2015 Asia-Pacific Gold Winner – PT Telekomunikasi Indonesia
Company: PT Telekomunikasi Indonesia, Tbk, Jakarta, Indonesia
Category: New Products & Services: Software - Asset or Financial Management Solution
Entry Title: Financial Inclusion Branchless Banking
Financial Inclusion Branchless Banking
Nowadays, a new suistainable business ecosystem is needed. Therefore, Telkom proposed a FIBB (Financial Inclusion Branchless Banking) service solution. This FIBB solution was offered to BTN Bank with utilizing the biggest credit distributor agency in Indonesia, Telesindo, to reach the society who has not been touched by banking services. BTN Bank can be easily increases the number of its customers without investing in a large amount to build a branch office or an ATM machine to serve people who live in remote areas.
This solution changes business process on both sides, BTN Bank and Telesindo. On BTN Bank side, process of adding new customer before needs to open a new branch office and new employment, while today it can be done at all Telesindo outlets both organic and non-organic. Banking services which previously can be accessed only by going to the BTN branch office, now they are enough to just visit Telesindo agents, even for certain limited service, can be done through mobile phone.
Key implementation of the synergy between Telkom, BTN Bank and Telesindo is caused by the numerous phone credit sales communities, along with a big turnover rate. Recorded that about 500 million transactions within a year with turnover more than five trillion rupiah. Most of the transactions are generally done in a conventional way by using cash. This is a huge amount of money that has not yet to be managed. For example, in general the phone credit sellers communities, are still doing the sales-purchase transactions in a conventional way. This is the market target runs by BTN with Telkom in facilitating the banking service to Telkom phone credit sellers. This cooperation gives the efficiency to BTN Bank in the market development of banking business and certainly there will be an increasing number of customers of BTN Bank coming whether from Telesindo sub agent or reseller incorporated in the phone credit seller community.
FIBB solution is practicing USSD (Unstructured Supplementary Service Data) access utilizing *144*1# Telkomsel mobile number to acquire a low cost and easy accessfor customers. Rather than using text message, USSD offers an easyaccess where the customer only need to memorize certain codes for each transactions. Here are the available USSD FIBB:
• BTN account balance information and e-money account
• E-money top up balance using BTN account
• Deposit on BTN account
• Cash withdrawal on BTN account
The main goal of the cooperation between BTN Bank and Telkom are:
1. Number of transactions and revenues is increasing exponentially
2. Multi financial transaction on various industry
3. Increasement in loans linkage program
4. More integrated and efficient electronic transaction
It can be obtained that in 2015 each quarter growth could reach to 30%. While each growth per year is about between 120% and predicted will be up to 200% by the year of 2019. This number is possible to be reached by considering total population of Indonesia who does not have a bank account, which are about 42% or around 105 million citizens. On the other hand, the current number of mobile phones were spread exceeding total population existed about 281 million units.
For Indonesia, this solution viewed as Telkom contribution in supporting the government program, "Gerakan Nasional Non-Tunai“ (National Cashless Movement) and to educate the society to save their money in the bank. Moreover, Telkom will obtain a revenue growth along with the growth of BTN costumers. This solution could be use as a pilot project for other banks who would like to increase the number of customers without having to invest for building a branch office or adding more sales channel.