Proceedings report from The Asian Banker’s Indonesian Heads of Retail Banking Dialogue 2013, on the status of retail banking in Indonesia and most recent developments.
Key discussion points
1. Price war for deposits and assets
i. Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI) and Bank Mandiri are the main players in the domestic mortgage war. All three enjoy good deposit base due to their large branch networks.
ii. The next rung of banks has to aggressively compete for deposits.
2. The importance of brick and mortar branches
i. To build one’s deposit base or transaction banking business, a bank will need to build the brick and mortar network as the customer has not moved beyond that. The physical presence of a branch or ATM is a necessity for the Indonesian customer.
3. Mobile banking in Indonesia
i. Domestic customers lack trust in mobile banking transactions.
ii. Indonesian banks have not utilised mobile banking as an alternative channel. Though registrations for phone banking are high, usage has not followed.
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