Apigee Helps Bank BRI Rewrite its Digital Future and Achieve Financial Inclusion
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About Bank BRI
Bank Rakyat Indonesia is one of the largest banks in Indonesia and is committed to increasing financial inclusions among un-banked Indonesians. Bank BRI specializes in using modern digital banking to facilitate microfinance lending across its network of over 10,000 branches and thousands of branchless agents.
Google Cloud Results
- Contributes $50M in revenue through the Apigee monetization feature
- Wins recognition for best digital bank in Indonesia from The Asian Banker in 2019
- Achieves ISO 27001 information security for open APIs, earning distinction as the only bank in ASEAN to receive certification to date
- Reduces partner onboarding from 6 months to under 1 hour with Apigee developer portal
Bank Rakyat Indonesia is making waves in Asia with its award-winning digital strategy. As a government-owned bank, Bank BRI is dedicated to changing the lives of its customers through accelerating financial inclusion across Indonesia. With an aggressive target of 84 percent of Indonesians participating in the banking system by 2022, Bank BRI is leapfrogging fintech competition thanks to its innovative digital strategy that has APIs at its core. By the end of 2019, Bank BRI expects to have reached a 70 percent financial inclusion rate among the country’s population, in part due to the adoption of the Cloud Apigee API Management Platform as the bank’s digital nucleus.
Transforming a legacy into a digital future
In the banking business, trust is essential, not only between the bank and its customers, but also between the bank and its partners. Recognizing that gaining and maintaining this trust would be key to customer and partner adoption of the new Bank BRI products and services, the bank decided to pursue ISO 27001 certification in 2018, becoming the first bank in ASEAN (the Association of Southeast Asian Nations) to become certified as information security compliant. Now the international community of partners and customers who use the bank’s APIs have yet another reason to place their trust Bank BRI.
“Apigee has become the central nervous system for all communications between the digital core banking, the microservices, the frontend, and the apps. Apigee has become our sun. Everything rotates around Apigee.”—Kaspar Situmorang, Executive Vice President, Bank Rakyat Indonesia
Kaspar Situmorang, Executive Vice President of Bank BRI, had the original vision for how the bank could transform itself into a fintech with digital technology and APIs. His team got started by implementing a web-native frontend over a new technology stack with Apigee as a second layer. This was a big change from the legacy technologies that existed when Situmorang joined the bank in 2017. Previously all of the bank’s products had their own public APIs, which were very difficult to manage, secure, and monetize.
Since deploying Apigee, it’s become much easier to manage the entire API lifecycle. Situmorang’s digital bank team of 15 uses the Apigee monetization and developer portal features while managing and securing APIs and conducting big data integrations. Apigee has become Bank BRI’s center of communications, handling all transactions between the bank and third parties.
Whereas previously it could take up to six months to onboard a new partner using host-to-host and VPN technology, now it takes less than an hour for partners to self-onboard using the Bank BRI Apigee developer portal. On the portal, partners can register, browse APIs, test in the sandbox, and go into production — all in less than an hour.
“Apigee has become the central nervous system for all communications between the digital core banking, the microservices, the frontend, and the apps. Apigee has become our sun. Everything rotates around Apigee,” says Situmorang.
Increasing financial inclusions
With more than 10,000 offices across Indonesia, Bank BRI has the largest network of any bank in ASEAN. The bank is also the biggest microfinance lender in the region. Though already present in even the most far-flung corners of Indonesia, Bank BRI is still working on increasing financial inclusion among un-banked Indonesians. With 56 million people that haven’t accessed banking services, Indonesia is in the bottom four countries for financial literacy in the world, along with Bangladesh, India, and China. It’s estimated that there is up to $8.3 billion in currency being held outside the banking system.
In order to reach this mostly rural, subset of the population, the bank launched Agent BRILink, a nationwide network of branchless agents. These agents can open new accounts, take deposits, pay out withdrawals, and process and disburse loans in under two minutes with the Pinang microfinance mobile app. To date, over 30,000 customers have received loans through Pinang. Handling its own risk-scoring and automatic payroll deductions for payments has translated into less risky and more profitable loans for Bank BRI.
