Management approach [103-1][103-2][103-3]
The technological development is increasing and encourages the development of digital-based society. The millennial generation and the urban society lifestyle requires ease, speed, and efficiency. Through increasingly sophisticated technology, customer transaction have also shifted toward a cashless society.
CIMB Niaga continues to implement digital services which indirectly support sustainable finance implementation. Digitalization helps save energy by reducing the transportation and paper usage. Technological developments and innovations are the responsibility of the Director of Operations and Information Technology who evaluates the technology application regularly, and at any times if necessary.
PT BANK CIMB Niaga TbkSustainability Report 2019
RESPONSIBILITIES OF
THE PRODUCT AND/OR SUSTAINABLE FINANCIAL SERVICES
digital Banking service
CIMB Niaga has launched various digital-based services, such as CIMB Clicks, Go Mobile, Mobile Accounts, CIMB Niaga Phone Banking 14041, Automated Teller Machines (ATM), Electronic Data Capture (EDC), Cash Deposit Machines (CDM), Cash Recycle Machines ( CRM), Digital Lounge, and BizChannel that provide an excellent customer experience. This service is continuously being improved based on innovative developments.
One of 2019 innovations was ‘API Banking’, a platform to connect CIMB Niaga’s banking services with third-party applications, primarily Tech startup and Fintech. Also, CIMB Niaga added features to Go Mobile, including donations, ‘know your customer’
(KYC) online, data plan billers, transaction schedules, PAM/
PDAM billers, realtime QR discounts, QRIS, and many others.
In total, there were 60 new features added to Go Mobile. In 2019, the Bank also developed contactless debit cards and affinity debit cards.
CIMB Niaga also continued to optimize its branch office networks by considering its branch office network distribution, and the transfer of banking transactions to branchless banking channels.
Optimization involved the addition of alternative networks, such as Digital Lounge, Mobile Cash, and ATMs with a withdrawal and deposit system to facilitate customer transaction needs.
Post Implementation review
In accordance with CIMB Niaga’s Policy No. B.04.06 concerning New Products and Activities, one risk management measure by the Bank for new products and activities involves a Post Implementation Review (PIR), which to ensure the implemented operational processes or procedures followed the proposals approved by management. PIR must be carried out by working units that launched new products or activities within 12 months from the launch date.
In line with this policy, all new products and activities launched by the Bank have been reviewed, including their safety for customers.
Impact of sustainable Finance Products and/or services [302-5]
By the end of 2019, there were 232,150,222 transactions using digital platforms. If each transaction is assumed to reduce distances travelled by 1 Km, this can be translated into 232,150,222 Kms. By using the CO2 reduction calculation, it was assumed that the GHG emission reduction obtained was between 27,375 - 29,619 tCO2e and energy saved was between 376.112,88 – 406.943,83 GJ. So, indirectly, digital banking services can be seen as providing a positive impact on a positive impact by energy and carbon emissions reduction on transportation.
On the other hand, the Bank also pays attention to the negative impacts from digital banking services, such as the rise in cyber crimes. To mitigate this, the Bank established Policy E.04.A.11 regarding Information Security and Data Classification, as the Bank’s guideline to maintaining information security, including customer digital data. In 2019, no products were withdrawn and/or terminated marketing for any reasons.
In 2019, no products were withdrawn and/or terminated marketing for various reasons.
Total Digital Platform Transactions
2019 2018 2017
Go Mobile 37,723,944 22,973,205 13,776,771
CIMB Clicks 19,792,885 109,297,245 99,130,366
ATM, MFD, CSD & CRM 166,267,996 143,075,612 120,452,587
Rekening Ponsel 58,719,840 5,603,344 5,942,013
BizChannel@CIMB 115,913,553 91,197,624 69,256,519
Sustainability Report 2019
RESPONSIBILITIES OF THE PRODUCT AND/OR SUSTAINABLE FINANCIAL SERVICES
Customer satisfaction for Products
To find out the level of customer satisfaction on products and services provided, CIMB Niaga always listens to the Voice of Customer (VoC) through annual surveys that measures the Net Promoter Score (NPS) for the level of customer loyalty and satisfaction with the products, service channels and service quality. In 2019, the NPS value for CIMB Niaga was 18%, an increase of 2% compared to 2018. The value of customer satisfaction in 2019 was 93%, an increase of 9% compared to 2018.
Net Promoter Score (NPS)
Year NPs score Increase
2019 + 18%
2018 +16%
2017 +5%
Financing overview [Fs3, Fs5] [FN-CB-410a.2] [susBa 1.3.1.2, 1.3.2.4][FN-CB-550a.2]
CIMB Niaga always reviews its credit facilities provided to debtors following the Bank’s Credit Policy and Commercial Credit Policy.
The review process is also applied to the provision of credit by taking into account the debtor’s commitment and background, as well as their compliance with ESG aspects.
Credit reviews consist of:
• Annual review conducted on revolving credit facilities with a maturity of one year
• Term loan review conducted for non-revolving credit facilities with a maturity of more than one year
• Early warning/indicative reviews to determine the debtors’ condition if there is any potential impact on the credit quality. The process is conducted periodically and incidentally based on the debtors’ condition.
Credit review activities are undertaken by the Post Mortem Review Unit and are based on three parameters, namely: Business Prospects, Debtor Performance and Ability to Pay. The credit review results are sent to the credit breaker based on authority limits set by the Bank.
NUMBER OF USERS
DIGITAL BIZCHANNEL PLATFORM PERFORMANCE
NUMBER OF TRANSACTIONS (IN
MILLION)
36,772
114.25 33,765
91.27 30,194
69.26
2019
2019 2018
2018 2017
2017
PT BANK CIMB Niaga TbkSustainability Report 2019
INDEPENDENT
ASSURANCE STATEMENT
Sustainability Report 2019