Being the largest economy in SEA, the country’s digital industry has skyrocketed from US$ 41 billion in 2019 to US$ 77 billion in 2022. As of 2021, the internet penetration in Indonesia stood at around 70%. This makes Indonesia ripe for digital transformation.
Indonesia has seen significant growth in digital banking in recent years, driven by the country’s large and growing population, increasing smartphone adoption, and the government’s efforts to promote financial inclusion. Some of the key players in the Indonesian digital banking market include traditional banks such as Bank Mandiri, Bank Central Asia (BCA), and Bank Rakyat Indonesia (BRI), as well as digital-only banks such as Jenius, Bank Jago, and Jenius. These players offer a range of digital banking services, including online account opening, mobile banking apps, digital payments, and investment products.
One of the main challenges facing digital banking in Indonesia is the country’s low level of financial literacy and trust in digital financial services. Many Indonesians still prefer to conduct their financial transactions in person at physical branches, and there is a lack of awareness and understanding of the benefits and risks of digital banking.
To address these challenges, the Indonesian government and regulators have taken steps to promote financial education and consumer protection, and digital banking providers have launched initiatives to improve user experience and build trust, such as offering cashback and other incentives for using digital banking services. Overall, the digital banking landscape in Indonesia is expected to continue to evolve and grow in the coming years, as more Indonesians become familiar with and adopt digital financial services.
Indonesia growing digital banking market
- Indonesia annual GDP growth is at 5.7%. Banking and financial services contribute 6.8% – 7.2% to the GDP
- Over 72 million digital banking users for top 5 Indonesian banks
- Growing digital banking market: The digital banking market in Indonesia is projected to grow at a CAGR of 16.3% during the period 2021-2026, driven by the increasing adoption of digital technologies and the government’s push towards a cashless society. (Source: Mordor Intelligence)
- USD 28 billion from e-commerce transactions through e-wallets
- The country’s digital payments market is expected to reach USD 60 billion by 2025.
- E-Wallets: The total transaction value in the Indonesian e-wallet market is projected to reach USD 114.4 billion by 2025, growing at a CAGR of 34.9% during the period 2020-2025. (Source: Mordor Intelligence)
Methodology and framework
- We shortlisted the 5 operational retail digital banks in Indonesia.
- twimbit’s analyst team opened real accounts with 5 Indonesian banks offering retail banking services to evaluate their digital banking app capabilities in the account opening and transaction processes. The customer journey comprises a 7-point framework covering 4 CX banking pillars of success for customer growth and engagement.
- We evaluated our banks across 7 parameters and 17 sub-parameters on a scale of 1 to 5, measuring their responsiveness to increasing customer expectations.
- The objective is to benchmark and identify Indonesia’s top retail digital banking apps who are building innovative products and services based on their customer journeys.
We evaluated 7 CX parameters stated below:
twimbit CX benchmark score for Indonesia’s top digital banking app
Top key takeaways from benchmark analysis
- Jenius follow a 10-steps account opening journey along with 5-15 minutes for account to get activated
- Jago with a clearly stated 6-step account opening journey offers an instantly activated account with interactive visualisation and instructions
- TMRW offers an option to schedule Video-KYC verification call later and has a great AI chatbot ‘Tia’
- Livin just ask for a selfie and e-KTP photo for an account opening
- Aladin clearly defines eligibility and instructions for next steps for account opening
twimbit recommendations to improve digital banking app experience in Indonesia
#1 Clarity of information
- Availability of all account types on app
- Document requirement and a/c opening procedure
- Eligibility for a/c opening
- App should provide user with clear information before asking to register
#2 Ease of account opening
- The verification code to the cell phone number and email sometimes arrives late
- 5-step account opening journey
- Questions like source of funds, purpose of funds increase steps
- Auto-fill information or drop-down list to choose from options
- Option to auto-save information if user leave the process in-between
#3 KYC authentication
- 2 document verification – KTP and Selfie upload
- In case of video-KYC, there should be option to schedule it later
- No waiting time to confirm KTP
- Allow biometric verification during the a/c opening process
#4 Time to activate an account
- Instant account activation
- Instant activated virtual card just after the a/c opened
- CTA to apply for physical card