Tier I Capital : > Rp30 trillion
2. Direct Payment
For direct payment system, customers just simply mentioning the registered mobile phone number to the cashier which later will be submitted to the EDC. To proceed the transaction, the user have to mention the pin that sent by message.
The Un-banked Responds
Since it was fi rst inaugurated on 27 March 2013, Rekening Ponsel received warm responds from the public. Proven by the number of registered Rekening Ponsel users in the end of 2013 that reached 274 thousand users, of which 151 thousand CIMB Niaga users, and 123 thousand un- banked users. The achievement was considered successful to attracts the public who have not been the customers of CIMB Niaga
0.8
33.7
Mar-13 Jun-13 Sep-13 Dec-13 4.5
47.3
101.6
151.1
5.3
81.0
174.5
Non-customers CIMB Niaga customers Number of Users (thousand) 72.9
122.9 274.1
Firstly launched in the end of March 2013, number of transaction reached 15 thousand with a volume of transaction reached Rp3 billion. By the end of December 2013, the number and volume of transaction signifi cantly increased to 1 million transactions and Rp58 billion of transactions. The growth in line with the growth in the number of Rekening Ponsel users.
Digital Lounge is managed by friendly Digital Banking Managers, whose ready to assist with account opening and any personal banking transactions through all the technology presented in Digital Lounge.
Digital Lounge
CIMB Niaga Digital Lounge provides for the banking needs of the active customers, with daily operation hours from 10.00 - 21.30, including in weekends and in national holidays.
Strategically located in popular shopping malls, CIMB Niaga Digital Lounge allows customers more flexibility to conduct their banking activities during their daily work schedules.
Digital Lounge location as of December 2013:
1. Citywalk Sudirman
2. Graha CIMB Niaga, Sudirman 3. Mal Artha Gading
4. Mal Emporium Pluit 5. Pondok Indah Mall 6. Gandaria City 7. Pacific Place 8. Plaza Indonesia 9. Ratu Plaza
10. Living World Alam Sutera 11. Kuningan City
12. Ciputra World (Lotte Shopping Mall) 13. Mall Central Park
Account opening is paperless and without hassle, customers can visit anytime, open an account in 15 minutes, walk away with their new debit card and ready to transact. Digital lounge displays latest CIMB Niaga product offering or promotional programs on digital posters. Transactions can be done through ATMs, CDMs, video banking, internet banking, mobile banking and Rekening Ponsel. Another convenience, customers can also apply for instant credit card and personal loan, or even when they only need several informations on mortgage, digital lounge is ready to serve.
Business Support Overview
OPERATIONS & INFORMATION TECHNOLOGY
As we continue to expand sustainable
business, we intend to consolidate operating organizational units to implement standardized,
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services.
OPERATIONS
Sustainable business expansion including the addition of more branches, ATMs, CDMs and acquiring more customers and accounts requires synergy among organizational units from upstream to downstream. This synergy starts from designing products and services, distribution, and implementation all the way to handling customer complaints. Each unit within the organization should move forward to a common goal under the direction of a business leader able to demonstrate an entrepreneurial spirit for which he is given suffi cient authority, supported by reliable organizational tools such as policies, processes, procedures, employees and system reliability.
Business expansion led by a leader who has entrepreneurial spirit is an applied organizational model where the Branch Manager is referred to as Entrepreneur (BME). A BME is expected to encourage employees to focus on business development with the assistance from a Branch Operations & Service Manager (BOSM) tasked to ensure all business processes are running well as they are controlled regularly within internal/external regulations to help BME generate profi t for the branch he directs or the Company in general.
Consolidation, Control, Compliance, Business Profi t Adjusted to the BME organizational model, the operational organization is consolidated within the same direction headed by the Sales and Distribution (S & D) Division at regional, area, branch or sub-branch levels. At each of the 155 main branches headed by BMEs, a BOSM is stationed to be responsible for all aspects of operations and services at the branch, including services provided by Teller and Customer Service. BOSM reports directly to the BME in terms of business aspects and to the Area Operations Manager (AOM) in terms of operational aspects.
Consolidations are also conducted on centralized operational units such as units of export/import, maintenance of ATMs/
CDMs, credit administration, information management, and payment administration. The ultimate goal is to implement a standardized, effective and effi cient process within operational units at the Head Offi ce, main branches, or branches. Therefore each of our operational unit leaders has a work program with regards to fi nancial, business development, business process improvement, risk control in business processes, and human resource development aspects.
