Jalin CSR: Danareksa Group Synergy in Welcoming Eid Al-Adha 1442 H

Jalin CSR: Danareksa Group Synergy in Welcoming Eid Al-Adha 1442 H

Every year, PT Jalin Pembayaran Nusantara (JALIN) participates in sacrificial activities to celebrate Eid al-Adha and spread kindness with others through the Jalin CSR program: Jalin Patungan Kurban. Welcoming Eid al-Adha 1442 Hijri, which falls on July 20, 2021, this year, Jalin not only collaborated with BAZNAS but also synergized with Danareksa Group to distribute sacrificial animals to people in need.

Jalin’s sacrificial activity is an annual activity that is carried out as part of Jalin’s mission to make positive impacts on the community. From Jalin Patungan Kurban 2021 program this time, Jalin managed to distribute 1 “Berkah” cow (301-350kg) and 1 “Manfaat” goat (28-30kg) as sacrificial animals where funds were collected from Jalin employees (Jaliners).

In addition, this year, Jalin also synergized with Danareksa Group to distribute sacrificial animals to people in need through the 2021 Danareksa Qurban Donation program. Not only PT Danareksa (Persero), a lot of its subsidiaries also participated this year, consisting of PT Jalin Pembayaran Nusantara, PT Danareksa Investment Management, PT Danareksa Finance, and PT Danareksa Capital. Through the 2021 Danareksa Qurban Donation program, Danareksa Group donated sacrificial animals with a total of 4 “Berkah” cows (301-350kg) and 3 “Berkah” goats (25-27kg).

VP Corporate Secretary Christianus K. Panjisasongko said, “Alhamdulillah, this year Jalin was able to share kindness through sacrificial activity (qurban). We hope this can help ease the burden of our brothers and sisters who are facing difficulties in getting foods, especially amid this prolonged pandemic. Hopefully, this sacrificial activity that is a result from the synergy between Danareksa Group and Jaliners will bring blessings to all of us.”

In the implementation of slaughtering sacrificial animals, both slaughtering and distribution are carried out by following strict health protocols according to government regulations, coordinated by BAZNAS. The location of the sacrificial slaughter was carried out at the Bogor BAZNAS Livestock Center, Cimande Hilir Village, Caringin District, Bogor Regency, West Java. Meanwhile, the result of the sacrificial animals was distributed to underprivileged communities in the BAZNAS Assisted Village for the Jabodetabek area.


QRIS Cross Border, Cross Country Shopping Just Use QRIS

QRIS Cross Border, Cross Country Shopping Just Use QRIS

Bank Indonesia (BI) has obliged the use of the Quick Response Code Indonesian Standard (QRIS) for all Payment System Service Providers (PJSP) since January 1, 2020. Currently, there are already 60 PJSPs QRIS partners and 6.55 million registered merchants using QRIS. However, the expansion of QRIS services is not limited to being able to be used domestically. Bank Indonesia and the Indonesian Payment System Association (ASPI) have a strategic plan so that the QRIS Cross Border service can start running in 2021.

QRIS Cross Border is one of the collaborative initiatives to build standardization of settlement infrastructure for cross-border trade, remittances, retail payment systems, and capital markets. That way, Indonesian people will be able to make payments abroad by simply scanning the QRIS code. It applied to foreign tourists who travel to Indonesia too. Later, they can make payments by scanning the QRIS code through the application they usually use in their country and already supports QRIS.

The presence of the QRIS Cross Border is also following the points contained in the ASEAN Economic Blueprint 2025, one of which is about improving and standardizing the payment system. Therefore, the QRIS Cross Border initiative can provide a positive impact on the implementation of a regional payment system that is safe, efficient, and competitive.

In practice, there are five things as the primary guide for this QRIS Cross Border successful implementation. The five guidelines are:

  • Promote ASEAN Payments Connectivity and regional linkages of payment systems through open infrastructure and retail payments interconnection.
  • The form of multilateral implementation with various countries.
  • Promoting financial inclusion, tourism, and digital economy (SME) inclusion
  • Legal and regulatory compliance in both jurisdictions
  • Maximizing the local currency settlement model

Currently, the government has signed an MoU with the Bank of Thailand and Bank Negara Malaysia for the implementation of payments through the QRIS Cross Border. However, QRIS Cross Border may also be able to be used in countries other than Thailand and Malaysia because there are plans to expand cooperation with several other countries in Asia.

