FORMDROPDOWN FORMTEXT ? FORMDROPDOWN
HAND OUT DATE: October
HAND IN DATE: November
INSTRUCTIONS TO CANDIDATES:
1 Submit your assignment at the administrative counter
2 Students are advised to underpin their answers with the use of references (cited using the Harvard Name System of Referencing
3 Late submission will be awarded zero (0) unless Extenuating Circumstances (EC) are upheld
4Cases of plagiarism will be penalized
5The assignment should be bound in an appropriate style (comb bound or stapled).
6Where the assignment should be submitted in both hardcopy and softcopy, the softcopy of the written assignment and source code (where appropriate) should be on a CD in an envelope / CD cover and attached to the hardcopy.
7You must obtain 50% overall to pass this module.
Table of Contents
Vision , Mission and objectives2
Conclusion and recommendation6
Group Task Report8
PT Bank Central Asia Ltd is an Indonesia-based company primarily in banking sector. This company was officially founded by Sudono Salim in February 21, 1957 with the name Bank Central Asia NV, which the headquarters of this company is located in Jakarta, Indonesia. PT Bank Central Asia Ltd is involved in the provision of general banking and the other financial sector , this company provide its services in various area in Indonesia and other regions. The services include deposits account, transaction banking, e-banking, cash management, credit cards, bancassurance, credit facilities, foreign exchange facilities and investment products. PT Bank Central Asia has approximately 21,000 employees with Jahja Setiaatmadja as the current chief executive officer and their sales reach 4 B USD each year also their market cap total value is 23.87 B USD. The company ranked 661 in global 2000, 480 in profit, 585 in assets and 468 in market value. (www.companieshistory.com , 2018)
Vision and Mission , Objectives
PT Bank Central Asia Ltd’s vision is to be the main bank of choice and become major pillar to boost Indonesia economy and the company mission is to establish a main place for payment settlements and other financial solutions regarding corporation and individuals, to understand different customer needs and provide right financial services to make customer satisfied, the last is to improve the company’s franchise and stakeholders value. CITATION Ban17 l 2057 (Bank Central Asia Ltd, 2017)
BCA has several company objectives that they expect to be achieved which are providing satisfaction to customer by making transaction easier whenever and wherever the customers are , whether through m-BCA or KlikBCA , maintain BCA strategic position in national banking industry and maintaining long-term growth, building synergies between the bank’s main business and the subsidiaries, including the cross selling between the consumer product and the insurance product. (Bank Central Asia Ltd, 2015)
Strength,Weakness,Opportunities,ThreatThe company internal strength is listed on top 50 as Asia Pacific’s largest public companies, as major Asia Pacific bank BCA regarded as regional leader in internet and mobile banking, largest financial services company with approximately 900 domestic branch offices, and over 7,500 ATM locations and regularly posted increase in profits also BCA provide personal and business product and services which let the customer know about their saving accounts, current accounts, credit cards, even they can pay car loans. In addition customer can choose online banking through mobile and if customer have a problem, they can access 24/7 telephone banking through its Halo BCA. Apart the strength, BCA has its internal weaknesses too which is global presence limited as it is in Indonesia only, need more branch presence to support and boost Indonesia potential.(www.mbaskool.com, 2018)
BCA has a lot of opportunities which is in rural banking penetration, not just in rural areas but also in semi urban areas, financial advisory services for all the customers and lastly, a lot of expansion in growing economies also BCA can do more partnership with other company to help and boost their profit also to promote BCA to be well known in other region not just in Indonesia.( HYPERLINK “http://www.mbaskool.com” www.mbaskool.com ,2018)
BCA also have some threats to be faced with , which are the decreasing growth rate of the country , other countries bank entering the country business for certain purposes , and the threat of having competitor bank with wider business portfolios , BCA also need to be careful of their competitors as the matter of fact that there are many bank in Indonesia which is as successful as BCA which is PT PAN Indonesia Bank (Panin Bank). (www.mbaskool.com, 2018)
According to Bank Central Asia Ltd (2015), in order to react the changes in the environment, Bank Central Asia Ltd has revised their short-term, middle-term and long-term strategies about the Bank Business Plan and Annual Work and Budget Plan based on the requirement created by the Bank Indonesia about the Bank Business Plan. Bank Central Asia established the business will to increase the customers’ development by coordinating the vision and mission.
The Indonesian economic growth will keep on expanding and facing numerous threat. Bank Central Asia Ltd remain on the aim of developing non-performing loans in the banking sector to reduce the possibility of getting a degradation of the clients’ loan trait. To lessen the threat, Bank Central Asia Ltd decided to focused on the risk management method to implementing the effect of cost efficiency program.
Bank Central Asia holding up the opportunities to keep on following the Indonesia Financial and Banking Sector to make sure that they are in the middle balance line between the loan quality and the liquidity capital position. Bank Central Asia also support the Indonesia growth and infrastructure development in order to create a better Economic Growth in the future. An active changes towards the external environment create a development and discussion on the Business either short, medium and long terms strategies highlighting as one of the Bank’s Strategic plan on their Bank Business and Annual Budget and Work arrangement.
