Jakarta, CNBC Indonesia – The massive adoption of technology and digitalization, makes all businesses must participate in transformation, as well as banking. Is the branch now extinct soon?
Chair of the Financial Services Authority (OJK) Wimboh Santoso said, banks now need to adapt to technology, to be competitive.
Therefore, banks are now required to transform their businesses, from what was previously face-to-face or conventional services, now they inevitably have to go through digitization.
“Customers now if you want to send money do not need to go to a bank office, if you want to transfer do not need to go to a bank or ATM,” said Wimboh in a virtual discussion, Friday (07/17/2020).
Wimboh told, in 2000-2010, banks were busy expanding by opening branch offices in various regions in Indonesia.
At present, according to Wimboh Bank, it seems that you have to think twice if you want to open a branch office. Given that if you want to open a branch office requires a lot of costs and labor.
“After 2010 there were still many who opened branches. Now think twice, branches need buildings, people need. Now maybe banks need to think about what branches they want to do? It’s a process because people don’t go to banks anymore,” he said.
From the Indonesian Banking Statistics (SPI) data as of April 2020, total commercial bank branch offices were recorded at 31,012 units. This figure has continued to decline since 2016 which reached 32,720 units.
Then for rural banks (BPR) branch offices recorded 5,941 units also continued to decline since 2016 as many as 6,075 offices.
