68
PT Bank Central Asia Tbk 2015 Annual Report
69
PT Bank Central Asia Tbk 2015 Annual Report
Over the last two years the Individual Banking Group posted
slower growth in line with the weakening performance of the property sector and drop in car sales in Indonesia. BCA continued to promote consumer lending by reintroducing a number of attractive consumer lending products and programs in 2015 while maintaining high lending standards.
BCA remains optimistic regarding the long-term business prospects for the Individual Banking Group. The increasing number of professionals and the emerging middle class will contribute to the growing need for consumer banking products, such as mortgages, vehicle loans, credit cards, insurance products & wealth management products and services, in the future.
BCA focuses on understanding the behavior and the needs of customers as the basis for product and service developments as well as for marketing and promotional activities. The Bank utilizes and continually improves IT infrastructure and systems, human resources, data analysis capabilities, and synergy between business units, all in order to better serve the Bank’s customers.
Priority Banking And Wealth Management
In 1996, the Bank developed BCA Prioritas service and specialized branches to serve customers in the affluent segment. This customer segment has grown rapidly since that time and has had a tremendous impact on the acceptance of the Bank’s individual banking products. In 2009, the Bank launched BCA Solitaire banking services for the high net-worth individuals.
To create value-added services that meet the needs of its customers, BCA Prioritas and BCA Solitaire offer ease and comfort in customers’ transaction activities. BCA has added 8 Prioritas lounges, bringing the network to a total of 160 branches in 2015, all staffed with qualified relationship officers for first-class service. In 2015, the Bank opened its newest Solitaire lounge at Menara Satu Kelapa Gading in North Jakarta to complement the existing service provided at Menara BCA Grand Indonesia in Central Jakarta. The exclusive Solitaire service is supported by highly-trained staff who assist and provide personalized service to customers in managing their personal finances.
BCA offers comprehensive services and financial solutions for Solitaire and Prioritas customers, including premium transaction banking services, mortgages, car financing, safe deposit box services, bancassurance, wealth management solution, and premium credit cards. In partnership with reliable business partners, BCA Prioritas and BCA Solitaire also provides exclusive facilities and programs for clients in health care, education, travel and lifestyle.
BCA continues to develop new wealth management products and services to meet the evolving financial needs of Prioritas and Solitaire customers. These facilities enable the Bank to generate fee-based income while fulfilling customers’ needs for insurance and various investment products including unit-linked insurance, mutual funds, Indonesian Retail Bonds, Sukuk Retail and Retail Savings Bonds.
Mortgages
The mortgage market in Indonesia remains untapped as evidenced by the low penetration rate of mortgages to Gross Domestic Product (GDP) and the relatively small number of BCA mortgage borrowers when compared with the Bank’s total customer base. The Bank considers mortgages as a strategic product that will foster long-term relationships with customers and provides a platform for cross-selling other financial products to the mortgage borrower.
Since 2007, BCA’s mortgage portfolio has grown by an average of 32% per year. The Bank distributes mortgages to quality borrowers and focuses on financing properties located in prime residential areas, allowing BCA to grow the mortgage portfolio while maintaining a low default risk. The high quality of mortgages is reflected in the low NPL ratio of 0.4%. The NPL ratio has been stable over a number of years.
In the last two years, the mortgage portfolio grew slower
than in previous years. In 2014, BCA exercised prudence in
lending to restrain the mortgage growth rate in anticipation
of unforeseen risks amid the uncertain economic
conditions. In 2015 lending was negatively impacted by
a relatively weak property market in line with the overall
slowdown in economic growth in Indonesia.
