Banks Must Win Young Generation Share With Mobile Banking

Illustration. (Photo: Unsplash)

JAKARTA - Banks must be skilled at utilizing the market share of the millennial generation and Gen Z who are already fluent in using various applications to meet their daily needs. The trend of using mobile banking that continues to grow in this class should be utilized by banks by offering innovations and solutions that are close to the needs of this generation.

Economic observer from the Center of Economic and Law Studies (CELIOS) Bhima Yudhistira said banks need to continue to develop more specific banking services according to millennial and Gen Z needs, such as split bill facilities, housing savings, to personal financial planning facilities.

"Banks can also attract millennials and Gen Z who are actively conducting share transactions, mutual funds, to the purchase of retail and digital gold bonds," he said, Tuesday, October 10.

In addition, he said, mobile banking is very necessary because e-wallet filling, which is currently widespread, must also be through bank transfers.

"Various digital transaction activities require mobile banking, including payments via Qris," he said.

Bhima added that the millennial generation and Gen Z have a fast and practical lifestyle, so they prefer easy and efficient banking services. Banks need to continue to actively cooperate with merchants, especially in tier 2 and tier 3 areas, so that digital payment facilities such as Qris are more easily accessible to the younger generation.

Based on Jakpat's Special Report on the Indonesian Fintech Trend Semester I 2023 on nearly 1,500 respondents aged 17 to 54 years throughout Indonesia, it was revealed that 83 percent or 8 of 10 respondents used digital payment methods for online and offline transactions. Of these, 52 percent of them use digital banking, which includes mobile banking and digital banking applications from banks. The majority are Millennials (45 percent) and Gen Z (30 percent).

In the same study, it was explained that the main features used by respondents in mobile banking were transfers (63 percent), Virtual Account (12 percent), and top-up e-wallet (10 percent). Meanwhile, what users are most looking for from mobile banking applications is a complete bill payment feature (65 percent), low or free transfer fees to other banks (58 percent), and financial management features such as income and expenditure reports (54 percent).

Jakpat conducted the research with PT Bank Danamon Indonesia Tbk (Danamon). This is done to find out the behavior of millennials and Gen Z using mobile banking, including the habit of comparing the price of goods or services and looking for special facilities that are desired in various applications.

They are also willing to use more than one mobile banking application to get maximum profit from certain transactions they want to make.

The Chief Digital Officer of PT Bank Danamon Indonesia Tbk, Andreas Kurniawan said, armed with this insight, Danamon presented a D-Bank Pro specifically targeting the millennial and Gen Z segments by offering features that are up to date, fast, and easily according to the needs of this generation. These various conveniences and conveniences are expected to strengthen Danamon's position as a one stop financial solution provider which is the choice of the younger generation of Indonesia.

D-Bank PRO allows customers to transfer to various banks online, equipped with BI FAST features, QRIS in various favorite merchants with cashbacks of up to IDR 1 million/month, payments for various bills from electricity, water, to payments for public services such as payments for PBB and BPJS are also available.

Customers can also convert credit card transactions into installments for up to 36 months with the My Own Installment feature to make it easier to manage cash flow. In addition, customers can transact foreign exchange rates, with live rates whose exchange rates dare to be pitted starting from Rp. 10 Thousand. For protection, there is also vehicle and health insurance, checking balances, download e-statements, changing PIN or password, and activation or non-activation of login biometrics can be easily carried out.

The transformation of D-Bank PRO is based on an understanding of the needs of today's young generation, which wants digital banking services that offer features that make it easier for them to transact and can help them manage their finances effectively. This is proof of Danamon's commitment as a customer-centric bank to seriously listen to customers' opinions in developing appropriate financial solutions so that customers can take control of their financial needs and goals," he concluded.