Join Chris Puype, CEO of ElysianNxt, and Dedi Liusmawan, Risk Management Specialist at Bank Jago, as they delve into the inspiring growth journey of Bank Jago, a digital bank in Indonesia, and how they handled the IFRS9 challenges following the tremendous growth with SaaS.
Updated: January 17, 2025
Bank Jago’s current IFRS 9 volumes reached 15 million, an exponential growth within only a few years from its establishment. Jago’s decision to implement ElysianNxt’s dynamic SaaS architecture for its IFRS 9 calculations is key to its fast-performing calculations, achieving 1 hour even at a spike to 15 million in volumes.
Bank Jago’s Digital Transformation
Bank Jago started as a small bank and revolutionized the banking industry by reshaping the digital banking landscape in Indonesia, attracting over 5 million users in just three years. Dedi highlights how technology is the future of banking and outlines Bank Jago’s strategic initiatives aimed at making banking more accessible. The primary goal was to simplify account applications and transactions, thereby integrating more people into the financial system.
IFRS 9 challenges from rapid growth
With that, Bank Jago experienced unexpected exponential growth, which also posed challenges, especially in risk management. The unexpected 5 million users growth meant there were large amounts of data to process. This initially impaired the bank’s ability to keep up with regulatory requirements such as IFRS 9 and PSAK 71, which required provisions for potential credit losses.
Dedi explains that traditional methods, like manual processing on Excel, were impractical for their scale, especially for tasks like Expected Credit Loss (ECL) calculations. They needed a scalable system that could manage large data volumes efficiently.
Addressing Matters: The Move to SaaS
Bank Jago found the solution in SaaS. Unlike on-premises solutions, SaaS offered flexibility, scalability, and reduced physical maintenance costs. The right SaaS vendor was crucial, and Bank Jago chose ElysianNxt for its strong cloud capabilities, which aligned with the bank’s growth and operational needs.
Implementation Success
The implementation process was smooth and showcased impressive results. Bank Jago was able to produce ECL numbers within three months of implementation, a significant improvement compared to the traditional batch-driven risk management platforms, which took up to 48 hours to calculate ECL numbers. With the real-time streaming platform from ElysianNxt, results were available in just 6-7 hours.
User Interface and Operational Efficiency
The .NXT User Interface provided full control and transparency over processes, removing dependencies on IT and enabling users to track changes made to models. This allowed for more accurate decision-making and significantly reduced end-to-end calculation times from 6-7 hours to just 1-2 hours.
Conclusion
ElysianNxt proved to be the solution that Bank Jago needed to achieve its remarkable growth and operational efficiency. The partnership enabled Bank Jago to meet regulatory requirements, manage rapid growth, and continue innovating in the digital banking space, ultimately benefiting the broader financial community.
Achieve the same success as Bank Jago’s with ElysianNxt. See our Digital Booklet for more product information.
