OJK Reprimands Digital Banks That Often Fry Stocks, Can Make Investors Suffer

Reporter: Dina Mirayanti Hutauruk | Editor: Ahmad Febrian

KONTAN.CO.ID – JAKARTA. Digital banks have attracted the attention of many parties. Many foreign and local investors are attracted to this business.

On the other hand, the players in the digital banking business must have a strong ecosystem. The Financial Services Authority (OJK) believes that banks that do not have an ecosystem and enter the digitalization area will not last long.

Its competitiveness will be limited because each investment will also be limited so that in the end the bank will not be able to conduct business competition with other parties.

The Deputy Commissioner for Banking Supervision III OJK, Slamet Edy Purnomo, stated that it was feared that banks that did not have this ecosystem would only play with the issue of digital banking and could eventually damage the market. Then cause disappointment in people who have bought their shares.

“The FSA will continue to take care of it, don’t let their shares just be burnt down, they will also be stirred up by issues with rumors behind them that there are investors, even though in fact they are not. This has happened often and we are reprimanded,” said Slamet, Tuesday (14/14). /12)..

Finance and capital market expert from the University of Indonesia, Budi Frensidy, agrees with OJK. Budi consistently does not look at the value of digital bank valuations. “Those with large groups behind them, such as BCA, Astra, BRI, should be okay. Next, maybe the Emtek group and others,” said Budi.

He considered it very important for digital banks to have an adequate ecosystem. “Digital banks that can run are those that have an ecosystem. While others, just follow suit so they can get a high valuation, aka fried food,” he explained.

Budi is right. Nu Bank and Kakaobank, two digital bank role models depart from a strong, loyal and self-owned ecosystem. Nu Bank is often mentioned as an Indonesian digital bank because one of Nu Bank’s investors also invests in Indonesia.

But unfortunately, Nu Bank’s steps have not been followed by Indonesian digital banks. Nu Bank builds its own customer credit score. So that it can provide cheaper credit interest while maintaining risk.

While Kakaobank was originally a very popular conversation application in South Korea, Kakaotalk. For seven years Kakaotalk has managed to attract loyal users. Now 90% of South Koreans are Kakaotalk users. After solid, then established Kakaobank.

By referring to Nu Bank and Kakaobank, digital banks can actually maximize the technology they have. It’s okay now to cooperate with fintech or finance.

But don’t be preoccupied with boosting valuations. In the future, don’t forget to expand financial inclusion, such as Nu Bank, which makes credit scores, and provides low interest rates. So as to encourage the country’s economy