The cooperation model that will be implemented is Switching to Switching. This means that each GPN switching will be connected to the destination country switching by using API and standard messaging in the integration process. Then, Settlement will be carried out using the LCS (Local Currency Settlement) method through ACCD (Appointed Cross Currency Dealer) Bank.

Bank Indonesia and ASPI have also adopted the international standard EMV Co in the process of preparing the QRIS. Using the standard of EMV Co, which is open source, wider interconnection of payment system instruments can be realized so that interoperability between providers, and countries becomes easier.

The Role of QRIS for Indonesian MSMEs in the Emergency PPKM Period

The Role of QRIS for Indonesian MSMEs in the Emergency PPKM Period

Covid-19 cases in Indonesia have experienced a significant increase lately so that the government must implement the Imposition of Emergency Community Activity Restrictions (PPKM Emergency) for Java and Bali regions. The regulation surely has a significant impact on various industrial sectors in Indonesia, including Micro, Small, and Medium Enterprises (MSMEs). However, if MSME players can embrace digitization appropriately, they can survive in this uncertain time. One of the usable digital services during this emergency PPKM period is the QRIS payment system for MSMEs in Indonesia.

QRIS stands for Quick Response Code Indonesian Standard. It is one of the digital payment system standards in Indonesia with the QR code scanning method. In short, sellers only need to register their business once at one of the Penyelenggara Jasa Sistem Pembayaran (PJSP) services to get a QRIS code. Meanwhile, buyers can make payments by scanning the sellers QRIS code through any supported service.

According to Bank Indonesia data, as of March 19, 2021, there are around 6.55 million sellers who have used the QRIS payment system, with the majority of users is 85% coming from MSMEs. The government also plans to encourage more Indonesian MSMEs to use QRIS this year, and their target is to embrace up to 12 million sellers by 2021.


Digitizing small and medium enterprises


Today’s technology has rapidly developed so that it brings changes in almost every aspect of life. It became one of the government’s backgrounds to accelerate the digitization of domestic business owners. President Joko Widodo even instructed and encouraged the acceleration of digitalization, especially for MSMEs.

MSMEs are one of the drivers of the Indonesian economy, which contributed 60.34 percent to the gross domestic product (GDP) in 2018. In addition, there are 116 million people, or 97.02 percent of the total workers in Indonesia, who are absorbed by the MSME sector. However, there are still not many MSME players who embrace the digital ecosystem.

Citing data from the Indonesia E-Commerce Association (idEA), MSME players who are incorporated into the digital ecosystem has reached 13.7 million players, or about 21 percent of the total MSMEs player, until May 2021. Therefore, the government targets 30 million MSME players to join the digital ecosystem by 2024.

However, when the Covid-19 pandemic spread and caused a world economic crisis, the MSME sector was also one of the hardest-hit sectors. Data from the Ministry of Cooperatives and SMEs states that at least 37,000 MSME players were affected during the pandemic.

A survey conducted by the Katadata Insight Center (KIC) on MSME players in Greater Jakarta in June 2020 found that 82.9 percent of business owners were affected by the pandemic. Even 63.9 percent experienced a decrease in turnover of more than 30 percent. Only 5.9 percent of MSMEs can reap profits amid a pandemic.

However, some MSMEs can survive by expanding and adding more types of sales and marketing channels. The large-scale social restrictions (PSBB) carried out during the pandemic are also seen as an opportunity to trade online. At least 80.6 percent of MSME players say that they feel helped by using the internet.


Cashless National Movement and Bangga Buatan Indonesia


For MSME players who understand the internet, digital technology can be used as a strategy to survive in times of crisis caused by the Covid-19 pandemic. MSME players can also selling their products or services through social media or marketplaces. In addition, adopting a digital payment system can also be a solution for transactions amid a pandemic.

