The evolution of banking services which originated from paper-based financial circulation has now reached the digital era through its various transaction platforms to improve the efficiency of the customers in conducting their financial activities such as payment. However, all those facilities offered by the bank still receive mixed welcomes by the customers amid concerns about the transaction security and internal policy changes of such users. Therefore, what are the attitudes and experiences that the customers have in adopting the digital banking services?
Sally Hutapea, Head of Payment System Regulation Division, Bank Indonesia, highlighted the regulation of banking services regarding the implementation, security, and technology. With the average daily transactions through ATM and debit cards which increased by 9.7 per cent and the increasing percentage of credit cards transactions by 8 per cent, Sally noted that the public behavior in digital transactions has shown some positive transformations. Despite the good news, such behavior is limited to e-commerce or e-payment activities where the payment methods are dominated by bank transfer (75 per cent) and Cash on Delivery (13 per cent). This shows that when using a third-party service with the bank serving as a mediator, the consumers remain conservative amid doubts against the transaction security. Bank Indonesia recognizes these concerns and continues to accommodate the innovations in digital banking services while also ensuring that the security and comfort in conducting such transactions are protected by updated regulations.
The users of the digital banking services also voiced similar concerns during the recent "Powering the Efficient Economy" event. In the panel discussion held by HSBC Indonesia on May 25, 2016, Kisyuwono, Finance Director of PT Gajah Tunggal Tbk and Ivory T. Sembiring, Finance Director of PT Fitness First Indonesia, shared their experiences in adopting the digital banking services offered by HSBC Indonesia through HSBCnet. The migration process which included IT synchronization and testing periods went smoothly in a few weeks. Moreover, the benefits were immediately felt ever since the system went live, such as time efficiency in which their employees no longer had to visit the bank to conduct some transactions. Efficiency also occurred in the work processes through cutting off/combination of several steps of transaction processes so that the company may immediately shift their focus to some other activities. The transaction procedures within the HSBCnet menu are deemed user-friendly and the tracking of transaction history may be conducted up to several months back, thus simplifying the internal control. Other benefits include less possibility of fraud and human error. All of these benefits will ultimately enhance the work efficiency and the company may focus its attention to its core business activities.
Despite of all the benefits, the customers also admit that a migration is not a mere transfer from manual to digital process; it also involves an overall shift in the company’s paradigms. The first challenge is the user comfort zone of the necessity to pen down a signature and printing out the transaction evidences (notably for tax audit purposes). The company resources also require extra attention, especially during the preparation and transition periods. Another concern is the transaction security. Ivory recognizes these challenges and put the emphasis on mastering the system during those crucial periods through hands-on training for the users and consultations with the bank to ensure a smooth operation when the migration is fully completed. Another tip that Kisyuwono advises is to conduct the initial migration with regular/recurring transactions with relatively low amount and low risks. Once the sense of comfort is built, the company may continue the migration process with subsequent modules such as cross-border transactions and tax payment.
Responding to these challenges, Herani Hermawan, Head of Global Liquidity and Cash Management of HSBC Indonesia, reiterates the financial and banking evolution towards the digital era. Concerns on transaction security continue to become one of the main focuses of HSBC Indonesia and its partner networks worldwide as these concerns will also reflect the reputation of the customers as well as the bank. Another strong characteristic of HSBC is the strong support of the post-sales team in assisting the customers to adopt the digital services, primarily in translating their existing financial procedures in the company towards the digital processes to ensure the smooth operation of the users. Finally, Herani highlights that a system may not work if the human is not ready to embrace the change. Therefore, HSBC Indonesia stands ready to offer its full support not only for the system, but also for the human resources behind the desks.
Average daily transactions through ATM and debit cards which increased by 9.7% and the increasing percentage of credit cards transactions by 8%, it is shown that public behavior in digital transactions has shown some positive transformations. Bank Indonesia recognizes these concerns and continues to accommodate the innovations in digital banking services while also ensuring that the security and comfort in conducting such transactions are protected by updated regulations.
Sally Hutapea, Head of Payment System Regulation Division, Bank Indonesia