banking service usage in indonesia

STUDY ABOUT BANKING INDUSTRY IN INDONESIABY DI-MARKETING (www.di-onlinesurvey.com)

Apr, 2017

2

SURVEY DESIGN

This survey was conducted to study banking service usage in Indonesia

Methodology: Online survey

Fieldwork time: 5 days (27/03/2017 – 31/03/2017)

Sample size: N = 660

Geography: Nationwide

3

RESPONDENTS SELECTION

Respondents of this survey had to be qualified below criteria

Age : Above 18

Gender : Male and Female

Usage : Use at least 1 banking service

4

KEY FINDINGS

1) Awareness and Usage• Bank Central Asia, Bank Rakyat Indonesia, Bank Negara Indonesia and Mandiri are top 4

well-known banks in Indonesia• ATMs and TVC are the main resources to gain brand awareness • Bank Central Asia, Bank Rakyat Indonesia, Bank Negara Indonesia, Mandiri are together

covering 91% banking industry in Indonesia• ATM and transfer money are top 2 services which are used the most

2) Actual Satisfaction• Overall, Indonesian care the density of bank branch and ATMs• 89% satisfied with their current banks• Bank Central Asia gains the highest satisfaction and loyalty

3) Usage Behavior3.1) Internet Banking

• Internet banking penetration is 34%• 48% using Internet banking for online shopping

3.2) Credit card• Credit card penetration is 16%• Customer will prefer choose credit card has many interest-free days• Online and cash substitutional are top 2 purposes for using credit card

5

KEY FINDINGS VIETNAM INDONESIA

Most well-known banks Vietcombank Bank Central Asia

Market leaders • Vietcombank (21%)

• Argibank (15%)

• Vietinbank (13%)

• Bank Central Asia (35%)

• Bank Rakyat Indonesia (25%)

• Bank Negara Indonesia (18%)

Key brand awareness channels

• ATMs (79%)

• Payment counter (60%)

• ATMs (67%)

• TVC (63%)

Top brand choice criteria

• The density of ATMs (53%)

• Trusted banks (48%)

• The density of ATMs (48%)

• Trusted banks (45%)

Internet banking penetration

39% 34%

Credit card penetration 30% 16%

VIETNAM AND INDONESIA BANKING SERVICE

6

N = 660

DEMOGRAPHIC INFORMATION

GenderAge

OccupationLiving Place

18-25

26-30

Over 30

54%

28%

18%

Male

Female

52%

48%

Others

Medan

Yogyakarta

Surabaya

Bandung

Bodetabek

Jakarta

28%

6%

9%

11%

13%

15%

18%

Other

Job seeker/Retired

Engineer/Doctor/Teacher

Factory Worker

University student

Housewife

Self-employed

Officer

2%

4%

6%

8%

16%

17%

19%

29%

7

1) Awareness and Usage

2) Actual Satisfaction

3) Usage Behaviors

3.1) Internet Banking

3.2) Credit Card

CONTENT

8

BANK CENTRAL ASIA, BANK RAKYAT INDONESIA, BANK NEGARA INDONESIA AND MANDIRI ARE TOP 4 WELL-KNOWN BANKS IN INDONESIA

Which bank below are you aware of?(Comparison by Age Group)

N = 660 N = 357 N = 186 N = 117

Others

Commonwealth Bank

HSBC

OCBC NISP

Citibank

Panin Bank

Permata Bank

CIMB Niaga

Danamon

Mandiri

Bank Negara Indonesia

Bank Rakyat Indonesia

Bank Central Asia

0% 50% 100%

3%

20%

35%

35%

43%

44%

49%

52%

60%

70%

79%

85%

86%

Total

0% 50% 100%

3%

13%

22%

25%

35%

32%

41%

42%

51%

64%

82%

87%

85%

18-25

0% 50% 100%

2%

25%

44%

43%

48%

55%

58%

60%

69%

76%

73%

80%

86%

26-30

0% 50% 100%

5%

35%

57%

54%

60%

61%

60%

70%

74%

80%

83%

89%

86%

Over 30

9

ATMS AND TVC ARE THE MAIN RESOURCES TO GAIN BRAND AWARENESS

How do you know those banks? (Comparison by Age Group)

