UOB Indonesia Announces Partnership with Doku, Presents E-Payroll Solution

Bank UOB Indonesia announced a partnership with Doku to provide an e-payroll solution for UOB's SME customers. It is hoped that this solution can speed up the time needed to process salaries, reimbursements, and provide incentives for employees.

This collaboration is claimed to be the first time the bank has partnered with a local fintech company to offer e-payroll solutions for SME companies.

From a business perspective, UOB hopes to earn additional non-interest income (fee-based income), while for Doku, they can get additional active users from UOB customers.

This e-payroll app is actually part of the Doku app which can be downloaded on the App Store and Google Play Store. Through the application, SME employees can access their salaries and use Doku's features for digital financial transactions, such as fund transfers, savings, and bill payments.

"With the e-Payroll solution, SMEs can enjoy a simpler and more efficient process to pay their employees' salaries. As for employees, they can enjoy more benefits from faster access," said Head of Business Banking UOB Indonesia Denny Setiawan Hanubrata, Tuesday ( 28/11).

For the e-payroll mechanism, UOB Indonesia SME customers must have sufficient funds in the corporate e-wallet Doku, in accordance with the funds to be transferred to employees. Then, customers must enter their employee and salary data in the Doku portal before transferring to employees.

After that, customers will receive notification of their transfer status. Salary will be entered in the employee's e-wallet within one working day. For SME employees, they must first be registered as Doku users and download the application on their smartphone. Employees will receive notification once salary is received in their e-wallet account.

This e-payroll is included in UOB Indonesia's business banking line which is intended for corporate customers. Meanwhile, the total customers in this line of business reached 34 thousand people, consisting of individual and corporate customers.

Danny targets that by the end of 2019, the company can collect at least 20% of the total customers who use e-payroll services. To achieve this number, his party will intensively conduct education for example to HRD staff.

Not only with Doku, Danny continued, in the near future UOB Indonesia will expand other strategic partnerships with other fintec companies. In an effort to offer a variety of digital solutions that provide a higher level of convenience for SMEs and support their business efficiency.

Doku get an e-wallet license

In addition to announcing the latest partnership, Doku also revealed the acquisition of a new license from Bank Indonesia as an electronic wallet service provider. The business license was issued on November 8, 2017. Previously, Doku had just obtained a business license as an electronic money issuer and a money transfer service license (remittance).

With the license upgrade, Doku users can now use funds from debit cards, credit cards, or other sources of funds for in-app payment transactions.

Senior Vice President of Consumer Product Doku Richmond Aldien said that his party is currently formulating a strategy for this new business, as well as partners who will be partnered with as a source of funds (source of funds). To be sure, Doku will be more serious in this business next year.

"With the expansion of the license from e-money to e-wallet, so in the application we can enter other sources of funds from debit or credit for payment transactions at Doku. We are still formulating what we want to do, we are still studying. In principle, we can cooperate with financial companies , including e-money providers to increase the number of pockets as a source of funds," explained Richmond.

In the meantime, replenishment of funds in the Doku application is sourced from bank transfers and offline replenishment from the Alfa Group network. The Doku application itself was already publicly available in 2013. Until now, Doku claims to have 1,8 million users and serves more than 26 thousand merchants with various business scales from all industries.