Bank Mandiri Business Model Canvas

Bank Mandiri actively cultivates partnerships with key payment networks and a diverse array of ecosystem players. This strategic approach is designed to broaden its digital footprint and embed banking functionalities directly into the everyday activities of its customers.

These collaborations are crucial for enhancing user experience, as exemplified by the expansion of Livin' Sukha into a comprehensive lifestyle hub. This integration supports a wide range of services, including food delivery, entertainment, and travel bookings, demonstrating the power of these alliances in creating a seamless digital journey.

By integrating with various service providers, Bank Mandiri facilitates transactions and enhances convenience. For instance, in 2023, the Livin' by Mandiri app saw a significant surge in transaction volume, with over 1.5 billion transactions processed, underscoring the effectiveness of its ecosystem strategy.

• Payment Network Integration: Partnerships with Visa, Mastercard, and local payment gateways ensure broad transaction capabilities.
• Ecosystem Alliances: Collaborations with e-commerce platforms, ride-sharing services, and utility providers extend banking services into daily life.
• Digital Lifestyle Hubs: Initiatives like Livin' Sukha integrate food, entertainment, and travel, increasing app engagement.
• Transaction Growth: In 2023, Livin' by Mandiri processed over 1.5 billion transactions, highlighting the success of its partnership-driven digital expansion.

Bank Mandiri actively partners with a diverse range of organizations to foster SME growth and digital transformation, alongside broader community development. These collaborations are crucial for extending the bank's reach and impact across Indonesia.

Key partnerships include government agencies and community-focused non-profits. Through programs like Mandiri Sahabatku, the bank provides financial access and training to underserved communities. In 2023, Mandiri Sahabatku reached over 2.5 million customers, demonstrating significant progress in financial inclusion.

Further strengthening this ecosystem, Bank Mandiri collaborates with initiatives such as Wirausaha Muda Mandiri and Rumah BUMN. These programs are designed to nurture young entrepreneurs and support MSMEs in adopting digital tools. For instance, the Rumah BUMN program, as of early 2024, has facilitated digital onboarding for over 50,000 MSMEs nationwide.

These strategic alliances are instrumental in achieving the bank’s objectives:

• Empowering MSMEs: Providing access to capital, digital solutions, and business development training.
• Promoting Financial Literacy: Educating communities on managing finances and utilizing banking services effectively.
• Driving Digitalization: Encouraging the adoption of digital payment systems and online business platforms among SMEs.
• Fostering Community Development: Contributing to local economic growth and social well-being through targeted programs.

Bank Mandiri's skilled human capital is a cornerstone of its business model. This includes a robust team of experienced relationship managers who build and maintain client trust, alongside specialized IT professionals driving digital transformation. Financial experts also play a crucial role, ensuring sound financial management and strategic planning.

The bank actively invests in its people. In 2024, Bank Mandiri continued its commitment to talent development, with significant resources allocated to training programs focused on digital literacy and advanced financial skills. This proactive approach ensures the workforce remains at the forefront of industry innovation.

• Talent Development Investment: Bank Mandiri allocated significant resources in 2024 to enhance the skills of its workforce, particularly in digital banking and advanced financial analytics.
• Digital Mindset Cultivation: The bank fosters a culture that embraces digital transformation, encouraging employees to adopt new technologies and innovative approaches to customer service and operations.
• Expertise Across Functions: Key human capital includes seasoned relationship managers, cutting-edge IT specialists, and astute financial experts, all contributing to the bank's strategic execution and competitive edge.

Bank Mandiri's robust brand reputation and the deep trust it commands are cornerstones of its business model. As a leading state-owned financial institution in Indonesia, this reputation is not merely a marketing asset but a critical driver of customer acquisition and loyalty across all demographics.

This strong public perception is cultivated through years of reliable financial performance and a demonstrated commitment to ethical business practices and corporate social responsibility initiatives. In 2023, for instance, Bank Mandiri continued its focus on sustainable financing, contributing to its image as a responsible corporate citizen.

• Brand Strength: Bank Mandiri consistently ranks among Indonesia's most trusted brands, a significant advantage in a competitive banking landscape.
• Customer Trust: This trust translates into higher customer retention rates and a greater willingness from individuals and businesses to entrust their financial needs to the bank.
• Market Position: The bank’s reputation as a stable and reliable institution helps it attract and retain a diverse customer base, from retail depositors to large corporate clients.
• Competitive Advantage: In 2024, this established trust remains a key differentiator, enabling Bank Mandiri to effectively compete against both domestic and international financial players.

Bank Mandiri offers robust customer service across various touchpoints. This includes a dedicated call center, a widespread network of physical branches, and increasingly, digital support platforms. The bank emphasizes providing efficient and patient assistance, ensuring that staff are well-equipped to handle customer inquiries and facilitate transactions. This commitment to a multi-channel strategy aims to maximize accessibility and responsiveness, catering to diverse customer preferences and needs.

In 2024, Bank Mandiri continued to invest in its customer service infrastructure. For instance, their call center handled millions of customer interactions, with a focus on first-call resolution rates. Digital channels, such as their mobile banking app, saw significant growth in user engagement, with a substantial percentage of transactions now completed online. The bank also reported high satisfaction scores for in-branch assistance, highlighting the continued importance of personal interaction.

