BANK OBSERVATION

ENGLISH FOR BUSINESS AND BANKING

Members of group:
1. Michael A. Amalo
2. Margaritha Kase
3. Martha W. Suni
4. Dedy F. Lena
5. Martina A. Asabain
6. Putri N.F Ledo

Class : VI C
 I. INTRODUCTION

Economic development in Indonesia is rapidly increasing nowadays. This has

led to high amount of public demand for goods and services. The need for goods and
services of the society will also affect the entrepreneurs to run their business fields in
the small, medium and large-scale businesses. In fulfilling the goods and the needs of the
society the entrepreneurs in Indonesia surely needs a support fund . Besides that,the
people in this country also need a right and safe storage to safe their fund. related to that
matter, Banks were exist to help people from all different stages. Each Bank in Indonesia
offers financial products and services with their respective characteristics based on the
curstomers’ needs and circumstances.

In indonesia we have many kinds of bank. They are separated into 4 categories.
The first are the banks that were build based on it’s function such as Bank Indonesia,
BCA , and BPR . The second are the banks that were build based on it’s ownership such
as BRI and Mandiri which are owned by the gorvernment and Muamalat bank Danamon
bank which are owned by private owners , the third are the banks that were build based
on the status. For examples are foreign exchage bank and non-foreign exchage bank, the
last but not least are the banks that were build based on the functional activities. This
last category then has two branches. They are the conventional bank and islamic/syariah
bank.

Morever, Today's banking industry is increasingly aware that customers’ service

and trust are a unit that is difficult to separate and is a vital aspect in order to stay in
business to win the competition. Competition in the banking sector that is very tight at
this time can not be avoided anymore, but in order for a bank to be accepted by
customers, it must be able to make customers trust the bank. Customer behavior towards
banks often changes with respect to the character possessed by customers. Customer
satisfaction is increasingly believed to be the key to successful marketing of bank
services. Thus, the efforts of the banking community to gain customer trust are colored
by the increasingly fierce phenomenon of competition in this era of consumer
sovereignty (Wahjono, 2010; 178). This is reinforced by the opinion of Akbar and
Parvez (2009) that a trust is needed to be able to build stable relationships and overall
relationships between various parties involved in the interaction.
 http://worldpopulationreview.com states that, “ Indonesia is also the world's
most populous Muslim-majority country, as just over 87% of Indonesians declared
Muslim on the 2010 census.” This matter then turn into a stepping-stone for the
government or the stockholders to treats all customers equally. They decided to open a
new type of bank that serves the customers based on the islamic principles. This kind of
banks are called Syariah Bank. Using islamic principles as their guideliness doesn’t
mean that only Muslim people are allowed to be the customers . It Conversely aiming to
unites the diversities in Indonesia. Syariah banks are available for those who want to be
the staffs or the customers. There is no discrimination at all.

For those reason above, our group decided to chose BTPN Syariah Bank in
Kupang city to be the object of our observation in order to comply the task from Mrs.
Gracia M.N Otta , S.Pd.,M.HUM in english for business and banking subject with the
aims to dig deeper about BTPN Syariah Kupang Bank. And to figure out what is the
specific difference of BTPN Syariah bank that another bank doesn’t have.
II. CONTENT

2.1 History of BTPN Syariah Bank

BTPN Syariah is the 12th syariah public bank in Indonesia, has a

determination to grow millions of Indonesians so that they have a good life in
accordance with the Bank's slogan, namely: Becoming the Best Syariah Bank, for
Inclusive Finance, Changing the Millionaire Life of Indonesian People. BTPN
Syariah was born from a combination of two strengths, namely, PT Bank sahabat
purbadarta and BTPN syahriah Business Unit Sahabat purbadarta Bank, which
was established in March 1991 in Semarang, is a non-foreign exchange public
bank whose 70% shares were acquired by PT Bank Tabungan Pensiuna nasional,
Tbk (BTPN), on January 20, 2014, and later converted to Syariah BTPN based on
the Financial Services Authority Decree (OJK) dated May 22, 2014.

The BTPN Syariah Business Unit which is focused on serving and

empowering pre-prosperous families throughout Indonesia is one of the business
segments in PT Bank Tabungan Nasional Tbk since March 2008, then spun off
and joined BTPN syariah in June 2014, BTPN Syariah Bank has many branches
throughout Indonesia, one of which is in Kupang City, East Nusa Tenggara.
Founded on July 14, 2014, located in Oebobo, Kupang City, East Nusa Tenggara.

