Thiscasestudyisafieldofstudy, basedonaspecificcasediscussion whichistellingtheInternet-Bankingstrategic decision atBNI.BNIInternet- BankingwasoneoftheBNIe-channelservices for BNI TAPLUS Saving users. Thetimeperiodofthis casestudywaslimitedbetweenin2006until2007.On March 2006, BNI had launched BNI SMS-Banking. Other e-channels that had been deployed by BNI were BNI ATM, BNI Phone-Plus, and BNI Mobile- Banking, Along with the rapid trend of internet technology in business applicationespeciallyinthee-commercetrendcouldbeseenasanopportunity forbankingindustry.BNIdecidedtocomplete thefivee-channelservicesaspart of service improvementwhich was inline with the expectation and the need of the business as stated on BNI’s vision and mission.
BNI was known as the first bank formed and owned by the Indonesian Government.IthadlargenumberofcustomersspreadinIndonesiaandsome other countries. BNI provided innovative banking products and services to serve its customers and faced with totally tight technology based banking competition fromits rivals, including the use of internet technology.
Inthisera,bankingovertheInternethasattractedincreasingattention overthepastseveralyearsfrom bankers andotherfinancialservicesindustry participants,alsotothebusinesspress,regulators,andlaw-makers,societyboth inIndonesiaandinothercountries.Inpart, this is due to the rapid and significant growth in electronic commerce ("e-commerce"), and the notion that Electronic- BankingandElectronic-Paymentswilllikelyadvancemoreorlessintandem with e-commerce.
Efficient and effective Internet-Banking will be potential to make the customers become more loyal and more have the sense of belonging to the bank andintheendalsowillgainandgetmore peopletobe interestedorbecome attractedwiththeInternet-Bankingservices facilityasaserviceimprovementfor BNI-TAPLUS’scustomers.Indirectly, theInternet-Bankingalsobeable to educate its customers in doing or conducting a self-banking transaction online with a different way at all.
Reviewing the needs of IT infrastructure to supportbusinessesand consideringthatinternetisasacost effectivesolutionforanITinfrastructure, many people, in this case Indonesians are beginning to peak at what is called e- commerce. They try to do businesses via the internet. Start by selling services suchasspecificinformation(software, hardware,news,etc.)onthewebsiteand advertisementsbysellingproductssuchasgoods,books,cars,foods,stuffs,etc. or even provide both, also conducting an event such as online seminars,
webminars,tutorial,collaborating,conferencing, jobsharing,etc.Inaddition, industryanalysisoutliningthepotential impactofInternet-Banking on cost savings,revenuegrowth,andincreased customersatisfactionandconvenience, alsogeneratedconsiderable interestandspeculation abouttheimpactofthe internet on the banking industry.
The public policy issues emerging withthedevelopmentof Internet- Bankingaregeneratingincreasedattentionfrom bankingregulatorsandother government officials as well. To date, however, because there is also little systematic information on the nature and scope of Internet-Banking, much of the analysisfrom thebenefitsandtheimpactofInternet-Bankinghavebeenbasedon anecdotal evidence and conjecture. No wonder all of the largest national banks in theworldespeciallyinIndonesiahad offeredInternet-Banking.Foraddition, BNI’spositionasoneofthelargestnationalcommercialbank offeringInternet- Bankingperform relativetoothernationalcommercialbankswithrespectto profitability,costefficiency,andothercharacteristicsin termsofBNIcase. Among institutions offering Internet-Banking, large banks are much more likely than small banks to offer a broader range of services via the Internet.
BNI as one of the largest bank in Indonesia which had so many customers at any segments to serve, in case of the rapid growth of internet users in Indonesia and in optimizing it’s serviceimprovements,inApril2007hadbeen launching the BNI Internet-Banking as part of its e-channel services. By
providingitsInternet-Bankingchannelservices whichwas linkedontheBNI’s corporatewebsiteatwww.bni.co.idandalsohadadirect link at the https://ibank.bni.co.id, offered a new waybydoingsomebankingtransactions over the internet.
We hope with this BNI Internet-Banking case study would be useful especially forboth sidesaspartof BNI’scontributionofitsCSR(Corporate SocialResponsibility)tosharethesuccessstoryandgainthelessonslearned fromthepastexperiencesintermsoftheInternet-Bankingissuesandthetrends of going global opportunity as a case study to one of academic educational material for the students especially for Business School in Indonesia. This moment would also be an opportunity forBNIasanewmarketingchannelto promote,gainprospectsandsocializeits innovative products anditshigh-tech new services in the segmentationof educational environment.
This case study tells about considerations of why BNI decided to go Internet-Banking and how BNImade strategic decision to improve its services by completing its e-channels services including the Internet-Banking facility as service improvement. In creating strategic decisions and considerations background with related approaches had been made in considering decisions for thecaseofwhetheritwastherighttimeforBNItogoInternet-Bankingornotgo.
Onthiscasestudythesisisdivided into five chapters. The background of selected case area is presented in the first chapter followed by the scope of discussion which is limited in the year of 2006. The introductory chapter is followedbyChaptertwothatprovidestheliteraturereview oracademictheories related to the Internet-Banking case. Chapter three describes the methodology of creatingthis casestudythatpresents the detailedideaabouthowthecasewillbe conducted and this includes the data collection. Chapter four tells about the case contentdiscussion,whichisalsodivided intofoursub-titlesaccordingtothe BinusThesisGuidance,startingfrom thecompanybackground,theindustry background, the scope of discussion and the case study content itself that tells the mainpointofcasediscussionattachedastheappendix-I.Chapterfivecontains thelessonslearnedgainedfrom thecase,limitationandconclusion.Asadditional enclosureinformationalsoprovidestheBNICorporateOrganizationStructure, the BNI’s Internet-Banking screen snapshot proposal, the Internet-Banking’s User Profile Information, list of Board of Directors and list of Board of Commissioners.
