JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) invites young people, especially students, to be smarter in managing finances in the midst of changing lifestyles and digital developments.
This was conveyed by BTN President Director Nixon LP Napitupulu in a public lecture at Padjadjaran University (Unpad). On this occasion, a Memorandum of Understanding was also signed between BTN and Unpad regarding the Development and Service of Banking Products and/or Services. The partnership was held to strengthen collaboration between the banking industry and the education sector.
BTN President Director Nixon LP Napitupulu said that today's younger generation has better financial awareness, but still faces challenges in building long-term financial capabilities.
"Many Gen Z are already financially aware, but the challenge is how to increase economic capacity and make the right financial decisions," said Nixon at the Unpad Rector's Office, Jatinangor, quoted Thursday, June 11.
According to Nixon, lifestyle phenomena such as doom spending, fear of missing out (FOMO), fear of other people's opinions (FOPO), to you only live once (YOLO) need to be balanced with good financial understanding. In addition, young people also need to be aware of the risks of negative activities such as online gambling which can interfere with financial health.
Nixon said that one of the keys to managing finances is understanding the difference between good debt and consumer debt. According to him, the right debt can help someone build assets and improve their well-being in the long run.
"Debt must be calculated carefully. The right debt is when after paying it off we feel richer because we have assets whose value increases. Don't take debt for something that is short-lived, but the obligation runs long. For example, debt for a week's vacation but the installment is 5 years," said Nixon.
Nixon gave an example of home ownership as one form of long-term financial decision that can be prepared for young generations from the start, given the increasing housing needs as the population grows and asset prices rise.
"Inflation will definitely happen. Therefore, the younger generation needs to start planning their financial future, including having assets whose value continues to rise such as houses," he said.
In line with these needs, BTN continues to transform towards beyond mortgage by providing increasingly complete financial services for the community, ranging from savings, digital transactions through balé by BTN, to housing financing.
According to Nixon, the development of digitalization makes the banking industry continue to change and increasingly integrated with community needs.
"Previously, banks were behind, now banks are building an ecosystem. In the future, the financial sector and the real sector will be increasingly integrated due to digitization," said Nixon.
Through cooperation with Unpad, BTN also strengthens the development of the campus ecosystem through the utilization of banking services, human resource development, and the development of education and research.
BTN also opens opportunities for Unpad students to gain industry experience through an internship program as well as the opportunity to join as BTN talent, including through the Officer Development Program (ODP).
"The campus is one of the important ecosystems that support the nation's economy. The relationship between the campus and the bank must mutually benefit. BTN is ready to support everything from financial services, employee and lecturer housing, internships, recruitment, to education development," said Nixon.
Meanwhile, the Rector of Unpad Prof. Arief Sjamsulaksan Kartasasmita said that cooperation with BTN was an effort to strengthen the relationship between universities and the practical world.
"This cooperation is to support what we can contribute to the practical world. Together with BTN, collaboration is carried out ranging from facility support, internships, education, to human resource development," said Arief.
In the future, BTN will continue to expand collaboration with universities to build a young generation who has strong financial capabilities and is ready to meet the needs of the future industry.
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