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Our efforts in 2004 will focus on the following:
• Increasing loan growth in the
consumer segment with the support of a new Loan Origination System LOS
and loan module on eMAS system, as well as intensive above-the-line and
below-the-line promotions.
• Enhancing product distribution
through collaborative efforts with property developers, property
brokers, multi-financing companies and dealers.
• Expanding the number of Mandiri
Visa cardholders through a pre- approved credit card program for
Mandiri Prioritas customers as well as a credit card issuance program for
Bank Mandiri prime customers using a pre-embossed method.
• Encouraging the usage of Mandiri Visa
through Power Points, Traveling Bill Payments programs.
• Enlarging electronic banking
channels by: - Adding ATMs
- Offering additional service features - Launching Call Mandiri as an
information and transaction vehicle for customers
- Developing Self Service Branches - SMS banking and internet banking
• Doubling the policyholders and
premiums generated through the Priority Financial Advisors
in Mandiri Prioritas outlets and expanding our market segment from
individual customers to high net- worth customers.
• Launching a Supermarket Funds
programs for mutual fund products and supporting Bank Mandiri’s efforts
to become a provider of “One Stop Financial Services.”
2003 Performance 1. Consumer Loans
As at 31 December 2003, outstanding consumer credit totaled Rp3.7 trillion,
consisting of consumer loans of Rp2,927 billion, credit card balances of Rp815
billion, and other facilities of Rp32 billion.
2. Consumer Funding In 2003, total funding from the consumer
segment increased in line with a series of promotional programs, such as:
• Mandiri Fiesta Program 2003, which
lasted 200 days and distributed 200 Toyota Wish cars.
• WGC We Get Customers Program
consisting of BGC Branch Get Customer and SGM Staff Get
Member •
Direct Sales through outletsopen tables, Sales Executives, and visiting potential
customerCanvassing •
Special rate programs for Rupiah Deposits to the maximum guaranteed
by Bank Indonesia •
Incentive programs for Rupiah deposit individual customers.
• Improved features for demand
sweep facility and time interest rate calculation deposits.
3. Mandiri Visa Bank Mandiri acquired the operations
and credit card portfolio of the Mandiri Visa card operations from GE Finance
Indonesia in August 2003. The transition process was seamless and without any
deterioration in service quality levels.
4. Electronic Banking Channel In 2003, we further developed our
electronic banking channels through various undertakings including:
• Installation of additional ATMs to bring
our total to 2,022 units at the end of 2003. Customers can also access more
than 4,700 ATMs with the LINK logo. In 2003, the overall ATM up-time
averaged 97.5.
• Establishment of a drive-thru ATM.
• On-going development of payment and
purchasing features through ATMs, SMS banking and internet banking.
• Usage of ATMs and SMS banking to
purchase Bank Mandiri’s shares during our IPO.
• E-Banking registration SMS, internet,
Call Mandiri through ATMs. •
SMS banking, introduced on 14 August 2002, has registered 163,928 users by
the end of 2003, and logged a total of 746,814 financial transactions.
• Internet Banking Mandiri, our newest
e-Banking service,was launched on December 18, 2003, and by the end of
2003 already had 3,046 users. Special features of this Internet Banking service
include: interbank transfer, payment of phone bills, topping up of pulses,
future date transfer and auto debit. Internet Banking Mandiri is equipped
with Token PIN Mandiri, which is a dynamic PIN security system for
customer transactions.
5. Investment Products In 2003, Consumer Banking became more
active in the distribution of investment products including:
• Successfully contributing to the sale of
Bank Mandiri’s shares during our IPO, and increasing the initial target of Rp750
billion to Rp1,100 billion.
• Became the selling agent of ‘Reksadana
Mandiri Investa Steady Income’ in collaboration with Mandiri Sekuritas and
Deutsche Bank as the custodian bank.
Focus for Consumer Banking in 2004
B u s i n e s s U n i t : Co n s u m e r B a n k i n g
B a n k M a n d i r i 2 0 0 3 A n n u a l R e p o r t 61
• Increased distribution channels to sell
mutual funds through 451 branches, up from approximately 200 branches
in 2002.
• Sold mutual fund products in
the amount of Rp4.59 trillion, significantly above our initial target of
Rp3.15 trillion.
6. Mandiri Prioritas As of 31 December 2003, 9,546 Mandiri
Prioritas Priority Banking customers were being served through 17 Mandiri
Prioritas Centres with a suite of distinctive service offerings.
Total funds managed through this channel, as of 31 December 2003 were
Rp16,406 billion, of which 78 were time deposits, 21 were savings deposits
and 1 were demand deposits. Mandiri Prioritas organized 37 appreciation events
throughout 2003, which contributed to an increase in customer funding
of Rp815 billion: Rp325 billion from new customers and Rp490 billion from
existing customers.
7. Bancassurance The development and promotion of
bancassurance products and services will be undertaken through AXA Mandiri
Financial Services AMFS. AXA Mandiri Financial Services
AMFS is a joint venture between Bank Mandiri 49 and AXA
51. AMFS started operations in December 2003.
AMFS provides investment and insurance products to Bank Mandiri
customers by placing Financial Advisors FA within our branches.
AMFS plans to put at least one Financial Advisor at each Bank
Mandiri branch throughout Indonesia by the middle of 2005. The Financial
Advisors will be supported by a team of regional sales managers and receive
support from the regional office in Jakarta.
AMFS will add value to Bank Mandiri’s existing product offerings
through additional insurance and investment product portfolios. These
offerings will provide customers with access to a wide range of planned and
innovative financial products and services. These products range from
education planning, life insurance, credit card insurance, health and
accident insurance coverage as well as a combination of insurance and
investment commonly known as unit link.
The Indonesian market remains very attractive for insurance companies.
A recent survey shows that only 10 of Indonesians have any type insurance
coverage. The demand for insurance- based products is expected to increase
in the future due to both population growth and increasing prosperity
in Indonesia.
Currently, AMFS operates through 26 locations in Jakarta and is planning to
expand its presence to the remaining 702 Bank Mandiri branches. During
its first month of operation, AMFS succeeded in acquiring annual
premiums of Rp717 million—higher than the initial target of Rp635 million.
AXA Mandiri Financial Services • Started its operational activity
since December 2003 • ownership:
- Bank Mandiri 49 - AXA
51 • Currently operates in 26
locations in Jakarta • Annual premiums in its
first month of operation: Rp717 million
AXA Mandiri Financial Services
B u s i n e s s U n i t : Co n s u m e r B a n k i n g
62
Business Unit: Treasury International
• Managing Director of Bank Mandiri since April 2003
• Senior executive Vice president, treasury International, Bank
Mandiri since April 2003 • executive Vice president,
Financial Institutions and overseas network, Bank Mandiri
August 2001–April 2003 • Head, treasury and Global
Markets, Bank Mandiri June 1999–August 2001
• Managing Director, Bank ekspor Impor Indonesia 1998–1999
• Head, treasury Bureau, Bank ekspor Impor Indonesia 1998
• Chief executive Managing Director, BeII DtC ltd. Hong
Kong 1985–1997 • Began his career at Bank ekspor
Impor Indonesia in 1980 at various branches within and
outside Indonesia, including as officer in Bank ekspor Impor
Indonesia, london 1987–1989 and paris 1991–1994
J. B. Kendarto
