CIMB Preferred, Private Banking and Wealth
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The Indonesian economy’s steady growth in recent years has resulted in a burgeoning middle class in this country. This has led to better quality of life, which resulted in a growing demand for better banking facilities.
To meet this demand, the Company manages a unit called CIMB Preferred, Private Banking
& Wealth Management (PPWM) which provides special banking services to customers who have assets in excess of certain amount. CIMB Niaga PPWM service has been tailored to provide comfort for customers, especially through a variety of exclusive facilities with very personalized approach.
CIMB NIAGA PREFERRED, PRIVATE BANKING & WEALTH MANAGEMENT
CIMB Preferred, Private Banking & Wealth Management customers are served by Relationship Managers who have experience and are certified in their respective fields. The Company’s Relationship Managers have been well trained to be able to communicate well and provide services that suit customers’ lifestyles and financial needs. Various facilities including CIMB Niaga PPWM privilege and other added values are expected to facilitate
16%
Total Customer Wealth of Private Banking grew 16%
to Rp6.9 trillion
3%
Total Customer Wealth of CIMB Preferred grew 3% to Rp51.4 trillion
13%
Total Assets Under Management grew 13% to Rp10.9 trillion
The Company continually makes improvements in services provided in this segment. In 2013, CIMB Preferred & Private Banking customers were offered and could enjoy two new features, namely:
• Transaction Detail Passbook – is an easy way to monitor transactions through a passbook that allows customers to get the details of each of their transactions.
• e - Combined Statement – offers easy monitoring on transactions in each account via e - combined statement that informs not only customer’s account balance but also their investments.
In order to keep up its mutually beneficial relationships with customers, CIMB Niaga PPWM regularly holds customer gathering events bringing up topics that are relevant to the needs and lifestyle of customers. The events allow good communication between customers and the Company making it easier for CIMB Niaga PPWM to get to better understand the needs of
its customers.
In addition, CIMB Preferred
& Private Banking customers are also offered a wide range of wealth management products designed to assist them in making plans for, to develop, and protect their assets. The Wealth Management Services are supported by nine (9) Investment Managers, two (2) strictly-selected insurance partners, and Treasury.
CIMB Niaga Wealth Management is connected with several financial institutions under CIMB Group in Indonesia such as CIMB Principal Asset Management, CIMB Sun Life, and CIMB Securities Indonesia. In addition, CIMB Niaga Wealth Management also has the privilege of having, designing, and making various kinds of excellent products that make its services unique in the industry.
Currently, CIMB Niaga Wealth Management offers 82 mutual fund products including 27 equity funds, 1 mutual funds index, 14 fixed income funds, 19 balanced mutual funds, 6 money market funds, and 15 protected funds.
CIMB Niaga Wealth Management also distributes 2 single premium unit linked insurance partners and with through the active Treasury unit, offers a variety of bonds, structured products, and foreign currency exchange services.
Since 2012, every year the Company plays an active role in SOSEDU (Sosialisasi dan Edukasi) “Ayo Investasi Pekan Reksa Dana” which is a program of the OJK and APRDI.
The purpose of this program is:
1. To educate the public about the importance of investing, from early ages to have a better future.
2. To socialize mutual funds as well as insights about how to know a trusted Investment Management company.
3. To educate the public through counseling to expose the threat of illegal investments.
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PERFORMANCE IN 2013
CIMB Preferred, Private Banking & Wealth Management continued to improve its performance year after year. This unit experienced a growth of 38% in profit before tax (PBT) compared with the previous year and revenue of Rp72 billion. Total Customer Wealth under management (TCW) increased 16% to Rp6.9 trillion.
CIMB Preferred also showed encouraging performance and posted a growth of 25% in PBT in 2013 compared with the previous year and revenue of Rp292 billion. Total Customer Wealth increased 3% to Rp51.4 trillion at the end of 2013.
