The Straits Times
Adoption, penetration of digital financial services to get boost as more transact online
Regional Correspondent
A customer making payment for her purchases using digital payment service GoPay in Jakarta. Indonesians have switched to digital payment methods to minimise face-to-face interactions and trips to physical banks.PHOTO: BLOOMBERG
PublishedFeb 16, 2021, 5:00 am SGT
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SINGAPORE - The Covid-19 pandemic has propelled contactless and cashless transactions in Indonesia at warp speed, paving the way for virtual banks which will be a game changer for millions of people in the country without bank accounts.
Fintech has boomed in recent years, providing more streamlined and efficient financial services and faster onboarding process. The pandemic has led to even more growth particularly in mobile payments and peer-to-peer lending, analysts say.
Like elsewhere in the world, Indonesians have switched to digital payment methods to minimise face-to-face interactions and trips to physical banks. Those who have been laid off are taking loans from peer-to-peer lending platforms, which offer lower interest rates and more flexible terms than traditional banks.