Bank Negara Indonesia (BNI) is undertaking a multi-year transformation of its wholesale banking business, with transaction banking repositioned as a core engine of growth rather than a supporting capability. The initiative reflects both internal strategic priorities and broader shifts across Indonesia's banking sector, where the focus is increasingly on liability quality, operational balances and client engagement through transaction flows. Efransyah Mudani, senior vice president of the wholesale digital channel division, described the programme as one of the bank's top strategic priorities, supported by significant investment, cross-functional execution teams and a defined multi-year roadmap. The objective is to build a scalable transaction banking franchise anchored in payments, collections and liquidity flows rather than rate-driven deposits. BNI's transformation is anchored in a holistic approach that integrates operating model redesign, digital platform convergence, and data-driven execution. At the heart of this strategy is BNIdirect, developed as a unified transaction banking platform, delivering differentiated and scalable value propositions across corporate, commercial, and small and medium-sized enterprise (SME) segments. From deposit gathering to transaction-led economics A defining shift in BNI's strategy is the move from deposit-led growth to transaction-led banking. Mudani explained that the bank made a deliberate decision to reduce reliance on large, high-cost placed funds, which historically created volatility and weakened funding efficiency. Rather than competing on pricing, the bank has shifted its focus towards capturing transactional flows. The objective is to embed BNI into clients' daily financial activities by handling payments, collections and working capital movements, thereby generating stable operational deposits. This requires a fundamental change in performance measurement. Mudani noted that the bank now focuses on mandates and transaction activation rather than deposit balances. Accounts are considered meaningful only when they are actively used for transactions, such as payments or tax flows. The impact of this shift is reflected in both growth and quality. Wholesale current account balances increased by approximately 44%, while the cost of funds declined — notably falling by 11 basis points to 2.53% in 2025 — indicating that incremental balances were increasingly operational, more stable and less rate-driven. Rewiring onboarding, servicing and execution discipline BNI's transformation is grounded in operating model redesign rather than product expansion. Mudani emphasised that early client research, including surveys and direct engagement, revealed that the main issues were not product gaps but inefficiencies in onboarding, servicing and implementation. The bank conducted extensive diagnostics, including one-to-one client interactions, to identify pain points such as slow onboarding, inconsistent service delivery and fragmented processes across business, operations and technology teams. In response, BNI standardised onboarding processes, differentiated between simple and complex client requirements and improved implementation discipline. This included clearer segmentation and structured service models across corporate, commercial and SME segments. A key change was reducing excessive customisation — historically, bespoke solutions for large clients created operational complexity and slowed scalability. The new approach prioritises standardisation, with selective customisation for priority clients. Execution discipline has been reinforced through structured governance, with cross-functional teams aligned to ensure consistency, speed and accountability in delivery. Changing frontline behaviour and simplifying execution A critical component of the transformation is changing frontline behaviour. Mudani noted that traditional approaches focused on asking clients to place funds, often resulting in rate-driven and unsustainable balances. The new approach focuses on driving transaction behaviour. Relationship managers are encouraged to move clients' payment flows, supplier payments and tax transactions to BNI, embedding the bank into clients' operational processes. To support this, key performance indicators have been simplified into clear metrics such as transaction activation and digital usage, enabling consistent execution across the organisation. This clarity is particularly important given BNI's large branch network and extensive frontline workforce, while structured lead management and tracking ensure that opportunities are effectively prioritised, followed through and converted into active transactional relationships. Segment strategy anchored in commercial and SME ecosystems While BNI maintains a strong corporate franchise, the transformation is increasingly driven by commercial and SME segments. Mudani noted that the commercial segment has been the fastest-growing over the past three years, offering a balance of transaction volume and margin. The SME segment represents a structural growth opportunity. Micro, small and medium enterprises contribute approximately 61.07% of Indonesia's gross domestic product and employ around 97% of the workforce, according to the Directorate General of Treasury and the Indonesian Chamber of Commerce and Industry. To capture this opportunity, BNI introduced BNIdirect bisnis, a one-stop digital platform integrating banking, payments, financing and ecosystem connectivity, designed to address SME pain points such as complex processes and fragmented services. The platform simplifies transactions through features including single-user access, financial