OJK Asks Digital Banks To Strengthen Customer Protection

OJK Banking Supervision Chief Executive Dian Ediana Rae. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) has asked digital banks to strengthen customer protection, considering that many apply high interest rates in excess of those borne by the Deposit Insurance Corporation (LPS) in order to attract customers and increase their third party funds (DPK).

"Regarding funds that are not guaranteed by LPS, OJK always encourages the application of customer protection which includes transparency, consumption education, supervision and regulations, and data protection," said OJK Banking Supervision Chief Executive Dian Ediana Rae in Jakarta, quoted from Antara, Friday, March 15.

He said that his party encourages banks to provide clear and complete information, including whether the product is guaranteed by the LPS or not.

According to him, financial education is important so that prospective customers can make good decisions in choosing financial products according to their needs.

"OJK also continues to tighten regulations and supervision of banks to ensure they comply with security, justice, and transparency standards in offering digital products and services," said Dian.

He said that his party would continue to ensure that these banks implement the practice of protecting customer personal data and financial transactions according to applicable standards.

To increase DPK, his party advises digital banks to increase product and service innovation, technology, customer experience, operational efficiency, as well as collaboration and partnership.

Dian stated that through banking services, it can develop more innovative products and services to provide easy transactions, personal financial services, and integrated financial solutions.

According to him, the increasingly up-to-date use of technology can improve user experience and expand accessibility through mobile applications.

"This can streamline banking performance so as to reduce operational costs and transaction fees," he said.