DBS Bank launches Digibank in Indonesia
By Yunnie Marzuki August 31, 2017
- Mobile-led bank with a biometric registration system, AI virtual assistant, and soft token security
- Has 13,000 users currently and aims to obtain 3.5 mil liontech-savvy users within five years
SINGAPORE-based bank DBS Bank unveiled Digibank by DBS, a mobile-led bank in Indonesia.
Digibank is a paperless and signatureless banking system which brings together an entire suite of technology, from biometrics to artificial intelligence (AI) to enable customers to register for new bank accounts without going to a physical bank.
“Over the past few years, Indonesia has seen rapid growth in the number of Internet and smartphone users. 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, giving customers the ability to bank anytime, anywhere,” said PT Bank DBS Indonesia president director Paulus Sutisna.
The Iaunch follows the successful rollout of Digibank in India in April last year, which has enabled DBS to penetrate India’s retail banking market with about 1.5 million new customers acquired to date.
Seamless banking experience
Digibank offers seamless banking features such as biometric technology, AI-driven 24-hour customer services, and embedded soft token security.
Indonesia citizens who live in the Greater Jakarta area (Jakarta, Bogor, Depok, Tangerang, Bekasi) can open a Digibank account anywhere at a time of their choosing through the mobile app.
Users can arrange to meet a Digibank agent, who will assist them to do so using a biometric device on the spot. There is no paperwork involved, as the system leverage on E-KTP, Indonesia’s biometrics-enabled ID programme.
Customer service is provided by a 24x7 AI-driven virtual assistant which gets queries answered. There is also an intelligent financial planning and monitoring feature that helps customers be smarter about their money.
With the Digibank Spending Tracker feature, customers can plan their expenses while simultaneously monitoring banking transactions made using their Digibank debit card. There is also an in-built budget optimiser that helps customers do their budgeting, track expenses and analyse purchasing trends.
Most banks’ customers are used to receiving One-Time Passwords (OTPs) via SMS, and then typing codes into pages to authorise their mobile banking transactions.
Digibank has embedded soft token security, thus avoiding the need to wait for a SMS to arrive and providing even stronger security for transaction authorisation. Soft token is a dynamic inbuilt security which is safer than OTP.
“Digibank is different from existing mobile banking apps. We are not a mobile bank, but an entire bank in a smartphone,” said PT DBS Bank Indonesia head of digital banking Leonardo Koesmanto.
Digibank offer a 3% interest rate that can be enjoyed by Digibank customers from their first rupiah, allows the transfer of funds to any bank and enables ATM cash withdrawal at no cost. Account-holders can earn up to 6.25% in interest on deposits starting with a minimum of five million rupiah.
Customers can transfer up to 200 million rupiah per transaction and up to 500 million rupiah per day, as well as make cash withdrawals from any ATM (ALTO and ATM Bersama, and other networks soon) without an administration fee.
Digibank users can make cash withdrawals in Singapore at any DBS and POSB ATM without any fees.
Digibank mobile app is available for download at Android and iOS.
After its soft launch in May 2017, Leonardo said that now Digibank has 13,000 users and aims to obtain 3.5 million users within five years.
PT DBS Bank Indonesia director of consumer banking group Wawan Salum says that DBS Indonesia’s strategy is to reach a targeted number of users and millenials.
“Our main focus is to prioritise user needs in every banking transaction. This is only our first phase in this initiative. We will deliver more technology in the future especially for tech-savvy users,” he says.