Indonesian digital banking has continued to show consistent growth in recent years. In May 2024, Bank Indonesia (BI) recorded that the nominal value of digital banking transactions reached IDR5,570.49 trillion or increased by 10.82% annually.
Security, ease of transactions, and convenience of using applications are the main factors that drive the use of digital banks in Indonesia. This was revealed in Populix’s research entitled “Ecosystem Analysis Study and Perception of Digital Banks in Indonesia”.
Based on research, it is known that data and transaction security (31%), flexibility in accessing applications (12%), complete application features (12%), integration with other financial services (11%), and special promotions (10%) are the features sought from digital banking applications.
The growth of digital banking is strongly driven by Generation Z, which currently occupies the largest generation group in Indonesia. As the first generation to grow up with internet access and digital technology from a young age, Gen Z plays a vital role in the digital economy ecosystem.
Among digital banking players in the country, SeaBank is the most chosen by Gen Z with a market share of 57%, followed by Bank Jago (36%), and Blu by BCA (26%). Specifically for respondents in the Jabodetabek area, the study found that respondents tend to use 2-3 digital banking applications to meet their daily needs.
Digital banks are mainly used for e-wallet top-ups (54%), interbank transfers (49%), shopping on e-commerce or online platforms (48%), and inter-account transfers (47%). This is in line with the survey results where SeaBank has all the features that are widely chosen by customers.
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“Gen Z’s openness to the internet and technology encourages this generation to have different expectations for banking products and services. Digital banks are the answer to their desire for fast, convenient, and safe transaction activities. Therefore, digital bank players are required to continue to innovate in providing banking solutions and features that meet the expectations of customers across generations, especially Gen Z,” said VP of Research Populix Indah Tanip, during a virtual press conference on Tuesday (9/7).
Indah revealed the reasons that encouraged Gen Z to decide to use digital banks to support their transaction needs are the speed and ease of transferring funds, integration with e-wallets and other payment services, flexibility to make transactions anywhere and anytime, more affordable admin fees, support for various transactions in one application, and various other things.
There are many factors that influence respondents in choosing a digital bank, such as low admin fees and transfer fees (56%), promotional/discount/cashback programs (52%), bank security (50%), easy-to-use application design (49%), flexibility in daily transactions (47%), and many more.
“In general, SeaBank is most often chosen by Gen Z for daily transactions considering the features offered by this bank such as free admin and transfer fees, providing many attractive promotional programs, and having an easy-to-use application. Meanwhile, Bank Jago was chosen because it is integrated with other applications, and Blu by BCA was chosen because of the security of the application and responsive customer service,” he concluded.
It is known that Populix conducted a study entitled “Ecosystem Analysis Study and Perception of Digital Banks in Indonesia”. The study was conducted on June 11-16, 2024 online with a total of 250 male and female respondents. 60% of Gen Z respondents and 40% of millennial respondents aged 17-39 years in Jabodetabek, Java, Sumatra, and several other cities. The survey questions were packaged in the form of a questionnaire with a single multiple choice format, complex multiple choice and Likert scale. (Z-8)
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