diGITAL BANKING academy
The banking sector is constantly evolving through a series of changes, brought forth by the digital revolution. The large unbanked Indonesian population, quick mobile & internet penetration, and advancement of digital technologies have propelled the fast-moving trend toward digital banking services. Being a data-driven decision making organization is essential to win the competition in the digital era.
Perhaps it’s no surprise that digital banking grew in popularity during the COVID-19 pandemic, when many bank branches temporarily closed and customers sheltered at home. Digital banking is about automating and digitalizing banking processes and services to offer a much better customer experience and maximizing growth potential. In the new era, customers can conduct their digital banking in three ways. The first is through traditional brick-and-mortar banks, which offer online banking services for transactions like check deposits, money transfers, and bill payments. They still have branches for in-person visits. Secondly, digital-only banks provide typical banking services but only online, minus any physical branches. Transactions are conducted through a variety of digital means: using a web browser, mobile app, and email. A third type of digital banking is a subset of digital-only banks called neobanks. Neobanks are created by financial technology (fin-tech) companies, which usually partner with traditional banks to provide their services, mainly via mobile apps.
As we move forward in the digital revolution, digital banking is one of the most significant breakthroughs of the banking institutions and financial sectors in Indonesia. Digital banking only works if the management organization ensures that its operations are precise, thorough, secure and stable. While digital banking is primarily secure, it is not risk-averse. For the digital banking segment, competition will become tougher moving ahead, calling for increased dedication from teams and regular upgrade of services to meet customer expectations. Since digital banking is aimed at complete transformation of the traditional banking sector; job opportunities in this sector will be limited to digital talents with technical knowledge and those proficient with digital concepts.