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One of the country's biggest Islamic banks has turned to location-based analytics to cut operational costs, optimise the performance of its asset network and increase service quality.

Bank Muamalat, the country’s biggest Sharia bank, is working together with leading geospatial solutions provider Esri Indonesia to cut operational costs, optimise the performance of its asset network and increase service quality.

According to Esri Indonesia CEO A. Istamar, Bank Muamalat will soon be using an advanced location-based analytics platform called ArcGIS to provide a more effective way of optimising the bank’s network of 1,998 ATMs and 500 branches.

The technology addresses inefficiencies created from information gaps and siloed intelligence by integrating business data from multiple departments into one dynamic smart map.

Information is then delivered to the bank’s decision-makers through a dynamic executive dashboard – presenting a literal picture of Bank Muamalat’s whole operation in real-time.

Previously relying on paper maps to develop strategies, the bank’s new tool is expected to deliver greater business oversight and allow staff to support existing customers, while promoting products and services in new markets.

“The ArcGIS platform equips Bank Muamalat’s decision-makers with predictive analytical capabilities, aligning its operations with some of the most sophisticated financial institutions in the world,” Mr Istamar said.

“Bank Muamalat will be able to assess potential new markets, strategically distribute its network of ATMs and branches, better understand existing customers’ needs and transactional behaviours, and identify and create a clear advantage over its competitors.”

“Most importantly, the smart mapping platform will help highlight opportunities for the bank without interrupting established workflows. This means a more in-depth understanding of the demographic and economic forces at work in targeted customer segments,” he said.

A spokesperson from Bank Muamalat said, “Esri’s location-based analytics platform is trusted by banking and financial institutions worldwide to enhance and support key growth strategies. We are looking forward to a meaningful partnership with Esri Indonesia and are excited to see the benefits we can derive from this powerful technology.”

Some of the world’s most progressive banking and financial institutions, such as Bank of America and the Australia and New Zealand (ANZ) Banking Group, are also using the same platform to drive down operating costs while simultaneously creating significant competitive advantage and enhancing service quality.

“Indonesia's Islamic banking sector is poised for strong growth, and with Bank Muamalat using one of today’s most cutting-edge technologies, we’re sure to see them take Sharia banking to new heights,” Mr Istamar said.

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