BTPN Bank, Indonesia, Completed Digital Transformation of Its Front-Office Services Based on Diasoft’s FLEXTERA

Tuesday, August 21, 2018

Diasoft, a provider of software solutions for the global financial services industry, and BTPN Bank, one of the largest retail financial institutions in Indonesia, have completed rollout of the Bank’s new digital front-office platform based on the cutting-edge Diasoft FLEXTERA Suite. The solution ensured countrywide support of the Bank’s front-end customer services, delivered to its retail, SME and microfinance customers via almost 500 bank branches. FLEXTERA provided the Bank with the broadest flexibility, scalability and customization capabilities for its further successful development.
 
In 2016, Indonesia-based Bank Tabungan Pensiunan Nasional Tbk (BTPN) embarked on the project for transformation of its business. BTPN’s strategy focused on creation of a modern all-in-one bank catering for all aspects of retail banking services. To effectively support its new business ambitions and meet the market demand for digital banking services, BTPN needed a modern integrated digital front-end platform that would ensure delivery of centralized customer services through the countrywide network of almost 500 bank branches.
 
During the first phase of the project, Diasoft implemented the innovative digital FLEXTERA front-office system to support the Bank’s new front-office business processes catering for the new lines of its business. FLEXTERA covered all front-end customer services and teller operations of the Bank in the retail, SME and microfinance market segments. The broad scope of bank services supported by FLEXTERA includes customer identification with a 360-degree customer view, operations with current accounts and deposits, cardholder services, cash and cheque transactions, payments and money transfers, including SKN/RTGS transactions. Significantly, the multi-language enablement of the solution ensured its easy localization and provided bank users with convenient user interfaces in the Indonesian language.
 
The implemented FLEXTERA Front Office was integrated with the Bank’s corporate ESB, which ensured smooth communication of the solution with the Bank’s IT landscape, including its back-office platform based on Equation by Finastra, Compass Plus card processing system, a biometric identification system, a scan recognition system, etc. Within the project scope, the solution was successfully tested for support of the Bank’s security requirements and the ability to operate in the low bandwidth environment. Thanks to its open architecture, FLEXTERA allowed the Bank to reach the required level of performance, reliability and scalability for successful rollout of the system throughout the broad network of Bank branches and further development of its business.
 
The project was carried out with the help of Diasoft’s local partner in Indonesia – Sistema Datapilar.
 
During the second phase of the project, the solution was successfully rolled out in the Bank’s wide branch network all across Indonesia. One of the challenges of this part of the project was the capability to support centralized bank operations in terms of low bandwidth capacity of internet channels in some remote areas of the country. The ability of the system to accommodate this condition was pivotal for the quality of customer servicing, and FLEXTERA allowed the Bank to successfully solve this task. The system demonstrated excellent performance in the distributed environment and ensured smooth communication with the branches that have a low bandwidth connection with the Bank’s head office, which was also proven by successful results of bandwidth tests.
 
Today, the Bank does not only use Diasoft FLEXTERA Front Office to support its daily operations, it also continues its own application development based on Diasoft FLEXTERA tools, which provide a reliable basis for development, customization and deployment of Java-based SOA software applications.
 
“This was a complex large-scale project with a lot of technological and organizational challenges, and I am proud of its impressive results. I want to especially thank the Bank’s project team for their cooperation and support”, commented Alexander Glazkov, Managing Director at Diasoft.  
 
Sergey Metelskiy, Head of Worldwide Sales at Diasoft, is convinced that the successful implementation of FLEXTERA and effective support of the BTPN’s business will help to gain trust from other banks in the region and boost new sales. He also underlines the important role and valuable support provided during the project by Sistema Datapilar, Diasoft’s partner in the Indonesian market.
 
About BTPN: PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) is an Indonesia-based financial institution that provides a broad array of banking services for different customer segments across its country-wide network of almost 500 branches. The Controlling Shareholder (39.9%) of the Bank is represented by Sumitomo Mitsui Banking Corporation (SMBC), one of the largest banks in Japan. BTPN is a foreign exchange Bank that specializes in empowering and providing services for low-income segments, which include pensioners, micro, small and medium business (MSMEs) owners, and productive poor, or mass market. Today, it is Indonesia’s 4th largest MSME lender, which focuses on development of the following main business sectors:

  • BTPN Purna Bakti: focused on pensioners and pre-pensioners.
  • BTPN Mitra Usaha Rakyat: focused on micro-small entrepreneurs.
  • BTPN Syariah-Tunas Usaha Rakyat Shariah: focused on the productive poor segment.
  • BTPN Sinaya: focused on gathering deposits from the mid- to upper income individuals and institutions.

 
About Diasoft: Since 1991 Diasoft has been providing cutting-edge financial software solutions supporting all aspects of retail, wholesale and universal banking, financial market services, and insurance business. The company’s main offering to the financial market is FLEXTERA — a SOA-based universal system comprising a comprehensive suite of modules for front-to-back automation of modern financial services.
The FLEXTERA’s functional scope covers the following areas of financial business:

  • Back Office and Core Banking operations including daily banking transactions processing; product and service management; BI, accounting and reporting;
  • Multichannel Front Office operations and client management;
  • Middle Office risk management and decision-making.

The modern technological principles lying at the core of all FLEXTERA solutions in combination with their broadest functionality provide our customers with limitless opportunities for their business development in accord with market trends and customer requirements. For more information, please visit www.diasoft.com.

FLEXTERA Front Office is a comprehensive suite of software solutions supporting different aspects of the bank’s daily front office interactions with its clients and partners. The solution combines multi channel enablement with advanced CRM capacity to ensure ubiquitous client servicing, optimize the bank’s operations, and to explore new cross selling opportunities.
Together with other Diasoft’s solutions, FLEXTERA Front Office provides complete lifecycle support for retail, corporate and investment banking and capital market operations. Due to their technological advantages, all the FLEXTERA solutions open to our Customers new opportunities for the strategic business development and streamlining of their banking services.