2.2 Organizational Structure of BTPN Syariah Bank in Kupang

Branch Operation
Manager
Abdul Zaenal

Bank Tellers (also

take role as Back Officers
customer service )
The duty of the organization are:

1) Branch operation manager :

 Supervise and coordinate operational activities

The bank manager must coordinate to supervise all activities carried out by
banking staff at the branch office. The coordination is carried out so that
banking operations can run optimally and there are no useless operational
activities.

 Leading marketing activities in banking

Banking marketing is very important, this is to maximize bank income. The

bank manager must be able to lead the marketing activities of banking
products. The marketing activity can use funds as effectively and efficiently as
possible so that the planned marketing program can be run properly.

 Monitor the company's operational activities

Monitoring the company's operational activities can be done by compiling a

Bank Business Plan or RBB. After this arrangement, the bank manager can run
the RBB in accordance with his staff at the branch office. The preparation of
the RBB is not only compiled and implemented, but the bank manager must
also monitor the plan whether or not it is really well implemented by the staff.

 Monitor risk management operational procedures

As a branch manager, his job is not only to oversee banking operations, but
the manager must also monitor operational procedures in terms of risk
management.

 Developing operational activities

Branch office operational activities must also be developed, whether it is

service or banking products owned. Development of activities in terms of
service can be carried out by branch managers by conducting regular training.
  Observation of employee performance

Bank branch managers can make direct observations of the performance of

their subordinates. This is important to know to what extent the employee does
the work assigned by the manager.

 Providing solutions to all problems

Branch managers not only govern subordinates, but branch managers are
also required to provide solutions to all the problems faced by their
employees, both problems with customers or problems with fellow employees.

2) Bank Teller:

A bank teller is an employee of a bank that deals directly with most customers. In
some places, these employees are known as cashiers or customer representatives.
Teller work requires experience related to handling cash. Most banks provide on-the-
job training for training to become a teller. Teller is considered a "front line" in the
banking business because they are the first people to be directly related to bank
customers. What is totally differs this bank from another banks in kupang is that in
btpn syariah kupang, the teller play double role . they also work as the customer
service . Teller assignments in BTPN Syariah include: deliver qualitative services to
customers,promote bank products and services, build customer relationships,maintain
and manage existing accounts,capture new accounts,respond to customer inquiries and
resolve,maintain customer database and update periodically,assist customers in
depositing and withdrawing cash,refer complex issues to the management, ensure best
practices in rendering services to customers,serve withdrawals, transfers and deposit
money from customers,check cash and calculate daily transactions using a computer,
calculator, or counting machine.

3) Back officers

In the bank , the back office is the portion of the bank made up of administration
and support personnel who are not client-facing. Back-office functions include
settlements, clearances, record maintenance, regulatory compliance, accounting, and
IT services.
2.3 Vision , Mission , and Values

 The Mission:

Together, we create opportunities for growth and a more meaningful life.

 The Vision :

To be the best Sharia Bank, for financial inclusion, making a difference in the
lives of millions of Indonesia.

Together, means that we can only deliver the mission in collaboration with all
stakeholders which include all employees, customers, government and regulator,
shareholders and public community.

We Create Opportunities, implies that we do every endeavor to make all the

activites in BTPN Syariah as opportunities for growth.

Growth, signifies that we will utilize all the opportunies to bring changes to all
stakeholders towards a betterment.

 Values:

"PRISMA"

(Professionalism, Integrity, Mutual Respect and Teamwork – the Indonesia acronym

is PRISMA)

 Professionalism

Is embodied by improving expertise as required by the profession. All

employees are expected to demonstrate the behavior of continuously enhance the
expertise in line with the respective profession, maintain strict discipline and
adherence to the code of conduct of the Company, and strive for excellence. Is
essentially a demonstration of the integration between action and principles or
values. All employees are expected to be honest and truthful, to act according to
the norms, and to deliver commitment.
  Mutual Respect
Being respectul and appreciate the opinion and contribution of others
respective to the roles, responsibilities and expertise. All employees are expected
to listen and appreciate the works of others.
 Teamwork
Put the common objectives as the primary concern and leveraging
difference to become the ultimate source of strength. All the employees are
expected to be able to work in a team, seek to understand the differences of the
team and figure out how to capitalize the differences to reach the ultimate
objective of the team, and show mutual trust to work and help each other.

