Bank BRI: Creating financial opportunities in Asia with digital banking

About Bank BRI

Bank Rakyat Republic of indonesia is one of the largest banks in Indonesia and is committed to increasing financial inclusions among un-banked Indonesians. Banking concern BRI specializes in using modern digital banking to facilitate microfinance lending beyond its network of over 10,000 branches and thousands of branchless agents.

Industries: Financial Services & Insurance

Location: Indonesia

Banking concern Rakyat Republic of indonesia (Bank BRI) increases financial inclusion through award-winning digital banking and generates revenue using the Apigee monetization characteristic for fintech APIs.

Google Deject Results

  • Contributes $50M in revenue through the Apigee monetization feature
  • Wins recognition for best digital bank in Indonesia from The Asian Banker in 2019
  • Achieves ISO 27001 information security for open up APIs, earning distinction every bit the only depository financial institution in Association of southeast asian nations to receive certification to engagement
  • Reduces partner onboarding from half dozen months to under 1 hour with Apigee developer portal

Reduces loan approval and disbursement from 2 weeks to 2 minutes with Pinang app

Bank Rakyat Indonesia is making waves in Asia with its honor-winning digital strategy. As a authorities-owned bank, Bank BRI is dedicated to changing the lives of its customers through accelerating financial inclusion across Indonesia. With an ambitious target of 84 pct of Indonesians participating in the banking system by 2022, Depository financial institution BRI is leapfrogging fintech contest thanks to its innovative digital strategy that has APIs at its cadre. By the end of 2019, Bank BRI expects to accept reached a 70 percent financial inclusion rate among the state'southward population, in part due to the adoption of the Cloud Apigee API Management Platform as the bank's digital nucleus.

Transforming a legacy into a digital future

In the banking concern, trust is essential, not only between the depository financial institution and its customers, but likewise betwixt the banking concern and its partners. Recognizing that gaining and maintaining this trust would exist cardinal to customer and partner adoption of the new Bank BRI products and services, the bank decided to pursue ISO 27001 certification in 2018, becoming the offset bank in Association of southeast asian nations (the Association of southeast asian nations) to become certified equally information security compliant. Now the international community of partners and customers who use the bank'due south APIs have yet another reason to place their trust Bank BRI.

"Apigee has become the central nervous system for all communications between the digital core banking, the microservices, the frontend, and the apps. Apigee has become our dominicus. Everything rotates around Apigee."

—Kaspar Situmorang, Executive Vice President, Bank Rakyat Indonesia

Kaspar Situmorang, Executive Vice President of Bank BRI, had the original vision for how the bank could transform itself into a fintech with digital technology and APIs. His team got started by implementing a web-native frontend over a new engineering science stack with Apigee as a second layer. This was a big change from the legacy technologies that existed when Situmorang joined the depository financial institution in 2017. Previously all of the bank's products had their ain public APIs, which were very hard to manage, secure, and monetize.

Since deploying Apigee, it's become much easier to manage the entire API lifecycle. Situmorang's digital banking concern team of xv uses the Apigee monetization and developer portal features while managing and securing APIs and conducting big data integrations. Apigee has go Banking concern BRI's center of communications, treatment all transactions betwixt the bank and tertiary parties.

Whereas previously information technology could have up to six months to onboard a new partner using host-to-host and VPN technology, now it takes less than an hr for partners to self-onboard using the Bank BRI Apigee developer portal. On the portal, partners tin can register, browse APIs, test in the sandbox, and get into production — all in less than an hour.

"Apigee has become the cardinal nervous arrangement for all communications between the digital core banking, the microservices, the frontend, and the apps. Apigee has become our sun. Everything rotates around Apigee," says Situmorang.

Increasing financial inclusions

With more than 10,000 offices across Indonesia, Bank BRI has the largest network of any depository financial institution in ASEAN. The bank is also the biggest microfinance lender in the region. Though already nowadays in even the nearly far-flung corners of Indonesia, Bank BRI is still working on increasing fiscal inclusion among united nations-banked Indonesians. With 56 1000000 people that haven't accessed banking services, Indonesia is in the bottom four countries for financial literacy in the earth, along with Bangladesh, India, and China. It's estimated that there is up to $8.3 billion in currency being held outside the banking system.