0% 50% 100%

1%

12%

21%

26%

24%

36%

31%

56%

65%

67%

18-25

0% 50% 100%

0%

17%

32%

30%

34%

43%

46%

48%

59%

67%

26-30

0% 50% 100%

1%

25%

37%

33%

40%

43%

56%

55%

65%

64%

Over 30

N = 660 N = 357 N = 186 N = 117

Others

Sales staff call and introduce the brand

Facebook ads

See the brand at payment counter

News paper/magazine ads

Online ads (website, forum,..) excluding facebook

Out door ads

Friends/relatives introduce the bank to me

TV commercials

See the brand at ATM on street

0% 50% 100%

0%

16%

27%

28%

30%

39%

39%

54%

63%

67%

Total

10

BANK CENTRAL ASIA, BANK RAKYAT INDONESIA, BANK NEGARA INDONESIA, MANDIRI ARE TOGETHER COVERING 91% BANKING INDUSTRY IN INDONESIA

Which bank below are you using its services the most?(Comparison by Age Group)

Others

Mandiri


Bank Central Asia


0% 50%

9%

13%

18%

25%

35%

Total

0% 50%

10%

10%

24%

20%

35%

18-25

0% 50%

6%

15%

12%

30%

38%

26-30

0% 50%

12%

19%

7%

34%

28%

Over 30

N = 660 N = 357 N = 186 N = 117

The elder group chose Bank Central Asia and Mandiri while younger group prefer Bank Negara Indonesia

11

BANK CENTRAL ASIA, BANK RAKYAT INDONESIA, BANK NEGARA INDONESIA, MANDIRI ARE BIG 4 BANKS IN INDONESIA

Which bank below are you aware of?

Which bank below are you using its services the most?

Bank C

entra

l Asia

Bank R

akya

t Indo

nesia

Bank N

egara

Indo

nesia

Mandir

i

Danam

on

CIMB N

iaga

Permata

Ban

k

Panin

Bank

Citiban

k

OCBC NIS

PHSBC

Common

wealth

Ban

k

Others

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 86% 85%

79%

70%

60%

52%49%

44% 43%

35% 35%

20%

3%

25%

35%

18%13%

2% 3%1% 2%

Awareness

Usage

N = 660

12

ATM AND TRANSFER MONEY ARE TOP 2 SERVICES WHICH ARE USED THE MOST

Which services are you using at that bank?(Comparison by Age Group)

Others

Unsecured loans

Secured loans

Installment

Credit card (Visa, Master,..)

Short term saving

SMS banking

Long term saving

Internet banking

Transfer money (domestic and international)

ATM

0% 50% 100%

0%

7%

11%

12%

16%

19%

31%

32%

34%

67%

81%

Total

0% 20% 40% 60% 80% 100%

0%

5%

6%

8%

15%

13%

26%

34%

28%

66%

79%

18-25

0% 20% 40% 60% 80% 100%

0%

7%

15%

16%

17%

23%

44%

23%

41%

70%

81%

26-30

0% 20% 40% 60% 80% 100%

0%

15%

21%

21%

18%

33%

28%

38%

39%

63%

85%

Over 30

N = 660 N = 357 N = 186 N = 117

13

A HALF OF CUSTOMER USE ATM SERVICE THE MOST FREQUENT, FOLLOWING BY TRANSFER MONEY (21%)

Unsecured loans

Installment

Secured loans

Credit card (Visa, Master,..)

Long term saving

Short term saving

SMS banking

Internet banking

Transfer money (domestic and international)

ATM

0% 50% 100%

1%

1%

1%

2%

2%

2%

5%

14%

21%

50%

Total

0% 50% 100%

2%

1%

1%

3%

3%

2%

3%

10%

22%

53%

18-25

0% 50% 100%

0%

1%

1%

1%

1%

3%

9%

17%

20%

48%

26-30

0% 50% 100%

1%

3%

2%

0%

2%

3%

3%

21%

21%

44%

Over 30

Which banking service do you use the most frequent?(Comparison by Age Group)

N = 660 N = 357 N = 186 N = 117

14



3) Usage Behaviors


3.2) Credit Card

CONTENT

15

OVERALL, INDONESIAN CARE THE DENSITY OF BANK BRANCH AND ATMS

Why do you choose to use the service of that bank?

Others

High saving interest

International bank

discount campaigns

Low loaning interest

Have many promotion

Low service charge (annual fee, membership fee,..)

