Bank BTN excels at the Asian Experience Awards 2023, securing two prestigious awards

With a focus on innovation, customer-centricity, and digitalisation, Bank BTN is well on its way to achieving its vision of becoming the best mortgage bank in Southeast Asia by 2025.

PT Bank Tabungan Negara (Persero) Tbk (Bank BTN) was honoured with two prestigious awards: "Indonesia Service Experience of the Year" and "Indonesia Partner Experience of the Year—both for the banking category—at the Asian Experience Awards 2023.

With over 73 years of operation, Bank BTN has been a key player in supporting Indonesia's economy and has distributed over 640 trillion rupiah in loans to more than five million Indonesians across various segments. The bank has solidified its position as a mortgage bank, boasting an 83% market share in subsidized mortgages and a 39.1% share in non-subsidized mortgages.

To achieve sustained growth, Bank BTN has focused on enhancing ecosystem-based transactional services for both wholesale and retail segments, with a particular emphasis on the funding business plan. This strategic approach includes developing wholesale banking as a source of low-cost funds, targeting payroll customers from corporations for retail acquisition, and optimising wholesale funding to reduce the blended cost of funds.

In addition to its traditional mortgage business, Bank BTN is expanding its reach into end-to-end ecosystem solutions for the housing industry. This expansion includes ventures into healthcare and education facilities, where Bank BTN aims to provide comprehensive solutions and integrate into these vital sectors.

Notably, the bank has also revamped its mobile banking services and continuously improved its retail financing solutions, demonstrating a strong commitment to customer satisfaction. Furthermore, Bank BTN is investing in the professional development of its workforce, with a focus on wholesale products and digital banking.

Recognising the need to diversify beyond its core mortgage business, Bank BTN initiated a transformation in 2022 by forming a wholesale transaction banking unit and implementing a total solutions system. This system allows the bank to analyse and provide funding and lending solutions simultaneously, leading to aggressive growth in these areas.

The Wholesale Transaction Banking unit is responsible for managing all wholesale products, including process improvements and digital product development initiatives. These improvements aim to streamline processes, deliver faster and more efficient service experiences, and maintain risk mitigation and compliance.

From a customer perspective, Transaction Banking Sales acts as a partner, offering solutions for payment and collection optimisation and ultimately providing total comfort for anchor and priority customers. Bank BTN is committed to providing exceptional customer onboarding and after-sales services through its implementation and client service teams.

As part of its digital transformation journey, Bank BTN has expanded its offerings to include BTN Cash Management, eGuarantees, and a Supply Chain Financing platform. The bank has introduced new services alongside continuous feature enhancements to provide efficient and swift services to its customers.

Bank BTN's transformation efforts have yielded impressive results across multiple fronts. Closed-loop transactions have increased by 120% year-on-year (YoY), contributing to stronger liabilities. Fee-based income has seen remarkable growth, soaring by 335% YoY, with an optimistic target of 446% by the end of 2023. This fee-based income now accounts for 2.65% of the bank's total fee-based income, a significant increase from the 0.86% contribution in 2022.

The bank has also achieved remarkable 152% YoY growth in low-cost funds, which has positively impacted product holding and customer retention. Bank BTN's commitment to digitalisation has paved the way for the shift of conventional wholesale products into digital forms, including online account opening and self-service trade services.

A Transformative Approach to Loan Service

Bank BTN has also recognised the need to address various pain points in the loan origination and processing processes. These included low productivity, ineffective sales tracking, high errors and redundancy, a lack of segregation of duties, low-quality approved credit, and a lack of objectivity in loan approval decision-making.

To enhance the quality of loan processing and service, the bank embarked on a journey of business process improvements, centralising customer management for commercial lending and loan processing through the establishment of a Commercial Banking Center (CBC). The CBC efficiently manages customer relationships and loan applications, resulting in faster turnaround times and standardised processes.

Furthermore, Bank BTN established a Regional Loan Processing Center (RLPC) to centralise consumer loan processing, improve service delivery, and separate work functions. The consumer loan process is now faster, with a turnaround time of under seven days.

To support businesses along the housing supply chain, Bank BTN has also developed a digital mortgage ecosystem. This ecosystem offers online stock management for property developers, easy access for prospective housing loan customers, and after-sales services for routine payments related to housing needs.

Looking ahead, Bank BTN's transformation journey is set to continue, with a focus on expanding its transaction banking services nationally and exploring overseas branch openings in neighboring countries. The bank is dedicated to becoming a preferred transactional bank and achieving its vision of becoming the best mortgage bank in Southeast Asia by 2025.

The Asian Experience Awards is presented by Asian Business Review Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for providing meaningful brand experiences to stakeholders, please contact Jane Patiag at [email protected].