PT Bank Ganesha - Innovative Management
Name of Organization / Company: PT Bank Ganesha, Jakarta, Indonesia
Category: A01 - A09 - Award for Innovation in Management > A03B. Award for Innovative Management in Financial Industries - More than 100 Employees
Entry Title: Ganesha's Turnaround from A Sleeping Bank through Growth and Innovation
Bank Ganesha ("Ganesha") is a leading private bank within BUKU2 (core capital IDR 1-5 trillion) category. Established in 1990, Ganesha was practically asleep for the first 24 years since inception. The previous management was dedicated but lacked the skills, strategy and capital. Consequently, Ganesha offered only basic products to tiny customer base and lacked public awareness.
Progress happens when Surjawaty Tatang ("Wati") was recruited and started to bring drastic changes. Within two year, despite challenging macroeconomic backdrop, Wati led management team through a period of rapid turnaround and growth; consequently delivering record financial performance by formulating new strategy, aligning initiatives and focusing efforts on key areas with greatest impact and long-term value creation.
Building Scale through Strategic Alliances:
Wati bridged partnership with Mitra Adi Perkasa ("MAP"), Indonesia’s biggest retailer (150 brands incl. Zara, Marks&Spencer, Starbucks with 2,000 outlets) and introduced new products including Ganesha-MAPClub Savings, whereby Ganesha borne MAPClub Points as acquisition incentive and monthly interests to depositors.
First of its kind, Ganesha-MAPClub drives low-cost funds and serves as entry point for cross selling. Reciprocally, this encourages depositors to buy more MAP products and ultimately increases revenue.
Wati intensified Salary Loan and Payroll Savings for sister companies’ employees. Contrary to other Unsecured Personal Loan products, Salary Loan has miniscule 0.6% NPL since employees receive monthly salary and repay installment from payroll savings.
Financial Management and Inorganic Growth
Wati led team in conducting Initial Public Offering in 2016 to strengthen long term funding structure.
Oversubscribed 13x, the IPO saw robust demand from investors, who were sold on new management and strategy, amidst market condition and tight competition for funds. Post IPO, Ganesha closed 2016 with Capital Adequacy Ratio of 34.9%; a massive 20.5% improvement. Shareholders' equity rose 407%, enabled Ganesha to ascend to BUKU2 classification and offer more products including Mobile/Internet Banking, Credit Card & Trade Finance.
Brand Building, Better Customer Service and Giving Back
Realizing need to improve branding, Wati drove team in launching multiple-front initiatives:
•Revitalized branding on products and services, providing modern, clean and fresh look on tangibles (premises, marketing collaterals).
•Optimized network by relocating/refurbishing existing branches, head office, ATMs.
•Introduced Service Culture & established much higher SQ standards for front-liners through Score Card and implementation of ‘Compact, Neat, Clean, Maintained, Diligent’ programs.
•Launched new 24-hour Customer Care Center.
•Strengthened CSR by providing financial education and volunteerism in collaboration with partners for synergy.
Technology-driven Innovations and Efficiency
•Introduced customer-centric Business Intelligence and Data Analytics for better management insight and sharper decision making.
•Launched ‘Outsource (Document Management, Collocation DC, Statement Printing Process), Improve (Operational Automations, Computerized Duties, Shortened TAT), Reduce (Sold 60% operational vehicles, switched to Grab, use e- Statements)’ program for most operational aspects.
HR and Organizational Transformation
•Sharpened organizational structure, Vision & Values. Introduced UVP and EVP.
•Improved Competency Standards, Job Grading, Job Description & KPI.
•Engaged LinkedIn to improve presence, reached universities, conducted lectures and job recruitment, established branding in social media.
•Launched HIPO Development Program. Through prototyping and disruptive approach, HIPOs collaborated in strategic initiatives, built Innovation culture & implement Agile organization.
•Developed HRIS to transform and automate HR processes including recruitment, training & e-Learning.
•Built Idea Corner and library.
Despite difficult global and domestic macroeconomic backdrop, Wati forged Ganesha's team to not only survived 2016- 2017, but thrived; with gains made across all areas of profitability, lending, deposit taking, capitalization, branding, organizational capacity and SQ.
Under her leadership, Ganesha's growth performance is better than industry average in many key metrics. From 2016 to September-2017, Net Profit grew 210% Compound Annual Growth Rate, Revenue up 48% CAGR, Assets up 46% CAGR. Loans up 52% CAGR made possible due to much stronger capital. Funding up 29% CAGR. CAR at 34%. Gross NPL improved to 0.97% from 3.14% in early-2016.
Attachments & Links:
Jakarta Post Coverage
100 BANKIR INDONESIA