Overview

PT Bank Raya Indonesia, originally known as PT Bank AGRO, was founded by the Plantation Pension Fund in 1989. In 2003, the bank became a public company and changed its name to PT Bank Agroniaga. In 2011, it was acquired by PT Bank Rakyat Indonesia and renamed PT Bank Rakyat Indonesia Agroniaga. In 2019, the bank launched its first digital loan, and in 2021 it transformed into a digital bank serving SMEs throughout the country. Its goal is to become the best digital bank for the agriculture and gig economy sectors.

Infosys Finacle is a leading provider of core banking solutions that help financial institutions take their operations to the next level. They offer a wide range of digital banking solutions that allow banks to deliver innovative services, improve their efficiency and provide a better customer experience.

With a strong reputation for innovation and a long list of satisfied clients from all over the world, Infosys Finacle is one of the best options for banks looking to modernize and improve their operations. They have a deep understanding of the banking industry and a commitment to customer success, making them a trusted and reliable partner for financial institutions.

Bank Raya conducted in-depth research to discover the needs and challenges faced by Indonesia’s gig workers (informal service providers, contractors, freelancers, etc).

Their main pain points included not having stable income, official pay slips, or collateral to use for business loan applications. Predominantly, these self-employed professionals needed shortterm loan approvals. This made the ability to quickly process loans a competitive edge for any bank looking to tap into the segment.

Bank Raya wanted to serve this customer segment via BRILink agents. In mid-2022, Bank Raya began offering more capital to agents in the form of intraday loans via PINANG Paylater.

Implementation Process
The project team included the Infosys Finacle & OCH team, the Bank Raya webview, backend, and QA team, the Bank Raya product team, and the Bank Raya infra team.

Bank Raya through PINANG Paylater decided to implement the Finacle Lending Module, a component of Finacle Core Banking, along with Finacle Digital Engagement Hub to enable it to build effective digital-first lending propositions. The bank also developed digital customer journeys from scratch and established an AI-based analytics foundation to power its digital vision. Through detailed customer profiling and analysis of credit and fraud scores, the bank was able to vastly increase the efficiency and effectiveness of its services. Also, using face recognition, digital signature, and credit scoring based on machine learning, Bank Raya was able to completely digitize the process of lending. Technology used included:

• API
• AI/ML
• Microservices/containerization
• OCR
• Facial Recognition
• Digital Signature

Benefits Achieved

PINANG Paylater is designed to solve short-term liquidity problems for BRILink agents (all of whom are themselves informal workers in Indonesia). In less than six months, Bank Raya acquired more than 17,000 BRILink agents and disbursed more than Rp 1.5 trillion (~USD 100 million) worth of intraday loans to them, with a non-performing loan ratio of 0%. By the end of 2022, Bank Raya aimed to target the total disbursement to reach Rp3 trillion (~USD 200 million).

From license to launch, Bank Raya itself was set up in three months. By the end of the year, its customer agents are expected to expand to new major platforms in various sectors such as telco, ridesharing, insurance, fintech, e-commerce, and other important domains. The goal is to amplify focus on strengthening the local gig and service economy. On average, agents borrow more than six times per month after joining. There are BRILink agents in Bandung, Semarang, and Medan that have borrowed more than 100 times via PINANG Paylater in less than six months. It is also possible for one BRILinkagent to borrow up to five times per day.

Through detailed customer profiling and analysis of credit and fraud scores, Bank Raya has been able to vastly increase the efficiency and effectiveness of its services. Also using facial recognition, digital signatures, and credit scoring based on machine learning, Bank Raya has completely digitized its lending process, from end to end.

Digital engagement benefits include:

• The average time for customer verification and onboarding is 10 minutes
• The ratio of mobile to internet banking customers is 89%
• The growth in our digital customer base in the past six months is 85%
• Benefits to operational efficiency include:
• The cost-to-income ratio of the organization is less than 40%
• Complete Straight-Through-Processing capability

Conclusion

Today, loan applications can be carried out within minutes on mobile. Using a fast, affordable, and secure process, and with the help of a competitive ceiling, PINANG Paylater provides extra convenience for customers seeking loans. The digital bank has also developed new customer journeys from scratch and established an AI-based analytics foundation to power its vision.

Key Facts:

• Bank Name: Bank Raya
• Bank Founded In: 1989
• Bank HQ: Jakarta, Indonesia
• Vendor Name: Infosys Finacle
• Solution Implemented: Finacle Digital Lending
• Timeline: 3 Months