Mortgages
CIMB Niaga as the fifth largest mortgage provider in Indonesia also continues to innovate to gain a larger market share.
In 2013, CIMB Niaga Mortgage utilized more information technology to have a faster credit process by introducing the Retail Credit System that is backed by RCS Mobile Solution, namely Briefcase Banking.
Briefcase Banking takes the form of a tablet connected to the central RCS, allowing salesmen to deliver a faster customer credit process. Briefcase Banking provides information about mortgage products, simulation for credit calculation, online credit application that even gives approval in principle to potential customers who send their documents online. In addition, initial
documents such as customer IDs, Household Certificate, marriage certificate, and other important documents can be captured using this Sales Tablet.
CIMB Niaga Mortgage activities during 2013 were various.
Early in the year, a promotional campaign was run to introduce the five-year fixed interest that was well responded to by our markets. In February, CIMB Niaga re-launched its innovative product KPR X-Tra, which can be connected to a maximum of 9 accounts of the customer’s family, which will allow a faster credit settlement. This campaign is applied in both above the line and below the line approaches, including
the Malaysia Property Show Case to give an opportunity for CIMB Niaga customers to place investments in Malaysia.
Furthermore, an internal program named “Untung Rame- Rame” (Gaining Benefits Together) was introduced to get referrals from CIMB Niaga’s many employees.
To have a wider sales opportunity and maintain a good relationships with its business partners, CIMB Niaga Mortgage participated in a number of events including through sponsorship in the “Launching Verde Apartment” held in Jakarta, in Event Exhibition Freeport in Kuala Kencana - Papua and REI Exhibition held in Cirebon.
CIMB Niaga Mortgage has built cooperation with 600 developers and leading property agents in many cities in Indonesia.
As a strategy to expand its presence and increase brand awareness, CIMB Niaga Mortgage during the second quarter of 2013 was engaged in joint events with several home developers and in event sponsorship with some media houses. Included were a joint event successfully held with L’Avenue Apartment and Bravacasa magazine. In collaboration with Top Property Website – Rumah123.com, CIMB Niaga Mortgage organized the CIMB Niaga Property Expo held at the Cilandak Town Square participated in by a number of leading home developers in the Greater Jakarta Area.
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Banking transactions through branchless banking increased 32.5% to 96.5 million transactions
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The number of electronic network units (ATM, SST and CDM) increased 47.4%, to 3,639 electronic network units.
In April, the Developer Gathering event theme “Starlight Night” was held as CIMB Niaga’s appreciation towards its partner developers. This event was neatly organized and attended by most CEOs and owners of CIMB Niaga partner developers. In addition, CIMB Niaga continued expanding its collaboration with partner developers through both events and agreements it entered into, including with Pakuwon Group for Festival KPR, with Intiland in Surabaya, for Housing Estate Expo 2013, a sponsorship event at the Casa Grande and with 9 Residence – Lippo Group in Jakarta.
In 2013, CIMB Niaga made another proud achievement with some acknowledgments it garnered including “Private Commercial Bank with Innovative Mortgage Products” at the “Properti Indonesia Award 2013” and at the Property &
Bank Award as “Mortgage Provider with Product Variable Financing”. Besides this, CIMB Niaga Mortgage also earned an award from Housing Estate Magazine as the Most Favorite Mortgage for the Secondary Market.
To have a more convenient sales process, consumer lending sales kits were used including for mortgages, which was further developed into a digital touch screen format that can be accessed through windows, android, and ipad.
Another breakthrough was the installment of more functions and layout redesigns of the Consumer Lending website, where customers not only are given information about mortgage products but can also apply for mortgages online and try a simulation for their desired mortgage loan. Mortgage customers can also make a request for further contact from CIMB Niaga mortgage officers and ask questions.
In addition, this website also displays valuable partners of Developer Listings that attach informative property projects as their reference.
Auto Loans
To capture the opportunity in the increasing huge automotive industry, CIMB Niaga offers automotive financing both direct and indirectly.
Direct Financing is distributed in CIMB Niaga Auto Loan through branches across Indonesia. Meanwhile indirect loans are offered in joint financing schemes available at our subsidiaries, CIMB Niaga Auto Finance (CNAF) and Kencana Internusa Artha Finance (KITAF) or at other multi finance partners.
One of CIMB Niaga Auto Loan’s flagship products is Smart Luxury, through which customers can buy luxury cars but only have to pay installments for interest in the first months while the loan principal will start to be paid on the 12th, 24th, or 36th month depending on the tenor. For this innovation, CIMB Niaga Auto Loan received an Award in the category of “The Bank that offers Luxury Cars with the Most Unique Program” from Rekor Bisnis Indonesia. In addition to KPM Smart Luxury, CIMB Niaga Auto offers Smart Balloon
Payment and KPM Smart Regular.
