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Definition of Digital Bank, Advantages and Weaknesses and 8 Digital Banks in Indonesia


The more sophisticated technology which is developing at this time, making banking sector modifying its services in accordance with the times, namely: a digital bank that is relatively simpler, practical as well as hassle-free for its customers.

Draft digital bank basically it is intended to process financial transactions that are completely online without having to come directly to the bank or offline which really helps people to be free to make transactions anywhere and anytime.

As the name implies, digital banking is a service with various banking features, the process of which is done online through supporting devices such as smartphones or computer devices.

Meanwhile, on the bank’s side, the service providers generally do not have unit or branch offices, but head offices that are directly integrated throughout Indonesia.

This type of bank has also been designated by the Financial Services Authority (OJK) as a technology-based banking service that already has a legal umbrella with the status of an Indonesian legal entity (BHI).

If you look at the times, online-based banking is a technological innovation in the banking sector with the aim of facilitating access and processing various types of public financial transactions online.

In addition to online banking service features such as Phone Banking, SMS Banking, Internet Banking and Mobile Banking, digital banks also have many advantages and disadvantages that are offered to customers as well as to the bank providing the service itself, here are some of them:

Advantages of Digital Bank

The main advantage of digital-based banks, of course, is to facilitate the transaction process of their customers. Without having to be constrained by the place to make transactions and the time to access services and transactions with various banking features.

In addition, with this type of bank, of course, the public as customers will not encounter problems that exist in conventional banks such as queue lengths, limit transaction as well as other obstacles such as the limited number of conventional bank branches in the regions.

Meanwhile, from the side of the implementing bank, banks that carry out online-based transactions clearly provide high economic value and efficiency because banks do not need to incur large costs for investment in building construction in the regions, and this is also a good indicator for customers because they do not have to bear the burden. administrative costs for each accessing banking services.

Weaknesses of Digital Bank

Behind the many advantages offered by digital-based banking, of course there are also weaknesses in digital banks.

In every transaction or when you want to access a digital bank, stable internet access is needed, for areas where internet access is still minimal, this will certainly be a problem in itself.

Besides that, existence Online-based banks will also automatically change the attitude of customers as consumers who will be more likely to be consumptive because of the ease of access to banking.

There are at least 8 digital-based banks operating in Indonesia, apart from conventional banks which have started to adopt online banking services, there are new digital banks in Indonesia. Here’s the list:

  1. Genius from Bank BTPN

Bank BTPN has developed a technology-based bank as an innovation under the name Jenius which has been developed since 2016.

  1. Wokee from Bank Bukopin

Wokee is a digital-based bank developed by Bank Bukopin that has existed since 2018 with excellent features and promos.

  1. Digibank from DBS Bank

DBS Bank has also been building digital banking since 2018 which is named Digibank which is widely known by the people of Indonesia.

  1. TMRW from OUB Bank

Bank UOB is relatively new to developing a digital bank named TMRW since last August 2020. In addition to digital banks, TMRW also issued a special credit card feature.

  1. Good from Bank Jago

Present since 2021, PT. Bank Jago is specifically engaged in the fully digital banking sector, which is named Jago which is very well known to the public, especially millennials.

  1. Livin from Bank Mandiri

As the most famous conventional bank in Indonesia, Mandiri Bank also not to forget by presenting Livin by Mandiri as a digital bank feature with many excellent features that are integrated directly with Bank Mandiri.

  1. Blu from Bank BCA

As a private bank with professional services, BCA also presents a digital bank under the name Blu, which targets millennials.

  1. Motion Bank from MNC Bank

The last one is Motion Bank, which is presented by MNC Bank to enliven the digital banking sector in Indonesia.



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