TLDR: Indonesia’s Bank Mandiri ‘Strikes Back’ at Fintech Rivals

Surging downloads and use of Bank Mandiri’s digital banking apps have boosted the confidence of the state-owned lender as fintech players compete for customers in Indonesia’s large unbanked population. Bank Mandiri’s president director, Darmawan Junaidi, acknowledged the skepticism towards traditional banks’ ability to keep up with digitalization, but stated that the bank can now show that it is “striking back” against competitors. One of the bank’s most successful digital banking platforms is Livin’, a mobile app for retail customers that now has nearly 20 million monthly users and offers a range of services from regular banking to mutual fund investments and ticket purchases. Bank Mandiri is also targeting wholesale corporate customers and small businesses with its digital banking platforms. The success of these platforms has allowed the bank to close some physical branches, reducing the number from 2,600 to around 2,200 in the past three years. Bank Mandiri’s digital platforms have contributed to a 27% year-on-year growth in net income in the first nine months of 2023.

Key Points:

• Bank Mandiri’s digital banking apps are gaining momentum and increasing user confidence.
• Livin’, the bank’s mobile app for retail customers, offers a wide range of services and has nearly 20 million monthly users.
• The success of Bank Mandiri’s digital platforms has allowed the bank to close some physical branches.

Indonesia’s Bank Mandiri is pushing back against fintech rivals by expanding its digital banking offerings. The bank’s president director, Darmawan Junaidi, acknowledged the skepticism towards traditional banks’ ability to keep up with digitalization but highlighted the success of Bank Mandiri’s digital banking platforms, particularly the Livin’ mobile app. Livin’ offers nearly 90 features and has almost 20 million monthly users, representing significant growth in just two years. The app allows users to perform various functions, from basic banking services to investing and ticket purchases. According to Junaidi, Livin’ now handles nearly 10,000 transactions per second and can handle up to 35,000 transactions per second. The success of Bank Mandiri’s digital platforms has allowed the bank to close some physical branches, reducing the number to around 2,200. The bank’s digital transformation has contributed to a 27% year-on-year growth in net income in the first nine months of 2023.