“Customers download the app and scan their ID, capturing their credit score in just a few seconds. The digital offer letter says how much they’re approved for. They can then accept it, go to the approval screen, and do facial recognition. The money is disbursed immediately. GCP has transformed us into a fintech.”—Kaspar Situmorang, Executive Vice President, Bank Rakyat Indonesia
BRILink agents are bank customers who have been scored highly for reliability by the bank’s big data analyses and who maintain a minimum balance of around $800. Combining this data with the Google Maps API, Bank BRI is able to score all 75.5 million of its customers and identify which of them should be recruited as agents for underbanked areas. Since 2018, the bank has been able to appoint more than 200,000 branchless agents using the Agent BRILink app, eliminating the need for logistically challenging face-to-face meetings. This has resulted in an increase in loan volume from branchless business from $15 billion in 2017 to $26 billion in 2018.
To enable branchless agents to sign up new customers and provide banking services, all they need is a mobile phone and internet service. With many parts of rural Indonesia not covered by commercial 3G, Bank BRI has overcome this hurdle by operating its own satellite. With the connectivity the satellite guarantees, branchless agents can help customers obtain microfinancing and open new shops and businesses in all parts of the country. The satellite also provides internet service across the APAC region wherever the bank operates, from Sri Lanka to New Zealand. While it might seem unusual for a bank to operate a satellite, it’s reflective of Bank BRI’s commitment to reaching its financial inclusion targets and meeting its customers wherever they are.
“Pinang was created to win against fintechs trying to compete against us on speed, cost, and security,” says Situmorang. “The truth is that Indonesian regulators closed about 650 fintechs, mainly in the peer-to-peer lending space, because they were unsafe, too expensive, and very slow.”
Using APIs to create and monetize new products
Another way that Bank BRI is leveraging Google Cloud Platform solutions is through an innovative use of the Cloud Vision API, which enables the bank to integrate with the Indonesian government ID database. Identities of new customers — whether they’re coming in via a branch, a BRI Link Agent, or a mobile app — are automatically verified in seconds through facial recognition. With instant credit scoring and identity fraud concerns essentially eliminated, the bank can make more confident lending decisions.
“Monetization is very important to us. It enables us to define our pricing based on API calls and bill automatically based on usage. We’ve already recognized $50 million through the Apigee monetization feature.”—Kaspar Situmorang, Executive Vice President, Bank Rakyat Indonesia
“Customers download the app and scan their ID, capturing their credit score in just a few seconds,” explains Situmorang “The digital offer letter says how much they’re approved for. They can then accept it, go to the approval screen, and do facial recognition. The money is disbursed immediately. GCP has transformed us into a fintech.”
Bank BRI sees a bright digital future, in part thanks to the API product marketplace it’s creating to serve fintechs. With its digital technologies and massive customer base, the bank is sitting on a treasure trove of big data. Bank BRI already packages this data through more than 50 monetized open APIs for more than 70 ecosystem partners wanting to do credit scoring, business assessments, and risk management. Fintechs, insurance companies, and financial institutions don’t have the talent or the financial resources to do quality credit scoring and fraud detection on their own, so they are turning to Bank BRI.
“Monetization is very important to us. It enables us to define our pricing based on API calls and bill automatically based on usage. We’ve already recognized $50 million through the Apigee monetization feature,” says Situmorang.
Bank BRI is meeting and surpassing the goals it has set for itself for digitalization, increasing financial inclusion, and creating new revenue streams with APIs.
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The Inside Story of How Home Depot Migrated to Google BigQuery From an On-prem DW Solution
In the media, you will often hear story of how born-in-the-cloud companies manage with massive infrastructure.
But it is one thing is to be a startup, and build infrastructure with bespoke requirements. And quite another to have a complex, multinational organization with online, with mobile, with brick-and-mortar presence, and hundreds of thousands of SKUs and professional services, and many, many years of technology, innovation, and really smart engineers.
This is the second story. The story of how The Home Depot, the number-one home improvement retailer in the US pulled of that feat.
The Home Depot has over 2,200 stores, over 4 lakh associates, and 2017 revenues of over a $100 billion.
In this video, Rick Ramaker, technology director, data analytics at The Home Depot, and Kevin Scholz, distinguished engineer, The Home Depot, talk about how the company transformed and modernised its data warehousing, the challenges they faced and the benefits they accrued from the project.
It’s a fascinating watch!
The Journey ahead for Google Cloud and SAP
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The partnership between Google Cloud and SAP is entering a new chapter. Over the years, our close partnership with SAP and our mutual dedication to customers has inspired us to do some of our most unique and innovative work—such as building Fast Restart and Memory Poisoning Recovery capabilities for S/4HANA workloads, offering real-time access to our advanced machine learning (ML) capabilities, and developing integrations with the industry’s best cloud security and network infrastructure.
