Spin Off Application Livin' By Mandiri Becomes A Digital Bank Still In Studies, Mandiri Bank Selects To Play Existing Services

JAKARTA - Information Technology Director of PT Bank Mandiri (Persero) Tbk Timothy Utama confirmed that the company is currently considering the option of separating business services (spin off) to focus on working on the digital segment.

In his statement, Timothy said that Bank Mandiri is still doing business processes according to the 2022 plan and has not taken significant steps on the initiative to form a new entity.

"We will continue to review the spin off because the potential is still open to doing that," he said during a press conference on his presentation on the third trimester of 2022 on Wednesday, October 26.

Instead, Bank Mandiri chose to focus on developing digital services that had been present and became a central instrument in supporting customer needs.

"But now what we see is the digital banking segment that we worked on from the first is indeed adopting organic strategies. So by digitizing ourselves, both in terms of products, offers, human resource capabilities, as well as supporting systems," he said.

According to Timothy, the next direction of virtual expansion will focus on strengthening existing networks. In fact, the financial services entity coded as BMRI shares is ready to collaborate with various parties to be able to achieve the targeted targets.

Bank Mandiri will continue to look for added value solutions, especially in open ecosystems. This is important because digital is the point is how we can develop an open ecosystem, both for wholesale and segmented markets," he said.

"Here we will continue to strengthen the open ecosystem by involving a subsidiary of the Mandiri Capital Indonesia venture who actively cooperates with startups and fintech," continued Timothy.

To note, the discourse of spin off digital applications surfaced after Bank Mandiri President Director Darmawan Junaidi attended a hearing with Commission XI of the DPR at the end of last September. He said, the Livin' by Mandiri digital application has the capability to be developed autonomously as a digital bank.

Based on information compiled by the editors, the Livin application has been downloaded more than 18 million times in the last 12 months. The virtual facility is claimed to have been able to serve 500 million transactions a year.

Meanwhile, the value of Livin' by Mandiri transactions in the third quarter of 2022 has reached IDR 630 trillion or grew by around 50 percent compared to the same period in 2021.

BMRI itself is recorded as having 4,011 office networks, consisting of 2,370 branch offices and 1,641 micro offices.

Bank Mandiri's distribution service is also equipped with 13,034 ATM units connected to the ATM Link network, Joint ATMs, Prima ATMs and Visa/Plus, and Electronic Data Capture (EDC).