 kiosk
– Presence ranges from high density cities to remote
areas
Nationwide
distribution
network
– Indonesia’s first Shariah bank
– 2014 Best Islamic Retail Bank – Islamic Finance News
– 2014 Best Islamic Bank Indonesia – Global Finance
– Shareholding : Islamic Development Bank (33%) ;
Boubyan Bank & National Bank Kuwait (30%); Sedco
Investments (25%); Public (12%)
Leading
Indonesian
Shariah bank with
strong brand
(a) As of December 2014
(b) Excluding joint venture and foreign banks in 2014 total 131 banks
(c) Includes branches, sub-branches, and cash offices. Excludes mobile branches
Key financial ratios
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2
3
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Business mix (Q2-2014)
Company highlights
Corporate:
Rp19.7tn (46%)
– Commercial – Upper SME
Retail: Rp
23.3tn (54%)
– Lower SME – Consumer – Microfinance
2011 2012 2013 2014
Tier 1 ratio 9.00% 7.00% 11.74% 11.51%
Capital adequacy ratio 12.00% 11.60% 17.27% 16.31%
Net Income Margin (BI) 5.00% 4.60% 4.64% 4.82%
Financing-to-customer deposits ratio 83.90% 94.20% 99.99% 96.78%
Financing-to-funding ratio 117.30% 78.90% 86.19% 85.77%
NPF ratio (gross) 2.60% 2.10% 1.35% 3.30%
Return on equity 20.79% 29.16% 32.87% 20.96%
Return on assets (BI) 1.52% 1.54% 1.37% 1.53%
Funding mix
Corporate
44%
Retail
56%
Financing mix
Commercial 23%
Upper SME 20%
FI 3%
Lower SME 19%
Consumer 35%
Corporate
46%
Retail
54%
Customer
deposits
84%
CASA 31%
Time deposits 50%
Deposits from other banks
13%
Fund borrowing
2%
Sukuk 4%
81
%
System Support Operation Corporate Image &
Awards Risk Management
2014 Best Islamic Bank Indonesia – Global Finance
Rebranding Logo, Colors, & Images in 2012
Brand Repositioning with The new spirit to be an Islamic, Modern & Professional Bank.
1 2 3 4 Implemented Muamalat Core
Banking – Oracle Flexcube New IT Switching Systems –
Signed Way4 Diversified e-Channel banking
services
Centralized operation project New data center Business Continuity Management Disaster Recovery Management
Reorganizing Risk Management Organization Structure
Develop Risk Management Early Warning System
Develop Financing originating system for Consumer Financing & Corporate Rating Systems with Moodys Rating
Positioning Products Distribution Service 5 6 7 8 Best Retail Bank – Islamic
Finance News
MRI Service Rating to #2 in 2014
Improvement in Loyalty Index (place #1 position in 2014
The expansion to reach 461 outlets
Live ATM from 22 to 2,000
Launched 103 mobile branches
Rebranding and repackaging products
Provide new services (cash management, internet and mobile banking)
Re-launch trade finance business
Company Logo Transformation
Robust Islamic retail bank proposition
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Bank Muamalat– 5yr business transformation has yielded solid performance
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Indonesia’s unique geographic spread coupled with rising GDP and consumer Spending promotes less cash transactions
0%
10%
20%
30%
40%
50%
60%
70%
2008 2009 2010 2011 2012 2013 2014
Vol Trx % of Total Banked Customers
Withdrawal Purchase Intrabank Transfer Interbank Transfer
0%
10%
20%
30%
40%
50%
60%
70%
80%
2008 2009 2010 2011 2012 2013 2014
Freq Trx % of Total Banked Customers
Withdrawal Purchase Intrabank Transfer Interbank Transfer
Burgeoning Demographics – But challenges remain..