A number of initiatives for savings purposes were undertaken to maximize yields of expenses, among other measures by operating centralized export-import units or credit administration functions spread across branches at the regional level. In line with the availability of products/services through e-channel banking, operational units are increasingly keen to support business by educating customers on the use of e-Channels and helping them to become familiar with transactional functions. The successful efforts were refl ected in the improved operational productivity as the number of transactions through e-Channels showed an increase of 27%.
In terms of business expansion, the Company introduced new operational initiatives to support the expansion of Rekening Ponsel (RekPon) and both ATMs and CDMs located at the Company’s premises or those of a third party.
The fundamental is how to reconcile centralized transactions made through e-Channels at various locations. Likewise, for a better administration of credit of export-import activities, functions that require specialized skills such as document checking are centralized at centralization points.
Business process improvements produced reviews of the Cash Pickup Delivery services managed by both the Company and third parties. Reviews were focused on
Parties engaged in such reviews (the Company, Customers, third party) strived to fi nd solutions that benefi t all. In order to stimulate a competing spirit for further improvements, the management holds competitions on business process improvement among operational units throughout the Bank.
Winners in the competition at each end of the semester earn a number of awards and are given the opportunity to apply their winning ideas or creativity to other units.
A proven result of risk management in business processes is daily inspection of key processes listed in the Daily Control Function Checklist (DCFC) and regular self-assessments applying Sharp (Self-Assessments of Risk Profi le) currently performed by all operational units. Tangible results in the form of reduced risk are clearly refl ected in the scores obtained from the audit performed. In addition, executive and supervisory staffs of transactional processes are equipped with an understanding of the importance of applying the Five (5) Basic Controls which are dual, instruction validation, customer verifi cation, neat and orderly documentation, and escalation to higher authorities.
A proven result in human resource development (HRD) is enhancements in technical skill, managerial capability and routine leadership achieved through periodic training and programs and certifi cation programs. Programs of knowledge and skills development are specially designed for certain functions such as Teller, Credit Investigation and Analysis, and Customer Service at branches.
Related to the renewal of our core banking system through the 1P project - Kita Satu, operational teams are engaged in intensive meetings to discuss the module, function, features, type and content of reports that can be produced by the Bank’s new core system. Discussions are not only intended to recognize the capabilities of the new system, but also to anticipate the impacts that system changes present for business process. The system does not change the existing business processes while evaluations are conducted to see if there are current processes that can still give added values to the Company or our customers. Any process that does not is targeted for deletion or modifi cation.
Awards
Testament to its success in the areas of Operations, the Company received several awards in 2013:
• Deutsche Bank : USD & EUR STP Award of MT103
• Standard Chartered Bank : Payment Outstanding Award of MT103
• JP Morgan : USD Quality Recognition Award of MT103
• BNY Mellon: Outstanding Payment Formatting and Straight-Through Rate of MT103
• Citibank NA: Straight Through Processing Award of MT103 and MT 202
INFORMATION TECHNOLOGY
CIMB Niaga has a dream to become a leading bank in digital consumer banking services. To achieve this dream throughout all of 2013, the Company continued to enhance focuses on the implementation of IT strategy and work programs. One area of focus was on how to provide cost- effective, effi cient, reliable, accurate and safe services. The execution of the strategy entailed strategic projects that are in line with the Company’s banking business strategy in addition to centralized business process engineering. This step has been fully supported by efforts to encourage a smart spending culture and fi nalize the preparation phase to renew our existing banking system.
Presented below are some strategic projects undertaken in 2013 most of which are a continuation of what was started in the previous year:
• The Implementation of Business Process Management Tool (ARIS).
• Further development of teller system.
• Data Warehouse capacity development/enhancement in line with initiatives from Strategy & Finance business unit aimed in part to improve Data Governance.
• Centralized Regulatory System including FRS 139, SID
& DHN.
• Global Financial Management System as an implementation of banking fi nancial system transformation to meet the demand for faster systems to improve competitiveness in the increasingly tougher banking industry and provide a foundation for business expansion and stronger growth.
• Retail Credit System, to support the growth of retail fi nancing through a system that can increase revenue and allow automated processes to eliminate those done manually and reduce costs. In the new process, employee performance can be measured more accurately while the performance of related units can be improved.
• Branchless Banking, by continuing to promote electronic banking services via internet banking, mobile banking, video banking, and other innovations that bring customers closer to us and give them more experience when making banking transactions with us. The launching of Rekening Ponsel as one form of the Bank’s Branchless Banking has perfectly answered BI’s challenge to banks to provide fi nancial services to people with no access to banking (referred to as fi nancial inclusion).