70
PT Bank Central Asia Tbk 2015 Annual Report
Individual Banking
In a less buoyant market, the Bank continued to offer mortgage products with attractive interest rates in order to maintain BCA’s strategic position in the market and sustain positive growth. In February 2015, BCA relaunched
‘Fix & Cap’ mortgage products with low interest rates (3 years at 8.88% fixed interest plus a maximum 2-year cap at 9.99%). The Bank also reduced interest rates by 50 bps on non ‘Fix & Cap’ mortgage products at the end of 2014 and maintained these rates throughout 2015. In addition, as one of the Bank’s aspiration-based innovation efforts, in August 2015 the Bank extended the tenure of its Fix &
Cap products by 1 year, bringing the total tenure to 6 years, compared to the previous tenure of 5 years. Stable core CASA funds allow BCA to offer these competitive products in Indonesia’s mortgage market. The Bank continues to maintain its position as one of the leading mortgage providers in Indonesia. The Bank’s mortgages increased by 8.7% to Rp 59.4 trillion in 2015 with a market share of 17.4%. Mortgage products represent the largest portion of the Bank’s consumer loan portfolio. Bank Indonesia’s decision to ease the maximum Loan to Value guidelines stimulated and supported the property and mortgage industries through challenging times in 2015.
In order to improve service levels for Bank customers, BCA introduced mortgage administration centers in several target cities over the past few years and will continue to open more centers as the market evolves. Additionally, to increase efficiency and convenience, the Bank uses an online mortgage application for customers through a web- based system which simplifies the mass processing of individual loans.
Appreciation for the Bank’s commitment in mortgage financing is reflected in the various awards received during the year, including Top Brand Award for mortgage products from Frontier Consulting Group and Marketing Magazine.
Vehicle Financing
BCA manages car and motorcycle financing facilities through its subsidiaries, BCA Finance and Central Santosa Finance (CS Finance). Both BCA Finance and CS Finance manage vehicle financing through a joint financing scheme
with the major portion recorded directly on the Bank’s balance sheet and the remaining recorded on the balance sheets of the two subsidiaries.
Car Financing
In 2015 BCA and BCA Finance continued to emphasize prudence in lending for car financing in the face of unfavorable economic conditions and decreasing consumer purchasing power. The automotive industry was under intense pressure in 2015, with new car sales totaling 1.0 million units, a decrease of 16.1% compared to the previous year.
Through a challenging 2015, BCA offered car financing products with competitive interest rates while remaining disciplined in maintaining collateral quality and a robust collection and auction process. The Bank implements a policy of high down payments and prioritizes financing for popular car models that have been widely accepted by the Indonesian automotive market. This policy has helped sustain a relatively low NPL ratio with a high recovery rate on foreclosures while supporting positive growth in the car financing portfolio.
BCA Finance relies on its quick and hassle-free lending
process to improve its competitiveness and maintain high
satisfaction levels that exceed customer expectations. In
recent years, BCA Finance has developed a wide range
of applications that take advantage of technological
developments, such as mobile entry, mobile approval,
mobile collection and others, to improve the processing
efficiency of customer financing.
71
PT Bank Central Asia Tbk 2015 Annual Report
A number of exciting offers were made in 2015 to further
enhance the Bank’s competitiveness in the auto finance market. BCA Finance launched the
Kredit Keren Bangetprogram, a sweepstakes offering customers a chance to take home three cars if they win the lucky draw. The program received positive responses from customers and supports BCA Finance’s financing activities in 2015. In addition, BCA Finance offered an extended tenure of up to 6 years for certain auto purchases. Through a variety of innovative product developments and attractive promotions, BCA Finance has maintained its position as the “top of mind”
4-wheeler financing provider in Indonesia.
These efforts proved effective in supporting growth in BCA’s car loan portfolio. The number of new bookings in car sales financed by BCA and BCA Finance in 2015 increased by 11.4% reaching 178,667 units, an achievement when compared to the declining number of nationwide car sales.
BCA Finance’s share in the auto financing market increased to an estimated 13.2% in 2015, compared with an estimated 11.1% in 2014. The Rupiah value of new car loan bookings for BCA and BCA Finance increased by 16.6% reaching Rp 26.4 trillion in 2015. These sales contributed to the Bank’s total car loan portfolio, including BCA Finance, of Rp 32.9 trillion at the end of 2015, up 10.6% compared to Rp 29.8 trillion at the end of 2014. At the end of 2015, the portion of the car loan portfolio recorded on BCA’s balance sheet amounted to Rp 27.3 trillion.
