OCBC NISP Indonesia goes on a digital transformation journey

• Works with its ONe Mobile app and collaborates with startups
• Targets to shift 90% of its banking activities online

INDONESIA’S OCBC NISP Bank welcomes the development of technology by digitally transforming through its ONe Mobile' app and initiatives to collaborate with startups.

OCBC NISP Bank head of individual customer solutions Ka Jit says that, “Digital technology acts as an enabler for the bank to elevate our services to customers and their behaviour has changed towards being digitally-driven.”

He adds that this digital transformation comes under the three pillars of mobile first, data driven and embedded ecosystem.

“To enable this, we created a digital team (30 staff) on July 2018 and the main focus of this team is to innovate.”

The ONe Mobile app allows customers to manage their wealth and includes real-time monitoring of investments profit and loss, loans, insurance, and deposits.

By the end of the year, around 90% of OCBC NISP’s banking activities, normally carried out at branch offices, can be done through the app.

“There will be a shift from transaction-based to advisory-based activities at branch offices. This is mainly because there are some aspects that need to be processed offline or face-to-face.”

The effects of this technology adoption can already be seen from the growth in transactions at ONe Mobile app services by 40% year-on-year (y-o-y) and a growth in fees by 46% y-o-y since its launched in April 2018.

The total deposits through digital channels increased by 62.75% or grew eight times faster than through traditional channels.

The bank also saw double the y-o-y growth in mobile banking penetration with218,000 registered internet and/or mobile banking users.

Open collaborations with startups

As part of its digital transformation, OCBC NISP now forges collaborations opportunities for startups in vertical industries such as education, housing, health, and B2B services.

OCBC NISP Bank head of new digital ventures Altona Widjaja says, “The presence of startups that work quickly in creating innovation and are creative thinkers are the drivers of business transformation in the Indonesian banking sector.

“We picked these segments because the solutions they offer can integrate with businesses that we are doing.”

This collaboration allows startups to deliver their solutions efficiently to the market through OCBC NISP’s resources in its network of partners and customers.

Altona says that the team is in talks with several startups that provide accounting and HR platforms. He is unable to disclose any names as he wants to scale it up first.

This collaboration began from an digital initiative by OCBC Singapore called, "Open Vault" which focuses on business engagement, education, data sandbox (includes experiments), and culture. Launched three years ago, Open Vault's success rate has hit 30% from 30 projects.

Altona says that this initiative has resulted in collaborations with 1,000 startups on a global scale. He is not targeting a specific number of startups for this collaboration because it depends on the characteristics of the product in each vertical.

“It can be as two to three startups under one vertical, our main focus is to deliver solutions for our customers and partners.”

Altona says that the bank is looking for Pre Series A or Series A startups to collaborate with.

Value added to experience

Ka Jit admits that there are challenges in finding the right talent, being faced with legacy infrastructure, and adaptation.

“That is why we built a dedicated team in digital transformation as agents of change. They also have to embrace the changes and it is part of our journey. Your experiences are only relevant if you add value to it.”