Consistency In Digital Transformation, Bank Mandiri Achieves Positive Performance

Rupiah illustration (Photo: dock. Antara)

JAKARTA - PT Bank Mandiri Tbk (BMRI) continues to encourage increased digitization through Super App Livin' by Mandiri has yielded positive results.

Bank Mandiri Director of Risk Management Ahmad Siddik Badruddin explained, through the consistency of Bank Mandiri's business development and digital transformation, it has also yielded positive results.

"Through the consistency of digital business development and transformation, Bank Mandiri (BMRI) shares have succeeded in making positive performance. In the year to date (ytd) until September 29, 2023, the increase in the value of BMRI shares was recorded to be higher when compared to JCI and other major banks, reaching 21.4 percent (ytd)," he explained in the Public Expose Live 2023, Monday 27 November.

Siddik said that until October 2023 BMRI had launched three of the company's latest digital services, namely an entrepreneurial application that facilitated business customers, namely Livin' Merchant, and a new, more attractive appearance from Livin' Sukha, as well as the latest feature of Kopra by Mandiri entitled Kopra Beyond Borders which is intended to make it easier for wholesale customers to transact abroad.

"The momentum of Bank Mandiri's 25th Anniversary will further strengthen the company's value today and the next ten years. We are taking this business transformation step so that Bank Mandiri can continue to provide more value for customers in all segments and have a positive impact on the community's economy," he explained.

Siddik said that Bank Mandiri continues to be committed to encouraging digitalization and has recorded significant growth. One of them, the Super App Livin' by Mandiri, which is the company's mainstay in meeting the needs of financial and non-financial transactions, retail customers have been downloaded more than 32 million times since its launch.

In terms of the number of users, Livin' by Mandiri also continues to record a 55 percent increase (yoy) in September 2023 to 21 million registered users. In fact, since its release in October 2021, the company's flagship application has been downloaded almost 34 million times until the end of October 2023.

Likewise, the transaction value of customers through Livin' by Mandiri managed to penetrate Rp2,600 trillion in the first ten months of 2023, up 36 percent (yoy) in line with customer financial transaction needs.

As for the Wholesale Digital Super Platform Kopra by Mandiri service, it has managed to manage Rp13,950 trillion transactions as of September 2023 or grew 1.3 times since its release in October 2021. The growth of Kopra by Mandiri users, which is now also present in the mobile app version, has also increased by 132 percent (yoy) to 158 thousand more users.

"This achievement proves that the digital transformation carried out by Bank Mandiri has succeeded in contributing significantly to financial performance with a trend that continues to improve," he said.

It did not stop there, Bank Mandiri's digital transformation was also carried out by releasing the Livin' Merchant application to digitize payment transactions at micro, small and medium enterprises (MSMEs).

Since its launch on June 12, 2023 Livin' Merchant has been downloaded by more than 1.5 million MSMEs until October 19, 2023. According to Siddik, this feature has made it easier for MSME players to increase their business potential.

This latest product is proof of Bank Mandiri's commitment to providing a better and more innovative banking experience for the community. In the future, we will continue to approach MSME players so that this application can further provide optimal added value and in accordance with the expectations of the community," he explained.

In addition, in the midst of global economic uncertainty, Bank Mandiri consistently maintains asset quality. This is reflected in the non-performing position of bank only which is sloping to the level of 1.36 percent as of September 2023. This position is much better than the September 2022 period at the level of 2.26 percent or has decreased by 90 basis points (bps).

In maintaining asset quality, Bank Mandiri has also formed adequate reserves. "Until September 2023, we have prepared sufficient reserves, with the NPL Coverage ratio of banks only reaching 339.34 percent, an increase from the position in September 2022 which was 292.28 percent," said Siddik.

Meanwhile, until the end of September 2023, the position of credit restructuring affected by Covid-19 Bank Mandiri has decreased to IDR 23.8 trillion. This amount is much lower than September 2022 in the position of IDR 45.6 trillion, or a decrease of 47.81 percent yoy.

According to Siddik, this decline was driven by the repayment and payment of debtors' installments, and the businesses of debtors who had returned to normal.

"Thanks to discipline in implementing risk management, Bank Mandiri's cost of credit (CoC) on a bank only basis, it was successfully reduced to 0.73 percent as of September 2023. It is much better than the previous year's period of 1.30 percent," he explained.