Regional Development Banks and Sharia Banks Can Go Mobile, says Indonesia’s Financial Services Authority

Friday, October 24, 2014

As part of efforts to open up greater public access to financial services, the Financial Services Authority (OJK) will regulate the implementation of branchless banking, especially for regional development banks (BPD) and sharia banks, a top official says.

OJK board of commissioners Muliaman D. Hadad said Thursday that a regulation on branchless banking, scheduled to be issued by the end of November, would also address terms for BPDs and sharia banks that are interested in providing the service.

Branchless banking is a distribution channel strategy used for delivering financial services without relying on conventional bank branches, for example, through the use of cell phones.

Muliaman said that some requirements would be imposed on those banks.

Source: Jakarta Post (link opens in a new window)

Islamic finance, mobile finance