With an expanded, strategic partnership, we are capitalizing on one of the cloud’s most valuable benefits: enabling customer choice without driving up cost or complexity. Customers have shared that they appreciate what Google Cloud has done over the years to support their ability to choose—from our support for multi-cloud environments to our track record with open-source technologies like Kubernetes, to name a couple of examples.
“We chose Google Cloud to support our SAP implementation. Our decision had a lot to do with the relationship between Google Cloud and SAP and also for the applications and services that are offered by Google Cloud, like BigQuery, which are helping to enable data and analytics within our organization.”— Sam Moses, Vice President of Corporate Systems, The Home Depot
Now, we’re placing this same emphasis on customer choice, flexibility, and freedom to help SAP customers get greater ROI from their cloud investments in three ways:
- Execute seamless business transformations that deliver all of the benefits of modern, cloud-native applications and services—quickly, economically, and without disrupting day-to-day operations
- Migrate critical business systems to the cloud, in order to lock in OpEx savings and refocus their IT teams on strategic business technology initiatives
- Augment existing business systems with cloud capabilities in AI, ML, and analytics
The cornerstone of our expanded partnership is the RISE with SAP program—a comprehensive set of tools, technology, and expert support for a fast, predictable, cost-effective path to business transformation with SAP in the cloud. RISE is also designed to meet every SAP customer on their own terms, whether they’re undertaking an enterprise-wide cloud migration or pursuing an incremental or hybrid-cloud approach.
To support customers taking advantage of RISE with SAP, Google Cloud will work even more closely with SAP to accelerate customers’ cloud migrations and business process modernization across several key areas. This includes ensuring global availability of multiple SAP services and products—such as SAP Business Technology Platform and SAP HANA Cloud—on Google Cloud’s reliable, scalable infrastructure and high-speed network. Google Cloud is also committed to bringing SAP’s solution for RPA in manufacturing to the Google Cloud Marketplace to support business process modernization.
Additionally, integrating our AI, ML, and analytics capabilities with key SAP solutions will help companies augment their business systems with sophisticated capabilities and technologies so they can draw more value out of the data stored with them.
“We can deliver our 160 key business insights two or three orders of magnitude faster with BigQuery. When you think about our marketing campaigns and month-end finance processes, we’re talking about jobs that used to take five to eight hours to complete that are now running in seconds.”— Dan Semmens, Head of Data and AI, ATB Financial
Join us on the journey ahead
There’s so much more to come from SAP and Google Cloud. Learn more about our commitment to enabling digital transformation and hear more from customers about their SAP on Google Cloud deployments.
FAQs: Everything Your Need to Know About Cloud Computing
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There are a number of terms and concepts in cloud computing, and not everyone is familiar with all of them. To help, we’ve put together a list of common questions, and the meanings of a few of those acronyms. You can find all these, and many more, in our learning resources.
What are containers?
Containers are packages of software that contain all of the necessary elements to run in any environment. In this way, containers virtualize the operating system and run anywhere, from a private data center to the public cloud or even on a developer’s personal laptop. Containerization allows development teams to move fast, deploy software efficiently, and operate at an unprecedented scale. Read more.
Containers vs. VMs: What’s the difference?
You might already be familiar with VMs: a guest operating system such as Linux or Windows runs on top of a host operating system with access to the underlying hardware. Containers are often compared to virtual machines (VMs). Like virtual machines, containers allow you to package your application together with libraries and other dependencies, providing isolated environments for running your software services. However, the similarities end here as containers offer a far more lightweight unit for developers and IT Ops teams to work with, carrying a myriad of benefits. Containers are much more lightweight than VMs, virtualize at the OS level while VMs virtualize at the hardware level, and share the OS kernel and use a fraction of the memory VMs require. Read more.
What is Kubernetes?
With the widespread adoption of containers among organizations, Kubernetes, the container-centric management software, has become the de facto standard to deploy and operate containerized applications. Google Cloud is the birthplace of Kubernetes—originally developed at Google and released as open source in 2014. Kubernetes builds on 15 years of running Google’s containerized workloads and the valuable contributions from the open source community. Inspired by Google’s internal cluster management system, Borg, Kubernetes makes everything associated with deploying and managing your application easier. Providing automated container orchestration, Kubernetes improves your reliability and reduces the time and resources attributed to daily operations. Read more.
What is microservices architecture?
