1 Increased Champion Name
3 Accelerate the Process Time Loan
5 Featured Product Development
6 Increase Transaction Banking
8 Bank Offices Support & Improved IT
10 Cross Cell as our culture
2 Awareness of Risk & Compliance Culture
4 Exploring Profitable Transaction
7 Innovation & Promotion Digital Banking
9 Increase the HR Capability Kapabilitas SDM
Strategy
• Diversify sources of income
In addition to interest income, the Company will also diversify sources of revenue by continuing to improve and strengthen services through Transaction Banking, Value Chain, as well as improve the services of Islamic banking business through dual banking leverage model.
Regarding Transaction Banking services, the Company will make efforts to increase the number of transactions (including trade finance and bank guarantees, remittance), foreign exchange service, bancassurance and wealth management as well as through offering attractive services. In addition, the Company continues to improve the existing value proposition of Transaction Banking such as CIMB@Work, CIMB@BizChannel, Value Chain in the commercial customer segment, as well as offering bancassurance services to retail segment. In addition, the Bank also plans to add EDC (electronic data capture) service with the majority of the 12 major cities in Indonesia and various industrial targets.
• High-margin businesses
The Company remains focus on the business that provides high-margin, especially loan distribution to some productive strategic sectors, particularly productive businesses that support the increase of exports, as well as improving the quality of Micro, Small and Medium Enterprises (SMEs). By upholding the prudent principles and the implementation of risk management, the Company will also continue to develop vehicle financing through its subsidiary PT CNAF and PT KITAF, personal loans, credit cards, and structured finance which provides one stop solution for its customers.
• Human Resource Development
In order to achieve the business targets in 2015, the fulfillment of Human Resources (HR), both in quality and quantity, thus is required. This was carried out through various recruitment programs (on-campus recruitment, job fairs, walk-in interviews, scholarship and talent scouting, employer branding, virtual career fairs, social media, staff get staff program), strategy in attracting and recruiting the right employees, utilization of expatriate, Staff Retention Program, and alignment of work culture.
In facing the ASEAN Economic Community in 2015 and aligned with the mission, the Company initiated a program of Global Employee Mobility (GEM).
In addition to the aforementioned business strategy, the Company will also increase synergies and consolidation with subsidiaries.
Sharia Banking
Continuing the 2014 policy, the sharia business development direction and policies of PT Bank CIMB Niaga Tbk in 2015 has six business development focuses as follows:
a. Focus on Vision 2015, to become the big 5 in Sharia banking industry players and to become sharia bank with the best digital service in the industry.
b. Improving financial performance and Sharia market share by increasing the participation of all business units, leveraging the implementation of the dual banking model and methods of budget portion distribution per segment.
c. Sustainable growth in various business focuses by launching more innovative financial products and financing in line with the strategy of UUS and community needs.
d. Business alignment by capitalizing the parent bank’s strength, optimizing productivity, strengthening the diversification of products and services, equalization and optimization of Sharia products and services to all customers of CIMB Niaga and market development.
e. Continuous emphasis on the importance of Indonesia as a basis for the development of Islamic banking business and has delivered a plan to spin off to the FSA to spur CIMB Niaga Syariah in order to become a top 5 Islamic banking industry in Indonesia.
f. Preparing financial foundation, infrastructure readiness, business models, operational models, human resources, organizational management and varied products and the advantage in the market through short-term and long- term strategies in developing the frame work for the spin off of UUS CIMB Niaga.
Planning & Strategy in 2014
Risk Management
By 2015, the Risk Management Group will implement the framework of Enterprise Wide Risk Management (EWRM) in conducting risk management governance by combining strategy, processes, resources, technology and competence which aims to evaluate and manage potential risks, which include the consolidated risk management of the Bank, subsidiaries and Sharia Business Unit (UUS). EWRM is a risk management approach that holistically assesses risks and eliminates silos and see risks in an integrated manner and is focused on the future and is process-oriented to enable the Company to manage all key business risks.
Risk objectives, risk appetite and risk tolerance can be arranged in various layers of organization and can be measured in terms of qualitative and quantitative in accordance with the level of impact. Determination of risk objectives, risk appetite and risk tolerance is reflected in all policies and procedures covering all activities and products as well as the company made with regard to the ability of the Company’s capital. In accordance with those stipulated in the Company’s risk management policies, risk appetite should also refer to the expectations of shareholders by considering various factors, among others: business strategy, the rate of return and the desired growth, competitive position, operational efficiency, economic capital and risk awareness culture.
At the operational level of daily risk management, the Company has 3 (three) lines of defense, as follows:
1. Business units (and supporting units, which are collectively referred to Risk Taking Unit).
2. The Risk Management Unit (SKMR) and Compliance Unit.
3. Internal Audit Unit (SKAI).
Until the next 4 years, the process of implementation of Basel II/III is a major initiative related to risk management which will be done and implemented in the Company.
Human Resources
In the development of Human Resources (HR), the Company was focused on the following principles:
a. HR competence development is implemented through an integrated program to support business needs and goals conducted in various ways, including education and training programs, learning programs and overseas assignments, talent development and so on.
b. Education and training programs are designed to develop personal, managerial and leadership competence, as well as functional and technical competency.
c. Employee exchange program provides opportunity to employees to gain experience through assignments in the domestic, inter-directorate or assignments in various countries where there are representations of CIMB holding.
Operational & Information Technology
Technology & Information Systems
Technology and Information Systems Work Units will consistently provide quality information technology services (IT). Initiatives that will be implemented are as follows:
• Preparing new technology and information systems (core banking and data center renewal).
• Improving the competence in managing large-scale IT projects, related to the planning for preparing the means, new information systems and competent expert staff (local and / or expat).
• Improving overall project governance cycle and executing it consistently.
• Improving infrastructure operational management governance that meets international standards of ITIL (IT Infrastructure Library).
• Improving infrastructure capability both physical (improvement and / or renewal of Data Center and Disaster Recovery Center), hardware, networks and software.
• Organizing overall data governance of the Company and the completeness of its supporting devices.
• Improving the capability, Improving and simplifying business processes and supporting devices in the area of customer facing point both branches and e-channels.
• Supporting services to customers through increased role in reporting and customer complaints that are generally associated with the payment system.
Bank Quality Assurance
The main focus of Work Unit of Bank Quality Assurance is to support business units in improving business processes and raise awareness of the importance of inherent control to reduce operational risk through a risk self-assessment and supported by a comprehensive and updated Operational Standard Manual. Initiatives that will be implemented are:
1. Enhancing the role and function as business unit partner.
2. Improving the implementation of control processes in each business process in order to reduce the occurrence of operational risk, include:
• Improving inherent control through the application of Self-Assessment Review Program (SHARP) as a means of mitigating operational risk.
• Conducting assessment to ensure the consistent implementation of DCFC (Department Control Function Checklist) in Branch Service / Operations and Centralized Bank Operations.
• Improving operational risk monitoring for certain business units in order to support its business development.
3. Conducting continuous People Management to produce qualified and competent human resources.
Strategy Map and Determination of KPI
In achieving main target, the Company continues to use the Strategy Map formulated by taking into account the Company’s external and internal conditions. Strategy Map is a common strategy of the bank to be translated into the business strategy of each business unit to ensure the relevance of the strategy.
Strategy Map is translated into Key Performance Indicators (KPI) which is measurable targets from the perspective of:
Financial, Customer, Internal Process and People. Each KPI is a measurement parameter which aims to support the strategy unit, aligned with the Company’s strategy.