Jakarta, CNBC Indonesia – The presence of digital banks is increasingly widespread in the Indonesian banking industry. Currently, there are 13 new digital banks formed by conventional banking companies, financial service companies, to financial technology companies.
PT Bank Raya Indonesia Tbk (AGRO) is involved in working on the digital financial market in the country. Director of Digital & Operations for Bank Raya Bhimo Wikan Hantoro said he was optimistic about facing digital bank competition in Indonesia, because there is still a lot of potential that can be explored.
“In our opinion, there will indeed be consolidation in the next few years. For Bank Raya, we are focusing on the captive market with competitive advantage. We are confident with positioning or performance Bank Raya in the future,” he said in the CNBC Indonesia BUMN Report 2023, Friday (1/9/2023).
In addition, in terms of target market, Bank Raya has great potential, namely the agency business and people in rural areas.
“Without us spending acquisition cost it’s too big that we as digital banks prioritize sustainability growth and profitability,” said Bhimo.
To note, in order to attract customers, digital banking is competing, one of which is by offering high interest rates, both for savings and time deposits. In addition, this is also to raise funds.
Bhimo also said that Bank Raya also contributed to the high interest phenomenon that has occurred since mid-2022. However, he said, high interest rates were not the focus of Bank Raya because the majority of Bank Raya customers paid more attention to Bank Raya’s features.
“This is reflected in our scope that they are more interested in things that will help their business in the future. That is why our features, a pocket for managing finances, for them to carry out long term savings plans, are actually cost of blended it is only about 3.16%. So it’s not too high either,” said Bhimo.
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