A vehicle financing business, PT Mandiri Tunas Finance, enables more Indonesians to travel around the archipelago. Loan applications are now simple, quick, and practical after the company upgraded its digital platform.

Mandiri Tunas Finance, an auto financing provider, has embraced digital transformation to provide customers with relevant financing options as quickly and effectively as possible.

Paving the Way for Unique Journeys

Mandiri Tunas Finance (MTF), a joint venture between Bank Mandiri and PT Tunas Ridean, has provided vehicle financing to individual and business clients since 2009, allowing more Indonesians to travel nationwide. MTF’s business grew tenfold in a decade. In 2019, it collaborated with over 2,000 car dealers nationwide to extend loans totaling $2.06 billion. A thriving auto finance industry resulted in unprecedented data growth.

As the company grew, so did the strain on MTF’s aging infrastructure, which could no longer handle the volume of transactions it was handling daily. Because they couldn’t log in simultaneously, employees had to log in in shifts. According to William Francis, MTF’s Head of IT, Strategy, and Human Capital, downtimes were expected at the end of the month, making the situation even more difficult.

Reports were not completed immediately. Decision-makers would have to wait days for the data to assess business performance and set priorities. As a result, the loan application and approval process became more complex, and the number of clients MTF could serve was reduced.

The Speed of Business

“Our growth has turned out to be a happy problem for IT. Data is growing incredibly, and the workload on our servers is rapidly increasing. According to William, we must adapt because the system is rapidly changing due to business competition, government regulations, and shareholder decisions.

To maintain its position as an industry leader, MTF needed to embrace innovation and provide its clients with the most timely and adequate financing options. Powerful servers that operate at business speeds were required to assist it in transforming data into valuable insights more quickly.

A Better, Faster, and a More Reliable Data Management System

Legacy MTF servers could no longer provide the uptime required for mission-critical workloads. Both planned and unplanned downtime was frequently required for system maintenance. As customer and transaction data grew exponentially, MTF required more computing power and scalability. Furthermore, numerous background procedures had to be coordinated to ensure a seamless customer experience.

“A faster SLA for our customers is our competitive advantage, so our senior management needs a better reporting model. We work with various third-party systems to make monthly loan installment payments easier for our customers. Furthermore, we work with insurance providers to provide our clients with life and auto insurance; these plans must be sent to them as soon as possible,” William explains. “In light of these challenges, our IT team must provide our stakeholders with a better, faster, and more reliable system.”

Building a Platform for Growth

MTF embarked on a multi-year digital transformation journey, selecting HPE Superdome Flex as its compute platform for both database and application mission-critical workloads for IT to meet service-level agreements (SLAs), scalability, and performance requirements. The highest UNIX® level of availability and scalability is carried over into HPE Superdome Flex, allowing MTF to accelerate end-of-day processing while meeting strict deadlines.

MTF also used the capabilities of enterprise-class storage systems such as the HPE 3PAR StoreServ and HPE Nimble Storage array for its production storage. “We also received assistance from the HPE team to optimize our SQL Server database,” William continues. This solution enables MTF to derive value from massive amounts of data with almost no downtime, providing the management team with the insights needed to make timely and accurate business decisions.

MTF used HPE Superdome X and HPE Superdome Flex servers in their transformation process, seamlessly integrated into the business’s IT ecosystem. MTF could handle even the most demanding SQL workloads thanks to its innovative architecture. It supports in-memory capability and scales to 32 CPUs (896 cores) and 48 TB of memory. The modular architecture of the HPE Superdome Flex enabled MTF to start small and grow at its own pace without sacrificing performance.

Data-driven Decision-making

Although the digital transformation process was complicated, it was worthwhile because MTF is already reaping the benefits. HPE Superdome X and HPE Superdome Flex have reduced the time required to process data. Combining the two platforms significantly improved MTF SLAs.

“The end-of-day processing time is now eight times faster. The processing time has been slashed from four hours to thirty minutes. William states this is critical because end-of-day processing is the mother of all reporting processes. A mobile app enables decision-makers, from the board of directors to branch managers, to access real-time data such as sales statistics and employee productivity rates.

William says we can then combine this data to create profit reports for better branch management. Loan applications are now processed more quickly; what used to take two days can now be completed in four hours. It gives MTF a competitive advantage in the highly competitive vehicle financing industry.

Preparing for a Paperless Future

Additional transformational initiatives will be launched. MTF will soon implement electronic know your customer (KYC), a remote, paperless procedure that confirms a loan applicant’s identity. As the global pandemic upends society as we know it, contact-free onboarding is a strategy for attracting new customers and improving customer engagement. It also reduces the possibility of fraud, document loss, and human error. William claims that HPE significantly impacted his company’s digital transformation.

The Challenges of Digital Transformation: What Mandiri Tunas Finance Faced

 Businesses are undergoing a digital transformation, which presents numerous opportunities, potential benefits, and challenges. Mandiri Tunas Finance (MTF) faced several unusual challenges during its transformation. One of the most difficult challenges MTF faced was ensuring that the company’s digital infrastructure could adequately support its new operations. It necessitated significant investments in updated IT systems and procedures.

Another challenge was educating employees about the complexities of digital transformation. MTF needed to ensure that every employee was aware of digital technologies and received training on using them effectively. The company’s internal policies and practices had to be altered to accommodate the transition.

MTF also required the development of a dependable and secure method for handling sensitive data and customer information. It necessitated the implementation of stringent cybersecurity safeguards and the expenditure of funds on new software compatible with evolving legal requirements.

Final Thought

Organizations can improve their efficiency and profitability by leveraging digital transformation. It was made possible by implementing HPE Solutions by Mandiri Tunas Finance. These technological advancements have enabled the company to reduce costs, improve customer service, and accelerate its services. This company has successfully implemented a digital transformation process by leveraging innovative technologies.

HPE ProLiant servers, storage, and networking solutions are all available from ICT Distribution Bangladesh. Our staff will provide our customers with the best service and assistance possible. So, what’s holding you back? Syed Adnan, our country manager, can be reached at syed.adnan@ictdistribution.net.