DBS Indonesia Prepares Several New Features for Digibank in the Second Half of 2021

Talking about digital banks, of course, cannot be separated from the emergence of digibank owned by Bank DBS Indonesia. As one of the pioneers digital bank, digibank comes with a banking model that is carried out paperless, branchlessand signatureless.

According to the Managing Director, Head of Digital Banking, PT Bank DBS Indonesia, Leonardo Koesmanto, technological developments are slowly making banking services a reality. invisible. Learning from industries affected by disruption, such as music and video, he believes that this also applies to banking.

That is, banking products will remain the same even though delivery methoddiffer according to technological developments. With the current situation, DBS Indonesia is optimistic about seeing the challenges ahead in transforming its banking services.

Since its founding in 2017, the company says it has experienced significant service growth, one of which was contributed by the platform digital banking digibank. To DailySocial, Leo spoke in more depth about the impact of the pandemic on banking digitalization and the continued development of digibank in 2021.

The meaning of the pandemic for digibank

Leo admitted that the Covid-19 pandemic had a big role in changing people's preferences in carrying out banking transactions. People who were previously not used to using digital platforms inevitably had to adapt to the situation of large-scale social restrictions (PSBB).

Based on company data, DBS Indonesia recorded online transaction growth during the PSBB period of 75% for Pay & Buy services and debit cards. Then, the number of users consumer DBS Indonesia recorded a five-fold increase in the last 3,5 years.

Interestingly, the company also saw an improvement in service wealth management on the digibank platform by six times in 2020 compared to the previous year. In terms of volume, transaction growth increased by more than 500% with the number of customers making transactions increasing by 580%.

Even though he doesn't want to reveal other achievement data, Leo assesses it awareness Customers' interest in financial management continues to increase. This is despite the economic slowdown due to Covid-19 in Indonesia.

"This increase cannot be separated from a series of campaigns and product launches for wealth management", namely Foreign Exchange Accounts and Secondary Market Bonds in the digibank application in 2020. We are implementing a comprehensive digital transformation and ensuring that all our products can be available digitally," he said.

New features in 2021

Leo assesses that the growth of the retail banking market in Indonesia is one of the most aggressive in Southeast Asia. This growth is also supported by various innovations and products developed by the industry to attract potential new customers.

This year, DBS Indonesia is targeting double-digit growth which will be centered on developing digital products for customers in all business segments. The mission remains the same, namely to democratize finance so that all levels of society can enjoy affordable banking services.

To improve customer experience, there are several new products that will be presented digitally. Leo revealed, Mutual fund services will be available on the digibank platform in the second semester of 2021. This mutual fund will complement Digibank's series of investment products.

Currently, digibank users can choose investment products with a minimum placement of IDR 1 million. In the future, users can choose mutual fund products with a minimum of IDR 100 thousand. Leo also said he would launch an online credit card in the second half of this year.

"Not only financial products, digibank will also improving the process of opening new accounts with Face Biometrics. "This technology will speed up the Electronic Know Your Customer (e-KYC) process for prospective customers," said Leo.

Digibank serves segments mass to affluent market (middle to upper). For the corporate segment, Bank DBS Indonesia enters through the Real Time Application Programming Interface (IDEAL RAPID) which integrates payment processing, receivables and disbursement of information about customers' business workflows in an integrated manner. real-time, and facilitate business transactions in the customer ecosystem network.

According to Leo, currently his party is still focus on working on segments banked in Indonesia. However, it claims to continue to increase financial literacy in the DBS segment while realizing its commitment to become full-fledge digital banking.

Service ecosystem development

Since the last two years, the realization of digital banks in Indonesia has increased. A number of banks are starting to transform their infrastructure and services to become digital banks. To accommodate this, the government is also preparing to formulate new regulations.

Some of them have changed their identity to become digital banks, using an open ecosystem business model, when banks collaborate with digital platforms.

For Leo, this dynamic indicates that more and more banking sectors are realizing the importance of digitalization. This also means that it will open up opportunities for collaboration and accelerate the government's goal of realizing digital transformation in the banking sector.

One of DBS Indonesia's efforts to encourage this digital transformation is through development open banking with the Open API Standard, where banks can connect with players in the digital ecosystem.

"One of the strategies that we are implementing and which we consider to be effective is using an ecosystem business model to make it easier for customers to make digital transactions. We always support Bank Indonesia's policy in realizing the Indonesian Payment System (SPI) in 2025," he explained.

In its realization, said Leo, DBS Indonesia has collaborated with a number of platforms. The company partners with marketplaces to provide loan account opening. Apart from that, DBS Indonesia is also available as an e-money and e-wallet top-up payment option.

Then, the company too collaborates with Home Credit and Kredivo to distribute joint financing to users with schemes joint financing.

"We can't do everything alone, so we need to collaborate with various partners to develop the ecosystem. In accordance with our strategy, this collaboration is here to target digibank's share, both from the fintech ecosystem, transportation, marketplace, or travel," he said.