Although the pandemic has hit the MSME sector quite hard, it is undeniable that the pandemic has also become a momentum for MSMEs to transform into a digital ecosystem. The number of MSME players who use technology to survive amid a crisis is not large, but the transition process shows positive movements.

To encourage the digitization of MSMEs during a pandemic, the government has issued many policies aimed at helping the stability of the nation’s economy. In addition, the government has also promoted the Cashless National Movement (GNNT), which launched at August 14, 2014, and the Bangga Buatan Indonesia (BBI) movement, which launched at May 14, 2020, to synergize in accelerating the digitization of MSMEs.

GNNT launched to create a safe, efficient, and smooth payment system, which in turn to encourage the national financial system to work effectively and efficiently. Meanwhile, BBI launched to encourage local industries to become pillars of national development and make Indonesia no longer dependent on imported products.

One of the strategies pushed by the government to make the two national movements successful is to encourage the expansion of QRIS implementation by synergizing Bank Indonesia (BI) representative office in the regions. This step is carried out with the hope that QRIS can become one of the gateways for MSMEs to connect to the digital ecosystem.

Since BI obliges the use of QRIS in 2020, the use of QRIS has also continued to grow rapidly. During the first year of QRIS implementation, transaction volume has penetrated 17.3 million transactions with a nominal transaction of Rp1.25 trillion from 5.94 million sellers. Quoting the statement of the Assistant Governor and Head of the Payment System Policy Department of Bank Indonesia Filianingsih Hendarta at Infobank, it was stated that out of the total nominal transactions, 95 percent came from MSMEs and 85 percent MSEs.


Benefits of QRIS for MSMEs during the emergency PPKM


The drastic increase in Covid-19 cases has forced the government to issue an emergency PPKM regulation that will take effect on 3-20 July 2020 in Java and Bali. The restrictions on activities this time are much stricter than before.

The tightening of these rules will have an impact on MSME players. However, if they learned from the previous activity restrictions, it should not be a big problem this time. By utilizing existing technology, MSME players can continue to carry out business activities without significant constraints.

For example, marketing can be utilized through social media, while product catalogs can be stored and sold through a local marketplace. If it is still too complicated, MSME players can still carry out marketing activities to buy and sell only by using chat applications and digital payment services that already support QRIS.

By using QRIS, MSME players can make transactions without having to make physical contact. In addition, QRIS also has a QRIS  TTM (Tanpa Tatap Muka), a feature that allows sellers and buyers to make transactions without meeting face-to-face. Thus, it can indirectly help the government manage the surge in Covid-19 cases because transactions occur without any social interaction.

QRIS TTM is also very easy to use. For example, a buyer places an order with a merchant directly through a chat application. After the order is confirmed and the price is determined, the sellers only need to send a picture of their QRIS code to the buyer. After that, the buyer saves the QRIS code to the gallery and uploads it back to a payment application that supports QRIS code scanning. If the QRIS code image has been scanned, the buyer only needs to complete the transaction.

The other benefits of QRIS for MSMEs are reducing the risk of loss due to fraudulent payments with counterfeit money, automatic recorded transactions so that transaction history can be viewed easily, ease of bill payments, sales of goods can be made non-cash without leaving the store, building a good credit profile so that it does not constrain when applying for a loan to a bank, the opportunity to get capital becomes greater, and many more.

With QRIS, it is expected that MSME players can also embrace digitalization which is currently happening and growing rapidly. Thus, MSME players can survive in the midst of an uncertain situation like now and can be one of the pillars of Indonesia’s economic resilience in the future.

QRIS TTM Simplifies Remote Transactions Amid a Pandemic

QRIS TTM Simplifies Remote Transactions Amid a Pandemic

The digitalization of the payment system grew significantly amid the Covid-19 pandemic that is still ongoing today. It is inseparable from the community needs who require transactions that are faster, safer, and can minimize social interaction. One of the answers comes through the QRIS TTM (Tanpa Tatap Muka which means No Face to Face) feature, which complements non-cash payment innovations through scanning of national standard QR codes.

