According to reporting from Antara News, Indonesia’s Financial Services Authority (OJK) has asked digital banks to strengthen customer protection to attract consumers and increase their third-party funds (DPK), considering that many of them impose high interest rates.
“The OJK always encourages the implementation of customer protection, which includes transparency, consumer education, supervision, and regulation, as well as data protection,” the chief executive of banking supervision at the OJK, Dian Ediana Rae, said in Jakarta on Friday (15/3/24.)
Rae added, that the OJK is pushing banks to provide complete and clear information, including whether their products are guaranteed by the Indonesia Deposit Insurance Corporation (LPS) or not. According to Rae, financial education is essential so that prospective customers can wisely choose financial products that suit their needs.
“The OJK also continues to tighten regulations and supervision of banks to ensure they comply with security, fairness, and transparency standards in offering digital products and services,” Rae said.
Antara News report that he underscored that the OJK will continue to ensure that the banks implement practices to protect customers’ personal data and financial transactions, in keeping with the applicable standards.
To increase their DPK, digital banks can increase innovation in their products and services, technology, customer experience, operational efficiency, as well as collaborations and partnerships, according to the OJK.
Rae noted that banks can develop products and services that are increasingly innovative to provide ease in doing transactions, personal financial services, and integrated financial solutions, say Antara News, adding that the use of technology, which is becoming increasingly sophisticated, could improve user experience and expand accessibility through mobile applications.
“This can make banking performance efficient, thereby reducing operational costs and transaction costs,” Rae explained.
Source: Antara News
Stock photo by Kevin Ku on Unsplash
