Winners rationale

Few players in Indonesia’s private banking sector can count on such natural strengths as Bank Mandiri’s private bank: backed by the largest bank in Indonesia in terms of assets, loans, and deposits, the bank’s wealth management business benefits from the group synergies with investment management, brokerage, securities, digital banking, and treasury services.

“Stable and steady growth” best describes the bank’s performance in 2021. As of the end of 3Q21, assets under management reached IDR 230 trillion, up 6.4% YoY, while its private banking revenue as well as the contribution margin both increased by 7% YoY. The uptake in business activity was partly the result of Indonesia’s slow recovery from the pandemic, which helped relationship managers to conduct more client meetings and receive inquiries. At the same time, the bank managed to reduce costs by 3% YoY.

In terms of talent management, the bank added its investment counsellor and advisor headcounts to strengthen product and investment advice support for the relationship managers. This resulted in a near-6% uptick in revenue per RM. To nurture the professional growth of its RMs, Mandiri Private developed relevant training programmes for RMs.

In respect of platform and product offerings, 2021 saw a number of milestones at Mandiri Private. Ahead of its domestic competitors, it launched a discretionary portfolio management offering in collaboration with Swiss pure play Lombard Odier, granting UHNWI clients access to overseas investments via Lombard Odier’s “core investments” scheme in a discretionary mandate. The bank has thus been the first in Indonesia to offer such a service since the regulatory greenlighted discretionary portfolios in early 2018.

Mandiri Private has a 5% penetration of Indonesia’s domestic mutual fund market and offers more than 50 types of mutual fund products on its platform. It is a major distributor of Indonesian government bonds — and the bond market boom in the country in the last two years has contributed significantly to the bank’s AUM growth.

As a well established private banking player with a leading platform aiming to match the service quality of international players through onshore partnerships, Bank Mandiri is the winner of Asian Private Banker’s Best Domestic Private Bank – Indonesia 2021 Award for Distinction.