BTPN in brief

BTPN in brief
Contents
1
BTPN profile and performance
2
Building new generation business models
1
Indonesia economy has been relatively stable,
with a huge potential for the financial industry
Stable macroeconomic situation in Indonesia…
Countries
Nominal GDP,
2015, $bn
Indonesia
Thailand
862
395
… with a strong banking potential
Real GDP
CAGR
2000-15, %
CAGR Std.
dev. 2000-15
5.4%
0.9
36
4.8%
2.4
33
Banking revenue pools1 CAGR
2015 - 2020, US$ bn
2015-20, %
Malaysia
296
5.1%
1.7
23
Singapore
293
5.2%
4.1
24
Philippines
292
4.0%
2.5
11
6.5%
0.8
6 10
Vietnam
191
Note – 1. Revenue after risk cost
Source: EIU; McKinsey Global Banking Pools; ASEAN Development Bank Review
85
68
51
43
29
RoAA, 2015
%
6%
2.3
2%
1.3
4%
1.1
3%
1.0
14%
1.2
14%
0.8
2
BTPN is well positioned within Indonesia
Vision
Mission
To be the best mass market1 bank, making a
difference in the lives of millions
Target Market
Funding
HNWIs
Large &
Medium Companies
High &
Middle Small
Income
Lending
Together with our stakeholders, we create
opportunities for growth and greater significance
Assets
Customers
US$ 6.6 billion
~4.5 million
Distribution reach
3,100+
329
34
outlet
cities
provinces
Micro
Low
Income
Productive
Poor
3
Strong track record of building new businesses
Pension
business
2008
Micro Banking
business
Enabling platform
2009
2010
2011
Funding business
Small &
Medium
Enterprises
2012
2013
Productive Poor
business
Mass market
Mobile
Banking
2014
2015
2016
Digital Bank
4
Differentiated core business models
Five unique businesses …
Pension
Micro Banking
Distinctive
service
Convenient
financial
solution
Best friend
of
pensioners
Productive Poor
SME
5-Y financial
package
Capital
to grow
Opportunities
for
growth
Sinaya
Financial
solution
Courage
Discipline
Hard work
Solidarity
Membership
system
Access
to market
Personalized
service
Success of
our
customers
More
meaningful
life
Optimum
return
Our people
Sustainable
growth
… with a unifying theme of social responsibility
Entrepreneurial capacity building
Health & wellness
Information, consultation, and
medical check-up as a preventive
measure to promote health and
wellness
Note: Daya = "to empower"
Center for business growth,
practical training and micro
business franchise
Community empowerment
Adopt a community program for
developing skills, ensuring business
sustainability and promoting health
5
Transformational growth since 2008 (Consolidated)
Outlets
Customers
Assets
US$ mn
3,145
6,576
~4,500,000
8.4x
8.2x
~11x
373
803
~400,000
Dec ’07
Jun ’16
Loans
Dec ’07
Funding
US$ mn
US$ mn
5,277
4,676
1,137
7.9x
7.8x
12x
668
596
Jun ’16
Jun ’16
Equity
US$ mn
Dec ’07
Dec ’07
Jun ’16
Dec ’07
94
Jun ’16
Dec ’07
Jun ’16
6
Delivered superior performance
CAR
NPL – Gross
%
%
24.0
22.1
22.0
21.8
4.6
Industry: 22.4
20.3
19.8
19.5
19.3
18.6
17.5
15.8
3.4
Industry : 3.1
2.8
3.7
3.9
4.0
D’mon Mandiri
Maybank
Niaga
3.6
3.0
2.2
1.4
0.7
BTPN
BTN
D’mon Mandiri
BCA
Panin
BRI
BNI
Permata
Niaga Maybank
BTPN
BCA
BRI
Panin
BNI
BTN
Permata
NIM
ROA
% 11.8
3.9
%
3.7
3.1
8.7
2.5
8.1
7.0
BTPN D’mon BRI
BCA
6.1
Mandiri
6.1
BNI
5.4
Niaga
2.2
1.6
Industry: 5.6
5.0
4.7
4.5
Panin
BTN
Maybank
Industry: 2.3
2.2
1.6
1.3
0.8
3.9
-1.2
Permata
BCA
BRI
BTPN D’mon
BNI
Mandiri Panin
BTN Maybank Niaga Permata
Source: Published Financial Statements of each bank as of Jun 2016 (bank only) except BRI as of Mar 2016 and BTPN (consolidated); Indonesian Banking Statistics –
May 2016, OJK
7
Key financial metrics
P&L , IDR Bn
Balance sheet, IDR Bn
Loans (gross)
58,587
Customer deposits
61,635
51,994
60,273
Total assets
65,316
75,059
53,335
81,040
Operating income
86,671
7,780
8,401
Net profit after tax
1,869
1,702
1,062
4,596
H1
4,101
2014
2015 2016H1
2014
2015 2016H1
2014
2015 2016H1
918
H1
928
2014 2015 2016H1
2014 2015 BAU1 Reported
2016H1
Key ratios, %
NIM
NPL
11.4
11.3
11.8
2014
2015 2016H1
Cost of credit
0.7
0.7
2014
2015 2016H1
1 Core businesses excluding investments
0.7
1.5
2014
1.4
ROA (before tax)
1.4
2015 2016H1
3.6
2014
3.1
3.1
2015 2016H1
CAR
23.2
23.8
24.0