ThiscasestudyisfocusingontheBNIInternet-Bankingservicesaspart oftheBNIe-channelservicesalsopartoftoday’sbankingservicestrendthat must have and limited to the story of consideration strategic decision for BNI to go Internet-Banking or not go.
Funds & Financial Services Division at that time, who had the initiatives to drive forces in completing the five e-channels banking services, by pushing the Internet-Bankingimplementationimmediatelyto competeandreadytogolivein response to the changing banking industry and competitive conditions environment.
The moment was in March 2006, atWisma-46 building located at Sudirman Road in Central-Jakarta, once upon a timeafter the grand launching of BNISMS-BankingonMarch5th2006,atthesametimeMr.Sabdostraighttook theinitiativestocontinue theBNIInternet-Bankingimplementationimmediately. He assigned Mr. Amirul Wicaksono which is as E-Banking Group Head at the ConsumerFundsandFinancialServices Division,andbrainstormedforthe purposeofcontinuingtocompletethefive e-channelsservices.Allof thefivee- channels banking services is under the E-Banking Group unit responsibility concern.Mrs.KartikaDwinovitasariwaschosen,appointedandassignedtobe
BeforestartingtodeveloptheInternet-Banking project,shehadreadthe blue-printandfoundthatthoseaboutthe Internet-Bankingplanhadbeenthere from AtoZhadalreadybeenprepared,but ithadbeenoutofdateanywaywhich meansitdidn’tmeettherecenttoday’s needsandtrendsanymore.Thegeneral manageratthattime,whowasMr.Sabdo,wantedthatalltheelectronic-channels
must had been ready completed and must available for the TAPLUS-Saving’s usersandaccessibleto dobanking’stransactionswithglobalaccess anywhere anytime.TherewasalreadyavailabletheBNIe-ChannelServices whichare ATMs, Phone-Banking, Mobile-Banking, SMS-Banking, and also Internet- Banking which were mentioned as the Big five weapons for BNI e-channel to be readytofightintothisverytoughe-bankingwarcompetitionfrom nowonandin the future.
TheobjectiveofthisthesisistogainthelessonslearnedfromtheBNI Internet-Banking’s past experience. In this case we would like to learn, to share andtogaintheappliedknowledgeexperiencefromtheBNI’ssuccessstoriesof e-Banking implementation by writing down this case study which is limited on considerationtodecidewhetherBNIgoInternet-Bankingornotgointhescope of corporate strategy and business strategy coverage area. Recently,educationaloracademicinstitution especially forBusiness SchoolsinIndonesiaisrelativelylackofIndonesian’scasestudies.Bygiving andsharingthelessonslearnedfromthiscase is expected thatwecanlearnfrom thepaststoryonhowtheproblem ordilemmasituationcouldhadbeensolved. Hopefully,thiscasestudywillbe usefulforacademic/educationalpurposesand gaining respect from BNI’s stakeholders as part of its Corporate Social
Responsibility(CSR)andalsocanbeapromotionchannelinintroducingthe Value-Added Services (VAS) provided by BNI.
The scope of this case study discussion is limited only to the BNI Internet-Banking in case of the dilemma question on whether BNI decided that it was the right time to go Internet-Banking or not go. Please note that this case studywascompiledfrompublishedcorporatewebsite,corporate intranetand published corporate book documentation sources, and is intended to be used as a basisforclassdiscussion.It isnotintendedtoillustrateeithereffectiveor ineffective handling of a management situation.Norisita primaryinformation source.
In 2006, the only one major BUMN bank that had already owned the Internet-Bankingservicesdeliverychannel was Mandiri Bank. There were also five major private banks that had already owned the Internet-Banking services as part of their e-channel services; they were Permata Bank,BII,LippoBank,BCA, and Mega Bank.
RecentlyatoughcompetitionfromBNI’srivals withsomanyfeatures and high quality services in e-Banking channel including Internet-Banking servicesfacilityhavebeenpartofperformancemeasurements.Beinginlinewith
BNI’sobjectivesasstatedonBNI’sVision and Mission to be a leading bank in servicesand constantlystrivestoenhancetheQualityof Service(QoS)inthe interest of customer satisfaction, Mr. Sabdo thought that it was a must for BNI to go Internet-Banking immediately with no longer waiting anymore.
Furthermore,BNI’sposition asthefirstbank in Indonesiaandbeing one ofthelargestgovernment(BUMN)bank inIndonesiawithsomanytypesof customersspreadinothercountriesworldwide,soBNIrealizedand had tomake strategyintakingactionsfortheinternet trendopportunitiestoimproveservices aswellasachievingtheBNIobjectivesasacustomercentricbankinlinewith the vision which is mandatory to put full attention and deep understand to BNI customers’ needs as the impact of globalization era. However, the blue print of BNI’s Internet-Banking had been there since the year of 2002, but not implemented yet. Mr. Dody as the General Manager of Consumer Funds and ServicesDivisionatthattimewanted thatalle-channelservicesmustbe completedimmediatelyandbereadyin competitionwithotherIndonesiane- banking channel services.