PT. Bank Tabungan Negara (Persero), Tbk

BTN’s

Improvement on

Digital Banking &

Branchless Banking

Subsidies

NON Subsidies

Commission BasedProfit

Oriented

Gov. Program

Oriented

1. Data Quality of

Beneficiaries

2. Coordination between

Bank & Gov. Including

with the Local Gov

3. Education for the

whole parties

4. Commission based for

Agents

Branchless Banking - Agent Driven Factor

Branchless Banking Agent works as a Strategic

Business Unit, therefore agents are Profit

Oriented Driven. But leason learn

From Indonesia, there are two factors that drive

the Agents.

Agents which driven by Profit tend to

have a better number of transaction. The Agent

who driven by Gov.Program are forced to be in

place according to the needs to supply the

program.

#(%) Of Agents : 4.729 (73%) 1.715 (27%)

AVG Transaction : 613 > 530

6.444 Number

of Agents

(+236 Agents

in 3 Months)

6.208

Numbers of

Agent

2018

2017

USD 2.12 Mio

Balance

1.14 Mio

Accounts

USD 6.43 Mio

Balance

1.148 Mio

Accounts

Implement Agent

Supervisor with 1:30

ratio each branch

(started in Feb 2018)

There’s No

Agent

Supervisor in

every branch

Agent

Management

Team

There’s No

Agent

Management

Team

1.Bank in Indonesia, particularly State Own Banks, are been driven by the

Indonesian Government to provide agents in every villages in Indonesia. The

thought was to fill the acceptance ratio for the Government program

beneficiaries, which is 1 agent for 250 beneficiaries.

2.To address the gap, Bank BTN approach :

a)Developing numbers of agent been recruit, by focusing the target to our

real estate cooperation and debtors, which also to cross sell the product of

our mortgage financing.

b)Enlarge the number of field officer to recruit, monitor and reviewing the

agents.

c)Features Diversity, specifically of mortgage installment acceptance.

3.Leverage the rural ecosystem by actively combine the government program

with the agent activity (eg. Upgrade agent services to the sell the

commodity products to support food assistance program)

Branchless Banking Challenges

Branchless Banking - Agent Driven Factor

Branchless Banking – Agent of Griya BTN

BTN’s Digitization Process

E-Banking Transaction

Fee Based Income

Generator

Digitize Loan

Origination Process

E-banking Trx : Teller Trx = 95:5%

More than 1900 ATM, grew 167% compared to 2010

More than 600.000 users of Mobile Banking with more

than 2.4 million trx

More than 46.000 users of Internet Banking with more

than 155.000 trx

More than 90% success trx on e-channel

Electronification on public service, ie: public

transportation, toll gate etc

BTN provides services to customers andcommunities through the online portalhttps://www.btnproperti.co.id/

More than 1.416 Developer, 350.136

Properties, 45.858 Members

More than IDR 1.184 Billion loan

disbursement, grew 350% compared to

2016

More than 3.214 unit properties sold

from online transaction, less than 2%

of conventional transaction

More than IDR 100 bio of

fee based income from e-

banking trx

Fee based income in 2017

grew 26% compared to 2016

BTN targets to increase fee

based income by 20% of

total bank revenue in 2018

Online Open Account, decreased

OPEX more than 10% per account

Co working with others Government

Bank to use single platform on ATM,

decreased OPEX more than 27%

0

5.000.000

10.000.000

15.000.000Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

Sep-1

3

Jan-1

4

Mei-

14

Sep-1

4

Jan-1

5

Mei-

15

Sep-1

5

Jan-1

6

Mei-

16

Sep-1

6

Jan-1

7

Mei-

17

Sep-1

7

E-Channel vs Teller Transaction

E-Channel Loket Teller

95%

5%

E-Channel VS Teller Staff

- 5.000.000 10.000.000 15.000.000 20.000.000

does not have an ATM card

ATM card user

Mobile Banking user

Debit card user

Internal Review of The Average Balance of e-Banking User's Savings

2017 2016 2016

x

2.5x

3.7x

6x

Digital Banking Challenges

Security

Service Availability

Quality of Service

Security vulnerabilities that cause the risk of loss of

user money or the risk of opening user credentials still

hinder the wider adoption of non-cash.

Often encountered services for non-cash transactions

are not available when used by the customer. Common

causes are network and application problems.

Slow service, frequent error / failures and lack of

customer service when users experience problems will

also hamper the growth of non-cash services.

68%

28%

16%

16%

12%

eMoney Server BasedCredit balance is

suddenly reduced / evenlost without making a

transaction

Has been done top upbut balance does not

increase

Others reason

The eMoney Server Basedbalance does not matchthe last balance value

The eMoney Server Basedaccount is hacked

Complaints in Using eMoney Server Based

32%

30%

23%

22%

13%

10%

3%

Merchants that receiveless numbers / less

attractive

EDC / reader machineis not working

The old process, lessskilled officers operate

It's hard to find a topup place

The eMoney card iscorrupt

Payment transactionunsuccessful

Others

Constraints / Complaints / Fraud when using eMoney

ThankYou

PT. Bank Tabungan Negara (Persero), Tbk