2014
2015 2016H1
8
Leveraging the partnership with SMBC
Rating
Funding arrangement
From…
…to
Additional stand-by facility
AA-
AAA
USD ~350 mn
Joint financing with SMFL
• Joint financing for Auto
• Exploring heavy equipment
financing
Joint Project
• Joint project investments
(e.g. Digital Banking Project)
• Leverage existing SMBC reach
for customer acquisition (e.g.,
customers, employees, suppliers)
9
Contents
1
Proven set of differentiated business models to serve the high
potential mass market
2
Building new generation business models
10
Perfect storm for a game changing opportunity
•
•
Regulators are
increasingly becoming
more open to alternative
business models
Changes in regulation
towards digital
•
Economic growth in
emerging markets to
expand revenue potential,
including
– Upward migration
– Unbanked population
entering banking
•
Technology
discontinuity
Regulatory
changes
Upward
massmarket
migration
Trends
in Retail
Banking
•
•
High level of mobile penetration
across Asia (90%+ feature phone
and 35%+ smartphone)
Customers are truly social and
moving directly to mobile
(i.e., social media, e-commerce)
Increasing level of technology
discontinuities (e.g., fintech,
advanced analytics)
Rise of
ecosystem
•
•
Creation of ecosystems increasing customer
engagement, capturing non-banking revenues and
creating online-offline synergies
Successful innovative partnership models for customer
acquisition & servicing
11
In Indonesia, these trends are significant
Opportunity for consuming class
and significant mass market
Smartphone user base
Million
Million
260
240
44
Consuming
class
Mass
market
93
80
195
180
2010
2020E
Mass
affluent
40
2012
2012
68
13
54
7.2x
5
+6
+14
2018E
1 % of respondents using internet banking via PC or via Smartphone
Source: EIU, Global IDC data, McKinsey, Strategy Analytics
2012
2015
2015
2020E
Opportunity for a secondary bank
36
Million
Affluent
25
Digital banking penetration for
transactions and services
%1
60
Upward migration
48
7
47
Openness for Digital
2020E
Share of consumers by number of
relationships, %
1
2+
+25
A
B
C1
C2
D
E
40
60
65
62
35
38
87
95
100
+25
13
5
12
BTPN is creating two new platforms to capture the
opportunities
Detailed next
Significant market for both segments
Consuming
class
Population,
mn
240
44
Below
consuming
class
BTPN is creating two new innovative businesses
260
80
195
180
2010
1 IDR 1-3 mn monthly income
Address digitally savvy
affluent consuming class
individuals with a
smartphone based digital
bank offering
Address mass market and
productive poor1
with low cost feature-phone
based financial services
offering
2020
13
BTPN Wow!
BTPN WOW! is an agent based branchless banking
solution targeted at the mass market
Financial inclusion is an IDR 200 trillion+
deposit opportunity
20%
OJK regulations released in Nov 2014
allow for inclusive, branchless banking
of adult population has
account with formal
financial sector1
200+ Tn
deposit opportunity in the
next 5 years2
90%
hand phone penetration3
Critical challenges exist in bringing financial
access to the mass market
Although most of mass market
saves, not all are servable by
regular branches due to
infeasible branch economics
Although hand phone
penetration is high, smart
phone penetration3 is low
(<30%) and >60% of villages do
not receive a strong signal4
SOURCE: 1 World Bank Global Financial Index 2011;
2 OJK
BTPN Wow! product features
USSD-based product
that works with even
1 bar signal
Branchless banking for
financial inclusion
(Laku Pandai) permitted
Regulations permit an
agent based banking
model with exclusive
relationship between
the agent and the bank
Savings led
product
Other features
Allows for a Basic Savings Account (BSA),
with simplified KYC requirements
•
•
•
•
•
Full name
Address
Place and date of birth
Occupation
Signature
+ identification
document
to support the above
3 Strategy Analytics 2014
4 Association of Indonesia Internet Service Provider
Airtime top up
Bill payment
Payments
Transfers
Micro-loans
Micro-Insurance
14
BTPN Wow!
