Digitalisation Drives Housing Bank into Full-Service Era
PT Bank Tabungan Negara (Persero) Tbk (BTN) is aggressively undertaking major transformation to become a bank with comprehensive financial services (full banking services). This strategic move is being taken to expand the company’s business reach beyond its primary focus on Home Ownership Credit (KPR), encompassing payroll services, credit cards, investment products, and vehicle financing.
BTN’s Director of Operations, I Nyoman Sugiri, affirmed that this change represents the company’s effort to control the entire financial ecosystem of Indonesian families in the digital era.
“We will change the perception that BTN bank can only provide full banking services. That means, if a family’s finances involve financing, investment, transactions, and all other banking needs. Especially in this current digital era,” Nyoman said, citing Antara news agency on Saturday (14 March).
He noted that the business transformation, part of BTN’s vision for 2025-2029, also touches on sustainable funding aspects. Nyoman explained that strengthening funding represents the primary fuel for banking to carry out intermediation functions stably.
“Therefore, strengthening funding has become one of the main focuses that we continuously improve. This effort is undertaken to ensure the availability of stable and sustainable funding sources. So that BTN can continue to carry out intermediation functions and expand the distribution of financing,” he said.
In terms of operations, Nyoman continued, BTN is implementing a loan factory system to centralise the submission and processing of consumer credit at the central level. This step is taken to overcome obstacles in inconsistent inter-regional process standards and increase productivity that has previously been uneven across six regional offices.
Additionally, BTN is modernising its branch network through a rejuvenating branch programme to change public perception of the company’s services.
Nyoman emphasised that BTN wants to appear more dynamic by being present in busy commercial areas through developing BTN Digital Stores.
“We want to change the old impression that bank branch offices are antiquated and bureaucratic. In the future, BTN branches will adapt to modern times with more contemporary and dynamic concepts,” he said.
He also added regarding the company’s physical expansion strategy, “We are present in commercial areas, in shopping malls and busy centres. The concept is an outlet that can serve anytime through digital stores.”
As the conclusion of the operational transformation series, BTN is building a modern Records Centre to guarantee the security of its very large mortgage collateral document portfolio.
“BTN’s mortgage portfolio is very large so the management of collateral documents must be conducted properly and securely. For this reason we are building a records centre with a more modern system. Fireproof and termite-proof storage space with high security. Storage using dossier boxes, not envelopes,” Nyoman concluded.