-
Siti Choiriana
Executive General Manager of the Enterprise Service Division
PT Telekomunikasi Indonesia
PT Telekomunikasi Indonesia (Telkom) has been a partner of CIMB Niaga for telecommunications service since the company was still known as Bank Niaga until present. Telkom as a service provider of Telecommunication, Information, Media, Edutainment and Service has supported telecommunications services for fi xed line telephone services, and has developed into a provider of information and telecommunications in line with the increasingly tougher competition in the banking industry in which IT has become one of the key factors.
As one of the best banks in Indonesia, CIMB Niaga needs the use of technology as a strong platform to exceed customer expectation. This can be seen in the increasingly comprehensive channel service and rapid development of branchless banking the Bank provides to its customers through new product development that is unique like Rekening Ponsel and Digital Lounge. This far ahead Vision has convinced us more that CIMB Niaga is one of our business partners we can collaborate with to move forward together.
It is our expectation that our mutually benefi tting partnership we have long built with CIMB Niaga can continue to pursue stronger business development.
We also expect that CIMB Niaga will continue to innovate and remain vibrant in providing services to its customers and remain as a reliable bank for Indonesian peoples in general.
• The New Data Center Development with higher international standards continued in line with short and long term plans. The short-term plan focuses on capacity levels to support the Bank’s performance over the next 5 years, while the long-term plan will consider expansion plans in new locations that can support the Bank’s performance over the next 15-20 years.
• IT Development Program, to provide new human resources in order to meet both IT internal needs and the increasing and more complex business demand.
IT Governance
The availability of a reliable IT system certainly requires good governance and right direction. That’s why the IT Division continues to make improvements in its governance system to allow sustainability and accommodate diversity in the existing system and mitigate potential risks. Therefore, the focus of IT governance in 2013 was the implementation of Self Risk Assessment Process (SHARP), which is a device used to measure all types of IT risks inherent in each Sub- Directorate IT Divisions.
Meanwhile, in order to improve the competence of IT offi cers, the Company has engaged employees considered to have the potentials in a series of certifi cation programs in accordance with their respective scopes of work, which cover the areas of risk, network, software and hardware architecture, project management and data to enable them to compete and have equally high capability with employees of competitors who have international certifi cation.
Plans for 2014
Entering 2014, the IT Directorate will execute its plan to continue the “Kita Satu” project initiated in 2013. The objective is to renew the existing core banking system in order to improve services to customers. This will be achieved through simplifi cation in process by featuring a single customer view to allow fl exibility in accommodating product and branch codes that will lead to more competitive services and by establishing faster operational standards between conventional and sharia banking businesses.
In addition the IT Division will also make efforts to establish supporting banking systems to be integrated to our renewed core banking system, including through adjustments made to meet requirements, necessary development, preparation for data conversion, and testing for adaption to our customized environment.
The IT Directorate will also continue its efforts in system capability and infrastructure enhancement and to meet the growing and increasingly dynamic business needs both physically through Data Center updating to anticipate business needs over the next 15 years, and through updating in terms of hardware, network and software.
In the implementation of IT governance, reforms will continue by enhancing the capability to integrate data from multiple sources and improve the quality of such data integration through data management in the Data Warehouse in order to further facilitate reporting on the part of Finance work
In terms of compliance, the IT Directorate will provide technical support to projects related to compliance with banking regulations, including through the preparation for debit card migration as specifi ed in the Indonesian National Standard for Chip Card Specifi cation (NSICCS), fi nancial systems automation as referred to in SFAS 55 of 2006 and SEBI No.11/4/DPNP concerning the implementation of Guidelines for Indonesian Banking Accounting, the implementation of internal credit rating system in line with the implementation of the Basel II IRB, and some other projects.
The IT Directorate understands that the execution of the IT plan for 2014 will likely encounter big challenges especially in terms of investments required and in the growing need for skilled and competent IT staffs to ensure on time project completion. Another challenge will be how to arrange comprehensive system development in a way it does not interfere the Company’s banking activities in a way that might interfere with services provided
Spending for IT Projects
In line with strategies to improve effi ciency, the Company managed to control Operational expenditure in 2013 at a 1% increase from the 2012 budget of Rp398 billion. The largest contribution in saving was due to the more effi cient use of licensed software, rental of hardware for data communication, and the disconnection of telephone lines that are no longer used and through renegotiations with IT vendors.
Appreciation
For its high performance in IT, the Company earned several awards in 2013 including “ Banking IT Excellence Award
“ from the Warta Economy Paper (for Rekening Ponsel) and “Outstanding Technology Implementation Award” from Asian Banker (for GoMobile).