Jakarta, CNN Indonesia —
Direkur Utama PT BCA Tbk Jahja Setiaatmadja predicts in the next 10 years there will only be a maximum of three bank digital leading the relevant sector. He said that there would naturally be market selection among various digital banks in Indonesia because they competed in the same pool.
Jahja said the previous experience of traditional bank selection would be repeated. For example, he said in the 1980s, there were around 200 banks in Indonesia. However, that figure has shrunk by half, while the current lead is no more than 20 banks.
Not only in Indonesia, he said the selection also took place abroad. Just look at WeChat in China, KakaoBank in South Korea, and Rakuten Bank in Japan which are the leaders of digital finance in their respective countries.
“I think in Indonesia 10 years from now I see sorry to say (sorry) there will only be 3 digital banks. Let’s be honest,” he said at the Banking Outlook 2021 webinar, Tuesday (7/9).
Learning from credit card competition, Jahja assessed that companies that want to lead must be able to stand up without burning money or relying on promos.
He said the key to winning from fierce competition is to win the loyalty of the community without the frills of discounts and promos. Jahja said the promotion was only temporary. If there is no promo, the company’s services will no longer be used if there is no loyalty.
“If there is a promo, just use it. That’s why credit card promos have been stopped because everything has been battered, this is one example,” he explained.
Although all digital banks will use different tricks and strategies, he believes that the digital bank that will win is the bank that is able to choose the right partner and receive adequate investment funds.
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