Leading Indonesian Commercial Bank Enhances Branch Transformation Strategies With Location Analytics

The Challenge

As Indonesia’s banking landscape grew more competitive, the client needed to find their competitive edge to continue growing in times of critical uncertainty.

The client turned to ADA to leverage our data analytics expertise to evaluate several key locations to determine the presence and distribution of Syariah banking competitors. In addition, our heatmap enables our client to optimise the blueprint of their branches for the next 5 years.

The Strategy

1. Derive insights from XACT, ADA’s proprietary DMP

We were able to draw fundamental information to assess location opportunities for customer profiling: Audience Movement, Area Density, Competitive Intensity.

2. Identify low / non-penetrated hotspot location

We identified unpenetrated “hotspots” by using the customer and Point of Interest (POI) filters to validate the branch model and identify a new location with minimal competition.

3. Identify underserved hotspot locations

Besides identifying the underserved areas for a new branch concept, we also assessed competitive intensity and uncovered underserved hotspots for the right branch mix.

4. Determine whether to retain or relocate branches

Using heatmap, we determined whether its several existing branches can be retained, or if a new branch or relocation would be necessary.

The Execution

1. Regional Location Planner

Split into 8 different regions with multiple filters, e.g., home vs. footfall density, segment, age, affluence, and more were applied to verify the customer behaviour of a particular location.

2. Commercial Dashboard

The Commercial Dashboard enables the client to choose multiple variables on province and industry type, with colour-concentration intensity.

3. Customer Zip Dashboard

Displays the density of the client’s customer in particular areas based on customer segments such as company/merchants/premier customers with activity status (dormant vs. active).

The Results

  • Non-performing branches were identified and relocated to locations with the highest concentration of the desired target audience.

  • Strategic locations with a richer concentration of high affluent population (wealth managers, businesses, and employee personas) without any banking service presence were identified.

  • ADA’s Location Planner insights were integrated into the core of the client team’s 5-year branch transformation blueprint.

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