IDIC Calls For Adaptive BPRs Through Digital Transformation

Member of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Didik Madiyono. (photo: special)

JAKARTA - Member of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Didik Madiyono appealed to BPR/BPRS to continue to prepare themselves so that they can reap the benefits of digital transformation as much as possible, but still mitigate the risks that arise.

"Digitalization is a necessity for banks because banks must be able to adapt to the needs of the community. Customers increasingly want speed and convenience in conducting financial transactions amid the development of information technology," he said in an official statement, Saturday, June 18.

He explained, in facing the acceleration of digital transformation, especially in the banking sector, there are several things that must be considered by BPR/BPRS in dealing with risks related to data security and adequate consumer protection.

"Utilizing technology and providing digital-based banking products and services actually has a number of security risks such as data leakage and cyber attacks, so that BPR/BPRS are required to be able to provide a reliable IT security system," he explained.

BPR/BPRS also have various opportunities that can be explored. Among other things, the growth in demand for BPR/BPRS that are able to provide innovative and varied digital-based banking products and services, cheap, safe, and easily accessible anywhere and anytime can be an opportunity for BPR/BPRS to accelerate their digital transformation.

"For example, Perbarindo is also working with Finnet Indonesia to develop BPR e-cash, which is a kind of mobile web-based electronic money. With this, it is hoped that BPR/BPRS can serve customers digitally via smartphones," he added.

An example of the next initiative that has been carried out is the development of BPR Digi which is a mobile application similar to mobile banking, but can only be used for basic services such as checking balances and cannot transfer funds.

"Mobile banking will consist of opening online deposits, opening online savings accounts, cash withdrawals at ATMs without cards, payments and purchases," he explained.

Until April 2022, with a guarantee scheme of up to IDR 2 billion per customer per bank, there are 473,896,016 commercial bank accounts or about 99.93 percent of the total accounts that are fully guaranteed by LPS. And, the number of BPR/BPRS customer accounts whose entire deposits are guaranteed as of March 2022 is 99.98 percent of the total accounts or equivalent to 14,515,423 accounts.

On this occasion, Didik Madiyono also encouraged BPR/BPRS to go public which would have a positive impact on strengthening capital, increasing efficiency and profitability, as well as strengthening the implementation of good corporate governance for BPR/BPRS. He also gave his appreciation to BPRs that were included in the Top 100 BPR 2022 and BPRs that managed to maintain their performance in The Finance's Top 100 BPRs.

"We certainly hope that this award will motivate BPR/BPRS to continue to innovate and transform so that they can grow sustainably and always maintain their financial performance. IDIC is always here to maintain public trust in the banking industry, including BPR/BPRS," he concluded.