Globalization

Very rapid economic development and

the era of globalization influencing it,
encouraging people to maximize its
utility to achieve prosperity. Very rapid
economic development and the era of
globalization influencing it, encouraging
Innovation and
Globalization people to maximize its utility to achieve
Changing Strategy
prosperity. Likewise, Bank BTPN
collaborates with the Texas Pacific
Group, which has a target of reaching
micro infrastructure in order to support
Flatter and Learner Restructure
microfinance needs

Restructure
TPG recruited Ng from Bank Danamon,
where he was deputy president director
Technolog Disruption Digital
and in charge of Danamon’s microfinance
y initiative.
 Fatter & Learner
Bank BTPN studied the Indonesian market, especially micro
carefully, BTPN which focuses on serving the bottom of the
pyramid make them immovable. the bank initially catered to retired
military personnel. Eventually, it expanded to include all civil
servant pensioners who needed a financial intermediary to manage
their government-backed assets. management has been able to
study the condition of the Indonesian economy carefully
Technology
banking sector experiencing a downward trend due to community
demands who now want convenience in all aspects, including
easy access to banking services through technology. BTPN
process was facilitated by BTPN’s use of mobile technology a
convenient service to the customer. Carrying funds and an online
mobile EDC (electronic data capture) device, loan officers were
literally banks on foot.
Innovation
Innovations that continue to exist and even develop at BTPN can
have a good impact, especially for a company environment. In the
banking world, innovation can be used to develop a business rapidly.
Even with this innovation, a company is able to develop its business
scale more broadly and faster. Bank BTPN continues to innovate
through attractive products for the micro market category,
technological innovations are also carried out by bank BTPN
Disruption
People are the core of any innovation process. Their insights,
concerns, and desires shape the pursuit of new ideas and the
countless decisions to be made in the process of transforming
these ideas into value, basically companies are pursue these
“sustaining innovations” at the higher tiers of their markets because
this is what has historically helped them succeed: rate of payback
by borrowers at a 98% rate and sophisticated customers at the top
of the market, fastest growing countries in cell phone adoption in
Indonesia, companies will achieve the greatest profitability.
However, by doing so, BTPN unwittingly open the door to
“disruptive innovations” at the bottom of the market. An innovation
that is disruptive allows a whole new population of consumers at
the bottom of a market access to a product or new customers are
feels ignorance by companies cause BTPN more focus on existing
customers
Breakthrough Innovation – BTPN : Banking for the Bottom of the Pyramid in Indonesia

Bank BTPN is a foreign exchange bank and is a merger between PT Bank Tabungan
Pensiunan Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia (SMBCI).
Bank BTPN is focusing to serve the mass market segment comprising of
retirees, micro-, small- and medium-enterprises (MSME) and mass market; the
consuming class segment; and corporate segment. The business focuses are
supported by Bank BTPN business units including BTPN Sinaya – a financing business
unit, BTPN Purna Bakti – a business unit focusing to serve retirees, BTPN Mitra
Usaha Rakyat – a business unit focusing on micro businesses, BTPN Mitra Bisnis – a
business unit focusing on serving small and medium enterprises, BTPN Wow! – a
financial inclusiveness focusing on the unbanked segment, Jenius – a digital banking
platform serving the consuming class segment, and corporate business unit which
focuses on serving national, multinational and Japanese companies. BTPN also has a
subsidiary namely the BTPN Syariah which focuses on serving customers from the
mass market. Through the Daya Program, which is a sustainable and measurable
empowerment program for the mass market, Bank BTPN regularly gives training and
information to improve the customers’ capacity so they can grow and have a chance
to live better.
Like the two inseparable sides of a coin, the empowerment program is an integrated
element in our business model. Through our all products and activities, Bank BTPN
always tries to create opportunities for our customers to develop and live a more
meaningful life.
Breakthrough Innovation – BTPN : Banking for the Bottom of the Pyramid in Indonesia

Referring to the journal BTPN: Banking for the Bottom of the Pyramid in Indonesia, Bank BTPN has carried out a
Breakthrough Innovation in the implementation of its business strategy in Indonesia.

BTPN’s Ranking within the Indonesian Banking Industry

Source: BTPN internal briefing document (August 2011

Breakthrough Innovation – BTPN : Banking for the Bottom of the Pyramid in Indonesia

Referring to the journal BTPN: Banking for the Bottom of the Pyramid in Indonesia, Bank BTPN has carried out a Breakthrough Innovation in
the implementation of its business strategy in Indonesia.

This can be seen in three important points of their strategy plan, namely:

1. Business launch in microlending product and service sector

Where BTPN, which previously only focused on its retired customers, is now starting to explore the potential of microloans from its customers.

KUR Micro
KUR Micro product is unsecured loan product which provided for traders or entrepreneurs involved Potential Customers, Loan Values, and Revenue
in MSME (UMKM) business sector. Product loan limit for Micro KUR starting from Rp. 10 million to
Rp. 100 million with maximum loan term up to 36 months for working capital needs and 60 months
for investment needs.
KUR Micro can be used to meet the working capital needs of MSME entrepreneurs or for investment
as a way to develop a business. In addition to financial access, through the Daya Program, customers
are provided with opportunities to develop their business knowledge and skills, as well as create new
business opportunities.
Breakthrough Innovation – BTPN : Banking for the Bottom of the Pyramid in Indonesia

2. Opertional Branch and Human Resource Development

BTPN began to recalculate to make branch operational costs more efficient. This is so that BTPN can improve its services by providing low transaction fees and maximum
profits. On the other hand, the development of human resources or employees is also not spared in order to support the innovations that will be carried out.

3. Performance Management
The company's management system is also developed here. Rewards and penalties are strictly enforced so that employees can clearly comply with company regulations.
The provision of incentives is expected to increase the motivation of employees in working
Breakthrough Innovation – BTPN : Banking for the Bottom of the Pyramid in Indonesia

4. Digitization
The process of digitizing products and services was also developed to make it easier
for customers to enjoy btpn's facilities. Following the times, BTPN hopes to integrate
its services with an integrated system in real time. the example is Jenius, one of new
Digital product of BTPN

Jenius
Every decision made in life always has financial consequences. We call this
inseparable relationship between life and finance, Life Finance.

To help you organize your Life Finance, Jenius—as the newest service from BTPN—
commits to provide you an excellent service.

Jenius is Banking Reinvented for you to have a full control in managing life and
finances in a simpler, smarter, and safer way, from your smartphone.

There are extensive new features in Jenius.

You are not only be able to open a saving account using your smartphone without
having to go to the bank, but also you will find new ways to organize Life Finance
with $Cashtag, Dream Saver, Send It, Pay Me, Split Bill, e-Card, and other features.

Simple, smart, and safe are the 3 things that you’ll automatically get with Jenius.