In 2013, CIMB Niaga Auto Loan continued to strengthen its positioning in the premium market.
Besides building partnerships with several official dealers of luxury car manufacturers like
Ferrari, Jaguar, Maserati and Mini Cooper, CIMB Niaga Auto Loan also was actively marketing
Smart Luxury through branding activities in collaboration with auto dealers and ATPM partners. Events held included Ferrari Challenge 2013, Mini Cooper Expo, Launching
VW Tiguan, Launching Range Rover, collaboration with Porsche Club Indonesia at
the Bali Drive event and support to Maserati at the launching the New GranTurismo.
CIMB Niaga also made some breakthroughs by organizing car exhibitions and test drive sessions for premium cars themed Smart Driving Experience held at the Icon Gallery Pondok Indah, Jakarta. This event was supported by 7 luxury car partners such as Maserati, Porsche, Range Rover, Mercedes Benz, BMW and Mini Cooper. Besides test drives, this event was a photo contest and talk show on the automotive industry.
CIMB Niaga Auto Loan’s journey has become more meaningful with the Digital Brand of The Year 2013 the Bank earned based on a survey conducted online by Infobank Magazine. This was in line with CIMB Niaga Auto Loan website development that contains information not only on mortgage products the Bank offers and credit simulations, but also on automotive products of dealers and partner
Sutikno Sudarjo CEO of MRA Group
CIMB Niaga is a pioneer in providing creative financing schemes for the luxury car market.
It is my hope that CIMB Niaga will continue innovating and become the best in the luxury car financing.
CIMB Niaga Auto Loan closed the year with a total of credit distributed reaching Rp9.9 trillion after a portion under sharia scheme to the amount of Rp3.3 trillion was excluded.
In 2014, CIMB Niaga Auto Loan will focus on cross selling activities to existing customers through a program called Pre-Approved combined with a variety of promotional activities with premiums and luxury cars authorized dealers.
Meanwhile, indirect auto loans will continuously give support to CNAF and KITAF, and joint financing.
Personal Loans
The implementation of a cross selling strategy was the key to CIMB Personal business growth. In 2013, CIMB Niaga Personal Loan distributed financing in the amount of Rp1.63 trillion, growing 73%
compared to the figure it reached in 2012, which was Rp943 billion. This strategy has contributed roughly 90% to total financing in Personal Loan.
The remaining 10% was accomplished using a direct selling method to new customers/the public and market penetration at all CIMB Niaga branches spread across Indonesia.
The strategy to target existing customers already taking advantages of CIMB Niaga’s other banking services has become advantageous as we have clear track records of such customers. A customer’s track record allows a faster credit process and helps mitigate credit risk inherent in CIMB Niaga Personal Loans. This is shown by this segment’s lower NPL level of 1.48%, than the previous year’s level of 2.1%.
Amidst the growing size and forms of personal loans offered by a number of competitor banks in the nation, an appropriate strategy and quality services has become crucial. In addition to competitive interest rates, a customer takes into account credit application processes when deciding to take a personal loan. Hence, during 2013 CIMB Niaga Personal Loan made a number of breakthroughs in the credit approval and credit distribution process to allow a one-day credit disbursement process.
For 2014, CIMB Niaga Personal Loan has formulated several strategies to deepen its existing cross selling strategy and expand credit within the salaried market. With a plan to implement an accurate and strong strategy, CIMB Niaga Personal Loan is convinced that it can conclude 2014 with higher growth and better asset quality.
Cross Selling
CIMB@Work is a business model positioned as “a bank you can work at” and offers an array of integrated services to employees of CIMB Niaga corporate customers presenting a Company Benefit Program through payroll services that are integrated into a variety of credit facilities for employees and into our corporate customers’ internal policies
with flexible and convenient transactions through e-channels.
Direct Sales Funding is an effective selling channel to acquire new customers of payroll services and communities through CIMB Niaga’s regularly held massive events. Direct Sales Funding focuses on the segment of salaried employees served by CIMB@Work and penetrates the community segment to increase the number of individual savings accounts.
Evy Soenarjo
President Director of PT Global Teleshop Tbk and Director of Trikomsel Oke Tbk
Our business group has more than 10 years of collaboration with CIMB Niaga in many areas.
CIMB Niaga and our business group share the same desire of giving the best for consumers, in which we, as one of the largest telecommunications retail chains in Indonesia and CIMB Niaga as one of the largest banks in Indonesia, build synergy to provide the best service for our shared customers.
