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Digital Platforms to Sustain Indonesia’s Economy Growth

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Financial services in Indonesia have always been ripe for digital disruption. As per reports, digitising payments in the private sector alone could increase bank account ownership by 29%. Many Indonesians living in rural areas live far from the nearest physical bank or ATM and must travel long distances to withdraw cash for payments such as utilities, hospital bills, school tuition, and other expenses. Digital banking would facilitate payments and provide rural Indonesians with greater access to financial services.

To accomplish this, Indonesia’s privately-owned bank under its digital organisation had launched a new digital banking app in the country for Android users, making it the latest addition to a long list of digital banks that operate in the country. The new platform is integrated with all digital infrastructure owned by the bank.

The mobile app is part of the private bank’s branchless digital bank ecosystem, which can be accessed at any time and from any location. The app is also linked to all the bank’s infrastructure, such as call centres and ATM networks. The mobile app will also be available soon on the Apple App Store.

With the launch of the mobile app, the digital banking organisation which is under the bank’s expertise, offers an optimal and enjoyable banking experience with a fresher look for the younger generation, which us accustomed to transacting digitally. “The mobile app is built to be the next-generation bank for better control of managing financial matters for customers,” said the president of the digital banking organisation.

The app provides many innovative features within the mobile app based on these missions. Starting with the ability to open an online bank account and manage budgeting with 10 savings accounts. These will make it easier for customers to separate their financial income based on their specific needs. Also included are innovative features where customers could utilise their saving account functions just like a treasurer account, as well as a deposit section for easier deposit top-up.

“We are here to grow with young Indonesians. We want the platform to become an enabler platform to help young Indonesians manage their personal finances optimally, including how to save and manage their daily cash flow efficiently,” she then added.

The digital infrastructure associated with the private bank is establishing an integrated digital ecosystem infrastructure to support customers’ operational security and transaction convenience. “In this case, building a digital ecosystem is our top priority, because being digital means being able to connect as many people as possible by providing the best experience and convenience. Therefore, broad, and smooth connectivity is a must,” said the director of IT and operations of the digital banking organisation.

OpenGov Asia reported that the rising digital payments transactions reflect the evolving digital financial literacy of the Indonesian population. It also demonstrates the increasing acceptance of fintech and e-commerce services in the country. BI foresees that the uptake of digital transactions will continue with e-commerce and e-payments growing by 33.2% and 32.3%, respectively in 2021.

As more e-wallet players transition to multi-line businesses to provide financial services, the industry must strengthen interlinkages among providers to provide a more seamless experience for customers.

To say the least, it is accurate that the Indonesian technology sector has grown rapidly. To be more specific, this growth must be attributed almost entirely to the digital economy sector. The digital economy can be viewed as the driving force behind Indonesia’s entire technology sector.

Ultimately, the law and accounting standards are struggling to keep up with the rate of innovation. This is despite the significant contribution of this spending to the Indonesian economy, particularly in terms of facilitating financial inclusion and creating many job opportunities. Instead of lurking within the framework of the law, regulation must adopt an agile and impact-focused mindset to best capitalise on the benefits of digital transformation.

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