Indonesia has long been known for its large unbanked population, but the rapid penetration of digitization into everyday life offers a great opportunity to change that.。

BTPN President Henoch Munandar said that the new crown epidemic has accelerated the rise in smartphone penetration in Indonesia, thus bringing natural advantages to the development of financial inclusion and expanding the inclusiveness of digital finance。

Indonesia's Road to Inclusive Digital Finance

"Financial inclusion" means that all individuals, especially those previously excluded from the traditional banking system or underserved by the receiving bank, have access to financial services。

According to a 2022 study by Google, Temasek and Bain Consulting, more than 80 percent of Indonesia's population, Southeast Asia's largest economy, has no bank account or is underbanked.。An "unbanked" person is a person who does not have a bank account, while an "underbanked" person has an account but does not have full access to financial services such as credit.。

Indonesia's traditional banking system has been struggling to meet the needs of a large number of individual customers who do not have access to formal financial services.。However, the country currently has more than 1.700 million smartphone users, creating a unique opportunity to bridge the gap and top up basic financial services for those without bank accounts。

Today, financial institutions across Indonesia have recognized the potential of digital financial services to lead the public on the path to financial inclusion.。By leveraging digital platforms and innovative technologies, digital finance can use digital platforms and innovative technologies to provide financial services directly to customers without the need for any physical branches and paperwork。

Second, the neo-crown epidemic further emphasizes the importance of digital finance。As people increasingly turn to online channels to meet basic needs such as shopping, communications, and entertainment, the demand for digital financial services has surged, while also stimulating the development of services such as mobile banking applications and digital wallets.。

In addition, the rise of fintech startups in Indonesia supports the growth of digital financial services。These startups have launched innovative solutions designed for the unbanked, such as mobile banking apps and digital wallets。They have upended the traditional banking landscape by making financial instruments available to individuals (including those in rural areas).。At this time, digital finance can not only provide basic banking services, but also educate individual consumers and empower them to manage and plan financially, thereby providing greater convenience for individuals, especially those in remote or underserved areas。

In summary, the digitization of daily life in Indonesia brings great potential for financial inclusion。With increasing smartphone penetration and the development of innovative digital financial services, individuals who were previously excluded from formal banking now have access to basic financial instruments and services。This shift benefits not only the unbanked but also the economic growth and stability of the country as a whole.。

BTPN Launches Jenius Program to Participate in Digital Competition

Henoch said that with the support of smartphone technology, financial services have achieved various breakthroughs through digitization, which should clarify the connotation of "inclusive finance."。Wherever you are, the service supports the financial industry in a society without banking services.。

"Not only millennials, but also older people have learned how to use digital banking during the epidemic," says Henoch, adding that in addition to digitization, Indonesia's "demographic dividend" - the large population of "productive age" - is also very conducive to rapid improvement in the production sector.。According to statistics, Indonesia has the fourth largest population in the world, totaling more than 2.700 million people。

In 2019, BTPN merged with SMBC Bank and its total assets doubled to nearly Rp 200 trillion ($12.7 billion).。As of July, BTPN had become the country's 12th largest bank by total assets.。

BTPN is working with other banks to fill the huge untapped market for such banking services.。After the merger with SMBC, they were able to provide a variety of financial services in Indonesia, with BTPN having a total of about 10 million customers and its outstanding performance in retail banking, while the SMBC segment is mainly aimed at corporate customers.。

In response to the digital wave of the financial industry, BTPN has launched the Jenius application to provide users with digital banking services.。The app is said to be popular among millennials, and it has also attracted a large number of older consumers after the epidemic hit.。

As the global health crisis recedes and the world reopens to tourists, BTPN is expanding currency exchange services to a growing number of middle-class Indonesian travelers through Jenius.。With the recent addition of RMB and Thai baht, the bank currently offers a total of nine currencies.。According to Henoch, the feature is "one of Jenius's most popular services at the moment" and is popular with Indonesian outbound tourists, although he did not disclose the specific target number of users of the app.。

In the face of unprecedented opportunities in Indonesia, BTPN is facing increasing competition with other players。For example, delivery and ride-hailing apps in Southeast Asia - such as Indonesia's Gojek and Singapore's Grab, and ShopeePay, a unit of Singapore tech giant Sea Group - also offer digital payment services and are targeting the unbanked and underbanked.。Banks such as Bank Central Asia are following suit.。

Still, Henoch is optimistic about BTPN's customer reception。"Each application has a different purpose and different customer preferences," says Henoch. "Jenius is focused on providing banking services to customers with specific financial needs."。