Salary payment through that bank

Friends/relative recommend the bank to me

Good customers' information security system

Simple procedure

Good customer service

Free charge when withdraw money from ATM

Good service quality

Bank have many branches

Trusted bank

Bank have a nation wide ATM network

0% 50% 100%

1%

7%

9%

9%

11%

13%

16%

19%

20%

21%

22%

22%

31%

35%

38%

45%

48%

Total

N = 660

16

BANK RAKYAT INDONESIA/ BANK CENTRAL ASIA = THE DENSITY OF ATMS + BANK REPUTATION


Others


International bank

discount campaigns


Have many promotion





Simple procedure





Trusted bank


0% 50% 100%

1%

7%

9%

9%

11%

13%

16%

19%

20%

21%

22%

22%

31%

35%

38%

45%

48%

Total

0% 50% 100%

0%

7%

7%

8%

14%

12%

19%

13%

27%

19%

25%

20%

25%

30%

46%

46%

52%


0% 50% 100%

0%

10%

15%

14%

13%

18%

15%

26%

22%

23%

22%

25%

31%

38%

36%

46%

49%

Bank Central Asia

N = 660 N = 228 N = 168

17

BANK NEGARA INDONESIA (BNI)/ MANDIRI = THE DENSITY OF ATMS + BANK REPUTATION

Others


International bank

discount campaigns


Have many promotion





Simple procedure





Trusted bank


0% 50% 100%

1%

7%

9%

9%

11%

13%

16%

19%

20%

21%

22%

22%

31%

35%

38%

45%

48%

Total

0% 50% 100%

0%

2%

3%

1%

7%

7%

7%

15%

11%

15%

15%

22%

40%

41%

36%

50%

51%

Bank Negara In-donesia

0% 50% 100%

2%

5%

8%

7%

9%

7%

14%

24%

15%

30%

17%

26%

31%

38%

37%

42%

49%

Mandiri


N = 660 N = 117 N = 86

Customers of BNI care about cash withdrawal fee while customers of Mandiri concern about privacy

18

89% SATISFIED WITH THEIR CURRENT BANK

How do you feel about your current bank?

Total Bank Negara Indonesia

Bank Central Asia

Mandiri Bank Rakyat Indonesia

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.0106060606060606 0.00595238095238095 0.0087719298245614

10%4%

10% 8%12%

51%

32%

48%58%

63%

38%

63%

41%34%

24%

1%

Very satisfied

Satisfied

Neutral

Dissatisfied

Very dissatisfied

WeightedAverageScore

4.304.25 4.56 4.26 4.10

N = 660 N = 117 N = 168 N = 86 N = 228

* 5 = Very satisfied; 4 = Satisfied; 3 = Neutral; 2 = Dissatisfied; 1 = Very dissatisfied

19

BANK RAKYAT INDONESIA SHOULD FREE/REDUCE SERVICE FEES WHILEBANK CENTRAL ASIA SHOULD REDUCE SERVICE FEES + MORE PROMOTIONS

What things that bank should improve to make you feel more satisfied?

0% 50% 100%

5%

0%

16%

19%

25%

31%

25%

34%

29%

36%

43%

32%

46%

42%

Bank Rakyat In-donesia

0% 50% 100%

7%

0%

15%

17%

23%

21%

32%

29%

24%

41%

43%

35%

36%

32%

Bank Central Asia

N = 660 N = 228 N = 168

Nothing

Others

Improving in staff's attitude

Support utilites payment

Simplify loaning procudure

Lower loaning interest

Higher saving interest

Improving in customers' information security system

Have more branches

Have more promotion/discount campaigns

Reduce service charge (annual fee, membership fee,..)

Expand ATM network


ATM aways available

0% 50% 100%

5%

0%

15%

16%

21%

24%

25%

29%

30%

33%

35%

39%

41%

42%

Total

20

BANK NEGARA INDONESIA/ MANDIRI SHOULD MAINTAIN ATMS + EXPAND ATM NETWORK

Nothing

Others

Improving in staff's attitude

Support utilites payment

Simplify loaning procudure

Lower loaning interest

Higher saving interest

Improving in customers' information security system

Have more branches

Have more promotion/discount campaigns

Reduce service charge (annual fee, membership fee,..)

