DSInnovate Report: Digital Bank in Indonesia 2021

2021 will be an important milestone for the financial industry. Several digital bank-based initiatives emerged, both from legacy players and new digital businesses. The goal is to provide comprehensive financial services that are more accessible, integrated with the digital ecosystem, and personalized.

The potential is indeed very large, for example when looking at the level of bank account ownership among productive age groups -- not to mention the potential for new users from among the digital-savvy.

To explore the development of digital banking in its early years, DSInnovate launched a research publication entitled "The Rise of Digital Banking in Indonesia". There are five main focuses highlighted in this report, as follows:

1. Definition and Concept of Digital Bank; explore the basic concepts of digital banking, as well as what distinguishes it from pre-existing internet banking applications.
2. Digital Bank Ecosystem in Indonesia; see the development of the digital banking ecosystem in Indonesia, as well as the list of players who have begun to accommodate market share.
3. Case study; studied the development of several digital banks that have launched in the last few months, related to their products to the traction of their services.
4. Bank as a Service; explore BaaS opportunities as a digital banking business model in the future, when digital banking services become a service that can be embedded into various digital services.
5. User Experience; try to feel the current user experience on-boarding to a digital banking application in Indonesia.

This report presents some interesting data. For example, about how digital banking companies were born, both from the financial and non-financial industries. It is also noted about the size of the digital banking market, globally its value is estimated to have reached $12,1 billion in 2020 and will grow to $30,1 billion in 2026 with a CAGR of 15.7%. Meanwhile, in Indonesia, there are currently 12 digital bank applications that can be used by the public.

In addition, many interesting findings are summarized in the report. For more details, download the report for free via the following link: The Rise of Digital Banking in Indonesia 2021.