2022 Highly Commended – Bank BRI Mass Affluent Commendation – Retail Banker International Asia Trailblazer Awards

 

 

BRI’s commendation in the Excellence in Mass Affluent Banking category at the RBI APAC Trailblazer Awards 2022 for its digitalization and growth efforts, even during the Covid-19 pandemic, was well won with its fee-based income rising at ~27% yoy and Assets under Management (AuM) rising at 0.9% yoy to last year.

As people sought ‘risk off’ or to see them through the pandemic, BRI responded quickly to match the key offerings with client’s context & situation as trust in the state-owned bank drew adherents. This action was translated to one of its achievements on government bond sales in which grew by 21% with the total sales reached IDR ~ 1T, grabbed the second largest market share in the nation. The achievement further demonstrated how BRI made the most of its position as the largest Indonesian bank: continuously supporting Indonesia government’s agenda for economic recovery while fulfilling customer’s investment needs.

Regular market insights and seminars reaching 65,000 participants were held during Covid-19, with the online platform/channel mainly taking the strain. BRI excellent service has created a strong long-term relationship with its clients as proven by rank 1 (of 5 institutions assessed) NPS Score for customer satisfaction in Indonesia.

On a CAGR basis AuM is still up by 21% over the past decade, with fee-based income up by 35% over the decade, partly helped by the rise of mass affluent customers attracted by digital solutions. These are cheaper for the bank to provide than a relationship manager (RM), which remain available and highly trained.

The digital trend tends to increase more transactions at a lower level as well. Technology also helps the bank update and grow its advisory capability, with BRI currently developing its WM Platform to generate automated analysis and provide personalized financial planning recommendations for customers.

Initially for higher net worth (HNW) ‘tailored advisory’ clients, this capability may be rolled out later on down the value chain at BRI’s WM outlet, which spans less than IDR500m (US$34,100) up to more than IDR15bn+ (US$1m+). Its customer base is segmented as follows:

The three main pillars in BRI WM’s strategy, each with a distinct role in its overall value proposition, include the following:

  1. Bancassurance business: to provide solutions for customer wealth protection.
  2. Investment business: to support customers in growing & accumulating their financial assets to achieve their objectives.
  3. Advisory business: to act as a partner and provide best in class advice & financial solutions to all of the bank’s customer segments, whether that is helping them with retirement planning, legacy handovers, investing, or just saving for a project.