How Bank Muamalat Indonesia used smart mapping technology to optimise its branch and ATM network

The bank enhanced 64% of its ATM's cost and acquired 10% more customers with 40% less branches.

Bank Muamalat Indonesia, the country's first and largest Islamic bank, has transformed its service delivery by turning to smart mapping technology or Geographic Information System (GIS) technology. This innovation helped the bank visualise, analyse, and drive value from geographic data, optimising the performance of its asset network and upgrading its overall service quality.

Asian Banking & Finance caught up with Bank Muamalat Indonesia's senior vice president and head of retail banking strategy, Aznovri Kurniawan, to discuss how the bank utilised Esri Indonesia's advanced location-based analytics solution called ArcGIS in integrating data onto a smart map.

How is GIS being used by Bank Muamalat?
Indonesia is 4th most populous country, 16th largest economy, and country with biggest Muslim population in the world. As the first Islamic Bank in Indonesia and awarded as best Islamic Bank in Indonesia, we need to have detail view of our market potential and have to make sure that all branches contribute to our growth. We implemented Muamalat GIS in January 2017 to optimise our network of branches and ATMs. In June 2018, we enhanced the application capabilities to enable us to map each branch market potential, compare POI distribution with existing customer distribution, and identify bank's customer location.

What value does it bring to Bank Muamalat's retail operations?
After implementation in January 2017, together with other initiatives, we optimised 64% of our ATM's cost whilst maintaining our e-Channels fee income. We also acquired 10% more customers in 2017 with 40% less branches.

When did you start using this technology and what urged you to use it?
We started to use GIS in January 2017 to optimise our network of branches and ATMs, continued by enhancement in June 2018 to tap more market potential.

How has this been accepted by your customers/staff?
Implementation in January 2017 was only intended for head office use. However, we started to use the technology for our branch staff in June 2018, and has been acknowledged by our branch staff to help them be more effective in tapping market potential.

What does this say about the status of digitalisation the bank is undergoing?
We have implemented digitalisation in our bank since 2017, starting with Muamalat GIS and Muamalat Direct app, all-in-one sales productivity app that has helped to increase our sales productivity. Currently, we are enhancing Muamalat GIS capabilities to have more features to give more contribution to the bank's business.

What are the bank's plans in the next 12 months?
We plan to continue future digitalisation to get more market share, including enhancement of Muamalat GIS capabilities and integrate with Muamalat Direct, our sales productivity app, to enable us to always be the best Islamic Bank in Indonesia.

Photo from Esri Indonesia

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