Meanwhile, Wealth Management also showed a promising achievement with a growth of 28% in PBT and total revenue of Rp388 billion. Assets Under Management (AUM) increased 13% to Rp10.9 trillion.
OUTLOOK 2014
In 2014, CIMB Niaga will continue to improve service in its PPWM, and focus on how to build a stronger position by expanding market share in this business segment.
One of the initiatives to be implemented in 2014 will be segmentation, with which upper middle class customers will be directly identified by CIMB Private Banking & Preferred and be offered services and facilities that are suitable for their needs through the Company’s channels.
In Human Resources, CIMB Niaga PPWM will continue to improve the quality of its relationship managers through a series of training and professional certification courses in the areas of risk management and product knowledge.
Mira Mantra Hadiprana PT. Grahacipta Hadiprana
I have been a loyal customer of CIMB Niaga since 1989. I have to admit that CIMB Niaga Private Banking has quality services that allow easy and quick transactions yet still with proper rules and procedures.
In general, the products and services offered by CIMB Niaga Private Banking are quite competitive compared to those offered by other banks. CIMB Niaga has also been very communicative in informing updates about its banking products and responsive to our issues as customers and give immediate and best solutions. The BizChannel greatly facilitates our company in performing its daily operational transaction and projects.
I hope my 25-year relationship with CIMB Niaga will remain solid and that CIMB Niaga will keep up its professional culture and continue to improve its products and services to meet the increasing needs of customers and enhance their satisfaction.
SMALL, MEDIUM and MICRO ENTERPRISE
In order to build strong and expandable relationships to serve micro businesses, the Company has integrated its CSR into 1/%*!//1*%0/"+./1/0%*(!!*!ü0/ċ
As its business grows to meet more complex needs, CIMB Niaga has established a new directorate of SMME (Small Medium & Micro Enterprise) that is primarily tasked to focus on serving the banking needs of small medium and micro businesses. The decision has been made to assist the SMME segment with special attention.
CIMB Niaga has implemented a strategic measure to give assistance to the SMME segment through CSR activities that are incorporated into business units. This new directorate will strive to build sustainable and expandable relationships with customers through a CSR program themed “Akademi UMKM CIMB Niaga”, which contains a training series for business practice tailored for customers so they will have the knowledge and necessary competence to expand not only profitable but also sustainable businesses.
SME Commercial
The SME Unit handles both individual and corporate customers that need financing with a credit ceiling of up to Rp25 billion. In 2013, better achievements of this unit were seen in terms of financing distributed, customer funds raised, and profitability.
Business and Operations Report
In 2013, the distribution of SME financing increased 10%
to Rp18.7 trillion. A similar accomplishment was seen in the third party funds of this segment (CASA including checking and saving accounts), which grew by Rp1.9 trillion or showing an increase of 7.3%. This growth in customer funds was achieved thanks to cooperation established with and support from the Funding, Bancassurance & Service (FBS) Unit under the Consumer Directorate as the funds raiser and through cross selling activities in which FBS worked closely with SME. This increase of third party funds was supported by the implementation of the value chain concept applied on the distributors and suppliers of SME debtors.
The increase in SME financing distribution was accompanied with significant improvements in credit quality. This was achieved through
of debtors’ accounts by SME relationship managers, and a better early detection effort performed by the Head Office in collaboration with the credit reviewer unit, who gives assistance in improving the quality of credit proposals.
Faced with more intense competition and higher expectations of its customers for banking products, SME has carried out constructive initiatives such as: the BME (Branch Manager Entrepreneur) concept, Business Credit System (BCS), and SME Processing Centre. SME has also made improvements in credit portfolio monitoring, credit quality early detection, and existing SME credit analysis system. The quality of SME staff has continuously attended to improvements by organizing training with better scheduling and more comprehensive training materials.
These improvements are intended to secure a sustainable growth of credit, a good quality of credit, and more reliable SME staff who are enthusiastic about helping customers with a higher contribution, while contributing largely to the Indonesian business environment.