recaps, integrated payments and reporting, enabling SMEs to manage operations more efficiently while lowering reliance on manual processes. Since its launch in August 2025, BNIdirect bisnis has demonstrated strong momentum, onboarding 6,616 customers as of 31 December 2025 and generating IDR 15.39 trillion (about $1.01 billion) in transaction volume across over 388,000 transactions, underscoring robust early adoption and accelerating ecosystem traction. BNIdirect as the digital backbone of wholesale banking BNIdirect sits at the centre of BNI's transaction banking strategy, serving as a unified platform for corporate and institutional clients across multiple product lines. The platform integrates cash management, receivables, trade finance, supply chain financing, foreign exchange and application programming interface (API) services into a single environment, enabling end-to-end transaction management with improved visibility and control. By end-December 2025, BNIdirect had reached more than 261,800 customers and IDR 11,406 trillion (about $747 billion) in transaction volume, reflecting 26.4% year-on-year growth. Complemented by BNIdirect Mobile and BNIdirect bisnis, the platform supports a layered client strategy, enabling BNI to serve corporates, commercial clients and SMEs through differentiated interfaces built on a common infrastructure. API, partnerships and embedded transaction flows BNI's digital strategy emphasises integration through APIs and partnerships rather than standalone platform dominance. BNIdirect API enables corporate clients to integrate banking services directly into their internal systems. More than 2,000 business partners are already using BNIdirect API, supported by over 280 approved API services, including API BI-Fast for real-time payments, reflecting strong adoption of embedded banking capabilities. Partnerships with fintechs and digital platforms extend BNI's reach into non-bank ecosystems, allowing the bank to capture transaction flows while leveraging external distribution and customer access. In supply chain finance, BNIdirect supply chain processed more than 260,000 transactions in 2025 with a total value of approximately $1.3 billion, while distributor financing grew 98.9% year on year, highlighting strong demand within value chains. Data, AI and precision targeting Data is a foundational element of BNI's transformation. Mudani emphasised that effective transaction banking depends on strong data governance, beginning at product design and extending through transaction capture and reporting. The bank has developed dashboards and analytics tools that provide visibility into client behaviour, transaction flows and operational performance, enabling more targeted engagement. Relationship managers are equipped with data-driven insights to prioritise high-value opportunities, supported by formalised lead management processes that strengthen execution discipline. BNI is also introducing AI capabilities in knowledge management and sales support, with effectiveness dependent on high-quality, standardised data. Corporate, MNC and ecosystem positioning BNI's strategy differentiates clearly across client segments, particularly in relation to multinational corporations (MNCs). Mudani noted that the bank does not seek to replace global banks but to complement them within the domestic market. For multinational clients, BNI positions itself as a local execution partner, supporting regulatory requirements, domestic transactions and operational flows within Indonesia. The bank is also targeting intra-Asia trade flows, particularly those linked to foreign direct investment into Indonesia, where transaction volumes are increasing alongside economic growth. Partnerships with global banks and ecosystem players are central to this approach, enabling BNI to participate in cross-border value chains without requiring a full international footprint. Financial impact and positioning The transformation is delivering measurable financial outcomes, reinforcing the role of transaction banking within BNI's overall business model. Cash management revenue increased from $36.02 million in 2024 to $40.24 million in 2025, with its contribution to transaction banking revenue rising from 5.8% to 6.3%. Overall transaction banking revenue reached IDR 10,741 billion (about $640.16 million) in 2025, accounting for 38.4% of total bank revenue. GIRO market share increased to 14.3%, a gain of 2.6 percentage points over the year. Operationally, BNIdirect has driven growth in users, transaction volumes and ecosystem integration, strengthening its position as the bank's digital backbone and a key driver of revenue, funding quality and strategic positioning. Executing a structural shift in wholesale banking BNI's transformation demonstrates the complexity of shifting from deposit-led to transaction-led banking, requiring coordinated changes across operating models, technology, data and organisational behaviour. The bank's approach highlights that sustainable growth is achieved by embedding transactional relationships rather than competing on pricing, supported by disciplined execution and clear strategic focus. Mudani's emphasis on simplicity, execution discipline and data-driven targeting underscores the importance of operational alignment in delivering transformation outcomes. The early results — including improved funding quality, stronger transaction flows and rising revenue contribution — indicate that the strategy is gaining traction. In Indonesia's high-growth banking environment, the opportunity remains significant, with the next phase focused on scaling the model while maintaining consistency and avoiding operational complexity.
