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Business Analysis : BCA
The Company’s business and history
BCA is one of top 5 bank’s in Indonesia with total asset approx. 150 trillion, the business are to provide financial services to its customer include funding, lending activities and also transaction feature which customer needs.
The Vision of the bank is to be main people choices bank, to achieve that goals BCA had three strategy :
• To build leading institution in transaction, and financial solution either to business customer and individual customer.
• Understanding customer needs and gave them the right financial services for optimal customer satisfaction.
• Added value to BCA stakeholder.
The history it self began at 1955 when BCA establish with the name N.V. Perseroan Dagang, in 1988 BCA start to wider its network by developing branch nation wide. In 1990 BCA start to enhance its services with Automatic Teller Machine or known as ATM but in 1998 as the failure of Indonesian Banking System causes by economic crisis, BCA join in the group of the recapitalization and restructured by Badan Penyehatan Perbankan Nasional or known as BPPN with the ownership of 92,8% shares by Indonesian Government. In the year 2000 – 2001 BPPN divest it shares through public offering causes decreasing of shares to 60,3% and in the 2002 the change of ownership after Farindo Investment own majority shares with 51%.
The Competition
In term of Environment
With more than 130 bank’s operating in Indonesia gave the banking industry tight competition environment.
To growth in Indonesia Banking environment its not easy due with so many competitor and the reality that almost 80% of money is base on Jabotabek also with more educated customer from time to time which demand more complex financial services provided by bank to meet their needs. So the bank have to had a competitive advantage in order to differentiate them with others.
In term of Branding
To be the bank in the “Top of Mind” of people think is a difficult task, aggressive promotion, educating the customer and future customer about service and feature that the bank provided, accessibility, etc. requires strong commitment and clear business segmentation.
In term of IT & Infrastructures
The complexity financial behavior of the customer from time to time required bank’s to enrich the product line and services with IT reliability as key success factor. In today environment every process in the bank is using IT in order maximize profit and reduce cost, or in the other word reach optimal efficiency. With IT solution, now bank’s can transfer funds to other account in the same bank or even to account in other bank in just a minute of time.
When the first time ATM introduced to Banking Industry is not highly appreciate like they do now, its only one or two unit ATM having by bank. Expensive capital expenditure to provide this machine and not popular at that time be the boundaries for ATM to growth and became standard like we experienced now.
But BCA seeing in the future that customer will be more complex, more mobile, more efficient in consuming their time. And therefore BCA decided to go with expanding ATM to increase their financial services in early 90’s, they believe that this step will be their competitive advantage among their competitor. Until now BCA still focus to enhance their electronic delivery channel align with expanding the branch nation wide also. Given them the best E-company award by Warta Ekonomi for 2006. BCA continuous to enhance their electronic channels feature to meet more and more complex needs of their customer.
BCA transaction volume by using ATM in 2005 is approx. Rp 467 Trillion or grew by 35.5% comparing figures in 2004, with number of transaction is approx. 521 Million transaction.
The other electronic channel (ie. Debit, Tunai, e-banking, etc) have transaction volume in 2005 approx. Rp 199 Trillion or grew significantly by 135.2% comparing to last year figures, with number of transaction is approx. 99 Million transaction.
BCA in 2005 have 41,233 Electronic Delivery Channel vs 32,885 in 2004, and number of ATM is 4,173 unit in 2005 vs 3,218 unit in 2004. With 774 branches BCA have approx. 6.6 million customer.
This tremendous achievement is result of the company long term vision to be the main transaction bank, which one of the strategy is to focus on business model incorporate IT. BCA consistently enhanced their product feature and continuous educated the market (Gebyar BCA is noted as the longest event sponsored by company), from time to time their brand image for transaction bank is very strong in people’s mind.
Because of their strong IT infrastructures and focus in development of their product feature, BCA gain income from fee beside of their income from loan interest. And not like the other bank, the fee income contribution have large portion in order to boost their total other operating income (income which gain from non loan activities). This mean that BCA customer is using their services to do transaction with their various electronic channel.
What BCA do regarding their IT refinement in 2005?
• Enhance their front-end application
In order to support the bank activities in giving integrated service to its customer, BCA had enhance software in their front application system, the goals is to better in understanding their customer needs and give them the best solution.
• Enhance Data Communication System
The bank now is in the phase to replace current data communication system which now use satellite to become fiber optic in order to give reliability and speed to match current business condition.
• IPS System Implementation
To enhance data security system to provide convenience to their customer.
• Support Risk Management Process
Develop financial report database and risk profile, with this the bank can do more thorough analysis, or in other word increase their loan quality.
• EDCBIZZ installation system
BCA launch EDCBIZZ system which targeted for trading society, to give them accessibility to do various banking activities from their EDC (electronic data capture), with this innovation BCA is hoping to boost their electronic delivery channel transaction.