2.4 Logo

Human stylization of the letter "n" which describes a person who is bowing down
which means that BTPN is always ready to serve its customers. In addition, the oval
sphere above the letter "n" explains the central idea of the BTPN Bank. This gives the
meaning of "there is more to life" or there is something more or other in life.

2.5 Products

One of advantages that we will get if we join in the products of this bank is that
they don’t bother the customers with bank interest in all of the products. Besides
that, One of the teller declares that in this year, they have a mission to reach 5 million
customers and make the customers life become meaninful. For the products , BTPN
Syariah bank only have 3 products. They are:
 Paket Masa Depan (PMD)

An integrated product of BTPN Syariah dedicated for groups of women in villages

who are eager to initiate a business and aspire to change their lives but do not have
access to banking services. PMD is a financing program of Rp 1-3 million to be
repaid in bi-weekly installments for a period of one year. At the end of the cycle, the
customers are entitled for next financing up to 100% as great as the initial amount.

 Tabungan Citra Ib

A profit-sharing-agreement (akad mudharabah mutlaqah) saving account with a

minimum deposit. Customers will have access to do banking transactions in all BTPN
Syariah Banking with free monthly administration fee.

 Tabungan Taseto iB

Saving account providing yield as optimum as time deposit On top of the optimum
gain, this profit-sharing-agreement (akad mudharabah mutlaqah) saving account
offered the benefits of unlimited cash withdrawals and free monthly administration
fee.

 Taseto Mapan iB

A saving plan product with a profit-sharing-agreement (akad mudharabah

mutlaqah) offering minimum initial deposit and competitive yield. Taseto Mapan iB
also offers free administration fee and monthly or timed deposit option by auto debet
system from BTPN Syariah saving account. Taseto Mapan iB helps you to realize
your financial plan in a more comfort and secure manner.

 Deposito iB

Time deposit with choice of maturities according to customers’ needs. The

placement of deposits is made on profit-sharing-agreement (akad mudharabah
mutlaqah) between the Bank (Mudharib) and customers as the owner of the fund
(Shahibul Maal), offering various maturies ranging from 1 to 24 months.

 Giro Ib

Deposit of fund with wadiah agreement, offering ease of transactions using

cheque/giro.
2.6 BTPN Syariah bank services

 ATM/Debit card

The customer can access their account from anywhere in the world through PLUS,
Bersama and Prima ATM network. Convenient transaction at stores/merchants around
the world through VISA & BCA/Debit Prima network.

 BTPN Syariah Mobile Banking

A service system that complements the needs of funding customers, in making a

number of transactions, anytime, anywhere via cell phone

 Gerbang Pembayaran Nasional

GPN adds convenience to transactions for customers. With GPN, people can trade
from any bank using any instrument and payment channel.

 BTPN WOW! iB

A banking service for the mass market that utilizes mobile phone technology and
is supported by agent services as an extension of BTPN Syariah to increase service
coverage to customers in all corners of Indonesia

 Shopping Voucher

By only opening a saving account at BTPN Syariah Bank, customers can

immediately enjoy shopping vouchers. The greater the average savings balance, the
greater the value of the shopping voucher obtained.
2.7 The Terms used in BTPN Syariah Bank

Banking is full of terms and concepts that can be difficult to comprehend.

Even common ones have features that may not be obvious. But with banking and
finance becoming such an important part of our daily lives, taking the time to
learn some new phrases or understand old ones better scould yield profitable
results. Those who want to be a part of BTPN Syariah Bank ofcourse should
know how to use these terms in order to make their interaction not being
obstructed . So ,here are the terms that our group figured out:

 Ar-Rahnu

Ar-Rahnu is to pledge goods with the property value (economic value) as

security for an indebtedness, this way the owner of the goods can incur debts. Ar-
Rahnu also means pledge or pawn, which is a contract (akad) of guarantee and
binding when the right of possession of goods as security is transferred. Under the
contract, there is no transfer of ownership of the collateral. Or in other words, it is
a contract for delivery of goods from a customer to a banks as security of an
indebtedness, in whole or in part, held by a customer. Accordingly, the transfer of
ownership of goods only occurs in the circumstances arising or resulting from the
contract.

 Hawalah

Hawalah is a contract of transfer of a debt from a customer to a bank to help

the customer to acquire cash capital in order to continue his/her production and the
bank will receive something of value in return for serving the transfer of a claim of
a debt.