Amid the current Covid-19 pandemic situation, the World Health Organization (WHO) recommends every country to minimize the use of cash for a transaction and expand cashless transaction services. This recommendation aims to break the chain of the spread of the Covid-19 virus, which can spread through cash transactions.

Therefore, Bank Indonesia as a financial regulator, with Payment System Service Providers (Penyelenggara Jasa Sistem Pembayaran or PJSP), are committed to continue encouraging the expansion of the use of QR code Indonesian Standard (QRIS). Bank Indonesia itself is currently collaborating with 59 PJSPs in the implementation of QRIS in Indonesia, consisting of banks and non-bank institutions. In 2020, the total number of merchants who have implemented QRIS reached around 6.5 million merchants in 34 provinces, 480 regencies/cities, and in 2021 the target is to reach up to 12 million merchants.

The extensive acceptance of QRIS has finally encouraged Bank Indonesia with the Indonesian Payment System Association (ASPI) and PJSP to develop QRIS TTM. It is a feature that complements QRIS’s innovation in facilitating remote transactions without face-to-face and can assist the government in limiting social interaction in the community during a pandemic.


What is QRIS TTM?


QRIS TTM is a feature that complements QRIS innovation and allows users to make transactions simply by scanning an image of the QRIS code stored in the smartphone gallery. Thus, the buyer does not need to meet face-to-face with the seller to scan the QRIS code and make payments

To use this feature, buyers need to ensure that the application used to make payments by scanning the QRIS code supports the scan from gallery feature on the smartphone. In addition, they also need to make sure that the merchant’s name that appears and the transaction amount is correct.


How to Use QRIS TTM


Using the QRIS TTM feature is easy because it can be done from anywhere and anytime the customer wants as long as they have an internet connection and an image of the merchant’s QRIS code.

Here are some steps to use QRIS TTM:

  1. Request an image of the QRIS code from the merchant.
  2. Save the QRIS code image to the smartphone gallery.
  3. Open a payment application that supports scanning QRIS codes.
  4. Select the upload menu from the gallery on the application.
  5. Select the merchant’s saved QRIS code image.
  6. Enter the transaction nominal and make sure the merchant’s name is correct.
  7. Enter the PIN for the payment authentication process.
  8. Payment completed.

Cashless Transactions Become Easier


The presence of QRIS TTM has finally become an alternative and completes the choice of remote payment methods that are easy for users in one application in the smartphone used. This innovation can help UMKM (Usaha Mikro, Kecil, dan Menengah which means Micro, Small and Medium Enterprises), donors, or loyal customers to be able to transact while maintaining health amid a pandemic and indirectly supporting the development of economic inclusion.

The presence of QRIS itself is to support the creation of a cashless society and is expected to create an efficient, effective cashless payment system, and refers to the main principles of a fast, easy, cheap, safe, and reliable payment system policy.

Three Benefits of Learning to Invest Early

Three Benefits of Learning to Invest Early

Indonesian interest in learning investment has become one of the most popular search topics since the pandemic began a year ago. The uncertain situation has prompted Indonesians to be more proactive in seeking and educating themselves about financial services and safe investment options. This is reflected on Google’s Year in Search 2020 report.

According to Google, there is a significant growth of interest in learning and using online banking solutions. At least, there was a surge in searches reaching 140 percent for “online account opening” searches, 70 percent for “online savings” searches, and 20 percent for topics on how to register for mobile banking.

Meanwhile, information related to how to manage finances has also increased. It is readily apparent from the increase in topic searches for “emergency funds” and “saving tips”, which increased to 140 percent.

On the other hand, the topic of looking for safe and secure investment options is also increasing. Searches for keywords in “interest rates on deposits” rose 10 percent, keywords “stocks” rose 25 percent, keywords “buy gold online” rose 85 percent, keywords “IHSG” rose 90 percent, and the highest is the keyword “reksa dana (mutual funds)” which jumped up to 210 percent.

In this article, we will discuss three things; the importance of investing, the benefits of investing early on, and the investment options in this digital era.


Why is Investment Important?


