State-Owned Bank Negara Indonesia Prepares to Launch Branchless Banking Program
Monday, March 16, 2015
State-owned Bank Negara Indonesia (BNI) is preparing to expand its electronic money (e-money) service to increase low-cost funds as well as to offer wider banking access.
Its e-money card, previously called BNI Prepaid, was redeveloped into a new brand and platform called “BNI TapCash” last year to help the lender develop its branchless banking program, a BNI executive said.
“We will start the branchless banking program with our existing e-money product, BNI TapCash. The card can be used for payment and to withdraw money from BNI’s banking agents and ATMs,” Dodit W. Probojakti, general manager of BNI’s product management division in consumer and retail, said Thursday.
Dodit said the branchless banking program was scheduled to be launched along with other banks, the Financial Services Authority (OJK) and Bank Indonesia (BI) in April to help boost the regulators’ nationwide campaign for a cashless society — a condition where people are accustomed to non-cash transactions.
The nationwide branchless banking program, code-named “Laku Pandai”, will be launched soon by the OJK as part of efforts to increase access to financial services nationwide, where only 20 percent of its more than 240 million people have access to banks.
Under the branchless banking regulation, domestic banks participating in the program will partner with local agents to provide basic banking services to customers, especially low-income people in remote areas.
Source: The Jakarta Post (link opens in a new window)