Following its new strategic alliance with ride-hailing and digital payment services company Gojek, Bank Jago is poised to become Indonesia’s first entirely digital bank. The small Indonesian bank applauds OJK which is the country’s Financial Services Regulator imminent digital banking legislation sharing that it will encourage its customers to open a bank account on an app run by Gojek’s affiliate.
In view of this, The banks must be present in digital ecosystems wherein this is how people do their banking nowadays instead of visiting a bank. Along with this, Gojek invested US$160 million (S$212 million) in December last year to increase its interest in Bank Jago to 22.16 per cent. In fact, Customers of Gojek’s e-wallet who use its ride-hailing service will be able to open Bank Jago accounts as well as apply for loans.
On the other hand, Singapore-based tech start-up Sea has also acquired the non-listed Bank Kesejahteraan Ekonomi from Indonesia is claiming this will enable the group to service clients on its subsidiary Shopee e-commerce marketplace, enabling a seamless experience.
Consequently, the sea plans to acquire another small, publicly traded bank and they will then combine the two banks into a digital bank. For this reason, banking penetration in the populated archipelago of Indonesia is still poor, and the country’s digital banking is supposed to be a game changer. Fifty-two percent, or 95 million, of Indonesian adults do not have a bank account. The Bank Jago pledged to take a consumer-centric approach, stressed Ms Anika, adding that personalized banking is provided by a digital bank.
The consumers can adjust to bank goods on sale in the past. Now banks continue to adjust to customers. How do customers like to do it? That’s how things should be handled by the bank. Banks are now chasing customers, not the other way around.
Morever, the OJK took together stakeholders, scholars and bankers to negotiate and ensure that they are business-friendly with the forthcoming regulations.