Mobile Banking Users in Indonesia Remains Low
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Research institute Microsave reported that only 0.73 percent of cellphone users in Indonesia have utilized online financial services.
“The figure is lower than those of Malaysia with 5.79 percent and Cambodia with 2.73 percent,” Microsave Country Development Senior Manager Grace Retnowati said on Wednesday, October 12, 2016.
Grace revealed that the number of SIM card users in Indonesia stands at almost 200 million. At least 20 percent of them are cellphone users.
“Mobile device utilization for financial services remains low, although the Internet network coverage has reached 90 percent,” Grace added.
In addition, Grace pointed out that only 36 percent of Indonesian people own bank accounts.
“The awareness level for mobile banking services is only 0.3 percent,” Grace went on.
According to Grace, the digital financial literacy is important for middle-class and low-income people.
“The digital financial services are expected to boost the annual GDP by US$3.7 trillion in 2025 or six percent when compared to the conventional financial services,” Grace said.
Grace suggested that payments made via smartphone would reduce the cost of financial services by 80 to 90 percent.
“The cost efficiency will allow financial institutions to provide low-cost services,” Grace said.
Questions & Answers
Q.What percentage of Indonesian cellphone users currently utilise online financial services?
What percentage of Indonesian cellphone users currently utilise online financial services?
Only 0.73 percent of cellphone users in Indonesia have utilised online financial services. This figure is considerably lower than Malaysia's 5.79 percent and Cambodia's 2.73 percent.
Q.Why is mobile device utilisation for financial services in Indonesia so low despite good internet coverage?
Why is mobile device utilisation for financial services in Indonesia so low despite good internet coverage?
Mobile device utilisation for financial services remains low, even though the internet network coverage has reached 90 percent. Also, only 36 percent of Indonesian people own bank accounts, and awareness for mobile banking is just 0.3 percent.
Q.How much could digital financial services potentially boost Indonesia's annual GDP by 2025?
How much could digital financial services potentially boost Indonesia's annual GDP by 2025?
Digital financial services are expected to boost the annual GDP by US$3.7 trillion in 2025. This represents a six percent increase when compared to traditional financial services.
Q.What cost savings could financial institutions achieve by using smartphone payments?
What cost savings could financial institutions achieve by using smartphone payments?
Payments made via smartphone could reduce the cost of financial services by 80 to 90 percent. This significant cost efficiency would allow financial institutions to offer low-cost services to their customers.
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