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How Bank Danamon Embraces HR in the Cloud

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PT Bank Danamon Indonesia Tbk (Bank Danamon) is one of the banks in Indonesia that has embarked on a digital transformation, which includes embracing HR in the cloud, to better serve its employees and customers in today’s digital era.

In mid-2018, PricewaterhouseCoopers Indonesia (PwCI) surveyed digital banking in Indonesia to gather and consolidate insights from senior banking executives from across the banking institutions within Indonesia. In the survey, 66{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} of the respondent– from Bank Pembangunan Daerah (BPD), joint-venture banks, local banks, state-owned banks, and Syariah banks– have incorporated digital initiatives as part of their corporate strategy.

Furthermore, the study showed that Indonesian bankers are investing in emerging technology areas like artificial intelligence (AI), blockchain, robotic process automation (RPA), and cloud-based applications.

Fast-forward to today, one of the established financial institutions in Indonesia and part of Japan’s MUFG Bank, Bank Danamon had invested in one of the emerging technology areas highlighted in the PWC study– cloud-based applications. Recognising the compelling need to accelerate the company’s HR digital strategy, Bank Danamon deployed SAP SuccessFactors to empower its employees with digital learning and development to ultimately deliver excellent customer service.

Embracing HR in the Cloud

Supported by a network of 862 conventional branch offices, Syariah units, and branch offices of its subsidiaries, Bank Danamon had set the goal to find a solution for the biggest challenge in the banking industry in Indonesia, which is providing exceptional customer experience to remain competitive. The financial institution zeroed in on investing in innovative and intelligent technologies that would empower and enable employees who play pivotal roles in delivering customer service and competing in the market.

Bank Danamon employs about 12,000 who are mostly based in Java, Sumatra, and Kalimantan.

Sharing on the bank’s digital growth strategy, Mr. Heriyanto Agung Putra, Director of Human Capital of Bank Danamon said:

“We are using all modules in SuccessFactors because we need to integrate all functions in HR– recruitment, onboarding, learning and development, and talent management and anything related to manage the HR itself.”

By integrating all functions in HR digitally on the cloud, the bank was able to eliminate the cost of investing in hardware and added flexibility for Bank Danamon to adopt specific business processes into the system. More importantly, the cloud technology gave the bank employees agility.

“SAP SuccessFactors supports [our employees] to make their work easier. The managers can manage their people easier and in real-time online… [They] can see the profile of their subordinates, so they know how to develop and when to coach their subordinates,” he added.

Having the entire suite of HR tools on the cloud, the financial institution was able to streamline HRM and work for all employees. He highlighted the importance of equipping and empowering employees to be future-ready and digital-savvy to be able to thrive and compete and, essentially, serve customers better. He mentioned:

“Our employees are using digital to make it easier for customers. Customers can [transact with the bank] anywhere, anytime,” he added.

Sharing about the company’s workforce that is dominated now by the younger generation, Mr. Putra said:

“We have SAP as our strategic partner to support us how to catch up with the future of work.”

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