I am personally also a credit card customer of CIMB Niaga and I feel that CIMB Niaga has given me a lot of convenience. I have an impression that the Bank’s customers are pampered with many benefits packed in sales preview program for new lines of branded fashion, discounts for dining programs at my favorite restaurants, cash back programs for new gadgets, and reward points which can also be used to get additional discounts while shopping at my favorite stores.
The Telesales Service is an efficient customer point of contact to greet and reach out to customers from the day a customer opens an account, offering various products and
services through phone banking services.
By conducting a profiling through segment analysis and based on customer transaction patterns, Telesales also plays a key role in creating deeper relationships with CIMB Niaga savings customers through a suitable frame of contact relationship management and as part of customer experience. Telesales is proven to be effective in communicating programs of credit card usage to increase the number of individual transactions at CIMB Niaga.
In 2013, CIMB Niaga collaborated with Yayasan Mitra Netra to provide those with blindness with professional career opportunities in banking as part of CIMB Niaga’s commitment to its social responsibility. Since November 2013, CIMB Niaga’s telesales has employed 10 blind people.
Insurance
As one particular business segment that contributes fees to CIMB Niaga, bancassurance had a strategy to improve services to meet customer needs and give a unique customer experience to CIMB Niaga’s customers.
The implementation of the Insurance Business strategy involves cooperating with partner insurance companies to make a series of innovations ranging from educative program developments to internal certifications to 2,400 front line staff and sales force to allow them to give the best service to potential bancassurance customers with a range of life insurance and liability insurance products. Developing an online system for life insurance application using ipad technology for 476 salesmen of partner insurance company at selected branches, launching 2 life insurance products and 3 new liability products, and running some attractive programs for customers. One of our partners is PT CIMB Sun Life, which is a joint venture between CIMB Niaga, CIMB Group and Canadian company Sun Life.
As result, revenue generated at the end of 2013 reached Rp1,027 billion, showing an increase of 18% compared to 2012.
Credit Cards
In line with the rapidly evolving lifestyle, the Company’s credit card business also continued to offer attractive features to card holders to meet their social needs ranging from dining out at fancy restaurants, shopping
at famous boutiques, watching movies, traveling, and playing golf. The capability of the credit card business to meet customers’ demands has increased
customer loyalty and their credit card usage. Total credit card sales at the end of 2013 reached Rp15.3 trillion, showing an increase of 16% compared
with the previous year.
The Company currently manages credit cards classified into seven classes: Classic, Gold, Gold Sharia, Corporate, Platinum, Infinite and World. In the midst of very competitive markets and despite new Indonesian regulations stating the limits for acquisition of credit card holders, the Company’s credit card holders have increased and
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more than 7% to 1.62 million card holders at the end of 2013 primarily from strong growth in Premium credit cards.
CIMB Niaga Debit
As in the previous years, CIMB Niaga Debit continued to pamper its card holders with a range of exciting offers at selected merchants and convenient access at ATM networks within the country and overseas. In 2013, CIMB Niaga Debit entered into agreements with a number of major merchants such as Bakmi GM, Texas Fried Chicken and Nany’s Pavillon to provide attractive promotional offerings such as discounts or free products for any customer spending that exceeds a certain amount. In addition, CIMB Niaga Debit extended its cooperation with major partners such as Hypermart, Lottemart, Foodmart and Century Health Care in the everyday 5% cash back program and with Cinema XXI/21 in the everyday free popcorn program ticket purchases made with CIMB Niaga Debit Card.
In addition card holders can enjoy many more benefits when making transactions at more than 100 other partner merchants.
These attractive offers have boosted the volume of transactions and expenditures using CIMB Niaga Debit cards resulting in an increase of 37% from the previous year while the number of active card users increased 20%.
Savings products
The Company focuses on how to improve savings products in order to generate larger low-cost funds (CASA) in savings accounts. Our flagship savings products continued to be developed with a variety of features and attractive programs such as Tabungan Bank Niaga X-Tra, Tabungan Junior, Tabungan Mapan, Tabungan Pendidikan, and CIMB Niaga AirAsia Savers. The Company’s savings product development covers a wide range of key market segments;
children, teenagers, young adults and adults.
In 2013, the Company’s growth strategy was focused on the acquisition of more savings products, customers and new accounts, increasing banking transactions through e-channels and debit cards, as well as encouraging an increase in average outstanding balances of customer accounts.