BCA and BCA Finance work closely together to further strengthen business synergies. The joint financing scheme affords BCA Finance a funding structure that is strong and stable with low cost of funds. Marketing synergy through the Bank’s branch network enables a solid and diversified customer base comprising existing BCA customers along with customer referrals from third party dealers. Synergy is also formed in the use of technology and operational systems, including the use of BCA payment platforms to manage billing for BCA Finance customers and the use of HaloBCA to assist BCA Finance customers.
Motorcycle Financing
CS Finance continuously strengthens its capacity and capability by developing promotion and marketing, network infrastructure, human resources, technology, and risk management.
CS Finance explored low-risk marketing strategies by offering motorcycle financing for BCA’s customer base as well as through third party dealers in accordance with the predetermined criteria and standards. CS Finance also initiated exclusive partnership to provide motorcycle financing for one of the app-based courier service providers.
In 2015, CS Finance continued to strengthen network infrastructure and develop human resources. In addition to the BCA network and CS Finance branch network, CS Finance established payment points in collaboration with other partners, such as modern mini markets and post offices, to facilitate loan instalments for 2-wheeled vehicles.
In response to a weaker economy and higher-than-forecast NPLs, CS Finance curbed the growth of motorcycle loans and strengthened its branch collection teams throughout 2015. These efforts in handling non-performing loans began to show results as the NPL growth rate slowed in 2015.
CS Finance recorded new bookings of motorcycle financing,
composite BCA & CS Finance of 368 thousand units in 2015,
compared with 387 thousand units in 2014. The Rupiah
value of these new bookings was Rp 4.6 trillion in 2015,
compared to Rp 4.2 trillion in 2014, bringing the Bank’s
total motorcycle loan portfolio (including CS Finance) to
Rp 6.4 trillion at the end of 2015, compared to Rp 6.2 trillion
at the end of 2014. Total motorcycle financing was recorded
at Rp 4.3 trillion on BCA’s book at the end of 2015.
72
PT Bank Central Asia Tbk 2015 Annual Report Credit Cards
Through a variety of credit card offers and attractive programs, the Bank secured its position as one of the leading credit card service providers in Indonesia. In 2015, BCA managed 2.7 million credit cards with total transaction value amounting to Rp 50.6 trillion, an increase of 9.7% from last year, and reached a market share of 18%. Outstanding credit card loans reached Rp 9.5 trillion at the end of 2015, an increase of 8.1% over the previous year. The growth in the value of transactions and outstanding credit cards was accompanied by well-maintained loan quality with a 1.4%
NPL ratio.
BCA’s strong performance in credit cards was achieved amid growing competition and more regulated environment such as restrictions on credit card ownership for specific segment. The Bank continuously promotes the BCA credit card and encourages its use as customers’ primary card.
Various credit card product and service developments have been enhanced to facilitate customers’ lifestyle and consumption habits.
BCA is the only bank in Indonesia to have a ‘private label’
or ‘proprietary card’, the ‘BCA Card’, in addition to offering
‘BCA Visa’ and ‘BCA MasterCard’. The ‘BCA Card’ is made available nationwide and also at various outlets in Singapore through cooperation with the NETS network.
BCA works with various leading international networks for acquiring/acceptance of Visa, MasterCard, American Express (AMEX), JCB and China UnionPay International.
Since November 2014, the Bank has been the single acquirer of AMEX cards in Indonesia to strengthen BCA’s capability in serving overseas users. AMEX has more than 100 million card users spread across many countries. The collaboration between BCA and AMEX strengthens the market share of BCA Electronic Data Capture / Point-of- Sales (POS) terminals which are widespread throughout Indonesia.
BCA credit card business growth is supported by a strong brand image as well as product and service developments that not only fulfill customers’ needs but also reflect the latest lifestyle trends based on customer segmentation.