The COVID-19 pandemic has succeeded in disrupting the mindset of the Indonesian people in financial planning, just like how technology has disrupted many industrial sectors. Now, many people are aware of the importance of financial resilience to deal with unexpected events in the future so that various important moments in life are not going to be missed.

In life, a person must have life goals to be achieved and will meet many important events. Some of these events, for example, are college, marriage, the birth of their first child, children entering school, and retirement. On the other hand, other things can become small targets such as the latest gadgets, vacations to other countries, or buying rare collectibles to satisfy hobbies.

All these things are not achievable without hard work and financial planning. In financial planning, of course, the right investment strategy can provide many benefits. Whether it is for yourself, as well as a wider scope such as family, friendship, and indirectly contributing to the country.

By investing, we are preparing ourselves to face a future full of uncertainty, practicing self-discipline to achieve goals, and indirectly helping move the wheels of the country’s economic growth through investing in a company. It will be even better if we learn from the beginning of adulthood in our lives.

Investment is not a new thing in Indonesia. Referring to Indonesia Dictionary, investment is the practice of putting money or capital in a company or project to make a profit. In practice, this activity has occurred since the colonial period through the 1870 Agrarian Law, which became the entry point for foreign capital in the plantation sector.


The benefits of learning to invest early


In a nutshell, the benefit of investing is to get profits that we can eventually use for many purposes in the future. Therefore, learning it from an early age is something that the young generation needs to do. Especially in an uncertain pandemic situation that demands the ability to manage finances better.

At least, there are three benefits of learning to invest earlier that we need to know. Here is the explanation:


1. Having Emergency Fund


The younger generation, in general, is financially vulnerable. It is inseparable from the YOLO (You Only Live Once) lifestyle concept, which is sometimes still misinterpreted. Some people still have the habit of spending money to get personal satisfaction instead of strengthening financial resilience.

For example, using money to buy expensive things that are not necessarily needed, travel whenever there is an opportunity, or seek entertainment without considering the savings. Interestingly, the COVID-19 pandemic has begun to awaken people from this extravagant lifestyle and return the YOLO concept to its rightful place.

Learning from the pandemic disaster, people, especially the younger generation, are now starting to learn to manage finances to prepare for stronger financial resilience. One of the ways is to invest some of the money into an emergency fund.

The emergency fund allocation can be used for urgent needs in the future, such as paying for health costs that are not covered by insurance and BPJS. It can also be a savior if a family member experiences sudden termination of employment (PHK). In general, the investment instruments chosen to become emergency funds are those with minimal risk. Some of them are deposits, mutual funds, and precious metals.


2. Having Financial Freedom


Financial independence or financial freedom was popularized by an American financial expert, Robert T Kiyosaki. According to Kiyosaki, financial freedom is not about how much money a person has. Instead, it is about changing mindsets.

Kiyosaki shared that his father said, “There are two kinds of money problems. Not enough money, and too much money. What kind of money problem do you want?”

In short, financial freedom is a phase when we feel adequate with our financial capabilities. This condition allows us to be free being ourselves and do the things we love without worrying about our financial situation.

Under normal circumstances, an example of someone who is already in the financial freedom phase can be seen from his lifestyle. For example, he can prepare a vacation fund without the hassle of paying bills after returning home, or he has funds to spend time or fulfill hobbies without having to bother with shopping bills, or he can eat anything without having to think about the price of food.

Meanwhile, in an uncertain situation like now, someone who has financial freedom will certainly not panicked or worried excessively. It is inseparable from a mature mindset, an adequate financial condition that was prepared long ago.

In short, someone who is financially independent already has an emergency fund, health fund, education fund, or even a pension fund. These funds can be used to deal with uncertain future situations such as the Covid-19 pandemic.

Many think that financial freedom is only achievable by becoming rich, having a large salary or having monthly income. In fact, with proper wage or income management, we can still achieve financial independence.

The key to achieving it lies in our willingness to change the mindset towards a lifestyle, followed by good financial planning. It can help us control our expenses so that they don’t exceed our income. In addition, it is also necessary to have goals, be consistent in setting aside funds and start investing early.

