my personal blog
The advancement of digital payment transactions through QRIS represents a significant innovation in the realm of shopping. This modern technology allows us to conveniently make purchases without the need for cash or an ATM/credit card. With the help of our cell phones, we can effortlessly shop at various merchants that offer QRIS as a payment option, which is currently abundant in number.
Leave a Comment
Indonesia has made significant progress in financial inclusion over the last 5 years. In 2017, the World Bank reported Indonesia had the biggest account ownership increase in the East and Asia Pacific Region between 2014 and 2017, up from 36 percent to 49 percent. Additionally, the second National Survey on Financial Literacy and Inclusion (SNLIK) that was conducted by the Financial Services Authority (OJK) in 2016 revealed that the financial inclusion indices stood at 67.82 percent. That is about 8 percentage points higher than in 2013.
Leave a Comment
“The distance to the nearest branch office is pretty far away. I can’t leave my son and my ‘warong’ for depositing money into a bank account.”
This is one of the common answers when you ask people in rural areas why they are not having a financial account. According to the latest World Bank Global Findex, a third of Indonesian unbanked adults cited physical distance was a barrier to have the account.
Number of Indonesian banked adults rose by 13 pp to 49%, the largest increase in East Asia & Pacific Region (World Bank Global Findex Database, 2017)
Indonesia is not an easy place to provide universal financial access due to geographical limitation. However, Indonesia has recently seen promising use of agent networks to reach more unbanked segments. The number of banking agents is more than 800.000.
We have seen the successful adoption of M-PESA’s agents in Kenya to boost the ownership of mobile money account. The agent is essential to find more balance between tech and touch to give people more access to the financial institution. Financial institutions should empower their agents to better serve the customer.
6 Comments