Almost a year after their rebranding, Bank of PT Jago Tbk (ARTO) officially introduces its Jago app to the public in Indonesia. The app provides digital financial services that revolve around users’ daily lives (“life-centric”), complemented with seamless integration with various products and services. of players in the ecosystem.
“To offer a collaborative and innovative solution, we work closely with the ecosystem. We hope this app will provide more access to finance to speed up financial inclusion. There are still many segments that we want to reach Indonesia, ”Bank Jago Chairman Kharim Indra Gupta Siregar said during a launch event in Jakarta.
Currently, there are a limited number of features on the app, from transferring money, paying bills to recharging e-wallets. Going forward, the company plans to add more features to appeal to the mid-range, digital savvy – whether corporate or personal.
This will include the bank’s strategic partnership with Indonesian tech giant gojek, which will allow customers to open new bank accounts on the ride-hailing platform’s app. “As for the partnership with gojek, our team is still working on the integration process,” says Siregar.
Try the Jago app
Bank Jago identifies itself as a bank based on wholly digital technology. Siregar also emphasized that the innovation of the platform was developed entirely by an internal team.
DailySocial also got the chance to try out the app’s features.
Our first impression is that the introduction process for creating a new bank account is fast, with an e-KYC process lasting no more than 30 seconds through a video call. We then tried out the Bags feature that allows the client to allocate funds for different purposes. As detailed in the image below, users can personalize their Bags feature by changing its name, color and profile picture.
There are two categories in the Pocket feature: Savings and Expenses. Customers can deposit into their savings bags through many transfer methods from digital banks (brands such as TMRW, Digibank, Jenius), mobile banking (BCA, Mandiri, CIMB, BRI), SMS banking, internet banking (BCA, Mandiri, BNI), CIMB), ATM (BCA, Mandiri, BNI, BRI, Permata, CIMB) and Jago Branch.
However, it is important to note that money in Savings pocket can be transferred to another bank account, helping customers to limit unnecessary spending. For money transfers, customers need to transfer money into their Expenditure Pocket, allowing customers to transact at an interest rate of 0.5%. Meanwhile, putting money in a Savings pocket activates the 3.5% interest rate.
The interesting part is that customers can invite other account holders (“Affiliates”) to collaborate to save money. Customers can allow the other person to view or use the money in that pocket with a daily limit that can be set.
According to Siregar, collaborative personal finance management is still not available in most banks in Indonesia. This feature is based on research conducted by the team. He believes there are still plenty of use cases to be explored in the future.
Considering its relatively new use case and the likelihood of it falling into a term deposit, the feature has to go through a process of risk management. “This is a unique challenge for Bank Jago. But we created a cash flow simulation to allow us to make adjustments in our service, ”explained Siregar.
Meanwhile, according to Bank Jago Digital Bank Director Peter van Nieuwenhuizen, the collaboration feature holds great promise in the Indonesian market, due to the collaborative nature of culture.
“The [features] that we are developing are new models in the banking industry. This is why it will take us a year or two to see how well it works with Bags or how to figure out which works best, ”says van Nieuwenhuizen.
Another interesting feature that Bank Jago introduces is a bill payment feature that allows non-fixed payments such as postpaid mobile phone bills. Through this feature, users can set up automatic payments or be prompted to confirm the amount to be paid.
Reminisce about Bank Jago’s journey
Bank Artos rebranded as Bank Jago in June 2020, as part of transforming its business after a group of investors acquired by Jerry Ng through PT Metamorfosis Ekosistem Indonesia (MEI) and Patrick Waluyo adopts Wealth Track Technology Limited (WTT).
gojek Group through its subsidiary GoPay (PT Dompet Anak Karya Bangsa) also holds 22% of the company’s shares. In March, Singapore-owned investment company Singapore Government Investment Corporation Private Limited (GIC) also secured a stake in Bank Jago.
The bank’s shareholder composition includes PT Metamorfosis Ekosistem Indonesia (29.81%), Wealth Track Technology Limited (11.69%), PT Dompet Karya Anak Bangsa (21.40%), GIC Private Limited (9.12) percent), and the public (27.99 percent).
Previously, senior banker and Bank Jago founder Jerry Ng has stated that collaboration is a key strategy to accelerate the growth of the digital banking business. He gave the example of digital banks in China and South Korea that are focusing on collaboration among players in the ecosystem, enabling growth through more products.
This explains the various longitudinal strategic partnerships that Bank Jago has implemented since 2020. Currently, only gojek is registered as a strategic partner of the company.
“We have to create a unique value proposition. What we have done is combine the two because they both have their own unique character. The banks are no longer the center of the ecosystem, instead, it is now part of the ecosystem. If we can position ourselves correctly, we will be able to play a strategic role. Because transactions are at the heart of what customers are doing, ”Ng said.
Other digital banks in Indonesia
The competition between digital banks in Indonesia is intensifying this year. After launching the app by Bank Neo Commerce and Bank Jago, other banks, have also begun to anticipate the competition by launching a digital bank. We have already recorded a few names on the list such as Bank Digital BCA, SeaBank and KB Bukopin
Bank Agro is applying for a digital banking license to the Financial Services Authority (OJK), after its appointment Kaspar Situmorang as CEO. He was previously Executive Vice President of Digital Center of Excellence, a digital transformation division at BRI.
Last year, Indra Utoyo, Head of Digital, IT and Operations at BRI, said DailySocial that there is a great potential for BRI Agro to be transformed into a digital bank as it launched Pinang digital loan platform (Pinjam Tenang). This platform serves as an early test case for the market.
SeaBank, which has rebranded from its original brand, Bank Kesejahteraan Ekonomi (BKE), is also said to be considering acquiring other banks to strengthen its capital structure, allowing it to secure a banking license. digital goods. SeaBank remains in the BUKU II category in Indonesia with IDR 1.3 trillion ($ 89 million) in capital in September 2020 and IDR 3.6 trillion ($ 246 million) in total assets in December 2020.
Posts Bank Jago officially launches digital finance application, focusing on the center of life written by Corry Anestia in Bahasa Indonesia for DailySocial. English translation and editing by e27.
Posts Gojek’s Jago Bank launches a financial services app that revolves around users’ daily lives appears first on e27.