January 25, 2021 | Member's News

Digital banking transactions to reach Rp32,206 trillion in 2021: BI

Source from: Antara News

Original News HERE

Governor of Bank Indonesia (BI) Perry Warjiyo reckoned that digital banking transactions all through 2021 would reach Rp32,206 trillion, or higher than Rp27,036 trillion in 2020.

“It seems that last year, it had reached Rp27,036 trillion, and this year, it is estimated at Rp32,206 trillion. This is much higher than our nominal GDP,” he stated during an event titled “Building Optimism after the COVID-19 Pandemic” in Jakarta, Friday.

Warjiyo pointed out that this figure was much higher than the nominal gross domestic product (GDP), so his side will adopt a highly aggressive approach in digitizing the payment system.

The BI governor expounded that the total digital banking transactions were supported by e-commerce transactions, which were estimated last year at Rp253 trillion, and will climb by 33.2 percent to reach Rp337 trillion this year.

Warjiyo noted that digital banking transactions were also supported by electronic money transactions that will increase by 32.3 percent, from Rp201 trillion in 2020 to Rp266 trillion this year.

“Some 15 banks are very aggressive in conducting digital banking,” he pointed out.

Warjiyo noted that economic growth and digital finance were extraordinary, one of which was driven by the COVID-19 pandemic.

“The COVID-19 pandemic is accelerating economic and financial digitization. It really drives the digital financial economy very strong. This is extraordinary,” he stated.

The BI governor earlier outlined four aspects for all banks to take into account while striving to drive open banking. The first aspect involves the transformation of technology infrastructure, wherein all banking service systems are interconnected, for instance, services related to treasury, credit, and funds.

Warjiyo noted that the second aspect pertained to building a data warehouse from various information systems owned by the bank, including the metadata of depositors and debtors.

“Whether the metadata has also been built using artificial intelligence, analytical big data, it must be developed to process various data, so that it can be useful,” he stated.

The third aspect concerns the development of business models based on information technology systems and metadata owned by the bank to offer interactive services online to customers, he explained.

Hence, with open banking, all services that were earlier exclusively provided to select customers would now be availed by all customers. Hence, every customer will receive the same services, especially in personal banking, he noted.

The last aspect is about changing the mindset, right from the highest levels of the company to subordinates, in bringing about digital transformation, he remarked.

Reporter: Astrid Habibah, Azis Kurmala
Editor: Fardah Assegaf, Ine