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100
200
300
400
500
600
700
2008 2009 2010 2011 2012 2013 2014 2015 E
54 57 65 78 93 105 122 146 3 8 14 22
36 36
43
22 26 36
47 55
68 85
125
22 24 27
23 21
20 20
20
149 177
228 259
278
297 309
325
Massive Growth Cellphone Subscribers compare to Bank Cardholders (in million)
ATM Debit Credit Cards E Money Cards Internet User
Fixed Line Subscribers Cell Phone Subscribers
Source : Bank Indonesia; www.redwing/asia.com & compiled from various sources
Burgeoning Demographics – Telcos have higher penetration compared to banks .. only 30% of population have bank accounts
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Interoperability amongst
Banks-Telco
(inter industry)
(National Payment Gateway)
Regulators Endorsement
1. Standardization
2. Interoperability
3. Push factors
Banks & Telco Collaboration
1. Existing market
2. Emerging market
SUMMARY :Indonesia’s shifting Cash to be Less Cash ? • Key Success Factors on Transforming to be Less Cash Society
Notes : Regulators are not only Central Bank but also regulators of related payment industries Interoperability is also expected to be applied within telco industries Major Banks are still on Focusing to bankable market penetration ( e toll, flazz etc,) while telco (MNO) have easy access to mass market
having a Less Cash society does not necessarily eliminate all cash transactions, it merely encourages people to prefer non-cash transactions
Landscape– Positive support from regulators to accelerate less cash society
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2. Penetrating the Emerging Market – Banks &Telco Collaboration is required to tap unbanked
1. Telco Technology as Front End Solution
2. Banks function as Settlement & Pooled Fund
3. Banks increasing distribution outlets both conventional and non-conventional
4. Telco & Banks partnership for financial inclusion
5. Interoperability amongst Telco & Banks
1. Deepen on existing customer base -the bankable to increase Less Cash transactions
1. Managing Cost + Revenue = Price
2. Expanding thru established distribution channels: a. Transportation b. Convenience Store etc. 3. Provide transactions for Small ticket purchase such as
parking, tickets thru - E Money
4. Increasing Interoperability = Increasing Access
Landscape– Capturing the opportunity thru targeted business model
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- 83 Branches
- 461 Outlets
- 4 Millions Customer
- 2000 ATM
- Direct Marketing
- Avg Trx/Yr 532 Thousand
-Avg Vol/Yr 1,3 Billion
- ± 4.136 Counter
- Visa Debit
- 300.000 Cardholders
- 50.000 users mobile
- ±4.000 Kiosk
- 7 Millions Trx/Year
- Vol 713 billion/Year
- Debit Online
- ±300.000 User Registered
- All Platform (Android, IOS, Blackberry, Windows)
- Live Information (ATM/Branch Location)
Cash In-Cash Out
Market Target
- 435 cooperatives
- 9.000 Alfamart Outlet
- 35.000 XL Tunai Subscriber
- Feature: Deposit, Withdrawal Transfer, Overbook Payment & Purchase
2004
2012
2015 2016-2017
1992 1999
2011
Revamp
2008
• Transaction at anytime, anywhere
• Increase customer accessibility
• Building platform for branchless banking
- Full branchless banking
- Micro Insurance
- Micro Finance
- Remittance & E-Money
Bank Muamalat– Developing payments proposition to capture opportunity .. supported by Way4 since 2010
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Channel Transaction
Volume Growth*
Fee Base Growth*
Feature Key Metric Other
Internet 251% 391%
- Overbooked & Transfer
- Payment - Purchase
- 103.000 user registered
- 6.700 user active/month**
- OTP Secured
- M-Browser
Mobile Banking (GPRS) 334% 246%
- Overbooked & Transfer
- Payment - Purchase
- 45.000 user registered
- 5.000 user active/month**
Multiplatform
ATM 120% 400%
- Withdrawal - Overbooked &
Transfer - Payment - Purchase
- 2000 ATM (2 Kiosk & 2 Drive Through)
- Join with Malaysia Network
- Direct Marketing
Cash Collecting Payment (PPOB)
1978% 1961 %
- Payment - Purchase
- 4.000 counter registered
- 2.500 counter active/month**
- Flexible Admin Fee
*YoY Growth Q1 2013-2015 **in last 3 years
e-Muamalat
Bank Muamalat– Current e-channel suite
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Old Mobile Banking Features New Mobile Banking UMB
(USSD Menu Browser)
Balance Inquiry Inquiry Balance Inquiry Balance inquiry
5 last Transaction 10 last Transaction
Account Statement + Account Opening*