Microservices architecture (often shortened to microservices) refers to an architectural style for developing applications. Microservices allow a large application to be separated into smaller independent parts, with each part having its own realm of responsibility. To serve a single user request, a microservices-based application can call on many internal microservices to compose its response. Containers are a well-suited microservices architecture example, since they let you focus on developing the services without worrying about the dependencies. Modern cloud-native applications are usually built as microservices using containers. Read more.
What is ETL?
ETL stands for extract, transform, and load and is a traditionally accepted way for organizations to combine data from multiple systems into a single database, data store, data warehouse, or data lake. ETL can be used to store legacy data, or—as is more typical today—aggregate data to analyze and drive business decisions. Organizations have been using ETL for decades. But what’s new is that both the sources of data, as well as the target databases, are now moving to the cloud. Additionally, we’re seeing the emergence of streaming ETL pipelines, which are now unified alongside batch pipelines—that is, pipelines handling continuous streams of data in real time versus data handled in aggregate batches. Some enterprises run continuous streaming processes with batch backfill or reprocessing pipelines woven into the mix. Read more.
What is a data lake?
A data lake is a centralized repository designed to store, process, and secure large amounts of structured, semistructured, and unstructured data. It can store data in its native format and process any variety of it, ignoring size limits. Read more.
What is a data warehouse?
Data-driven companies require robust solutions for managing and analyzing large quantities of data across their organizations. These systems must be scalable, reliable, and secure enough for regulated industries, as well as flexible enough to support a wide variety of data types and use cases. The requirements go way beyond the capabilities of any traditional database. That’s where the data warehouse comes in. A data warehouse is an enterprise system used for the analysis and reporting of structured and semi-structured data from multiple sources, such as point-of-sale transactions, marketing automation, customer relationship management, and more. A data warehouse is suited for ad hoc analysis as well custom reporting and can store both current and historical data in one place. It is designed to give a long-range view of data over time, making it a primary component of business intelligence. Read more.
What is streaming analytics?
Streaming analytics is the processing and analyzing of data records continuously rather than in batches. Generally, streaming analytics is useful for the types of data sources that send data in small sizes (often in kilobytes) in a continuous flow as the data is generated. Read more.
What is machine learning (ML)?
Today’s enterprises are bombarded with data. To drive better business decisions, they have to make sense of it. But the sheer volume coupled with complexity makes data difficult to analyze using traditional tools. Building, testing, iterating, and deploying analytical models for identifying patterns and insights in data eats up employees’ time. Then after being deployed, such models also have to be monitored and continually adjusted as the market situation or the data itself changes. Machine learning is the solution. Machine learning allows businesses to enable the data to teach the system how to solve the problem at hand with machine learning algorithms—and how to get better over time. Read more.
What is natural language processing (NLP)?
Natural language processing (NLP) uses machine learning to reveal the structure and meaning of text. With natural language processing applications, organizations can analyze text and extract information about people, places, and events to better understand social media sentiment and customer conversations. Read more.
Learn more
This is just a sampling of frequently asked questions about cloud computing. To learn more, visit our resources page at cloud.google.com/learn.
How Google Cloud’s Scalable Data Storage and High Compute Resources Fuel Investment Research
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Investment management is a heavily data-driven industry—portfolio managers and investment researchers require a large number of data sources to guide them in shaping their investment strategies.
New cloud capabilities and technologies enable investment managers to process data faster than ever before and iterate on ideas quickly to fuel innovation in the signal generation process and gain a competitive edge.
Using the cloud for investment research workflows makes it easier to onboard data from data providers, spin up large compute workloads in the midst of market volatility or during heavy research cycles, and manage complex machine learning or natural language workflows to gain market insights.
We hear from industry leaders that they’re exploring new ways to run investment research. “Differentiated investment strategies require new types of information sources, and new ways to process that information,” David Easthope, senior analyst, Market Structure and Technology, Greenwich Associates. “And that, of course, relies heavily on having access to reliable and scalable storage, computational, and AI / ML resources. More specifically, quantitative strategies can benefit from the computational platforms and embedded AI/ML capabilities the cloud can offer.”
Google Cloud gives investment managers essential components to work and operate faster as they bring their investment research workflows to the cloud. Here are the key highlights:
1. Simplify, speed up your data acquisition, discovery, and analytics
The foundation of any investment strategy starts with data—acquiring it, detecting patterns, and analyzing it for insights. Enabling data providers to easily share large datasets such as tick history within a high-performance analytics engine can greatly reduce the data engineering overhead when possible.
Once data is onboarded, you can tag business and technical metadata related to your datasets and provide portfolio managers the ability to discover these datasets via a search interface.