Investment was admitted by Bank Central Asia as it gave yield significant result to extend the banking business and infrastructure dealing capability that was believe not to be the reason of failure of the long-term outlook at the same time the increasement of the competitor between the ASEAN was highly expected. Furthermore, the key advances taken by the bank create an extension between the Human Resources and Authoritative arrangement from all unit included the sidelines were fundamental to the additional fortify of the Bank Central Asia’s situation as the main monetary organization.
Bank Central Asia Ltd also plan to improve their lending method which is improving their domestic macroeconomic conditions, they also have to monitor their liquidity considering the ongoing infrastructure development in Indonesia. The Bank will continue to observe macro-economic developments and their impact on different business sectors. The Bank will remain stable in managing liquidity , through various business initiatives and expected will be able to face the upcoming challenges and will capture business opportunities that will provide added value and continue to improve customer satisfaction. (Bank Central Asia Ltd, 2016)
In 2018, the national economy will improve than in 2017 therefore , BCA will progressively improve the infrastructure and will have a positive impact in the upcoming years to reach the various task completion. In addition, BCA will continue to improve global economic to increse in Indonesian exports and the banking sector expected to growth in moderate , also the bank will continue to monitor interest rate in 2018 for the dynamic policies of the world’s central bank and domestic monetary policies.
V.IMPLEMENTATION OF STRATEGIC POLICY
Strengthening Payment Settlement Services
PT. Bank Central Asia monitor economic conditions and development sector to prevent an imbalance between business objectives and risks of banking is an important part of the management of the Bank’s business lines. Safety, comfort, honesty in doing banking transaction are the most important role for BCA in providing the best quality services for customer and improving its franchise’s worth.
BCA pay close attention to the developing necessity of customers and attempted to find solutions in line with the evolving trends. With the continuously development of the process in digital technology, BCA has spotted a massive changes in customer transaction preferences in following years. The total amount of digital transactions keep increasing , while the amount of transactions through local offices keep decreasing . The number of transactions using digital channels presented 97% to the Bank’s total transactions in 2017 , increased from the previous year with only 96.2% . This development was caused mainly due to the larger use of internet and mobile banking . BCA checked the number of transactions by using BCA internet banking surpassed ATM transaction in 2017.
BCA improves customer experience and operational capability by using the latest high-tech development such as internet banking and also mobile banking. The customer started to use internet and mobile banking more frequently rather than ATM and branches because it is more efficient, easy to use and have an unlimited accessibility. BCA carry on to enhance the performance and add more capacity for transaction of mobile banking and internet banking. Even though branches only present less than 3% to total transaction, they contributed for about 57% of the total transaction value. Branches still a useful channel to increase the customers trust and places for an enormous amount transaction. BCA also upgrading branches by making e-branch app to help assist the customer in banking services.
BCA continuously promote their new products and be alert of the digital development trends. They presented a card-less cash withdrawal facility in 2017 with their BCA mobile, e-wallet app Sakuku , introducing VIRA ( virtual assistant online chat banking system ) . The Bank also collaborate with various of e-commerce players and upgraded their services on online payment methods.
PRUDENT LENDING ACTIVITIES
BCA makes the quality of service, fast application processing and provides a dependable marketing personnel as their first priority to assure the customers have their best experiences. BCA continue to cooperates with other company in the credit card division and held many promotional programs. PT Bank Central Asia improves the dominance of the card ownership by broaden their partnership and develop programs that the customer needs.
BCA improve its loan foundation, by increasing the number of its account officer and managers, building up loan products. BCA’s lending events are balanced carefully controlled quality . BCA continuously use prudent lending practices to maintain lending quality and carefully check the economic conditions. It also steadily monitors the loan portfolio’s quality and proactively uses preventive action when customers face difficulties on loan repayment, and also begin loan restructuring for quality customers facing economical problems. Lending is varied among number of division to reduce the risks.
BCA also expand their business development of its subsidiaries , which include the vehicle financing , remittances , Sharia banking , securities , general and life insurance , it is all done due to the goals to provide complex financial solutions for consumers , in hope for the customers to strengthen BCA’s transaction banking business.
BCA then established the CCV ( PT Central Capital Ventura) , a new venture capital subsidiary in 2017. With CCV , BCA expects to invest in and cooperate with fintech companies , also helping the financial industry of a company so that BCA are able to enhance their financial service ecosystem and the subsidiaries.
BCA enlarged its share ownership with PT Central Santosa Finance , a motorcycle financing subsidiary . Now , BCA has exactly 100% ownership of this company , with previously only 70%.
BCA directly owned PT Asuransi Jiwa BCA ( Life Insurance ) in 2017 , this company was indirectly owned by PT BCA Sekuritas and PT Asuransi Umum BCA previously . BCA also raised its ownership of BCA life and BCA Sekuritas from 75% to 90% . Increasing ownership in subsidiaries will enhance collaboration and build up alignment between strategic plan of the subsidiaries and the Bank.
Conclusion and Recommendation
GROUP TASK REPORT
3)Fernando Sidik4)James L JunusArea of Responsibility Name and Signature of Member
Vision, Mission, Objectives
Introduction Elvira Willie
Strategic Implementation Fernando SidikIntroduction
Vision and Mission
James L Junus