Deregulation measures enacted in 1988 creates both new competition and opportunities for banks in Indonesia. Bank Summa, a member of the rapidly growing Summa Group, embraced this opportunity by expanding its business. One consequence of this rapid expansion is that Bank Summa needs additional funds to finance credit growth. One way to attract new funds is by developing new fund generating products.



Alternative new products were evaluated for Bank Summa considering internal and external factors such as opinion of its customers, capability of its staff, equipment currently available and support from affiliated companies. We recommend that Bank Summa launch three products. Those products are:



1. Saving Account for Investor. This saving product is for investors with idle funds not being used to buy stocks. The transaction process will be very efficient because when the customer buys or sells stock, the money is automatically transferred from and to the saving account. Bank Summa guarantee that the money will be transferred to the account within five days after a transaction occurs. Since the initial target market is customer of Summa Broker, the Customer Service Officers should promote and sell this product.



2. Saving Account for Holiday.

Customers are requested to save their money periodically to reach certain amount at a certain time according to their planned holiday spending. Bank Summa together with travel agents guarantee the price. The saving and the interest can't be withdrawn before departure date.

Institutions and clubs will be the first target market. Brochures and direct selling are the proposed method to sell this saving product.



3. Saving Account for Vehicles Maintenance. Customers of this product will be given a coupon for every Rp25.000 of their saving. Every two months the coupons will be drawn and there is a winner in every 500 coupons. A prize of free car maintenance service will be given to the winners. Bank Summa is recommended initially to use its strong relationship with Astra to promote and get customers through Astra's network.



Target market for the products is the middle income except for saving Account for investor, which is targeted to middle, and high-income people who play in Jakarta Stock Exchange.



Research location: Bank Summa

Supervisor: Timothy J. Malloy, MBA

Accepted: August 1991