DBS Bank has launched digibank by DBS (digibank), a mobile-led bank, in Indonesia. The move follows a roll out of digibank in India last year, which allowed DBS to penetrate India’s retail banking market with about 1.5 million new customers acquired to date, a statement read.
The new launch also aims to provide customers more value through a more efficient cost structure, compared to brick-and-mortar banking. This includes enjoying 3% interest rates for new accounts, higher ease of fund transfer and more flexibility with deposits.
On top of biometric technology and customer service-AI features, digibank Indonesia will also offer users intelligent financial planning and monitoring tools to help customers be smarter about finances. It will also have dynamic inbuilt security.
digibank customers will also be able to benefit from the regional connectivity which DBS looks to offer. This includes the ability to make cash withdrawals in Singapore at any DBS and POSB ATM, without any fees. ATM menus for Indonesian clients will be in Bahasa, and customers will also get to enjoy promotions in Singapore with the digibank debit card.
According to Indonesia’s minister of communication and information technology Rudiantara during the launch, Indonesia’s digital economy is expected to reach US$130 billion in 2020. This is around 12% of Indonesia’s GDP. With Indonesia’s economy shifting from a commodity-led to service-based one, this will encourage the rise of the digital economy in the country, he added.
“We believe this mobile-led offering represents the future of banking, and are excited to introduce this in Indonesia, a core market for us in Asia,” DBS CEO Piyush Gupta, said.
Meanwhile, DBS Indonesia president director Paulus Sutisna said that Indonesia has seen a rapid growth in number of internet and smartphone users over the years.
“Along with this, we’ve witnessed a change in customer behaviour and people increasingly want a simple, fast and effortless way to bank. As a bank that is committed to shaping the future of banking, we’re excited to introduce digibank in Indonesia,” Sutisna added.