Home » Business » Fighting for the Crispness of the Millennial Market, Many Become Digital Banks

Fighting for the Crispness of the Millennial Market, Many Become Digital Banks

AMOUNT The number of Indonesian millennial generations who are in fact the productive age is a lucrative market share. Including banks who also want to taste the crisp market potential of the 24-39 year old generation.

The results of the 2020 BPS Population Census show that the number of millennial generations has reached 69.38 million or around 25.87 percent of the total population of Indonesia. Only defeated by generation Z born in 1997-2021 who reached 75.49 million people or 27.94 percent.

Indeed, the younger generation will become a demographic bonus which will peak in 2030. With the composition of millennial generation and generation Z reaching productive age, more than half of Indonesia’s population is of productive age. You can imagine the huge market potential of Indonesia’s young generation.

The characteristics of the younger generation digital savy aka comfortable with technology certainly makes the industry, in this case banking, have to adjust itself so as not to be left behind.
The HootSuite report, entitled “Digital 2021 ”, shows this. In the report, it was stated that internet users in Indonesia in early 2021 reached 202.6 million people, an increase of 15.5 percent or 27 million people when compared to January 2020. Of this number, Indonesian internet users (aged 16 to 64 years) who own cellular phones (cell phones) reach 98.3 percent.

Also read: Often Called Fintech Competitors, Get to Know What is Neobank

The Covid-19 pandemic has indeed driven the acceleration of digital transformation in society and industry. Various policies to prevent the transmission of the corona virus have become the catalyst for the rapid growth of transactions conducted digitally. Everything from online shopping to digital financial activities last year saw a surge.

When we are hungry, we just have to open the application on our cellphone to order food. When paying, you don’t have to go far to bank or ATM, until you open your cellphone, the transaction takes place. Practical, fast and convenient!

Chief Executive of OJK Banking Supervision Heru Kristiyana said there was a shift in customer behavior from coming to the bank to wanting to be served digitally. “During the pandemic, people don’t want to make face-to-face transactions, or come to the bank just to transfer funds or open an account,” he said, citing a discussion held by CNBC Indonesia mid-last week.

Thus, like it or not, the repair must be ready. Providing customer needs with digital services. “If the bank does not want to move on, the customers are ready to leave it,” said Heru.

Bank digital

Like a tit for tat, banks are moving to meet customer needs with digital services. Indonesia is getting ready to face the era of digital banking or neobank.
According to Heru, of 107 commercial banks, large banks have transformed themselves so that they can provide digital services. In addition, several middle-small class banks have asked for permission to provide digital services. He gave an example, among others, Bank Jago and Digital Bank BCA.

– .

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.