Expand ATM network

Free charge when withdraw money from ATM2

ATM aways available

0% 50% 100%

5%

0%

15%

16%

21%

24%

25%

29%

30%

33%

35%

39%

41%

42%

Total

0% 50% 100%

9%

0%

6%

9%

8%

16%

15%

17%

39%

17%

19%

54%

46%

50%


0% 50% 100%

2%

0%

16%

15%

20%

23%

24%

24%

26%

35%

30%

44%

37%

45%

Mandiri

What things that bank should improve to make you feel more satisfied?

N = 660 N = 117 N = 86

21

75% WILL RECOMMEND THEIR CURRENT BANK TO OTHERS

Will you recommend your current bank to others?


Total Bank Central Asia


Mandiri Bank Rakyat Indonesia

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.00909090909090909 0.008547008547008552% 1% 1% 2% 2%

23%20% 15%

27% 28%

32%

23%36%

34%37%

43%

57%47%

37%32%

Will recommend def-initely

Will recommend

Either recommend or not

Will not recommend

Will not recommend definitely

N = 660 N = 117N = 168 N = 86 N = 228

4.274.14 4.35 4.06 3.99

• 5 = Will recommend definitely; 4 = Will recommend; 3 = Either recommend or not; 2 = Will not recommend; 1 = Will not recommend definitely

Bank Central Asia owns the highest top box of recommendation (57%)

22

60% ARE LOYAL WITH THEIR CURRENT BANK

What is your usage intention toward service of that bank in future ?


Total Bank Central Asia



Mandiri0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11% 12% 9% 8%

20%

28% 21%

12%

37%

31%

37%

30%62%

34%

35%

23%

36%

17% 21%14%

1% 1%

This is the only bank that I use

I will prioritize to use that bank

I will continute use that bank but will try other banks in future

I will use that brand in parallel with other banks

I will switch to other banks

N = 660 N = 117N = 168 N = 86N = 228

3.853.72 3.89 3.67 3.43

* 5 = This is the only bank that I use; 4 = I will prioritize to use that bank; 3 = I will continue use that bank but will try other banks in future; 2 = I will use that brand in parallel with other banks; 1 = I will switch to other banks

Bank Central Asia owns the highest top box of loyalty ratio (36%)

23



3) Usage Behaviors


3.2) Credit Card

CONTENT

24

48% USING INTERNET BANKING FOR ONLINE SHOPPING

If you’re using internet banking service, what activity do you use the most?(Comparison by Age Group)

Total 18-25 26-30 Over 300%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2% 3% 3%

20% 16% 16%29%

30%

24%29%

42%

48%57%

52%

29%Shopping online

Transfer money

Account balance check

Utility payment

N = 92* N = 31N = 37 N = 24**

* Users who chose “Internet banking” at Q:” Which services are you using at that bank?”** Small sample size

25

27% DON’T USE INTERNET BANKING BECAUSE THEY DON’T TRUST IN BANK SECURITY SYSTEM

0% 50%

1%

21%

27%

30%

26%

23%

31%

18-25

0% 50%

0%

17%

16%

17%

25%

26%

21%

26-30

0% 50%

1%

20%

11%

22%

24%

32%

26%

Over 30

If you don’t use internet banking service, what are reasons? (Comparison by Age Group)

N = 568* N = 320 N = 155 N = 93

* Users who do not chose “Internet banking” at Q:” Which services are you using at that bank?”

Other

High service charge

I don’t have internet

I'm not aware of that service

Complex register procedure

I don't see any need in using

Don't trust information security system

0% 50%

1%

20%

21%

25%

25%

25%

27%

Total

26



3) Usage Behaviors


3.2) Credit Card

CONTENT

27

Total 18-25 26-30 Over 300%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11% 10% 10%15%

43%36%

48%

56%

46%54%

42%

29%

Yes

No, I don't need to use credit card right now

No, I already have credit card

ELDER GROUP OWN CREDIT CARD MORE THAN YOUNGER GROUP

Do you want to have a credit card?(Comparison by Age Group)

N = 660 N = 186N = 357 N = 117

28

65% WANT TO OWN A CREDIT CARD WHICH HAS MANY INTEREST-FREE DAYS

If you chose “Yes”, what are criterias for choosing a bank to open credit card?(Comparison by Age Group)

Others

High credit level

International bank

Accepted for payment internationally

Bank have nationwide branches

Various payment methods

Good information security system

Simple register procedure

Have many promotion/discoun program

Low annual fee

Trusted bank

Longer interest free period

0% 50% 100%

0%

21%

25%

28%

35%

39%

41%

41%

42%

58%

63%

65%

Total

0% 50% 100%

0%

17%

22%

23%

28%

32%

35%

34%

34%

59%

67%

68%

18-25

0% 50% 100%

0%

25%

30%

29%

46%

47%

49%

53%

56%

56%

57%

61%

26-30

0% 50% 100%

3%

32%

26%

50%

47%

59%

53%

53%

56%

56%

53%

62%

Over 30

N = 306* N = 193 N = 79 N = 34

* Users who chose “Yes” at Q:”Do you want to have a credit card?”

