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Bank Mandiri Prepares Livin' by Mandiri "Super App" Ecosystem in Q4 2021

Bank Mandiri has prepared a number of financial services in one application to accommodate wider customer needs

PT Bank Mandiri Tbk (IDX: BMRI) prepared a number of strategies and grand plans to strengthen its position in the retail banking segment and Wholesale. This is the company's strategy to fully digitally transform without the need to convert to neobanks as other players do.

One of them, the company does rebranding on the Mandiri Online platform to Livin' by Mandiri. This new face has actually been released some time ago. However, Mandiri will add a number of features and a service ecosystem to improve the concept "great app" which he carried.

To DailySocial, President Director of Bank Mandiri Darmawan Junaidi said his party was trying to accommodate broader financial management needs with a new identity mobile banking this. One example of financial services that will be present is investment.

"There are three advantages that we offer, namely a comprehensive banking experience as if you have branches in your hand, complete financial services through the integration of financial services in one application, and open ecosystem solutions to integrate them with customers' favorite digital ecosystems," said Darmawan.

Darmawan assesses that Bank Mandiri has been strengthened by large capital and an established banking ecosystem. Therefore, his party feels that there is no need to transform into a digital bank, and prefers to focus on developing digital innovation.

Livin' by Mandiri was reintroduced with a new identity in the first quarter of 2021. Initially, this platform was called Mandiri Online, which was launched to the public since 2017. "The plan is that this application will be equipped with the latest features in the fourth quarter of 2021," said Darmawan.

Based on performance data in the first half of 2021, Bank Mandiri's digital transaction growth contributed greatly to the company's business margin. Livin' by Mandiri users grew rapidly to 7,8 million customers with a transaction value of Rp728,9 trillion.

In addition to retail, Bank Mandiri will also launch the Wholesale Digital Super Platform, which will become the center of the financial services ecosystem for corporate customers. The company is reluctant to elaborate on its development plan and launch target.

The Wholesale Digital Super Platform will be present in a website-based platform, API, as well as partnerships with various categories of customers that include a business ecosystem for various services, such as cash management, value chain, to trade.

"The market sector targeted by Mandiri API is business partners in the form of business entities that require easy and fast integration with complete and best banking services for operational efficiency," he added.

Several digitizing services that have been developed by Bank Mandiri include Mandiri e-Money, Mandiri Intelligent Assistant (MITA), online account opening, Mandiri Cash Management (MCM), Mandiri Internet Bisnis (MIB), Mandiri Global Trade, Mandiri Financial Supply Chain Management ( FSCM), and the Mandiri Application Programming Interface (API).

Bank digitization stretch

In the midst of the emergence of new digital banks, a number of incumbent banks have prepared strategies to further strengthen their position. For conventional banks, it is not easy to transform into a digital bank, especially companies that have legacy big. It is not easy to close hundreds of branch offices at once.

In the case of Bank Mandiri, this SOE subsidiary chose to strengthen its position in the retail and retail segment Wholesale with rebranding existing digital products and develop new platforms. However, this strategy is certainly different from what BCA does. The largest bank in Southeast Asia chose the option of acquiring a bank and replacing it with a new identity.

For small banks, this is a big opportunity even though they don't have one legacy great from the start. Take for example, Bank Jago and Bank Neo Commerce both started as small banks which later changed identities with new names.

Apart from that, the Financial Services Authority (OJK) has previously confirmed that there is no dichotomy between commercial banks and digital banks through the new rules contained in POJK Number 12/POJK.03/2021.

Planning stagesubsidiariesBRI Agro
Bank-as-a-ServiceStandard Chartered <> Bukalapak
UnannouncedCapital Bank
Aladdin Bank
establishedFully DigitalJago Bank
Neo Commerce Bank
subsidiaryDigital BCA
Permatabank <> Moxa
Digital Units/Online ProductsDigibank
Livin' by Mandiri
MNC Bank

Digital banks and their products in Indonesia / Reprocessed by DailySocial

Quoting Bisnis.comOJK's Chief Executive of Banking Supervision Heru Kristiyana said that this new regulation is expected to provide certainty to investors who want to establish a digital bank in Indonesia.

This regulation provides two options, namely establishing a new bank and acquiring a small bank which is then converted into a digital bank. Meanwhile, OJK requires controlling investors to provide a minimum core capital of IDR 10 trillion to establish a new bank.

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