In order to reach this mostly rural, subset of the population, the bank launched Agent BRILink, a nationwide network of branchless agents. These agents can open new accounts, accept deposits, pay out withdrawals, and process and disburse loans in under two minutes with the Pinang microfinance mobile app. To date, over 30,000 customers accept received loans through Pinang. Treatment its own chance-scoring and automated payroll deductions for payments has translated into less risky and more profitable loans for Bank BRI.

"Customers download the app and scan their ID, capturing their credit score in simply a few seconds. The digital offer alphabetic character says how much they're canonical for. They can and then take it, go to the approval screen, and do facial recognition. The money is disbursed immediately. GCP has transformed the states into a fintech."

—Kaspar Situmorang, Executive Vice President, Bank Rakyat Indonesia

BRILink agents are banking concern customers who take been scored highly for reliability by the banking concern'southward big data analyses and who maintain a minimum balance of effectually $800. Combining this information with the Google Maps API, Bank BRI is able to score all 75.five one thousand thousand of its customers and identify which of them should exist recruited as agents for underbanked areas. Since 2018, the depository financial institution has been able to appoint more than 200,000 branchless agents using the Agent BRILink app, eliminating the demand for logistically challenging face-to-face meetings. This has resulted in an increment in loan book from branchless business from $15 billion in 2017 to $26 billion in 2018.

To enable branchless agents to sign upwards new customers and provide banking services, all they need is a mobile telephone and internet service. With many parts of rural Republic of indonesia not covered by commercial 3G, Banking concern BRI has overcome this hurdle by operating its own satellite. With the connectivity the satellite guarantees, branchless agents can help customers obtain microfinancing and open up new shops and businesses in all parts of the state. The satellite too provides internet service beyond the APAC region wherever the depository financial institution operates, from Sri Lanka to New Zealand. While it might seem unusual for a bank to operate a satellite, it's reflective of Bank BRI's commitment to reaching its financial inclusion targets and meeting its customers wherever they are.

"Pinang was created to win against fintechs trying to compete against us on speed, cost, and security," says Situmorang. "The truth is that Indonesian regulators closed almost 650 fintechs, mainly in the peer-to-peer lending space, considering they were unsafe, too expensive, and very slow."

Using APIs to create and monetize new products

Another way that Bank BRI is leveraging Google Cloud Platform solutions is through an innovative utilize of the Cloud Vision API, which enables the bank to integrate with the Indonesian government ID database. Identities of new customers — whether they're coming in via a branch, a BRI Link Agent, or a mobile app — are automatically verified in seconds through facial recognition. With instant credit scoring and identity fraud concerns essentially eliminated, the banking concern can make more confident lending decisions.

"Monetization is very important to us. Information technology enables u.s.a. to ascertain our pricing based on API calls and bill automatically based on usage. We've already recognized $50 meg through the Apigee monetization feature."

—Kaspar Situmorang, Executive Vice President, Depository financial institution Rakyat Republic of indonesia

"Customers download the app and scan their ID, capturing their credit score in merely a few seconds," explains Situmorang "The digital offering letter says how much they're approved for. They can so have it, get to the approval screen, and do facial recognition. The money is disbursed immediately. GCP has transformed us into a fintech."

Bank BRI sees a brilliant digital futurity, in part thanks to the API product marketplace it's creating to serve fintechs. With its digital technologies and massive customer base, the bank is sitting on a treasure trove of big data. Banking company BRI already packages this information through more 50 monetized open APIs for more seventy ecosystem partners wanting to exercise credit scoring, business concern assessments, and risk management. Fintechs, insurance companies, and fiscal institutions don't have the talent or the fiscal resources to do quality credit scoring and fraud detection on their ain, then they are turning to Bank BRI.

"Monetization is very of import to us. It enables usa to define our pricing based on API calls and beak automatically based on usage. We've already recognized $50 million through the Apigee monetization feature," says Situmorang.

Banking concern BRI is meeting and surpassing the goals it has set for itself for digitalization, increasing financial inclusion, and creating new revenue streams with APIs.

About Bank BRI

Depository financial institution Rakyat Indonesia is one of the largest banks in Republic of indonesia and is committed to increasing financial inclusions among un-banked Indonesians. Depository financial institution BRI specializes in using modernistic digital banking to facilitate microfinance lending beyond its network of over 10,000 branches and thousands of branchless agents.

Industries: Financial Services & Insurance

Location: Republic of indonesia