2,593 bank branch offices close amid financial digitisation: OJK

27-Oct-2021 Intellasia | AntaraNews | 5:02 AM Print This Post

The Financial Services Authority (OJK) reported that a total of 2,593 branch offices of various banks had been closed amid digitisation in the financial industry being accelerated.

“We have recorded that a total of 2,593 branch offices of various banks were closed from 2017 until August 2021 due to acceleration in financial digitisation,” OJK’s deputy Commissioner of Banking Supervision, Teguh Supangkat, stated during the Digital Banking Transformation Blueprint launch ceremony conducted by virtual means on Tuesday.

Supangkat pointed to an over 300-percent increase in mobile banking transactions from 2016 to August 2021, while internet banking transactions rose by 50 percent.

“Electronic money transactions also saw an increase of 40 percent during the 2015-2020 period, as the total transaction value of Rp5.28 trillion in 2015 increased to Rp204.9 trillion in 2020,” the deputy commissioner stated.

The deputy commissioner recorded an increase in realisation of digital banking services, from 85 online banking services in 2018 that increased to 112 in 2019 and 124 in 2020.

“Currently, 18 banks have onboarding digital services that enable the process to be conducted without physical contact and direct meeting,” Supangkat stated.

The deputy commissioner expressed optimism that Indonesia would record the highest e-commerce growth level among Asean countries, with a potential transaction value of $124 billion achieved in 2025.

Supangkat informed that global financial industries suffered losses to the tune of $100 million due to cyberattacks, while the National Cyber and Crypto Agency data also revealed that 459.3 million cyberattacks were recorded in 2020 and increased to 741.4 million this year.

“Risk management for cyberattacks must be conceived in line with digital transformation in the financial sector,” he remarked.

To maximise the digital transformation potential to achieve a resilient and competitive national finance industry, the OJK conceived the banking transformation roadmap as a blueprint for the industry’s digital development during the 2020-2025 period.



Category: Indonesia

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