Commercial Linkage
The Commercial Linkage (CL) Unit has a specific target market, as financing by this unit does not apply a one-to- one method as in general commercial banking, but through an indirect approach via strategic partners. This indirect scheme includes executing, channeling and joint financing.
One of the successfully applied business models is financing distributed to palm oil farmers (plasma). In
distributing credit to these farmers CL established partnerships with KUD (Village Cooperative Units) and major companies engaged in the planting of this commodity. Farmers use credit from CIMB Niaga to establish and maintain palm oil plantations whose harvests are to be purchased by palm oil plantation companies who are also debtors of Commercial Banking Division.
Another sector that is also a target of CL is that of financial institutions, where CL has also established partnership with BPD (Bank Pembangunan Daerah) and BPR (Bank ncluding
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President Director of PT Surya Pertiwi (PT Surya Toto) Our company has been CIMB Niaga’s customer for more than 15 years for its reputation as the provider of quality banking product and services that give us comfort and security.
CIMB Niaga’s banking products and services have contributed well to our transactions as it offers comprehensive banking services to its customers in Indonesia through integrated efforts in retail and corporate banking and payment service transactions.
CIMB Niaga’s commitment has been focused on integrity and diligence to give an upmost attention to customers and service them fully and with sincerity.
Going forward, CIMB Niaga will be able to maintain and even improve its service excellence for customer satisfaction.
CL also distributes multi purpose credit to the retired. Going forward, credit in this segment will be further developed initiated through a strategic measure in which CIMB Niaga was appointed as the official payer of funds for retired civil servants, army officers, and police officers.
In 2013, credit disbursed by CL increased 21%
to Rp9.1 trillion. One of the many points supportive of this increase was an effective cross selling effort among customers of Corporate Banking and those of High End Commercial. The quality of credit is maintained through cooperation with the Reviewer team, and support from Business Development team both to provide a Lending Model for standardized collaboration with partners and the Asset Recovery and Restructuring team for settlements of non performing loans.
Mikro Laju
The small, medium and micro businesses have a strategic role in the Indonesian economy. To give a clearer picture, data released by the Ministry of Cooperative and Small and Medium Business in December 2012 suggest that this segment had 56.5 million businesses that employ up to 110 million people. SMME business are known to have weathered the toughest time of global economic recession that has presented an unfavourable business climate.
Through Mikro Laju, CIMB Niaga offers and provides banking services to micro and small businesses to expand and grow a sustainable business. Micro Laju has a flagship product, which is a financing scheme of up to Rp1 billion.
In funding, CIMB Niaga Mikro Laju comes with a wide selection of competitive savings products with a competitive interest rate. In 2013, Mikro Laju introduced the “Deposito Manfaat Laju” program as an effort to raise customer funds.
This program is aimed at micro and small businesses to encourage them to be familiar with investing and saving at banks.
To strengthen its sustainable positioning as a micro bank with integrated services, Mikro Laju CIMB Niaga offers a variety of financing and funding products through iB X –Tra Emas, a gold pawning service, and money transfer service through Western Union.
Micro credit distributed in 2013 increased about 11% reaching Rp2.126 trillion with an acceptable NPL level of 2.5% serving approximately 15,218 customers. Meanwhile, CIMB Niaga through
its Mikro Laju has raised customer funds of Rp239 billion, or increasing 37% compared to the figure recorded a year earlier, and serving
91,933 funding customers.
Yeyen Yuhaeni
Owner of Wedding Gown Shop
I have been a customer of Mikro Laju since 2009.
For those four years, I have been banking with CIMB Niaga and found so much comfort, including a nearby Mikro Laju outlet from where I run business, friendly and ready to help staff and an easy credit process.
It is our hope that CIMB Niaga Mikro Laju will gain more success and provide more comfort to all of its customers.