• Multi-Channel Accessibility: Bank Mandiri ensures customers can connect via call centers, physical branches, and digital platforms, offering flexibility and convenience.
• Service Quality Focus: The bank prioritizes efficient and patient assistance, equipping its staff to effectively address customer inquiries and transactions.
• Digital Engagement Growth: In 2024, digital channels experienced increased adoption, with a significant portion of customer interactions and transactions occurring online.
• Customer Satisfaction: Bank Mandiri consistently aims for high customer satisfaction across all support channels, reflecting their commitment to service excellence.

Bank Mandiri is deepening customer relationships by embedding its services within wider digital ecosystems and offering bundled products. This approach aims to make the bank an integral part of customers' financial lives, fostering loyalty and capturing value across their entire financial journey. For instance, by integrating with partners in e-commerce or transportation, customers receive seamless financial solutions, encouraging them to consolidate their banking needs with Mandiri.

This ecosystem-based loyalty strategy is crucial for retention in a competitive market. In 2024, Bank Mandiri continued to expand its digital offerings, aiming to be the primary financial gateway for its customers.

• Ecosystem Integration: Bank Mandiri actively partners with various platforms to offer integrated financial services, such as payments, loans, and insurance within these ecosystems.
• Product Bundling: The bank bundles products and services, providing added value and convenience to customers who engage with multiple offerings.
• Deepened Loyalty: By becoming indispensable to customers' daily financial activities, Mandiri aims to significantly increase customer retention and reduce churn.
• Value Chain Capture: This strategy allows Mandiri to capture a larger share of customer spending and financial needs across different life stages and transactions.

Bank Mandiri actively serves a broad range of government entities and institutional clients, notably including the pension plans of state-owned enterprises. These relationships are crucial for the bank's strategic positioning and financial stability.

The bank offers a suite of specialized banking services and financial solutions meticulously designed to meet the distinct and often complex financial needs of these organizations. This includes treasury management, corporate lending, and investment banking services.

This segment is a cornerstone for Bank Mandiri, contributing significantly to its stable funding base. For instance, in 2023, Bank Mandiri reported total assets of IDR 2,000 trillion, with a substantial portion derived from its corporate and institutional banking operations.

Furthermore, engaging with government entities and state-owned enterprises allows Bank Mandiri to deepen its public sector engagement and support national economic development initiatives. This strategic focus underscores the bank's role as a key financial partner in Indonesia.

• Government Entities: Providing financial infrastructure and transaction services to ministries, agencies, and local governments.
• State-Owned Enterprises (SOEs): Offering comprehensive banking solutions including financing, treasury, and capital markets access.
• Pension Funds: Managing assets and providing investment services for large institutional pension funds, ensuring long-term financial security for members.
• Development Finance Institutions: Partnering on projects that foster economic growth and infrastructure development across Indonesia.

Bank Mandiri's Priority and Wealth Management Clients segment caters to individuals with substantial financial assets, offering tailored services through its Mandiri Prioritas and Private banking divisions. This focus ensures high-net-worth individuals receive exclusive benefits designed for wealth growth and asset preservation.

These clients are provided with dedicated relationship managers who offer personalized guidance and access to a comprehensive suite of investment and insurance solutions. For instance, in 2023, Bank Mandiri reported a significant increase in its affluent customer base, with Mandiri Prioritas assets under management growing substantially, reflecting the segment's importance.

• Dedicated Relationship Managers: Personalized service from experienced banking professionals.
• Exclusive Benefits: Access to premium lounges, preferential rates, and lifestyle privileges.
• Investment & Insurance Products: A curated selection of wealth-building and protection tools.
• Wealth Growth & Asset Protection: Strategies focused on maximizing returns while safeguarding capital.

Profits generated by Bank Mandiri's diverse subsidiaries are a significant component of its consolidated net profit. These entities operate across various financial segments, including multifinance, securities, and insurance, thereby creating multiple revenue streams for the broader Mandiri Group.

The positive financial performance of these subsidiaries directly bolsters the overall financial health and stability of the parent company. For instance, in 2024, Bank Mandiri's non-interest income, which is heavily influenced by subsidiary contributions, remained robust, reflecting their ongoing value creation. The group's commitment to expanding its ecosystem through these specialized financial services continues to drive diversified earnings.

• Multifinance Operations: Subsidiaries like Mandiri Utama Finance contribute through vehicle and consumer financing, generating interest income and fees.
• Securities Brokerage: Mandiri Sekuritas provides investment banking and brokerage services, earning commissions and trading profits.
• Insurance Underwriting: AXA Mandiri, a joint venture, offers life and general insurance products, adding premium income and investment returns to the group.
• Digital Banking Ventures: Investments in digital platforms and fintech subsidiaries further diversify revenue through transaction fees and new service offerings.

Other Non-Interest Income at Bank Mandiri encompasses various sources beyond core lending activities. This includes gains from recovering previously impaired assets, proceeds from selling repossessed properties or collateral, and a range of other service charges and fees. While these income streams can exhibit some volatility, they are crucial for enhancing the bank's overall profitability and demonstrating resilience.

Bank Mandiri actively seeks to broaden its revenue base through a strategic focus on fee-based income initiatives. This diversification strategy aims to reduce reliance on traditional interest income, thereby creating a more robust and stable financial profile. The bank is committed to exploring and developing new fee-generating services and products.

• Gains from Asset Recoveries: This involves income generated from the successful recovery of amounts previously written off or impaired, strengthening the bank's financial position.
• Sales of Repossessed Assets: Proceeds from selling assets seized as collateral for non-performing loans contribute to this revenue stream.
• Other Service Charges: This broad category includes fees from various banking services, such as account maintenance, transaction processing, and wealth management.