Account Statement + Account Opening*
Overbooking Transfer Overbooking Overbooking
Transfer ATM Bersama Transfer ATM Bersama, Prima, SKN
and RTGS Transfer ATM Bersama, Prima, SKN,
RTGS
Telkomsel, Indosat and Telkom
Payment and Purchase Multi Biller (Telco, Utilities and
Insurance)
Multi Biller (Telco, Utilities and Insurance)
Only on old version Blackberry
Operating System Multi Platform (Android, IOS, New
Blackberry and Windows)
Variety Gadget (Smartphone, Tablet, Phablet)
All Gadget (Feature Phone, Smartphone, Tablet, Phablet)
Customer Touch Point Live Information, Branch/ATM
Location & Advertisement
Support by 3 Major Telco Provider SMS-Banking Replacement
No Internet Connection Needed
New Mobile Banking UI
USSD Mobile Browser UI
Bank Muamalat– Mobile banking platform GPRS & UMB capability to penetrate banked & unbanked
*Target launch Dec 2015
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• Bank Muamalat ATM Network of 2,000 terminals
– 2,000 ATMs
– 2 Kiosks/ Non Cash ATMs
– 2 Drive Through ATMs
• Features
– Cash Transactions
– Transfer, bill payment
– Virtual account
– Card-less withdrawals
– Implemented loyalty program and direct marketing
features
• Implemented in
– Fixed Location (branches, public areas)
– Mobile Location (mobile branches)
Bank Muamalat– Largest ATM network for Islamic Bank in Indonesia
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ATM CRM : Bank Muamalat ATM Loyalty & Crossed Selling to Off Us Trx
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Bank Muamalat was 1st Islamic Bank to launch campaign and yielded significant gains in increasing Off-Us transaction to become 40% of total monthly ATM transactions
Branch Transformation Model ATM Transformation Model
Applied For ANY BANK ATM CARD Transact More, Get More !
USP: 1. 5x Times
Transaction Get Vouchers.
2. Input Name & Cell Phone Get Vouchers.
3. ATM Surprise! Get Your Handset for x Transaction
Bank Muamalat– ATM loyalty campaign increased off-us transaction & awareness
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Service Remarks
Opening Account Yes
Deposit Yes
ATM Yes
EDC Yes
Cash Collecting Payment (PPOB)
Yes
IB & MB Reg Yes
Service Remarks
Opening Account Yes
Deposit Yes
More in depth to gain & serve market and requires mobility with mobile-branch and partnership with large network such as PT POS INDONESIA – with over 4500 outlets
• Getting Closer to Customers • Servicing @ odd hours • Full Service : ATM, Tellers, Pick Up
Money & Cash Collecting of Bill Payment
Bank Muamalat– Branchless banking as the new frontier
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Muamalat Payment Point Franchise
Muamalat Payment Point • Technology driven solution
for micro segment • Clear parameters • Monitoring systems for
managing Counters with diverse features
Transaction Growth 2013 - 2014
163%
Vol Transaction Growth 2013 - 2014
173%
FBI Growth 2013 - 2014
80%
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Basic Saving Account
Micro Insurance
Micro Finance Other Financial
Product
Cash In, Cash Out, Overbook & Transfer
LAKU PANDAI
BRANCHLESS BANKING MUAMALAT
Transaction Integrated With E-Wallet (Telco
provider)
Open Reguler Account (CA,SA,TD)
Bank Muamalat– Branchless banking with Muamalat Mobile as technology platform leveraging realtionship with agents
GPRS & UMB Platform
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Cash Out Transaction
BSA, Micro Finnancing &
Insurance
Remittance & E-Money
Cash In Transaction
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Phase 2 Phase 1 Phase 3 Phase 4
•BSA (Basic Saving Account)
•Micro Finance
•Micro Insurance
•Transactional Activity
•E-Money
•Remittance
•Overbooking
•Withdrawal
•Deposit
•Payments
•Transfers
Cash In – Cash Out Project
2015 2015 2016 2017
Bank Muamalat– Branchless banking milestones
Target Projections in 5 yrs
NOA – Basic savings account new 4,9 mio new Accounts
VOL – Basic savings account new IDR 1,644 M or eq USD 130 mio
Agents 12.160 Agent
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• Indonesia’s exponential growth in the consumer market in the next 5 yrs
• Constant innovation of products is critical to stay ahead of the curve
• Growing middle class customer require robust delivery channels and accessibility
• Robust technology infrastructure imperative for sustainable growth
• Organization culture transformation – From Top to Bottom
Front office & Back Office
Key Takeaways