Bank Rakyat Indonesia: Customer Centricity in Priority Banking

Among the few institutions that have performed well during the heat of the pandemic in 2020, Bank Rakyat Indonesia’s (BRI) story is one that is truly impressive. Being the largest bank in Indonesia with more than 130 million retail customers, the  Bank’s wealth  management  services  to  segments  such as affluent, mass, and micro has never been stronger. BRI Wealth Management delivered strong positive growth in AUM (2020 CAGR: 1.1%) and Fee-Based Revenue (2020 CAGR: 26.4%). More notable is its performance that has not been affected greatly by the COVID-19 pandemic.

What’s interesting though is the story behind how BRI was able to sustain growth and why it deserved the award, Best Bank for Priority Banking at the Global Private Banking Innovation Awards 2021 organised by Global Private Banker.

“Matching customer needs in the pandemic situation with its product offerings and focus such as government bonds, bancassurance, & low-risk mutual funds, BRI has clearly shown assertiveness in seizing the market opportunity.

Moreover, its unique positioning as the largest bank in Indonesia has helped BRI capture increased government funding needs through the distribution of Indonesian Government Bond (SBN), an impressive  feat  especially during this difficult period,” said Nirav Patel, Managing Director at Global Private Banker and The Digital Banker during the awards ceremony.

Matching customer needs in the pandemic situation with its product offerings and focus such as government bonds, bancassurance, & low risk mutual funds, BRI has clearly shown assertiveness in seizing market opportunity.

Key Initiatives that Delivered Positive Results

During the height of the COVID-19 pandemic, the financial market was wired with uncertainties and doubt, which negatively impacted many of BRI’s customers. For many entrepreneur customers, the reduction of asset turnover ratio has disrupted capital management systems. In addition, many investors have also voiced their concerns about the negative growth of investment product performance.

This seemingly negative situation was  approached  positively by BRI, and as a result, encouraging outcomes have taken place. The following key initiatives have been instrumental in its success:

 

  1. Reached out to a wider audience and strengthening of the business group service.

Because of its sheer size, BRI was able to extend its wealth management services to wider segments. In addition, the BRI Group has subsidiaries operating in other relevant financial sectors such as insurance, securities, Venture capital, multifinance, remittance, etc. Because of this, BRI was able to offer an integrated financial solution that benefits its customers.

 

  1. Helped customers with prudent asset management during the crisis

This has been achieved by hosting roughly 32 events and webinars around the topic, “Money Management in Pandemic Situation”, which was attended by more than 85,000 individuals. BRI has also proactively reached out to customers to discuss various topics including debt management, emergency fund and more.

 

  1. Offered relevant products to minimize risk and adjust asset allocation.

BRI has astutely advised its customers to increase asset allocation to SBN (Government Bonds) and successfully achieved sales of roughly IDR 9tn (185% YoY. It emphasized the promotion of Bancassurance products and achieved increased sales of IDR 71.5Bn (21% YoY), with its Micro Insurance products giving protection to 5.5 million customers in 2020 (127% YoY increase).

BRI Wealth Management delivered strong positive growth in AUM (2020 CAGR: 1.1%) and Fee-Based Revenue (2020 CAGR: 26.4%).

Continuous improvement to cement its position in Indonesia

To further cement its position as the Best Wealth Management Bank in Indonesia, BRI will focus on these key action steps as part of its continuous improvement plan:

Deploy more sophisticated customer profiling process for proposition tailoring

The upcoming WM Platform that BRI is developing is equipped with AI capabilities to provide seamless digitally enabled journeys for clients and RMs. The adoption of WM Platform will ensure a systematic advisory process and convenience through single point contact for its customers.

Leverage analytics across the business value chain: acquisition, product offering, and customer management

Advanced analytics will play a more important role across the customer lifecycle. BRI will be able to implement use cases to better service customers, from the awareness stage all the way to better engagement and customer loyalty, through targeted cross-sell.

Provide exclusive, invitation-only products for HNW customers while  developing  more affordable products to the  Micro & Retail segments

Continuous enrichment of offering is another key action step for BRI to cement its leadership in the market. In the near future, it plans to add more depth & breadth to its products by providing exclusive, invitation-only products for High Net Worth customers as well as developing more affordable products to the Micro & Retail segments.

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