How APIs helped this bank rapidly increase new accounts in three years

PermataBank, one of Indonesia’s leading banks, needed to meet the growing demands of its customers’ expectations with better tech solutions. Enter APIs! PermataBank formed new business standards and collaborated with Fintech alliances with the help of Axway AMPLIFY™ API Management. Bottom line? There was a 375% increase in account acquisition, along with 274% CAGR growth.

New markets

With the help of APIs, PermataBank entered new markets, extended its customer base, and increased the size of transactions conducted through the bank. Almost 72% of new account acquisition was added in 2019—all fueled by APIs.

“The customer experience era, not regulation is the true business driver.” -Abdy Salimin, PermataBank CIO and Directory of Technology and Operations

Global banks are cognizant of the potential of APIs to grow their businesses forward.  The benefits of APIs within an organization are paying off in big measure.

Since the start of PermataBank’s API strategy, bank APIs were embedded into Fintech apps and services. This allotted the bank to attain new targets that were not possible before. Over the last three years, five banks merged to become PermataBank. With so many legacy systems on hand, you can imagine that it was a challenge to get up to date.

Since merging their legacy systems into one common platform, PermataBank now runs on a mainframe-based transaction platform. By focusing on digital self-service channels, they have modernized their digital banking platform.

At the close of 2017, the bank had the first release of its APIs. By 2018, they had released their first mobile banking APIs. Since then, the bank has generated many new digital capabilities and initiatives with APIs powering new products and services for their customers.

“PermataBank has gone one step further and opened its first digital model branch,” Abdy says. All these digital discoveries all come back to the base of APIs. This strong foundation enables them to grow their business faster.

READ MORE: API Management Software Customer Success Report names Axway a Market Leader.

With the introduction of APIs to PermataBank, wider shifts were occurring and consumer expectations were in high demand due to the ongoing global trend. Today, customers expect to use their mobile phones to carry out many of their day-to-day transactions, and that requires digital infrastructures. APIs make this happen.

According to the World Bank, in Indonesia “66% of the population do not have a bank account, nor see a need for one.” Instead, according to Abdy, “consumers are using mobile money wallets to make payments directly and new startups, gig-economy workers and highly educated under 30-year-olds are looking for alternative tech solutions to solve their money management needs.” APIs allow the digital economy to work efficiently for this market.

Additionally, PermataBank is assimilating its APIs with other partners such as Telco’s, schools, lifestyle providers, etc. This allows them to obtain transaction fees from platform end customers when they make payments. “The customer acquisition costs are borne by the Fintech in their promotion and marketing strategies. We focus on establishing the partnership and the customers flow in” said Abdy.

Taking digital banking to the next level!

Make no mistake about it, PermataBank is taking APIs and digital banking to the next level. With over 1,000 partners utilizing their services and 150 APIs published that are available for anyone to use, they are just getting started within the world of APIs making a difference.