Allo Bank Addresses Trust Issues in Digital Banking Sector

Building Consumer Confidence Amidst Growth

Allo Bank Indonesia (BBHI) is tackling the challenge of low consumer trust in digital banking, where nearly half of Indonesian consumers (46%) trust digital financial services less than traditional banks. The e-Conomy SEA 2025 report by Google, Temasek, and Bain & Company highlights that despite this trust issue, Indonesia's digital financial services sector is on track to reach US$538 billion in Gross Transaction Value (GTV) by 2025.

Strategic Focus on Micro-SME Financing

The report suggests that digital financial platforms can bridge the current gap by focusing on micro-SME financing through direct financial access for merchants and drivers. This strategy is gaining traction regionally, with new virtual banks in Thailand and Malaysia prioritizing the same segment. However, the success of this strategy hinges on building consumer trust.

Enhancing Security and Transparency

To address this, Allo Bank is implementing several measures to enhance consumer trust. Ganda Raharja Rusli, Director of Risk, Compliance, and Legal at Allo Bank, stated that the bank is conducting extensive data security awareness campaigns and improving cyber security infrastructure. The bank is also leveraging promotional offers through partnered ecosystems to provide benefits to customers and expand its reach.

Importance of Financial and Digital Literacy

M. Rizal Taufikurahman, Head of Macro Economy and Finance Center at Indef, emphasized that financial and digital literacy play a crucial role in increasing public trust in digital financial services. He noted that both are essential for sustainable growth in the sector, as they help consumers understand the risks and benefits associated with digital financial products.

Collaborative Efforts for Sustainable Growth

Rizal suggested that improving financial and digital literacy should be a collective effort involving the government, regulatory authorities, digital banks, and fintech companies. By working together, they can ensure that the adoption of digital financial services is not just a trend but a stable and trusted practice among consumers.