LPS Records Public Deposits At Digital Banks Until May 2022 Reaches IDR 49.3 Trillion

JAKARTA - The Deposit Insurance Corporation (LPS) noted that the number of public deposits in digital banks in May 2022 reached 38.2 million, an increase of 8,238.4 percent compared to the previous year.

In addition, the nominal digital bank deposits also increased, although not as fast as the increase in the number of accounts.

As of May 2022, nominal deposits at digital banks reached IDR 49.3 trillion, an increase of 58.1 percent year on year (yoy).

Chairman of the Board of Commissioners, Purbaya Yudhi Sadewa, said that digitalization is something that cannot be avoided and is a necessity.

According to him, the digitalization that is happening in today's society, such as the emergence of a cashless society, as well as the development trend of digital banking, cannot be separated from the increase in internet users in Indonesia.

“Our society is indeed mostly not cashless, but we are moving towards it. IDIC will prepare itself as best as possible, because we also want to create a digital financial world that grows well, quickly, and safely," he said in an official statement, Thursday, August 4.

According to him, the latest data shows internet users in Indonesia have reached 204.7 million people, or 73.7 percent of the total population as of January 2022.

In addition, internet users who have mobile phones in Indonesia have reached 96.1 percent.

The percentage of internet users who own other devices, such as laptops, tablets, and smartwatches, is 68.7 percent, 18 percent, and 17.3 percent, respectively.

Based on electronic money transaction data, during 2021 there were 5.4 billion electronic money transactions in Indonesia with a transaction value of IDR 239 trillion.

The upward trend is also consistently occurring until mid-2022 both in volume and value.

Purbaya explained that the digitalization trend that has occurred has also penetrated the banking sector, where digital banks or neobanks are currently rampant in the community.

“The main difference between digital banks and non-digital banks is only in the delivery channel. In terms of regulation and the role of LPS deposit insurance, there is no difference in treatment between digital and non-digital banks. Thus, LPS in accordance with the mandate of the law will guarantee customer deposits at digital banks, while still observing the 3T criteria," he explained.

3T itself is an LPS guarantee requirement consisting of, Recorded in the bank's books, the interest rate received does not exceed the LPS Guarantee Interest Rate (TBP) and Not taking actions that harm the bank, for example having bad credit.

On this occasion, Purbaya also reminded about the importance of strengthening coordination between institutions, such as from the Financial Transactions and Analysis Reporting Center (PPATK) to always provide input or feedback for the security of public digital transaction activities.

"We also need stronger feedback from PPATK, because it is PPATK that monitors all transactions and we at KSSK really need to prepare for digital transactions that are easy, fast and certainly safe for the community," he concluded.