BTPN Wow!: “the bank in your hands”
Rapid expansion
BTPN Wow! customers (’000)
672
307
172
430
BTPN Wow! Agents (’000)
2015 Roll Out Areas
2016 Roll Out Areas
35
31
21
8
Sep
Dec
2015
Source: Team analysis
Mar
Jun
2016
15
BTPN is creating two new platforms to capture the
opportunities
Detailed next
Significant market for both segments
Consuming
class
Population,
mn
240
44
Below
consuming
class
BTPN is creating two new innovative businesses
260
80
195
180
2010
1 IDR 1-3 mn monthly income
Address digitally savvy
affluent consuming class
individuals with a
smartphone based digital
bank offering
Address mass market and
productive poor1
with low cost feature-phone
based financial services
offering
2020
16
JENIUS
Jenius is a digital solution with light physical outlet support
Our aspiration over time
Where we are today
Most Indonesian banks
Focus on
digital
Description
A Integrated
partnership
B Pure digital
“Fintech-like”
Seamlessly
integrated financial services
through
mobile;
leverage
existing user
base
Fully digital
with little or no
branch
network; PFM
and other
services
beyond
banking
Hybrid solution
Focus on digital
but leverage
physical outlets
in a targeted
way
C Banks made
simpler
D Traditional
banks
Positioned as a
bank, so rely on
branch
network for
acquisition
despite digitally
focused
services
Traditional
bank services,
with limited
digital
innovation
(e.g. online
banking)
17
JENIUS
At heart, Jenius is a mobile and web app coupled
with an international debit card
What we provide
What we deliver
1
First of its kind of digital package in Indonesia
Simple way to save and
pay
1• Semi-remote account opening
(Intuitive transactional
capability)
3• Push payment to any account/Request money
2• Split bill
4• Pay multiple bills
5• Virtual/ physical debit card for e-commerce/
sub-accounts
6• “Cash tags” enabling direct payments
2
2
3
Insights to manage your
money better
7• Categorize and analyze past expenses
(Fully personal financial
management tool)
9• Dream saver
Security to give you
peace of mind
• Temporarily block/un-block card
10
(Best technology &
control)
• Fingerprint identification
12
8• Track against financial plan
• Sub-accounts with full control
11
18
JENIUS
Jenius was launched on Aug 11 with tremendously
successful reception
Session
Results
• 193 attendees which generated
Press
event
press coverage on Indonesian major
new outlets including CNN Indonesia,
Detik, Metro TV news, Berita satu,
Liputan 6, Kontan, Okezone, Merdeka
• 265 attendees including Minister
VIP
of Finance, Minister of ICT, CEOs of
Telkomsel and Indosat, Northstar
Managing Partner, etc.
• 754 attendees consisting of AReception
listers, celebrities, social influencers
19
JENIUS
Jenius generated social media buzz and positive reception
among influencers in social media
Social Media
Press
Key statistics1
Press coverage
 #1 trending topic in twitter during event launch;



top 10 trending topic for 6 hours
16.5 million impressions
2,446 mentions by 845 users
626k unique accounts reached
 Press coverage includes CNN Indonesia, Detik, Metro TV
news, Berita satu, Liputan 6, Kontan, Okezone, Merdeka,
Dailysocial
The most sophisticated
financial app ever
Successfully made my first
foray to smart money using
the @jeniusconnect app!
Ini "cashtag" gw : $TEGUH,
mau dong pay me...
#‎hijenius‎‎#‎btpn‎
A brand new way of life with
the all-in-one financial
management mobile app!
1: Statistics only covers Twitter
SOURCE: XION Launching Activity Stats, web search
This application is unique from other financial technology
(fintech) products that are available in the market launched
by banks or start-ups
- Daily Social
20
JENIUS
Jenius demo
21
JENIUS
Jenius’ marketing
22
Thank you
Note: All financial figures used in this presentation, which were originally in Rp,
were converted into US$ using FX rate of Rp/US$ 13,795
23