We remain optimistic that we can continue our growth trajectory and realize our targets, while maintaining the prudent lending principle. We will continue to strengthen the implementation of our 5-Pillar Strategy, which has ensured our strong performance in 2022 in both operational and financial areas. We will respond to this momentum of domestic economic growth by optimizing our digital services to provide our customers with more convenient banking transactions.
In terms of business competitiveness, we will continue the Banks’ business development strategies by making collaborations within the digital ecosystem.
A collaboration of this sort will allow us to distribute financing using a channeling-based scheme. The strategic collaboration benefits both parties. Through the digital ecosystem, CIMB Niaga will reach out to new customers to whom banking financing is still inaccessible, while increasing financial inclusion in Indonesia in line with the direction of the government and its relevant regulators.
sUsTaINaBle fINaNCIal INITIaTIVes
Since 2019, CIMB Niaga has taken the initiative to implement sustainable finance that integrates environmental, economic, social and environmental concerns into the Bank’s risk management, business strategy and operations to ensure that the Bank’s activities have a positive long term impact on the stakeholders. CIMB Niaga is also committed to supporting the Sustainable Development Goals (SDGs) in Indonesia and helping the country to adapt to the climate change initiatives as the world moves toward a low-carbon economy.
The bank’s commitment is outlined in its Sustainable Finance Action Plan, which contains the following plans:
1) product and/or service development in the sustainable finance portfolio, 2) capacity building in relation to sustainable finance, 3) internal adjustment related to sustainability aspect, 4) implementation of social and environmental responsibility.
Complementing the palm oil Sector Guidance, in 2021 CIMB Niaga issued the Sector Guidance for the Coal, Forestry, oil and Gas Sectors as well as the Construction Service, Real estate and Infrastructure sectors. These sector guidance aim to ensure that CIMB Niaga’s financing in these sectors adheres with the principles of sustainable finance. The guidelines are also intended to encourage best sustainability practices in those sectors, as well as support the achievement of the SDGs and contribute positively to climate change mitigation efforts.
To make a positive impact through the sustainable finance portfolio, which was initiated by the Sharia Business Unit (UUS) through the Abhipraya project, CIMB Niaga launched several financing programs, including Sustainability Linked-Loans/Financing (SLL), Sustainable
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Financing, Green Mortgages, and Motor X-TRA in collaboration with Gesit, an Indonesian company that produces electric motorcycles. With this initiative, the Bank has become one of the first banks in Indonesia who provided low carbon banking products that have a positive contribution on environmental and social while providing an opportunity for customers to increase their sustainability performance.
To meet the needs of our Sharia-compliant customers, the Bank makes all of its sustainable finance programs sharia compliant. In addition, CIMB Niaga also pays heed to its customer development and the Sharia economic social ecosystem. This initiative is carried out by exploring the Islamic Community, including halal tour & travel , Islamic schools, halal lifestyles, Islamic hospitals, philanthropy, and Muslim organizations.
hUMaN resoUrCes MaNaGeMeNT
CIMB Niaga’s HR strategy and development are fully directed based on business-driven to achieve the bank’s corporate targets. During the CoVID-19 pandemic, we continued to adapt and keep inovating in HR management in line with the developments in the banking industry.
CIMB Niaga has been implementing HR management strategies and policies to produce talent with high adaptability to changes while upholding corporate culture as the underlying principle when interacting with fellow employees and customers. To this end, CIMB Niaga lays its focus on four key areas including Capability Sourcing, which focuses on the efforts to prioritize the Bank as a top of mind as a best place to work Capability Building, which focuses enhancing the HR capabilities by providing them knowledge and skills that ultimately will support the business growth, including improving skills through Digital and Data fields Capability Sourcing, which boosts the focus on hiring the best talent in the right place at the possible earliest time; High performance organization, which focuses on performance management strategies to support the achievement of the Bank’s goals, performance-based awards and project-based awards;
and HR Digitalization, which focuses on strategies for developing HR process automation and reporting, as well as digitizing the personnel system.
In addition, CIMB Niaga also continuously develops human resources to support the Bank’s efforts to offer innovative banking services and solutions to create a delightful customer experience.
Furthermore, CIMB Niaga has also carried out exceptional efforts and actions to deal with the COVID-19 pandemic, including the distribution of vitamins, masks, hand sanitizers, subsidized credit/internet data package, cost-free oxygen cylinder rentals for employees, and grief assistance. CIMB Niaga also provided self-isolation facilities at the Gunung Geulis Training Center in Bogor for the employees (including their immediate families) who is in need to isolate, provided free CoVID-19 test posts, an in-house clinic at CIMB Niaga offices, and 24/7 medical consulting services via the Telemedicine facility.
The Bank also supported the Government of Indonesia through the implementation of a vaccination program aimed at its employees, their immediate families, and the public. During 2021, CIMB Niaga provided vaccinations for 57,229 of its employees, their immediate families &
the general public in several cities in Indonesia.