In short, financial freedom is achievable if the mindset of our lifestyle has been changed, has a financial strategy, and develops good habits in managing finances. On the other hand, avoiding consumptive debt to pay for unnecessary purchase can help.

If the investor can manage his investment assets well, he can achieve financial independence. He can support his daily needs from the profits of his investment without any worries.

One thing to remember, the main purpose of investing is to minimize the reduction in the value of money from inflation. The second goal is to gain profit to achieve the specified life goals.

The condition of financial freedom does not always have to be rich and have abundant wealth, instead we can be ourselves and do whatever we want without worrying about our financial condition.

Even though it sounds like a dream, but it can be achieved. The condition is that you must continue to learn to be able to manage your finances well and be firm and self-disciplined in allocating funds for investment.


3. Preparing for a Better Future


Learning to invest on your own is not without its challenges. A common mistake that is often found in novice investors is inconsistency in allocating funds for investment.

Many think that investing is a shortcut to become rich. Yet, the reality is that an investor must determine his investment goals, be it for the short term or long term, before gaining profits.

There are various reasons for the inconsistency of novice investors. First, they have no goals and have a FOMO (fear of missing out) mentality, so they tend to follow trends. Second, a misguided mindset that think of investing as a shortcut to instant wealth, so they have high hopes that all investments are profitable. Third, they do not recognize their risk profile.

An example of the case is when the capital market began to show indicators to rise after being hit by the pandemic issue last year. At that time, many novice investors invested for profit.

However, the trend later reversed, and many novice investors lost and became angry. Their mentality is not ready to face this reality.

This phase is avoidable if we have learned to invest early because we already have experience and knowledge of the risks of every investment taken. In addition to being mentally trained, discipline in allocating funds is also more developed.

In the end, when the mental and self-discipline of an investor has been awakened, the ultimate goal of investment can also be achieved. Whether it is to buy a house, get married, have a new vehicle, pay for higher education, or fund early retirement.

The future is full of uncertainty. There must be independent variables that cause an event to occur beyond our control and plans. An example of this is the current pandemic caused by the COVID-19 virus.

In addition, a person’s physique will change and will no longer be the same when he enters old age. The ability and productivity to work will be much different from the conditions in the productive years. It will automatically have an impact on a reduced income.

At times like this, investment shows its role as the answer in preparing for a more secure future.  If we have learned to invest early, it will help to reduce the burden of collecting money for retirement later.

Investments early on can also help prevent the sandwich generation in the family.  They are the generation that is responsible for setting aside income for their parents and at the same time having to meet various personal needs. On the other hand, we are also better prepared if we have to retire early.


Investment options in the digital age


In the past, access to buying investment instruments was still hard with complicated terms and conditions and sometimes exorbitant fees. It slows down people’s literacy and interest in useful financial products.

However, this situation has changed along with the rapid development of technology and disrupt the way we obtain investment instruments. The public, especially the younger generation, can now access many investment instruments from the palm of their hands and buy them at affordable prices.

However, knowing and understanding the instruments or types of investment available in Indonesia also needs to be considered. Thus, we can determine the investment that suits our needs.

Thanks to current technological advances, the public can obtain several investment instruments conveniently to invest early. Some of them are gold, mutual funds, stocks, deposits, bonds, state securities, and investment through loans.

All of those instruments are easily accessible after going through the online or offline registration process, and some of them can be purchased at very affordable prices.

One way that investors can take to obtain mutual fund instruments is through Danareksa Investment Management (DIM). DIM is licensed as an Investment Manager and trades mutual fund investment instruments through the Danareksa Online service, which is accessible through its official website at http://dmia.danareksaonline.com/.

There are many payment methods for buying investment instruments that can be used today, such as mobile banking, internet banking, and digital wallets that are accessible via smartphones. In addition, it is also possible to make payment through minimarkets, partners of related financial institutions, or via ATMs such as ATM LINK that spread throughout Indonesia.

ATM LINK is a service that facilitates ATM cardholder customers from Himbara bank to make transactions such as balance checking, cash withdrawals, transfers, and bill payments. One of them is a bill for the purchase of investment products in all ATM channels that are members of the LINK network.


