Bank Danamon Records Lower Credit Card Penetration Than Paylater

Unsecured Business Head of Bank Danamon, Tresia Sarumpaet. (Photo: Aris Nurjani/VOI)

JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) continues to strive to offer customers financial solutions according to their needs, one of the financial products most interested in Millennials and Gen Z is e-wallet.

Unsecured Business Head of Bank Danamon, Tresia Sarumpaet said that based on data from the Central Statistics Agency in 2020, 53.81 percent of Indonesia's population were Millennials and Gen Z.

Of course, this generation has different characteristics and preferences from the previous generation, including in terms of financial products.

Tresia said this shows changes in customer transaction behavior that tend to be digitally available, namely prioritizing convenience, speed, and security in transactions.

Meanwhile, other financial products that also attract millennial attention and Gen Z are lending products or credit products, namely products that provide loan facilities to customers.

In this case, conventional products such as credit cards still have a low penetration of millennial and Gen Z groups compared to Paylater.

In detail, credit card penetration reached 7.60 percent and Paylater had a penetration of 13.80 percent.

"The penetration of products that tend to be new, such as paylaters, has almost doubled penetration compared to credit cards, which is 13.80 percent," Tresia said at the Journalist Class event at Bank Danamon Tower, South Jakarta, Tuesday, December 5.

According to Tresia, Paylater loan interest is much higher than credit cards. Where, the value of Paylater interest reaches 0.3 percent per day.

Meanwhile, credit card loan interest is 1.75 percent per month.

"So, if you fintech, the interest is now 0.3 percent per day. That's if you multiply it per month 30, if you multiply it per year there are 365 days. Meanwhile, credit card interest is 1.75 percent per month," said Tresia.

Tresia conveyed that the interest of Millennials and Gen Z generation because access to loans through Paylater is easier when compared to credit cards. In addition, the process of disbursing Paylater loan funds is also fast.

"This also makes why many young people use Paylater," he explained.

However, Tresia hopes that the younger generation can be wiser in accessing Paylater loans, which are becoming a trend and the loans obtained will not become a financial burden in the future.

"In accessing any loan, we must be wise in using it," concluded Tresia.