DBS Bank has launched a mobile-only bank, digibank, in Indonesia.
According to the bank, the service brings together an entire suite of technology to enable customers to experience a new way of banking.
For instance, Indonesian citizens living in the Greater Jakarta area (ie. Jakarta, Bogor, Depok, Tangerang, Bekasi) can open a digibank account without the need for paperwork. They only need to meet a digibank agent, who will assist them to do so using a biometric device on the spot.
DBS has made this possible by leveraging E-KTP, Indonesia's biometrics-enabled ID programme.
digibank also features an artificial intelligence-driven virtual assistant. Customers can converse with the virtual assistant as they would to a call centre agent at any time to get their queries answered.
To help users be smarter about their money, digibank's intelligent financial planning and monitoring feature helps customers plan their expenses while simultaneously monitoring their banking transactions made using their digibank debit card.
Customers can also use the in-built budget optimiser to do their budgeting, track expenses and analyse purchasing trends.
In terms of security, digibank has an embedded soft token security. This eliminates the need to wait for one-time passwords (OTPs) sent via SMSes and provides even stronger security for transaction authorisation, said DBS.
Digibank will allow DBS to ride on the rise of smartphone usage and e-banking activities in Indonesia. According to to We Are Social's survey, 91 percent of Indonesian citizens have a mobile phone and 47 percent of them own smartphones.
Moreover, the Indonesia Financial Authority Services (OJK) reported that the number of people using e-banking increased from 13.6 million customers in 2012 to 54 million customers in 2016. The frequency of Internet banking transactions also rose from 150.8 million transactions in 2012 to 406.6 million transactions in 2016.
"Along with [the rapid growth in the number of internet and smartphone users], we've witnessed a change in customer behaviour and people increasingly want a simple, fast and effortless way to bank. We're excited to introduce digibank in Indonesia, giving customers the ability to bank anytime, anywhere," said DBS Indonesia President Director Paulus Sutisna.
DBS CEO Piyush Gupta added: "A few years ago, we would not have imagined that it would be possible to launch an entire bank in a mobile phone. With digibank, we've built a bank that pulls together the power of biometrics, natural language, artificial intelligence and in-built security in one offering. 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."
Indonesia is not the first market to offer digibank. The service was first launched in India last April, and has enabled DBS to acquire 1.5 million customers to date.
Digibank by DBS is now available for download from the Apple App Store or Google Play.
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