Early Investment Starts with Strategy


Learning to invest early is important, but not without significant challenges. In its journey, every investor must experience failures and losses from their investment portfolios.

What makes the difference is the attitude when they meet failure. Will they embrace it, organize their mentality, and discipline themselves to increase their knowledge or will they close their eyes and walk away. Especially with today’s technological advances, almost all investment instruments are easily accessible and purchasable at affordable prices. So, there is no reason for us not to start learning to invest early.

One thing that needs to be considered is to make a strategy and prepare for the best possible investment plans and goals before starting to invest. Every investment has its risks. There are low-risk ones such as deposits and mutual funds, but there are also high-risk ones such as stocks and business investments through peer-to-peer lending services.

So, before deciding to buy an investment product, don’t forget to study all the risks that exist to determine the investment product that suits your needs. Learning from experienced friends or family, reading books, taking online classes from trusted institutions, or simply watching videos about investment tips in your spare time can be the first step towards the right direction.

Three Reasons Why You Should Use Mobile Banking Services Amid a Pandemic

Three Reasons Why You Should Use Mobile Banking Services Amid a Pandemic

Nowadays, most people already have a smartphone that has many features. However, there are also still many who have not been able to take full advantage of it. One of the advantages is that all smartphones are equipped with an internet connection and can install a banking service called mobile banking. When customers use mobile banking or m-Banking services, they can carry out various financial transactions like when transacting at an ATM.

The flexibility of technology and the transformation of the phone into a smartphone is one of the factors that ultimately make it easier for the public to access banking services. It was marked by the birth of internet banking and m-banking services. Even though they look similar, the two services actually have differences.

Mobile banking is a service offered by banks to their customers to facilitate transactions, and they can access it through applications installed on smartphones. On the other hand, internet banking is the activity of conducting transactions, payments, and other banking transactions via the internet by accessing the bank’s official website which is equipped with a security system.

Amid the current pandemic situation, banking activities through mobile banking services themselves have experienced a significant increase. Bank Indonesia (BI) noted that the total digital banking transactions throughout 2020 reached more than Rp27 thousand trillion. This value is predicted to grow 21.8 percent to Rp33 thousand trillion this year.

With the current uncertain situation, mobile banking services can be a solution for many people to carry out financial activities without excessive social activities. Here are three main reasons why we need to get used to using mobile banking services today:


Convenient and easy to use


Using mobile banking services amid a pandemic can help customers limit their social interactions. In the end, it can help break the chain of virus spread. It is inseparable from the convenience offered by the mobile banking service, which can be used anytime and anywhere customers want as long as they have a smartphone connected to the internet.

In addition, the interface of mobile banking service now looks more modern. The interface changes were made without forgetting the obligation to provide the best user experience to customers.


Practical in managing financial services


One of the benefits of using mobile banking is to make life easier because it can be used practically by customers to pay bills, transfer funds, check balances, make deposits, and other transactions. All these activities can be done through a banking application installed on the smartphone without the hassle of coming to the bank, which is usually full of queues.

Along with technological advancement, mobile banking services also allow customers to conduct banking or financial transactions more broadly. Besides facilitating public utility bills payment such as electricity and water, the mobile banking service can also make it easier for users to pay for many other things. Some of them are their travel ticket bills, make donations, top up the electronic money, to settle the purchase of investment instruments such as mutual funds and Government Bonds.


Guaranteed security


Before digitization developed rapidly as it is now, mobile banking services were less attractive to many people. There are always reasons to avoid using this banking service, ranging from being reluctant to learn more to doubting the security of the service.

In fact, using mobile banking services can be a safer option than having to go to an ATM or bank to make a transaction. It is taking into account the factors of crime such as hypnosis and robbery that often occur to customers when they are at an ATM or on their way home after visiting a bank.

Along with technological developments, the security of mobile banking services has also increased. Previously, only relying on passwords, PINs, and OTP codes, now mobile banking has also used biometrics such as fingerprint scanning to use the service. One thing to be aware of is phishing action that may be directed at customers to steal personal information of financial services.