We further review analytics options for various scenarios, including aggregating massive datasets, creating dashboards, and incorporating streaming analytics workloads.
2. Take advantage of burst compute workloads
Data engineers and researchers require ready access to burst compute capabilities to perform backtesting, portfolio simulations and run risk calculations. Cloud works well for these workloads due to its elasticity, consumption-based models, and hardware evolution.
Many investment managers are shifting to a container-based strategy along with a Kubernetes-based scheduler for greater consistency, scaling and efficiency in environments with a large number of researchers. Cloud managed services and a rich suite of CI/CD tools can make this vision a reality while improving security and developer productivity.
3. Tackle machine learning (ML) and model deployment with the help from cloud
Quantitative researchers scour vast amounts of market and alternative data sources searching for signals and correlations, while ML engineers have the challenge of taking these signals and moving them to production.
Google Cloud empowers users to create and operationalize their models without wasting valuable time with a comprehensive set of MLOps tools.
In this paper, we explore multiple solutions for ML and model deployment. Those capabilities reduce the amount of time operationalizing ML models, so quants and data scientists have more time to devote to differentiating activities.
4. Get the data you need in less time with Natural Language and Document AI
Thousands of financial filings, news articles, and sell-side research reports are generated every day, and it’s difficult for humans alone to process this volume of information. These documents are often generated in many languages and the ability to do entity recognition, sentiment or syntactical analysis in those languages, or perhaps translate them into the language of the portfolio manager is of critical importance. Google Cloud provides these capabilities through pre-trained models, or allows you to train high-quality models with your own datasets.
Getting started
There are plenty of emerging technologies, tools, and approaches available to help investment managers today. At Google Cloud, we can help you access, organize, and utilize these essential components to make your research faster, reliable, and more valuable.
To learn more about these four keys to better investment research, check out our whitepaper for more.
RAMPing Up Cloud Migration Process
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As enterprises accelerate their migration to the cloud, they experience more notable mid- and late-phase migration challenges. Specifically, 41% face challenges when optimizing apps in the cloud post-migration, and 38% struggle with performance issues on workloads migrated to the cloud. Further, organizations have also increased reliance on outside consultants and other service providers for early-stage cloud migration tasks to ongoing management post-implementation.1
To help customers through these challenges with a simple, quick path to a successful cloud migration, Google Cloud created our comprehensive Rapid Assessment & Migration Program (RAMP). And we’ve got some exciting developments to share with our customers and partners:
Expanded focus on post-migration TCO/ROI
Given the complex nature of cloud migrations, we are committed to meeting our customers where they’re at in their cloud journeys and partnering with them to achieve their business goals — be it building customer value through innovation, driving cost efficiencies, or increasing competitive differentiation and productivity. RAMP is a holistic framework based on tangible customer TCO and ROI analyses, that supports our customers’ journeys all the way through: from assessing their digital landscapes across multiple sources including on-prem and other clouds, and identifying prioritized target workloads to building a comprehensive migration and modernization plan.
Accelerate positive outcomes with expert partners
Customers can also now expect a more streamlined migration experience through our ecosystem of partners who have completed their cloud migration specialization. Last week, we announced industry-leading updates to our partner funding programs with new assessment and consumption packages that simplify and accelerate our customers’ journey to Google Cloud, at little-to-no cost. These packages offer prescriptive pathways for infrastructure and application modernization initiatives, empowering our partners to support our customers at every stage — from discovery and planning to migration and modernization.
Through our partner ecosystem, our customers can expect:
- Distinct funding packages for assessment, planning, and migration
- Faster approval processes for accelerated deployments
- More partners eligible to participate in RAMP and access these new funding packages
Sustainability through migration
Another major focus area for RAMP is helping enterprises optimize their migration planning and maximize their ROI by including their business and technical considerations early in the process and including any sustainability goals they may have. To aid with their sustainability efforts, we are excited to share that customers can now receive a Digital Sustainability Report along with their IT assessments – enabling sustainability to be built into their migration strategies. The report provides actionable insights to measure and reduce their environmental impact, and is based on some of Google Cloud’s own best practices, having been carbon-neutral for decades and looking to run on carbon-free energy by 2030.
We are committed to solving complex problems for our customers and partners, and these updates are a reflection of the feedback we receive. Simplify your cloud migration strategy today by requesting your free assessment, finding a partner to work with, or talking to your existing partner to get started.
1. Forrester Consulting, State Of Public Cloud Migration; A study commissioned by Google, 2022
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