Getting to Know Digital Banks And Its Potential In Indonesia

The development of technology in this era is very fast. This has an impact on the increasingly widespread digital world and affects various industrial sectors, including the financial and banking sectors.

In Indonesia itself, the use of technology in financial and banking services is nothing new. In recent years, many people have used Internet banking services, mobile banking, digital wallets, and various other financial technologies.

Today, we may often hear the name: digital bank. Moreover, with the issuance of Financial Services Authority Regulation (POJK) Number 12 of 2021 concerning commercial banks and POJK Number 13 of 2021 concerning the implementation of commercial bank products, the banking industry, including digital banks, has become more adaptable to current information technology.

Therefore, we will discuss the digital bank itself, especially in Indonesia.

What is Digital Bank?

Simply put, a digital bank is a bank that provides various banking services online, or through other digital platforms. Digital banks have also become Indonesian Legal Entity Banks (BHI) that provide and carry out their main activities through electronic channels, without having to have a physical office other than their operational head office.

Indeed, digital banks can also be born from the transformation of conventional banks that have been established before.

Why Must Digital Bank?

Then why should there be a digital bank when there are conventional banks that are already large in scale?

That's because digital banks offer various conveniences and advantages that conventional banks may not offer today. So what are the advantages of digital banking?

- Easy to Use

As usual, the digital world often manages to spoil its users. In this context, digital banks offer convenience to their users, from the registration process to the user process. Customers can open accounts, transfer money, or even make investments without having to go to a branch office, take queues, and do various 'tiring' things.

- Can be accessed anytime and anywhere

By using digital banks, customers can access various banking services through their gadgets. That way they can save more time and energy than having to go to the nearest branch office.

- Cheaper Cost

Because digital banks use an online system that doesn't cost as much as conventional banks, usually the operational costs of digital banks are less.

It also has an impact on cutting administrative costs that are usually charged to customers, so customers don't have to pay expensive admin fees.

- Many Promos

Currently, most digital banks are still trying to reach a wider market, which makes them often offer various attractive promos that we can take advantage of.

Difference between Digital Bank and Digital Banking

Although the name is similar, digital banking and digital banking have quite clear differences. Both of them use the internet, gadgets, and information technology in their operation, it's just that they both have quite clear fundamental differences.

A digital bank is a banking system/product created to issue various banking services in applications. That way, digital banks only need one office to run this system online.

Meanwhile, digital banking is a banking service issued by conventional banks, so that customers can access their services online, such as mobile banking and Internet banking.

The Potential of Digital Banks in Indonesia

We can see for ourselves that digital banks are currently growing quite rapidly. This is understandable given that the potential of digital banks is quite large.

Reporting to detik.com, digital bank services are believed to be able to reach the wider community, more than conventional banks have done. Plus, the pandemic some time ago also made many people more accustomed to various digital transactions.

Not to mention if we look at the data of internet users who continue to grow, the growth of Indonesian fintech is quite significant, the proliferation of Micro, Small, and Medium Enterprises (MSMEs) that require funding, all of which make the income potential of digital banks very promising.

With all the conveniences offered and the potential, have you considered using digital banking services?

 

Author: Ghifary