State-owned Bank Negara Indonesia (BNI) is planning to launch branchless banking program with the expansion of its e-money service to increase low-cost funds besides offering wider banking access.
Dodit Probojakti, general manager of BNI’s product management division in consumer and retail, 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."
"E-money is a door-opener for new customers who will later become interested in opening bank accounts," Probojakti added.
The move will boost the nationwide branchless banking program, named Laku Pandai, taken up by Financial Services Authority (OJK) as part of efforts to increase access to financial services and promote a cashless society.
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.
BNI with its 1,800 branches across the nation will approach local communities with various groups of people, such as families, entrepreneurs, street vendors and students, in order to advance its branchless banking program.