DBS Bank Optimistic Consumer Banking Business Grows Two Digits In Semester II 2024

JAKARTA - PT Bank DBS Indonesia is optimistic that the consumer banking business (retail customer service) can grow double digits in the second half of this year, in line with the macroeconomic outlook which showed a positive signal during that period.

"If we look at economic indications, whether it's a signal related to inflation or interest rates, I think we are all optimistic in the second half. That's why we believe that our growth will be double-digit growth," said Consumer Banking Director of PT Bank DBS Indonesia Melfrida Gultom during a "editorial lunch" event with the media in Jakarta, quoted from Antara, Tuesday, July 23.

He also said that DBS Indonesia believes that wealth management or wealth management will continue to grow along with the increasing number of people who have funds of IDR 500 million and above.

This is supported by data from the Deposit Insurance Corporation (LPS) which states that the nominal amount of savings above IDR 5 billion increased to 9.14 percent in April 2024.

Melfrida also emphasized that DBS Indonesia is committed to providing solutions that are adapted to all segments ranging from the emerging affluent to affluent segments.

For the emerging affluent segment, DBS provides digital bank services digitalbank by DBS with a placement of funds below Rp500 million. As for more affluent customers, DBS offers DBS Treasures with a minimum placement of Rp500 million and DBS Treasures Private Client (TPC) minimum fund placement of Rp10 billion.

"Every segment, we really pay attention to what the product is, what the proposition is, then who the people will handle, then from their own purpose," said Melfrida.

Head of Segmentation & Liability of PT Bank DBS Indonesia Natalina Syahbana said that every segment of customers on DBS also has different needs and engagements.

Young customers, said Natalina, tend to prefer digitally-wided services while older customers prefer conventional services such as meeting directly with their relationship managers.

Natalina said that customers of digitalbank by DBS are dominated by young groups aged between 20-30 years. Meanwhile, average Treasures' customers come from groups aged 40 years and over and Treasures Private Client (TPC) comes from age groups over 50 years.

Younger ones they focus more on financial needs, such as how to organize finances. But for Treasures and TPC, in addition to financial needs, they ask for information about the real sector because usually most of our Treasures' and TPC are indeed entrepreneurs," he said.

DBS Indonesia, through its latest research, has found changes in its need for wealth management. Previously, the definition of wealth in the affluent segment only includes personal finances but currently also includes the financial aspect of business. Thus, wealth management partners are required to have a vision and capability that supports these two aspects.

Customer Immersion's study for the priority and private banking segment of Bank DBS Indonesia in 2024 highlighted the dominance of the affluent segment in Indonesia, which includes 66 percent of business owners, followed by 16 percent of private employees and 15 percent of professionals.

Other findings, notes DBS Indonesia, the retail, priority, and private banking segments have a common need in finding partners who can provide guidance and discussions about investment and business opportunities, especially for priority and private banking.

To support all segments, DBS Indonesia also presents personalized solutions according to the profiles of each segment so that customers include local and regional insights. In addition, there are also international network solutions of Bank DBS, business and investment banking services (consumer banking groups and instituteal banking groups), as well as insights sharpened by artificial intelligence (AI).

DBS Indonesia also always encourages wealth penetration through increasing financial literacy and expanding access to investment products in the 'digitalbank by DBS' ecosystem with non-banking partners in the wealth technology sector. This partnership will continue to be expanded in 2025 to accelerate wealth growth at Bank DBS Indonesia.