BCA has developed a wide range of credit card products that suit the specific needs of customers. The ‘BCA Visa
and MasterCard Black Card’ is intended to serve premium lifestyle for individual customers in the mass-affluent segment. The Bank has also developed co-branded credit cards in strategic alliances with various corporate partners.
This includes the very popular ‘BCA Singapore Airlines’
card, a collaboration with Singapore Airlines to serve upper- middle class Bank customers.
To capture the growing opportunities in the Indonesian middle class market, the Bank continued long-term promotional programs with several strategic partners, such as Central Department Store, Starbucks Coffee, Cineplex 21, Haagen Dazs, amongst others. BCA in cooperation with such selected partners offers a variety of promotional programs, such as rebates, use of reward points and 0%
installment plans. Promotional activities are also packaged in the form of special events, including the Travel Fair in collaboration with leading airlines such as Garuda Indonesia and Singapore Airlines.
BCA also aims to develop hardware, support systems and information technology infrastructure for added convenience and security in the use of credit cards. In the third quarter of 2015, the Bank implemented the PIN security system to its credit cards as an alternative to the conventional signature system.
In the field of e-commerce, the Bank seeks to build a network of cooperative partners in line with growing e-commerce technology and activities. E-commerce transactions through BCA experienced a significant rise in total value in 2015. The Bank works with various companies such as Visa, MasterCard, JCB, and AMEX, to facilitate e-commerce transactions and organize promotional programs and activities. In 2015, together with Garuda Indonesia, BCA offered customers 0% installment deals with a tenure of 3 and 6 months for every purchase of Garuda air travel tickets through the website using a BCA credit card. BCA also organized an e-Shopping Carnival program with several online merchants, offering discounts and cash backs for all cardholders of any banks. The programs aim to strengthen the Bank’s position as an e-Commerce Acquiring Bank and broaden awareness of card payment solutions as one of the services available in the e-commerce industry.
Individual Banking
73
PT Bank Central Asia Tbk 2015 Annual Report
In addition to credit cards and debit cards, BCA also offers
the Flazz prepaid card as an alternative card payment solution. BCA continued efforts to expand the use of Flazz cards through cooperation with various partners in serving transactions of small nominal value, such as parking services, highways, fast food and beverage outlets, as well as mini markets. By 2015 there were 8.6 million Flazz cards in circulation.
The development of card payment systems within the mass transportation sector, such as Trans Jakarta, Jabodetabek (Greater Jakarta) Commuter Trains and others, have encouraged the use of the Flazz card.
Regulators are actively campaigning for the National Non-Cash Movement, which further contributed to increased use of Flazz cards.
In 2015, the Bank began to cooperate with other banks in the issuance of co-branded Flazz cards. Customers of other banks can now make transactions using Flazz cards at all Flazz merchants and take advantage of the various attractive programs on offer, ultimately allowing the Bank to further expand the Flazz card customer base.
In recognition of the Bank’s initiatives in product and service development, BCA credit card was awarded Top Brand Award 2015 from Marketing magazine & Frontier Consulting Group, and also Customer Loyalty Award as Net Promoter Leader 2015 from SWA magazine.
Looking Forward
The Individual Banking business has bright prospects and will be a focus of Bank activity in the future. The growing Indonesian middle class will generate an increased need for banking services, such as mortgages, vehicle loans, credit cards, bancassurance and other individual banking products. Supported by a solid network of branches and electronic banking as well as a wide range of products and services, the Bank is in a favorable position to capture any opportunities that arise.
Going forward, the Bank will continue to market individual banking products and services through improvements to customer analysis capabilities. The Customer Relationship Management system continues to be refined to better understand the behavior and needs of customers as the basis for determining product development strategy as well as marketing and promotional activities.
BCA will continue to strengthen synergies between the units, developing products and services to suit customers’ needs, and implement human resources training and development programs designed to improve customer service.
Through the careful implementation of a well-balanced and
focused strategy, BCA believes it will continue to provide
the highest quality of products and services for individual
banking customers.
74
PT Bank Central Asia Tbk 2015 Annual Report
Dalam dokumen
2015 Annual Report
(Halaman 70-76)