Bank Mandiri is acting on ambitions to embrace digital transformation in Indonesia through the deployment of cloud and artificial intelligence (AI) technologies in partnership with Microsoft.
Alongside increasing market competitiveness, the collaboration is designed to enhance customer satisfaction, risk management, employee collaboration and business processes across the organisation.
“With the aspiration to be Indonesia’s best and ASEAN’s prominent financial services company, Bank Mandiri sees this collaboration as a strategic initiative to deal with more complex needs of our clients, and to tap into the fast-paced growth of digital financial services in Indonesia,” said Royke Tumilaar, president director of Bank Mandiri.
Revealed on the sidelines of DevCon - Digital Economy Summit 2020 in Jakarta - headlined by Satya Nadella as CEO of Microsoft - the adoption of cloud, AI and machine learning solutions will help analyse millions of records and data points at the country's largest banking institution.
The aim is to provide a knowledge graph of related information for better decision making, including credit risk evaluation and shortening the process for data processing, preparation and governance.
“Microsoft is pleased to help Bank Mandiri accelerate its digital transformation journey with our AI and intelligent cloud solutions,” added Haris Izmee, president director of Indonesia at Microsoft.
As a long time customer of Microsoft, Izmee said Bank Mandiri represents “one of many visionary adopters” of digital workplace solutions as part of plans to enhance workforce productivity and competitiveness.
“Industries like financial institutions will need to look at emerging technologies to find success in this new landscape, and we look forward to enable the transformation across every line of their business,” Izmee added.
As reported by Channel Asia, Nadella addressed more than 2500 developers, start-ups and entrepreneurs in Jakarta, as Microsoft made its partner priorities clear in Indonesia. In delivering the keynote in Jakarta, Nadella outlined the vendor’s strategy for driving developer success in Southeast Asia, with enhanced Azure capabilities featuring heavily.
The appearance also triggered speculation that the technology giant was exploring the option of building data centres in Indonesia, potentially joining fellow cloud giants Amazon Web Services (AWS) and Google Cloud in an increasingly competitive Southeast Asia market.
That was according to Joko Widodo - president of Indonesia - who claimed that “simple regulation” will be created to facilitate such a move in the country.
“Microsoft wants to invest immediately in Indonesia,” said Widodo, when addressing media during the conference. “So within a week we will decide a new, simple regulation to support the investment.”
The increased collaboration with Bank Mandiri also follows Microsoft’s recent partnership with Telkomsel to provide outlying regions in Indonesia with enhanced connectivity and solutions, underpinned by cloud and network technologies.
As reported by Channel Asia, the alliance is designed to emulate the digital offerings currently available in major cities across the country, aligned to Industry 4.0 priorities in Indonesia.
Specifically, the agreement is centred around “technical collaboration” between Microsoft’s cloud capabilities - including cloud edge, AI, Internet of Things (IoT) and data hubs - coupled with Telkomsel’s network solutions to offer lower latency between devices and the cloud, at both consumer and business levels.
According to IDC findings, commissioned by Microsoft in 2019, Indonesian companies using AI can expect to increase innovation rates by 1.7 times, alongside boosting employee productivity by 1.9 times within the next three years.
The top five business drivers of AI adoption in Indonesia rank as improved customer engagement (40 per cent); higher competitiveness (17 per cent); higher margins (14 per cent); accelerated innovation (11 per cent) and productive employees (six per cent).