BBNI Disclosure: Investor Update on Digital Banking

Embracing the New Wave of

Digital Disruption

The New

BNI Mobile Banking

PT. Bank Negara Indonesia (Persero) Tbk. | 9 July 2021

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The Evolution of Banking Services

Change is accelerating but we strive to be Agile

1.0	2.0	3.0		4.0	5.0

Electronic Banking

1980 - 1995

• ATM
• Phone Banking
• Dial-upAccess
• Credit & Debit Cards dominant

1990	1998
ATM	Phone
		Banking

Online Banking	Mobile Banking		Digital Banking	Open Banking
1995 - 2007		2007 - 2015				2016 - 2019		2020 - ..
• Web-based banking	•	Full-function			•	Mobile banking	•	API Services
• Bill Pay			smartphone apps	•	Real time peer-to-	•	P2P Lending
• Online personal finance •	Branch network			peer payments	•	Digi CS
management		trimming			•	Self-service	•	Robo (AI) Advice
• Digital Credit Card	•	Upgraded ATM			Branches	•	Digital Ecosystem
Origination			capabilities			•	Digital Mortgage	•	Personalized Apps
		•	Mobile Deposit				Lending		•	……..?
		•	Mobile Wallet
											2021
									2020
								2019	AI		Augmented
							2018
					2015				Reality
		2010	2014				BNI Digi CS	Enhanced	Open Banking
2002	2007
				Chatbot	Digital Accunt	API	Personalized
				Tapcash		Services
	Internet	BNI	Mobile		BNI API	Opening	Mobile Banking
SMS
			(Open	Enhanced Mobile
Banking	Direct	Banking
Banking				Banking)	Banking Apps
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Digital Disruptions: the next chapter to digital native

Rapid changes across technology, customer behaviour and economy within the last decade

Rise of the Startup Era

2010

• Indonesia with Fast-Growing pace of Internet Economy in Southeast Asia
• Startups growing, introduce the new concept of providing variety of products & services through online platforms, eased consumer choice and convenience.
• With 2k+ technology-based startups, puts Indonesia as the fifth country with the most startups in the world.

Est. 2009	Est. 2010	Est. 2010	Est. 2012
Est. 2010	Est. 2010	Est. 2010	Est. 2011

Hype of Fintech

2015 - 2020

• Fintech growing, notably P2P lending and e-wallets.
• BI issued PBI No 18/40/PBI/2016 to regulate the payment process for e- commerce, OJK issued POJK No 77/POJK.01/2016 regarding Technology-BasedBorrowing-Lending Services
• Use money to burn to scale up the platform through aggressive promotions

Est. 2014	Est. 2015	Est. 2015
Est. 2017	Est. 2016	Est. 2018	Est. 2019

New Equilibrium

2020 - …

• Vicious cash burning cycle stop, none of the players are offering aggressive promotions anymore
• Looking for partnership opportunity which allowed them to be part of a larger Ecosystem
• Conventional banks leveraging their own Ecosystem through Open Banking, pushing digital transformation supported by strong capital, big client base and extensive track record of credibility.

Disruptive technologies is an opportunity for banks that respond

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We move forward to combine the best of two worlds

• Access to public funding
• Sticky Customer Base
• Wide range of financial products and services
• Deposit guarantee by LPS
• Long track record of Credibility & Brand Equity
• Lower cost of fund

Conventional Bank

Balanced battlefield

Fintech Player

• Agility of system to adapt to changing trends
• Online ecosystem
• Automation and cost efficient operation
• Highly Convenient and Millennial friendly.

Different paths for	Digital bank or	Digital-only subsidiaries	Partnerships with fintech
direct bank models		operators
Conventional
Bank

4

Digital Initiatives that encompass Product, Digital Platform and extend our reach to B2B2C Ecosystem through Open Banking

1. Digitize Internal Platform
   Develop Digital-
2. Native Products and modernize existing services
   Leverage Digital
3. Ecosystem with API Open Banking
4. Enablers

		Branchless Banking	Smart CA
		Platform
		(Loan Origination)
		Digi Sales	Early Warning System
Digital Account Opening			Digital Loan for MSME
BNI Mobile Banking			BNI Direct
Next Gen
Digital Loan for	Consumer	Business	Financial Supply Chain
Consumer	Banking	Banking	Management
Voice Command Virtual			Online Bank Guarantee
Assistant
			BNI Smart City
		API Open Banking
		API Smart Remittance &
		Forex Trading

Cloud-Base	Big Data & Analytics	Strengthen cybersecurity	Digital Mindset
Infrastructures	capabilities	HC Transformation

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