14 February 2018

BTPN Digital Innovation and Transformation

Jakarta, 14 February 2018 – Innovation and digital transformation is the strategic theme of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) that has been doing consistently since 2016. On the same year, BTPN officially has two digital banking platforms to serve two different segments. First, BTPN Wow! which is dedicated for the below-consuming class, including farmers, fishermen, labors, informal workers and micro traders. The second platform is Jenius which is focused on consuming class segment. Until December 2017, BTPN Wow! has 4.8 million customers which are served by more than 200,000 agents, while the registered Jenius customers reach almost 500,000.


Innovations for both digital platforms have been going on well throughout the whole year. At the same time, BTPN is also conducting digital transformation at other line of businesses. The existing business digitalization covers developing alternative channels, branch integration, automatization process, IT infrastructure transformation and employee retraining program. Through the digital transformation, the customer service network has expanded and the quality of service is maintained although the number of branches has reduced and the organization has become slim. This transformation process will continue until the end of 2018.


“We allocate a great amount of investment to process the transformation, including the IT and infrastructure spending, as well as the operational cost for retraining our employees. The fund for organizational restructuring and operational of our branches reaches Rp 736 billion. It includes the allocation for those joining the voluntary redundancy as one-time restructuring cost,” said President Director of BTPN Jerry Ng. 


Whereas for digital service development, BTPN has invested Rp 832 billion throughout 2017, or up by 36% compared to 2016 which was Rp 611 billion.


“We have conducted structured and consistent innovation and digital transformation since 2016 and will continue until the end of 2018. We believe the two strategic initiatives will transform BTPN into a national bank which is the most prepared to adapt and contribute in the digital economy era,” Jerry added.


BTPN’s consistency in serving the customers through digital technology supports has been fruitful. “We have tried our best to grow optimally as well as being proactive in making innovations. Our challenges are to maintain our performance growth and at the same time doing the Digital Transformation in the middle of challenging economic situation. We are able to channel our credit to stay grow at 3% (year-on-year/yoy) from Rp 63.2 trillion to Rp 65.3 trillion at the end of December 2017 where our credit quality is maintained with our non-performing loan (NPL) is at 0.9%,” said Jerry.


Credit growth is supported, among others, by channeling the credit to the small and medium enterprises (SME) segments which reaches Rp 11.6 trillion, or grow by 25% from the previous year of Rp 9.3 trillion. Meanwhile, financing through BTPN Syariah grows by 21% from Rp 5 trillion to Rp 6 trillion by the end of December 2017.


BTPN’s consistency is also reflected in the empowerment of the mass market program so they can continuously grow. Through Daya Program, BTPN has conducted a total of 134,383 training for 1,148,097 customers throughout 2017.


Total funding has also increased by 4% (yoy) from Rp 73.3 trillion to Rp 76.5 trillion by the end of December 2017. From that amount, the third-party funds grow by 3% (yoy) from Rp 66.2 trillion to Rp 67.9 trillion by the end of December 2017.


Whereas the company’s assets also grows by 5% (yoy) from Rp 91.4 trillion to Rp 95.5 trillion by the end of December 2017 and our capital adequacy ratio (CAR) stays at 24.6%. Meanwhile the net profit after tax (NPAT) decreases by 30% (yoy) into Rp 1.2 trillion.


“Innovation and digital transformation are the strategic investments which will affect our short-term profitability. If we did not include the strategic investments, our profit from our core business still grows by 6% into Rp 2.4 trillion,” Jerry said.

For further information please contact:

PT Bank BTPN Tbk
Andrie Darusman – Daya & Corporate Communications Head
Telp: 021-30026200
Email: andrie.darusman@btpn.com or corporate.communications@btpn.com


Bank BTPN in brief

Bank BTPN is a foreign exchange bank and is a merger between PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia (SMBCI). Bank BTPN is focusing to serve the mass market segment comprising of retirees, micro-, small- and medium-enterprises (MSME) and mass market; the consuming class segment; and corporate segment. The business focuses are supported by Bank BTPN business units including BTPN Sinaya– a financing business unit, BTPN Purna Bakti– a business unit focusing to serve retirees, BTPN Mitra Usaha Rakyat– a business unit focusing on micro businesses, BTPN Mitra Bisnis– a business unit focusing on serving small and medium enterprises, BTPN Wow!– a financial inclusiveness focusing on the unbanked segment, Jenius– a digital banking platform serving the consuming class segment, and corporate business unit which focuses on serving national, multinational and Japanese companies. BTPN also has a subsidiary namely theBTPN Syariahwhich focuses on serving customers from the mass market. Through the Daya Program, which is a sustainable and measurable empowerment program for the mass market, Bank BTPN regularly gives training and information to improve the customers’ capacity so they can grow and have a chance to live better.