2. Product and Services Digitalizing business processes to reduce overhead costs and as an effort to improve services to customers through developing customer-centric products, strengthening IT system reliability, complaint handling management, and creating a risk-aware culture. Some of the business process digitalization initiatives that BRI has carried out in each segment include: a. Micro through the creation of a new business model through the Loan officer scheme of hiring agents, expanding the PARI application business, as well as increasing the capacity of BRILink Agent services. b. SMEs through strengthening transaction led business models, business value chains, rejuvenating the early warning system for SME loans assessment. c. Funding through strengthening BRImo’s capabilities as a super App and executing a close loop payment ecosystem to encourage an increase in savings market share. d. Corporate and Institutional through strengthening and improving the performance of the Qlola platform. e. Treasury and Global Services through digitizing customer driven products through the trade asset distribution business program, updating BRIefx 1.2, digitizing QRIS banknotes transactions, and developing the RDN transaction feature at BRImo. f. Risk through improving superior operational services through the use of artificial intelligence and zero tolerance for fraud as well as strengthening end-to-end IT governance and utilization of the talent mix. g. Operations through the implementation of a payment hub for payment system integration and improving BRISPOT as a powerful sales tool, digital assessment and loan platform. h. Network through digitalization of contact centers and strengthening complaint handling. 3. Culture Capabilities It is strengthening a culture that supports sustainable growth through increasing employee capabilities, sharpening a riskaware culture through the integration of BRILian Ways, integration of BRI One Culture in the BRI Group to support effective organization and strengthening innovation management. Several initiatives undertaken by BRI to strengthen culture in each segment include: a. Micro by increasing the capabilities of loan analysts through education and developing reliable supporting tools. Amidst all the innovations, cyber security also stands out as a key aspect that should not be overlooked. Digital banking is faced with the challenges of protecting customer data and increasingly complex infrastructure. Therefore, BRI bank’s future strategy is focused on efforts to strengthen BRI’s retail banking business and increase the contribution of Subsidiaries to the profitability of the BRI Group by: 1. Asset and Liabilities Management (CASA, Selective Expansion, CoC Control) 2. Diversification of Growth Sources (Retail Segment, Subsidiaries) 3. Implementation of ESG Principles 4. Operational Support Reliability (Digital Capability, HC Competency, Customer Experience, Risk Management, Data Analytics) Short Term Strategy BRI’s short-term strategy is an integral part of the long journey of BRIvolution’s transformation towards The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion in 2025. To realize this aspiration, BRI is aware of the many challenges that come from external and internal to the Company, so strategic planning is needed. responses to respond to these conditions through several short-term strategies set out in the destination statements each year. Apart from that, BRI also focuses on sustainable finance through the implementation of Environment, Social and Governance (ESG) so that BRI not only grows but also cares about business and environmental sustainability. In the short term, BRI focuses on strengthening retail banking capabilities to encourage increased market control amidst massive competition in the banking industry. BRI’s short-term strategic focus for 2023 included as follows: 1. Financial Increasing BRI’s profitability through strengthening the business of each segment, by focusing on: a. Micro Banking by strengthening the micro segment through the rejuvenation of conventional products and the use of technology in the form of micro lending and micropayments, as well as rejuvenating the micro organizational structure to increase coordination efficiency. b. Retail Banking by strengthening the ecosystem-based retail segment, optimizing value chain potential through digitizing business processes and focusing on improving the quality of retail credit c. Wholesale Banking by digitizing reliable business processes and becoming a feeder to other segments. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 199 Management Discussion and Analysis on Bank Performance
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