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Bank Mandiri reveals its ‘blue ocean’ strategy
INTERVIEW Bank Mandiri reveals its ‘blue ocean’ strategy
Thanks to this strategy, its net profit grew 61.7% YoY in the first semester of 2022.
For Bank Mandiri, the traditional ‘red ocean’ strategy, or bloody competition, has become obsolete. It has now fully embraced the ‘blue ocean’ strategy, opening itself to collaborations amongst its fellow industry players, partners or competitors alike.
Bank Mandiri found that the disruption of technology, the work culture of millennials, and changes in consumer behaviour due to the COVID-19 pandemic have made the collaboration theme even more relevant.
“The ‘Leveraging Digital Ecosystem’ strategy is one of the implementations of integration and collaboration strategies that are intensively carried out by Bank Mandiri,” said Thomas Wahyudi, SVP of Transaction and Banking Retail Sales at Bank Mandiri to Asian Banking & Finance.
Collaboration efforts
Bank Mandiri collaborated with 10 partners across various industries—including culinary, beauty and health, events and attractions, fashion, sports and activities, games and entertainment, and travel—to develop Livin’ Sukha, a feature of Livin’ by Mandiri super apps. Livin’ Sukha allows customers to fulfil the needs of a number of transactions such as purchasing airline tickets, train tickets, entertainment, and game vouchers without having to switch applications.
The ten partners are Telkomsel, Traveloka, Garuda Indonesia, KAI, Indosat, XL, Indomaret, Kopi Kenangan, Kopi Janji Jiwa, and XXI.
Bank Mandiri actively played a role as the main payment channel in several events in Indonesia, such as ticket sales for concerts of foreign and domestic artists (Westlife Concert and We The Fest Concert, etc.), major sporting events (Mandiri Jogja Marathon, FIBA Asia Cup Indonesia 2022, etc.), and art events (Army Smile Art Exhibition).
Bank Mandiri presents reliable digital banking solutions like branch services in the palm of your hand, as well as the lifestyle needs of customers through the Super App Livin’ by Mandiri. Bank Mandiri is fully aware that they must adapt quickly, providing an excellent customer experience, especially facing the rapid penetration of the IT-based financial industry. “And Livin’ Sukha is one of our responses to the adaptation,” said Thomas.
Thomas said that Bank Mandiri’s services are available in a “one-stop solution for all your lifestyle” based on the 3S concept—Santap (Eat), Sehat (Healthy), Santai (Relax). To realise this concept, Bank Mandiri is actively working hand in hand with many partners.
“Because we want Livin’ by Mandiri to be an application that accommodates the entire banking experience at Bank Mandiri, from account onboarding, savings, transfers, loans, to investments that are all done in the palm of your hand,” said Thomas.
Beneficial collaboration
According to Thomas, collaborating with top players in the banking ecosystem is a step towards creating a mutually beneficial synergy for each party. However, Thomas also emphasised that in establishing collaboration, the vision and goals of synergy are the first things that need to be harmonised. Next is to build and sustain long-term trust through communication and coordination.
“Collaboration with clear goals, focus, and shared execution will drive productivity which is a positive response to the challenges. This productivity will become a competitive advantage in a business organisation, including at Bank Mandiri and the effectiveness of collaboration will determine the level of productivity,” said Thomas.
Market expansion, quick time to market, targeted campaigns and promo programs, and strong image recognition are some products of collaboration between
Bank Mandiri presents reliable digital banking solutions like branch services in the palm of your hand (Photo: Thomas Wahyudi, SVP, Bank Mandiri)
Collaboration with clear goals, focus, and shared execution will drive productivity
Digital transactions at Bank Mandiri on a month-to-month basis in 2022 moved steadily with the growth of around 30% to 50%
Bank Mandiri and its partners.
These collaborations are reflected in Bank Mandiri’s net profit in the first semester of 2022 which reached IDR 20.2t, a 61.7% growth year on year (YoY). This achievement was also supported by the company’s good intermediation function, where the credit position on a consolidated basis grew by 12.22% YoY to IDR 1,138.31t in the first half of 2022.
Digital transactions at Bank Mandiri in the 2022 period on a month-to-month basis moved steadily with the growth of around 30% to 50%. This is of course inseparable from the collaboration that has been carried out by Bank Mandiri whilst continuing to improve digital transaction services and performance, such as super apps Livin’ by Mandiri, ATM, EDC, Mandiri Internet Bisnis, QRIS, eCommerce, and Mandiri eMoney as Electronic Money.
The collaboration between Bank Mandiri and its partners is a mutual benefit. “This means that not only do we benefit consumers with the convenience they receive, merchants also benefit from Bank Mandiri’s large database of at least 13 million customers,” explained Thomas.
Bank Mandiri continues to improve digital transaction services, such as super apps Livin’ by Mandiri, Mandiri Internet Bisnis, and Mandiri eMoney Financial institutions were attacked triple the average global every week
Indonesia’s finance and banking sector is the second most attacked industry by cyberattackers in the country, according to a study by cybersecurity solutions provider Check Point Software Technologies.
On average, Indonesia’s financial institutions were attacked 2,730 times a week in the first six months of 2022–more than triple of 252% more than the global average of 1,083 attacks a week.
Indonesia’s higher attack rates as compared to global statistics mean attackers are more successful in the country, warned Deon Oswari, country manager, Indonesia, Check Point Software Technologies.
“In the case of Indonesia, Check Point Research is seeing increased attacks on its mobile banking platforms and applications. It is critical that the banking industry be vigilant and review their best practices,” Oswari said.
Notably, the Central Bank of Indonesia was hit by a ransomware attack, with hacker group Conti Ransomware claiming the attack and leaking part of the allegedly stolen files.
Globally, the finance and banking sector was the 6th most cyber-attacked industry, the study found.
Phishing emails remain amongst the most common delivery mechanisms for ransomware. Check Point Research found that 92% of the malicious files in Indonesia were delivered via email in the last 30 days.
“All it takes is one uninformed employee clicking on a link in a malicious email, and it can hold an entire company hostage,” they warned.