29

ELDER GROUP LIKE CREDIT CARD OF BANK CENTRAL ASIA MORE THAN YOUNGER GROUP

Total 18-25 26-30 Over 300%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8% 8% 8% 6%

4% 3% 5% 6%

14% 12%18%

15%

23%23%

25%

15%

25%34%

9%

12%

26%19%

35%

47%

Bank Central Asia

Bank Negara In-donesia

Bank Rakyat In-donesia

Mandiri

CIMB Niaga

Others

What bank do you prefer to register for credit card?(Comparison by Age Group)

N = 306* N = 79N = 193 N = 34


30

ONLINE AND CASH SUBSTITUTIONAL ARE TOP 2 PURPOSES FOR USING CREDIT CARD

Others

Use when go eating out

Offline Shopping

International payment

Use when run out of money

Use when don't have cash

Online shopping

0% 50% 100%

0%

17%

18%

24%

43%

59%

61%

Total

0% 50% 100%

1%

15%

12%

22%

38%

61%

66%

18-25

0% 50% 100%

0%

22%

29%

27%

48%

49%

57%

26-30

0% 50% 100%

0%

24%

24%

26%

56%

71%

41%

Over 30

What are purposes for using credit card?(Comparison by Age Group)

N = 306* N = 193 N = 79 N = 34


31

42% AFRAID THEY CAN NOT CONTROL THEIR BUYING BEHAVIOR

Others

Short interest free period

I'm not aware of that service

Don't trust information security system

Limit in payment method

Complex register procedure

Can't prove my income

High annual fee

I don't have demand

High interest

Can't not control spending

0% 50% 100%

1%

4%

6%

8%

15%

16%

19%

27%

36%

36%

42%

Total

0% 50% 100%

0%

6%

6%

9%

14%

16%

17%

24%

35%

32%

43%

18-25

0% 50% 100%

0%

2%

4%

6%

17%

18%

27%

25%

34%

36%

44%

26-30

0% 50% 100%

3%

2%

8%

12%

14%

12%

14%

34%

40%

45%

35%

Over 30

If you chose “No”, what are the reasons for don’t want to use credit card?(Comparison by Age Group)

N = 283* N = 129 N = 89 N = 65

* Users who chose “No, I no need to use credit card right now” at Q:”Do you want to have a credit card?”

32

FEEL FREE TO DROP US ANY QUESTION

• Japan & Taiwano Address: 3 Chome-2-6 Kasumigaseki, Chiyoda, Tokyo 100-0013, Japano Contact person: Mr. Hideyuki Kato (CEO)o Email: [email protected] o Contact number: +81 3-5532-3200

• Vietnam o Address: 9-15, Vincom center, 45A Ly Tu Trong, Ben Nghe ward, District 1, Ho Chi Minh City, Vietnamo Contact person: Mr. Ho Hai Dang (Country Manager)o Email: [email protected] Contact number: +84 902-73-9944

• Thailand o Address: 246 Time Square Bld., 10th Fl., Room 10/04, Sukhumvit 12-14 Rd. Klongtoey,

Bangkok 10110, Thailando Contact person: Ms. Sariya Achawananthakul (Marketing & Operation Manager)o Email: [email protected] Contact number: +66 876 724 832

mailto:[email protected]

33

• Indonesia

o Address: Jalan Prof Dr Satrio Kav 18, 45th floor AXA Tower, Jakarta 12940, Indonesiao Contact person: Mr. Hendry Pratama (Country Manager)o Email: [email protected] Contact number: +65 822 1345 2555 | +62 21 3005 3541

• Indiao Address: 10 Anson Road, #14-06, International Plaza, Singapore 079903o Contact person: Mr. Sujit Kunte (Regional representative)o Email: [email protected] Contact number: +65 9127 7654

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