Bank Muamalat Indonesia

Oracle Customer Success

Bank Muamalat Indonesia reduces TCO by 20% with Oracle Cloud

Summary

Leading Indonesian Islamic bank delivers digital services faster, more efficiently with Oracle Cloud Infrastructure.

Business challenges

Bank Muamalat Indonesia (BMI) is the first Shariah bank in Indonesia, established in 1991. Among its major foreign investors are Islamic Development Bank, Boubyan Bank, Atwill Holdings, and National Bank of Kuwait.

Today, BMI is recognized as one of the top 10 banks in the country, with more than 325 branches, sub-branches, cash offices, and mobile branches across Indonesia as well as Malaysia. It employs more than 3,000 people.

As COVID-19 spread, the bank recognized the need to step up its digital efforts amid restricted hours for its branch operations. The bank needed a secure, scalable, high-performance IT infrastructure on which it could build, host, and deliver a variety of digital sevices. BMI’s IT team also needed to refresh its development environment, because its legacy environment didn’t support the bank’s new needs.

We have definitely enhanced our capabilities from the time-to-market perspective with Oracle Cloud. This helps us introduce innovative products and services with a more aggressive pace.

Dahnulbahri Noor

Head of IT Governance and Security, Bank Muamalat Indonesia

Why Bank Muamalat Indonesia Chose Oracle

Because Bank Muamalat Indonesia was already using the Oracle FLEXCUBE Universal Banking system, powered by Oracle WebLogic and Oracle Database, the bank decided to build its digital services on Oracle Cloud Infrastructure (OCI), which is optimized for WebLogic and Oracle Database workloads.

BMI’s phased transition to OCI started in 2018. Oracle’s technical team helped the bank lay out a clear roadmap for migrating workloads onto the cloud environment.

The bank started by moving the development and test environment for its mobile banking application to OCI, followed by its wealth management application and other project-based workloads, leveraging the automation of Oracle WebLogic and Oracle Database on Oracle Cloud.

Results

BMI’s move to Oracle Cloud Infrastructure has allowed it to rapidly roll out new services and features under its Muamalat DIN (Digital Islamic Network), its flagship mobile banking platform, as well as for its Medallian wealth management application and its Real-Time Gross Settlement (RTGS) funds-transfer service.

It used to take the BMI IT team six to eight weeks just to procure the needed hardware. With OCI, the team can acquire a test and development environment in minutes and deliver a new digital product in just two weeks.

Under its legacy model, the bank had to factor in system license and maintenance costs, as well as the costs of monitoring and maintaining the facility and hardware. OCI’s cloud model has helped the bank cut its TCO by 20%.

OCI also has freed developers and other bank employees from many manual tasks, enabling them to focus on enhancing system security, accelerating application development, improving business processes, and complying with regulations.

Oracle Database Cloud Service and Oracle WebLogic on OCI made implementation easy, as it resembles our on-premises production environment. It’s also extremely flexible, scalable, and simple to configure.

Dahnulbahri Noor

Head of IT Governance and Security, Bank Muamalat Indonesia