To implement this strategy, the Company in 2013 launched a reward program called ‘Poin X-Tra’ with the theme “Free money for your shopping and hanging out.” Through this program, the Company’s savings products provided a new experience for our customers. In addition to saving money customers also felt the sensation of free shopping at various selected merchants to exchange their ‘X-Tra Points’. Holders of CIMB Niaga savings products Tabungan X-Tra, Tabungan iB X-Tra Mudaraba, CIMB Preferred Accounts, CIMB Niaga Private Banking Accounts, and Tabungan Usaha can participate in this program. They can collect X-Tra Points in many ways, by increasing the average outstanding balance of savings and checking accounts, making transactions via e-channel, debit cards, credit cards, by opening Tabungan Mapan /Tabungan Pendidikan, investing in
Wealth Management products and when their mortgage/ auto loans are approved.
In another segment, the Company also launched a free 5 minute shopping program named “ Festival Fantasi Junior” for customers of Tabungan Junior. While it can increase growth of Tabungan Junior product, this program is also aimed at providing an enjoyable experience in saving money by encouraging saving habits from a very young age.
In terms of its saving product feature development, the Company added a feature called ‘detil transaksi‘
in order to monitor all transactions, which allows customers to track details of their transactions in their passbooks.
By the end of 2013, the growth strategy implemented for savings products showed encouraging results. More than 750,000 new accounts were opened, with a total accumulated funds amounting to Rp7.4 trillion. Thus, the total number of savings accounts in 2013 was more than 3.4 million accounts. That outstanding performance has earned the Company’s Savings products the “Customer Loyalty Award” from SWA magazine in collaboration with Net Promoter and Hachiko. This award has certainly encouraged savings products to continue to innovate in terms of features and services through a variety of attractive promotional programs.
Branches
In this technological era nearly all banking transactions can be effected on line. However, branches are still needed as banking transactions sometimes need customer presence such as in check cashing and the issuance of commercial papers. In line with this need, in 2013 the Company added more branches through the opening of the Medan Icon Branch after successfully opening one in the Pondok Indah area and Alam Sutera Tangerang and with the addition of 15 mobile cash units in a number of large cities to expand reach and offer more convenient transactions.
Some initiatives have been made including opening a branch with a new format. Icon Branch is a flagship branch that offers more comprehensive products and services to customers.
An icon branch has a gallery that serves as a multi function hall for meeting rooms, training, and exhibitions.
With the opening of the Medan Icon Branch in 2013, the Company had 4 Icon branches: in Jakarta, Tangerang, Bandung, and Medan. The Company
has also empowered 15 mobile cash in some major cities in Indonesia.
Each Mobile Cash unit is equipped with an ATM machine to serve customers during an event with services a branch office normally cannot provide. This facility is expected to help extend the scope of services and give convenience to customers. The Company has also introduced a new model of branch called the Digital Lounge, with 13 Digital Lounges now operating at strategic shopping malls and office centers, operating hours are planned to be extended gradually to include weekend banking in possible locations.
By the end of 2013, the Company had a total network of 625 branch offices, 30 branch offices and 329 Sharia Mikro Laju outlets. Of the 625 branches, 537 branches also function as channeling offices for Sharia banking, while 99 of them function as Rahn pawn outlets. The Company also had 2,956 ATM units and 480 CDM units operating throughout Indonesia.
Service Quality
The essence of service excellence is the ability to answer customer needs and give experience that exceeds their expectations.
In line with the concept, in 2013, the Company made a series of constructive initiatives to improve quality in services and give a customer experience that is based on how to give services that exceed their expectations. This effort included monitoring service indicators that have direct impacts on customer experience and focusing customer centric by recording feedback and making some further checking on customer experience as to whether they enjoy our products/promotions/services we regularly offer them.
The Company’s serious efforts to give service excellence to customers are manifested through the establishment of a special committee that works to discuss strategies, initiatives, and improvements related to customer
experience.
The successful implementation of these initiatives was proven with the Company winning in several categories at the annual “Service to Care Award” event held by Mark plus Insight for example as the Company won the second place and had a higher score of 78%
from 73% in the assessment made by customers.
In delivery standards, the Company was able to retain its position within the 10 ten for the category
of Best Bank Service Excellence Monitoring, climbing to the 6th position from previously the
7th for conventional service category. In sharia services, the Company’s rank improved from the 5th position to the 2nd position. The Company also runs a regular program to allow a third and independent party to measure the Bank’s service quality and customer satisfaction for more objective results in addition to internal measurements in order to maintain service quality.
Customer Complaints
Customer complaints are vital to a bank’s business, as it reflects what customers need and want. A bank has to manage customer complaints in the best way possible to give a complaining customer a valuable experience.
Currently the Company has a special unit for this function, Tangerang,
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