Bukopin Bank Increases Efficiency, Operational Cost Down 5 Percent

INDUSTRY.co.id - Jakarta - During the first four months of 2018 Bank Bukopin reduced its operational cost by 5% compared to the same period in 2017, from Rp907 billion to Rp859 billion. The company has initiated several initiatives to improve efficiency such as through digitization of the Core Banking System that has an impact on efficiency product business processes.

"With the application of Core Banking digitalization, there has been a migration of transactions from outlets (offices) to other electronic channels by 30%," said Director of Finance and Information Technology Adhi Brahmantya, Tuesday (15/05/2018).

In addition, through the launch of Wokee digital products, Bank Bukopin also simplifies business and operational processes, including efficiency in the opening of savings, bookless transactions and cardless cards; Wokee is a digital banking savings product of Bank Bukopin. The service provides a number of digital-based features, ranging from account opening to online banking transactions. Efficiency measures are also undertaken by the Company through an evaluation of a number of routine corporate costs.

"Through this step, during the first four months of this year the Company succeeded in reducing the routine cost. We are targeting a 10% decrease in routine costs by the end of 2018, "he explained.

In addition to efficiency, the Company has also diversified its revenue gradually through increased fee-based income. Efforts to boost non-interest income are made through the launch of Flexy Bill products, increased volume of bank guarantee, public service transactions, wealth management, and credit card usage upgrade program. The series of moves resulted in an increase in fee based income of 41% from Rp252 billion in April 2017 to Rp354 billion in April 2018.

"Bank Bukopin currently serves more than 12 million retail customers each month through 20,000 points spread across Indonesia for public service transactions," he said.