Using AI, BTN Encourages Business Growth And Risk Management

BTN (Photo: Website BTN)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BBTN) has used artificial intelligence (AI)-based technology. This is by empowering big data and machine learning to encourage business growth to risk management. President Director of BTN Nixon LP Napitupulu said the company is also developing its customer segmentation to reach a wider market potential. "With the digital transformation carried out, BTN hopes to become more connected with customers, providing more personal services, and embracing changes to the digital world, said Nixon quoting Antara. AI application is one of the journeys of information technology transformation (IT), especially big data, which is a series of BTN strategies towards advanced AI-data driven, which is also accompanied by updates and implementation of the latest technology for the big data ecosystem. Some of the latest technological reforms and implementations such as building data The warehouse, Lake data, master data management, cloud use, and so on. BTN IT Director Andi Nirwoto added, the implementation of AI is part of a strategic step in realizing BTN's vision to become the best mortgage bank in Southeast Asia. Furthermore, the application of AI has been carried out to generate various business insights and hypersegmentation that group customers in specific and precise groups. That way, BTN can provide personalized financial solutions to customers according to their needs. "Furthermore, the application of AI that we have done is also able to increase loyalty and engagement with customers. All of this is in line with BTN's commitment to always be a one-stop mortgage solution for its customers," said Andi. several parts of BTN's business that implement AI include determining customer segmentation, cross-sell and up-sell activities for deposit products, credit, and investment, digital campaign activities to retention-related programs and winback. By using AI, all processes of information, promotion, and product offerings can be carried out on target and according to customer profiles and needs. In addition to encouraging business growth, BTN also uses AI for banking risk management such as credit scoring, early warning system, and most recently is the probability of default which functions to maintain customer electability while being a creditor at BTN.

In implementing the probability of default model, BTN utilizes talkbots as one of the channels to interact with its customers. The company noted that the application of AI has had a significant impact on BTN's business growth. This was reflected in credit growth in the first quarter of 2024 which grew 14.8 percent to Rp344.24 trillion compared to Rp288.74 trillion in the first quarter of 2023. Then, BTN's low-cost account and saving account (CASA) rate also grew 7.1 percent to Rp178.6 trillion compared to Rp166.8 trillion in the first quarter of 2023. In terms of risk management, BTN was able to maintain credit quality to be better, such as the gross non-performing loan (NPL) level in the first quarter of 2024 which fell to 3 percent compared to 3.54 percent in the same period the previous year. Likewise, net NPLs fell to 1.38 percent compared to 1.46 percent in the same period the previous year.