In line with the dynamics of the new normal and to ensure the objectives of the Forward 23+ Transformation, CIMB Niaga has implemented a Hybrid Working model referred to as ‘HyWork’. The objectives of this program include creating a healthier working environment, strengthening the Bank’s image to attract and retain talent, increasing employee productivity and engagement, cost savings from optimized working locations, and contributing to environmental sustainability. The implementation of HyWork is supported by the Anti Mati Gaya (AMG) program as a forum where both in-office and home- based employees may actively interact, learn and perform activities together in a fun way which has been designed to improve employee health and engagement.
The Bank’s various employee engagement programs in 2021 has successfully increase its organization health index to be in a Top Quartile above other financial institution in ASEAN based on the survey conducted by an independent party.
oPTIMIZaTIoN of INforMaTIoN TeChNoloGY
The areas of information technology and digital banking continues to advance in Indonesia. It is now easy to make instant banking transactions using only a smartphone or a computer. Today’s society finds it increasingly helpful to use technological advancement when making various banking transactions. Another driver of digital banking expansion is the increasingly more popular trend of online shopping. people can meet their daily
needs through a variety of e-commerce sites that can be accessed easily without leaving their home.
Aware of this trend, CIMB Niaga has implemented various initiatives that utilize information technology to provide speed, accuracy, convenience, and security for banking transactions. During 2021, CIMB Niaga focused on several areas including updating the oCTo Mobile banking application to line it up with our business model.
CIMB Niaga has also added new features to its internet banking application, oCTo Clicks, for retail customers and BizChannel@CIMB, for corporate customers.
The Bank has also developed the oCTo Friends application that references CIMB Niaga banking products such as mortgages, personal loans, credit card, and savings. In addition, CIMB Niaga has developed a Cloud Technology-based Branch Delivery System (BDS) to support its banking operations at branches and provide its customers with excellent service.
With regard to business operations, CIMB Niaga continues to develop its technology, particularly in risk and regulatory control, revenue growth and banking operations. CIMB Niaga focuses on Application Program Interface (ApI) and the implementation of the Cloud ecosystem to create faster interactions with business partners through digital channels.
The various information technology initiatives carried out by the Bank in 2021 have paid off, with the Bank gaining recognition from international institutions. CIMB Niaga won the Digital Banking Initiative of the Year-Indonesia award at the 2021 Asian Banking and Finance (ABF) Retail Banking Awards. CIMB Niaga was given this award for its eBB initiative with digital-based breakthroughs that facilitate services for eBB customers through the oCTo Smart digital application. The app can increase productivity and efficiency, both for the Bank and its customers. In addition to reducing customer activities at branch offices, this initiative is also more environmentally friendly since it reduces paper usage.
For CIMB Niaga, digitalization is one of the keys to sustainable growth. Going forward, we will continue to focus on promoting digital-based services and improving customer experience.
IMPleMeNTaTIoN of Good CorPoraTe GoVerNaNCe
We believe that the Bank’s success in 2021 had a lot to do with the way we fulfill our commitment to Good Corporate Governance (GCG) practices. As a manifestation of this commitment, we have always ensured that our GCG practices comply with the relevant laws and regulations, as well as best practice both on the national and international levels.
The Board of Directors, the Board of Commissioners, and all CIMB Niaga personnel are committed to implementing best governance practices to ensure that every program and plan we execute meets the set targets.
In 2021, we made various improvements, including the implementation of Artificial Intelligence (AI) by the Internal Audit Unit (SKAI). In 2021, an independent assessment of Deloitte have shown that the application of AI in CIMB Niaga’s internal audit process is now amongst the most advanced in the Indonesian and ASEAN banking industries. CIMB Niaga had also utilized its IT system for preparing and monitoring legal credit documents, including the commencement of e-Signature use in some of the Bank’s operational activities. CIMB Niaga held its virtual extraordinary General Meeting of Shareholders (e-GMS) through the eASY. KSeI platform, and involved an independent third party in the process of evaluating the performance of the Board of Commissioners, the Board of Directors and the Committees of the Board of Commissioners in 2021.
Furthermore, the efforts to improve the quality of GCG within CIMB Niaga included the practice of gender diversity and the empowerment of women as the Bank appointed a female president Director and added one female member to its Board of Commissioners.
In order to measure the quality of the implementation of GCG practices within the Bank, we conduct annual GCG assessments through the self-assessment method or joint assessments with a competent third party. The Bank’s GCG self-assessment is conducted with reference to the Circular Letter of the Financial Services Authority No.13/SEOJK.03/2017 on the GCG Implementation at
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Commercial Banks. CIMB Niaga scored 2 (two) with the predicate of “Good” in the self-assessments, which are conducted every semester.
CIMB Niaga also won awards from external parties for its commitment and dedication to GCG implementation. In 2021, CIMB Niaga earned the Golden Star Trophy in the Top GRC (Governance, Risk and Compliance) Awards 2021 for successfully retaining the Top GRC #5 Stars award for 3 consecutive years. This shows the increasingly stronger synergy among the Bank’s functions and governance implementation, risk management, and compliance. In addition, it has become our yearly tradition to win The Best Corporate Governance overall for Big Capitalization.
The Bank won the award in the 12th IICD Corporate Governance Award 2021 with an assessment based on the ASEAN CG Scorecard (ACGS).