THE ERA OF INTELLIGENT BANKING, TRANSFORMING LIVES THROUGH TECHNOLOGY Digital technology has affected almost all aspects of our lives. From communication networks, consumption, employment, and banking services, to buying groceries, almost everything has been digitized. Customers' evolving lifestyle that demands practicality and speed has pushed banks to make immediate digital transformations. In Indonesia, the demand for digital banking services continues to rise along with the number of active internet users in 2020, reaching up to 175.4 million people, which accounts for 64 per cent of the total Indonesian population. Banks are expected to provide faster, more convenient, practical, and accessible financial services at an affordable cost.Customers' Changing Behavior Over half of Indonesian consumers are optimistic about a quick economic rebound, but 60 per cent of consumers have recently experienced a reduction in household income and savings. As a result, consumers are reducing their discretionary spending, and adopting new habits to save money. 9 of 10 Indonesians cite value and convenience as drivers for trying new places to shop. We have seen five fundamental shifts in consumer behaviour, some of which will have a lasting impact, as a result of the pandemic. Shift to value and essentials are decreasing up to 40 per cent in intent to spend on most discretionary categories, Flight to digital and omnichannel increasing up to 60 per cent in intent to spend online even post-COVID-19, Shock to loyalty is increasing, 92 per cent of Indonesian consumers have tried a new shopping behaviour in the past three months. Whilst, for the Homebody economy, 78 per cent of Indonesian consumers are not yet resuming "normal" out-of-home activities. Furthermore, for the New holiday outlook, 87 per cent of households plan to maintain or decrease holiday spending. Based on Kantar's research on COVID-19 impact on Indonesian attitudes and behaviours, their behaviour & attitude also changes due to Covid-19. Some of them which are nearly 80 per cent of Indonesians spending most of their time at home, their online behaviours are rising because they switched to more online shopping and online education, lifestyle choices impacted higher in Big Cities, and financial stress also cuts across cities such as people worrying about their job or reduced spending to save more. Although there is a concern to reduce spending and save more, household savings saw a decline throughout June to September 2020, possibly due to reduced income among people. This has caused a continuous decrease in household savings each week. However, around 50 per cent of respondents have increased spending. Required Digital Technology Customer expectations are rising as the adoption of digital banking increases, as we see, the pandemic has also forced people to adopt digital technology at a faster rate, further increasing the By Kevin Kane, Chief Technology Officer, Amar Bank [IDX: AMAR]Kevin KaneMY OPINIONIN july- Sept 20238
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