In digital transformation, digital technology is integrated into all areas of a business. This integration brings changes in how the business delivers value to its customers. In the banking industry, digital transformation is a way to provide better service to your customers. It can be dramatically cheaper when customers complete transactions on a mobile app, instead of in a branch. They don’t have to go to your office and spend time to queue in order to complete financial transactions.
In addition, customers who manage their money on mobile app with a PC, tablet, or smartphone can generate more revenue for you.
Bank Rakyat Indonesia is an example of a financial institution that successfully brings its technology-based banking services to the whole country, even to the small islands in Indonesia.
Let’s take a look at on how BRI embraced digital transformation.
1. Satellite to reach remote areas
In 2014, BRI decided to invest $250 million in its own satellite to help confront new challenges in the digital banking world. BRI is the first bank in the world that owns its dedicated satellite. The procurement of this satellite was part of the bank’s strategic plan to strengthen the digital service infrastructure. This technology enables quality banking technology reaching the remote areas of the nation.
The satellite, named BRIsat, provides communications for BRI’s banking services and business operations. Many parts of the Indonesian archipelago are not provided by fixed-line internet access. Earlier, BRI had to rent transponders from commercial satellite providers to run its ATMs, EDC devices, and back-office operations. By operating its own satellite, BRI can reduce annual transponder rental fees by 40 percent (200 billion rupiahs).
2. Omnichannel technology
Omnichannel technology enables banks to provide strategic and integrated service to customers. In order to enhance this technology, BRI focuses on Application Programming Interface (API) and prioritize mobile banking transactions. Omnichannel delivers safer and faster service as it is integrated into various channels like WhatsApp, FB Messenger, and Telegram. Thus, customers can easily access the basic services provided by BRI. Previously WGS have also helped Indonesian FSIs with their mobile apps, such as e-Branch, Mobile Loan, e-Money, and many more.
3. Branchless banking
Founded in 1895, BRI has already been innovative in developing ways to reach customers. BRI has been investing in branchless banking. Branchless banking involves appointing third-party agents, such as small stores or kiosks, to serve as simple branches. To carry out transactions, BRI provides the agents with small EDC devices, instead of ATMs. If you’re looking for an Android EDC, WGSHub could also help you out with the device.
Transforming into digital by adopting Artificial Intelligence, branchless banking, and omnichannel technology are some ways to win the customers.
4. Hybrid banking
Micro, small and medium enterprises (MSME) have been the focus of BRI. This bank is even a pioneer of Indonesia’s microfinance. The state-owned bank is able to respond to any challenge in the business world through innovation. The banking self-service was firstly introduced by BRI in 2013 through BRI Hybrid Banking.
Hybrid Branch Lounge is like any branch office. The difference is, this Lounge is open every day, including Saturdays and Sundays, to provide better and faster service to its customers. Customers can go to BRI Hybrid Branch for opening a saving account, deposit, credit card application, and other services.
5. Artificial intelligence
By using AI (Artificial Intelligence) tools, banks can overcome traditional customer service challenges. AI in banking is one of the most impactful tools through the use of conversational assistants (chatbots). This conversational assistant can engage customers around the clock. To help with customer transactions, Bank of America introduced Erica as a virtual assistant. Significant positive ROI are brought by this AI.
To enhance services to the customers, BRI launched the Artificial Intelligence called Sabrina. As BRI New Assistance, Sabrina facilitates the customers in obtaining information on Bank BRI. Sabrina is a chatbot service functions like customer service. This technology can be used to inform promotion and saving products in BRI. It can provide information regarding the location of branch offices, ATM, and Brizzi top-up. Customers also can use Sabrina to deliver any complaint.
If your company are looking to implement chatbot service to help handle your client requests, you can read more about one of such solution here.
Conclusion
Transforming into digital by adopting Artificial Intelligence, branchless banking, and omnichannel technology are some ways to win the customers. The most important, digital transformation is the surest way to stay ahead of the competition. WGS is an enterprise software solution company with a mission to strengthen our client’s IT capacity and capabilities, automate business processes, and allow innovation through technology. Contact WGS for more information about digital transformation strategy that is suitable for your financial institution.