Jakarta, CNN Indonesia —
Financial Fervices Authority (OJK) recorded 2,593 offices bank which was closed throughout 2017 to August 2021. This closure occurred in the midst of a flood of digital transactions in banking.
“In the last three years, the bank’s office network has recorded a decline of 2,593 offices,” said OJK Deputy Commissioner for Banking Supervision I Teguh Supangkat at the launch of the Blueprint for Digital Banking Transformation, Tuesday (26/10).
Meanwhile, digital transactions, such as transactions internet banking grew by almost 50 percent from IDR 13,223 trillion in 2016 to IDR 20,096 trillion in August 2021. Meanwhile, transactions via SMS and e-mail mobile banking skyrocketed by more than 300 percent, from Rp1,159 trillion in 2016 to Rp4,684 trillion in August 2021.
Higher growth occurred in electronic money, reaching 4,000 percent from Rp5.28 trillion in 2015 to Rp204.9 trillion in 2020. The rush of digital transactions also boosted the number of electronic banking services (LPE) and digital banking services (LPD).
It is noted that the number of LPEs and LPDs increased from 85 providers in 2018 to 124 providers in 2020. Likewise, the number of customer accounts or third party funding sources (DPK) in LPEs and LPDs, from 264 million accounts in 2018 to 337 million accounts in 2020 .
“In fact, currently there are 18 banks that have provided services digital on boarding without face to face. Then there are 11 banks that provide open API services as a means of collaboration between banks and fintech, marketplaces, and other institutions,” he explained.
According to him, the large value of bank digital transactions also compensates for the closure of the bank’s office network. Moreover, a number of studies assess the potential of Indonesia’s digital market to continue to increase to US$124 billion in 2025. In fact, the OJK noted that only around 39.2 percent of the total population of Indonesians access bank service applications digitally.
“This shows that there is still room for the financial services sector to increase share through accelerating digital transformation. All of these opportunities provide space and opportunities for national banks to increase their competitive advantage to accelerate digital transformation,” he concluded.
(uli / agt)
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