BRI 2016 Annual Report

137 Corporate Profile Corporate Governance Report Consolidated Financial Statements 2016 Management Discussion and Analysis Corporate Social Responsibility OJK Regulation & ARA 2016 Criteria Cross Reference BRI 2016 Annual Report Development Strategy in 2017 Continuing the achievements of 2016, BRI will remain focused on low-cost fund accumulation by targeting young and e-commerce segments, aligning product development with the concept of digital savings, as well as focusing marketing activities on acquisition, retention optimization, point reward programs and trickle down businesses. Retail Banking Services Business The Retail Banking Services Business is one of BRI’s future growth pillars, particularly in terms of accelerating the accumulation of low-cost funds and fee-based income. In the Retail Banking Services Business segment, BRI continues to develop Commercial Transaction Banking and Individual Transaction Banking services through adding e-banking features and products, as well as the Wealth Management service, to fulfill the needs of its customers and transaction convenience. Implementation of 2016 Strategies In 2016, BRI sharpened its focus on Transaction Banking to align it with customer needs, and provide accurate financial solutions by dividing retail fund management into two areas: Individual Transaction Banking for retail customers and Commercial Transaction Banking for wholesale/corporate customers. BRI also expanded its Commercial Transaction Banking customer base by initiating mutual cooperation with other entities such as regional development banks, and partnering with its corporate customers through a strategy of integrated banking solutions, which can provide account receivables, cashmanagement and account payables services. For Individual Transaction Banking, in 2016, BRI improved the productivityofitse-channel,e-banking,anddebitcardproducts and services through a number of initiatives. These included a tactical feature program and leading products to improve the wallet share of existing customers; the implementation of a marketing program to increase product usage; reviews of existing products, features, tariffs, marketing programs and cooperation; improvement of business transaction processes; and implementation of retention and user loyalty program for transaction banking. The Data Service Quality Index 2016 ranked BRI as 5th for its Priority Banking Service. To improve the quality of Priority Banking, BRI carried out product feature development such as its online marketing system for mutual funds through e-channel BRI, online bancassurance premium payment through e-channel BRI, as well as development of the BRI Prioritas website and launcher as an updated information platform for BRI Prioritas customers. BRI also improved the capacity of Priority Banking marketing employees through various education and certification programs, and increased the outstanding assets under management through cooperation with companies providing terms of travel, lifestyle, education, and concierge service privileges. Performance in 2016 BRI’s Commercial Transaction Banking Service, with the Cash Management System (CMS) as its flagship product, performed well in 2016 in terms of the number of customers, number of transactions, transaction volume and fee based income. The number of CMS clients at the end of 2016 totaled 11,745, with 8,148 (69%) customers in the retail segment, 2,762 (24%) customers in the medium-sized enterprise segment and 835 (7%) customers in the corporate segment. Meanwhile, CMS BRI’s fee based income in 2016 totaled Rp17.7 billion. BRI successfully maintained stable e-Banking service performance including BRI ATM transactions, mobile banking and internet banking, in terms of the number of users, number of transactions and value of transactions. The performance of BRI Wealth Management also improved in 2016, as demonstrated by the number of BRI Prioritas customers, which increased by 25.60% to 40,300 clients from the previous year. Meanwhile, BRI’s portfolio under management increased by 37.92% to Rp67.4 trillion, and fee- based income increased by 55.36% to Rp 163.8 billion from 2015. E-Channel Transaction Services (Rp Trillion) 2.11 1.64 1.22 2016 2015 2014