 Ijarah

Ijarah is a lease agreement that allows a lessee to use the leased goods in
return for rent as agreed upon, and upon expiration of the lease term, the goods are
returned to the owner, but the lessee may also own the leased goods with option of
transferring the ownership of the leased goods from the bank by another party
(ijarah wa iqtina).
  Istishna

Istishna’a is trade financing made between a bank and a customer where the
seller (bank) manufactures the goods ordered by the customer. To meet the
customer’s order, the bank can subcontract their work to other party.

 Kafalah

Kafalah is a guarantee issued by the bank under a contract to the customer to

guarantee projects and to fulfill a certain obligation by the guaranteed party.

 Mudharabah

Mudharabah is a partnership between two parties in which the capital owner

(shahibul maal) provides capital whereas the entrepreneur (mudarib) becomes the
fund manager, and the parties share the profits and losses as agreed in advance.

 Mudharabah al-Mutlaqah

Mudharabah al-Mutlaqah is a partnership between two parties in which the

capital owner (shahibul maal) provides capital and fully authorizes the
entrepreneur (mudarib) to determine the type and place of investment, and the
parties share the profits and losses as agreed in advance.

 Mudharabah Muqqayadah

Mudharabah Muqayyadah is a partnership between two parties in which the

capital owner (shahibul maal) provides capital and authorizes the entrepreneur
(mudarib) on a limited basis to determine the type and place of investment, and
the parties share the profits and losses as agreed in advance.

 Murabahah

Murabahah is an agreement between a Sharia Bank and a customer under

which the Bank provides financing for the purchase of raw materials or other
working capital as needed by the customer who will repay at the bank’s selling
price (bank’s purchase price + profit margin) at the specified time.
  Musyarakah

Musyarakah is a financing agreement between a Sharia Bank and a customer

who needs financing, under which the Bank and the customers jointly finance a
business activity or projects which are also managed jointly within the principle of
profit sharing according to the contribution, and both parties share the profits and
losses as agreed in advance.

 Salam

Salam is trade financing in which the buyer pays the money in advance for
specific goods purchased and delivered at a specified time in the future.

 Wadiah

Wadiah (Safekeeping) is a deposit from one party to another both individuals

and groups that must be kept in safe custody and returned at any time when the
owner so requires.

 Wadiah Yad adh-Dhamanah

Wadiah Yad adh-Dhamanah is wadiah (safekeeping) in which the depository

may use the deposits with the permission of the owner, and guarantees to return
the deposits in full at any time when the owner so requires.

 Wadiah Yad al-Amanah

Wadiah Yad al-Amanah is wadiah (safekeeping) in which the depository is

not responsible for any loss and damage to the deposits as long as they do not
result from negligence or carelessness of the depository in maintaining the
deposits.

 Wakalah

Wakalah is an agency contract between two parties (a bank and a customer)

under which the customer authorizes the bank to represent him-herself to perform
a specific task or service.
III. COCLUSION

In the end, we would like to conclude that BTPN Syariah is a really helpful and
valuable bank that we have in Kupang city. This bank pays attention to empowering
female customers from poor families in the countryside. The method is to provide
financing programs that are combined with empowerment programs. This integrated
program provides opportunities for groups of female customers to gain access, products,
banking services and empowerment programs by building four superior behaviors,
namely: Courageous Business, Discipline, Hard Work and Mutual Assistance . Giving
attention to the empowerment of women is a unique feature of BTPN Syariah. By
carrying out the vision of "Becoming the Best Sharia Bank for Inclusive Finance,
Changing the Life of Indonesian Millionaires", this uniqueness is the superiority of
Sharia BTPN that is not owned by other sharia-based banks in Indonesia.
So that, when viewed carefully, the uniqueness of the uniqueness of BTPN Syariah are:
First , it is the only Islamic bank in Indonesia that applies the principle of financial
inclusion (Financial Inclusion) serves a segment of productive poor families that have not
been the main segment of the bank. Second, the only bank that prioritizes women's
empowerment. Third, the only bank with more than 90% of its employees is women.
Fourth, the only bank that provides opportunities for thousands of high school graduates
to build careers in banks. Fifth, banks are able to give birth to a new generation of bank
employees, namely bank employees who serve a productive poor banker. We
recommend this bank sincerely to all of the people wherever they are.