BUSINESS DEVELOPMENT WITH STRATEGIC MANAGEMENT DECISION FOR BANK MILLENNIAL INDONESIA, TBK

• Main Author: Venato, Graeta
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35794
• Institution: Institut Teknologi Bandung

Bank Millennial Indonesia is one of the financial institutions with a commercial and corporate business focus. Bank Millennial Indonesia established on June, 10th 1980. Currently existed as one of the banks with 3rd Bank Umum Kegiatan Usaha (BUKU) position based on asset proportion. The bank was formerly known as Indonesian Citizen Bank. In the journey of business, the bank had merged with some commercial Bank then changed the Bank's name from Bank Citizen Indonesia to Bank Millennial Indonesia. The Bank changed the status from private to public with Initial Public Offering on July 2010. Now, the bank is one of the public bank listed in Indonesian Stock Exchange. The main focus of the Bank is saving and loan product with good interest scheme for the customer. The bank's interest is a strategic cost using low-interest for loan and high-interest for deposit. In one of the interview, the CEO explained that the bank should boost the loan number proportion in 2019. The bank will use the advantage of the cost increase to raise Net Interest Margin. The target of Loan consumption especially for retail segment and UMKM. In Mortgage loan product, the Bank had cooperated with one of the financing company to help the bank lease the customer's mortgage. In other explanation, the CEO's said that the increasing number of Non-Performing Loan is one of the challenges in the following years. The raised number of NPL caused by payment delay from corporate customers. Facing this challenge, the cost scheme of low-interest for Loan and high-interest for deposit will help the bank's staff to attract more customer. Depending on Q3 Financial Report 2018, the saving proportion recorded with low percentage than other banks. To solve this problem, the Bank shall improve fee-based income proportion to raise the bank's profit. The challenge of the bank is not only in a small portion of funding but also in other financial competitiveness like Debt to Equity Ratio, Return of Equity, Non-Performing Loan, and Net Interest Margin. These measurements are common prediction ratio or analysis which used by the investor to improve their portfolio. Reflecting on investor analysis the bank has responded to develop the bank's capital in the following years. The step of this final project is to find a problem within the bank's internal or external condition and give a recommendation depending on these issues. The author also makes analysis competitiveness based on Q3 Financial Report 2018 with some ratio like DER, ROE, NPL, OER, and Net Interest Margin. The comparison of the bank including with banking facility. To find the goal of the research, the author had made interview session with 30 staff in this bank to show the picture how the improvement of the bank in following years especially for advertise a product, reduce NPL number, growth in service, and development planning in future five years. The recommendation shall help the bank to increase the profit and other improvements in the following years especially to reduce NPL number, increase Net Interest Income, and Increase Fee-based income.