There Is A Digital Bank, Could Conventional Banks Be Left By Customers?

JAKARTA - Institute for Development on Economics and Finance (Indef) senior economist Aviliani suggested that banks immediately adapt to retain customers. This is done by restructuring the information technology platform and processes. Moreover, at this time the development of neobanks or digital banks in the country is moving fast.

Even so, Aviliani said the existence of neobanks would not erode the conventional banking industry. He assessed that conventional banks are still able to survive, because of the characteristics of Indonesian customers who require the services of conventional banks for large transactions.

"If we look at its implementation in the future, this traditional bank will still exist, because companies that borrow money above IDR 5 billion dare banks to lend IDR 5 billion only through digital. It is very risky for banks," he said in a discussion on Independence and the Future of the Nation's Economy, Tuesday, August 10.

In addition, in the future, traditional banks will also focus on handling priority customers who save up to trillions of funds. Aviliani assessed that not many people dared to save large amounts in digital banks.

"People or companies that save billions and trillions of dollars cannot possibly use neobank. People still don't have the courage," he said.

Although digital banks will not be displaced, Aviliani predicts that there will be differences in the functions of the two banks. Conventional banks, he said, are mostly used for large transactions that require customers to come directly to the branch office.

Meanwhile, continued Aviliani, digital banks are used for payment systems or payments in smaller amounts.

"So, if we look at the development, banks always have two, digital and conventional, because he wants to handle the source of the funds coming from conventional banks, while digital banks are mostly for payment systems," he said.

Aviliani predicts that the neobank trend in Indonesia will be different from a number of other countries. In some countries, neobank is fully digital without a branch office.

"In our case, we still make traditional banks into neobanks, but they still have branch offices. Neobanks really don't have branches," he said.

Furthermore, Aviliani said that through this development, banks must be able to adapt by creating a financial ecosystem.

According to him, banks also need to collaborate with a number of other non-bank financial service institutions, such as financial technology (fintech) loans, payment fintech, and so on, to e-commerce.

For your information, digital banks are banking services that are carried out online or online. A number of digital banks that have emerged in the country include Jenius, which was launched by PT BTPN Tbk. Then Jago from Bank Jago, which was just released in April this year.

Then there is Bank BCA Digital, Wokee from Bank Bukopin, Digibank from Bank DBS, and TMRW from Bank UOB. Meanwhile, other banks that are still in the process include PT BRI Agroniaga Tbk, PT Bank Neo Commerce Tbk, PT Bank Capital Tbk, PT Bank Harda Internasional Tbk, PT Bank QNB Indonesia Tbk, and PT KEB HanaBank.