JAKARTA, April 23, 2018 – In line with its vision to change the lives of millions of Indonesian people supported by digital technology, PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) consistently innovate and transform to stay relevant with its users. The innovation and transformation are BTPN’s strategic agenda that have been consistently conducted since 2015.
The innovations are materialized through digital-based new products. As for the transformation, it is done by changing the customer service concept from bank-centric to customer-centric. The change is reflected on the use of digital platform in the existing business which comprises of the development of alternative channels, branch integration, automatization process, IT infrastructure transformation and employees’ retraining program.
“Through digital transformation, the customer service network has widened but at the same time the quality remains good although the number of our branch offices is declining and the organization is trimmed. We will continue our strategic moves until the end of 2018,” said BTPN CEO Jerry Ng.
Digital transformation and innovation can also increase efficiency. It can be seen in the decreasing operational cost and the cost to income ratio (CIR). The 2018’s first quarter operational cost decreased by 12 percent year on year (yoy) to Rp 1.2 trillion. Meanwhile, the CIR component of 54 percent is less than the 2017’s first quarter of 62 percent. Excluding the new investment, the bank’s CIR of 46 percent is lower than the previous year of 52 percent.
The lower operational cost has given a positive impact to the company’s profitability. BTPN’s net profit after tax (NPAT) has grown by 12 percent from Rp 478 billion in the 2017’s first quarter to Rp 535 billion in the 2018’s first quarter, although at the same time credit has grown very small from Rp 65 trillion to Rp 65.3 trillion.
The BTPN’s credit growth in the 2018’s first quarter has been supported by channeling credit to small and medium enterprises (SME) which reached Rp 12 trillion, or up by 19 percent from the same position in the previous year of Rp 10 trillion. Meanwhile, the financing of pre-prosperous communities through BTPN Syariah has grown by 22 percent to Rp 6.2 trillion. The non-performing loan (NPL) is at 1 percent due to our caution.
To continue with its innovation and transformation agenda – despite the lower operational cost – BTPN continues to invest in digital development. During the 2018’s first quarter, BTPN has allocated new investment for Jenius and BTPN Wow! for Rp 150 billion.
“It shows that the improvement in cost structuring will not lower our commitment in making BTPN a national bank which is ready to adapt and contribute in the digital economy era,” Jerry said.
BTPN Wow! and Jenius are digital banking platform being developed to serve two different segments. BTPN Wow! is focused on below-consuming-class segment comprising of farmers, fishermen, labors, informal sector workers and micro traders. While Jenius is focused on consuming-class segment. Until March 2018, the number of BTPN Wow! agents has reached over 210,000 agents and served five million customers. Meanwhile, Jenius active users have reached 560,000 people in the same period.
Apart from focusing on developing digital platform, BTPN has maintained its commitment in empowering and improving customers’ capacity through the Program Daya, which is a continuous and measurable training and accompaniment activity. To create a wider and a more effective accompaniment activity, BTPN has implemented Program Daya digitally. Throughout the 2018’s first quarter, BTPN has conducted 30,874 sessions for Daya training for 327,102 participants.
The digital transformation and customer empowerment have received supports from the public. The total funding has increased by 3 percent (yoy) from Rp 74.3 trillion in the 2017’s first quarter to Rp 76.3 trillion by the end of 2018’s first quarter. Meanwhile, the company’s assets has increased by 3 percent (yoy) from Rp 92.9 trillion to Rp 95.8 trillion and the capital adequacy ratio (CAR) is still at 24.8 percent.