Massive Digitalisation! OJK Reveals the Fate of Bank Employees<\/p>\n
Jakarta, CNBC Indonesia \u2014 The Indonesian Financial Services Authority\n(OJK) has spoken out about the efficiency trends that are beginning to\nbe seen in the banking industry, including a reduction in workforce at\nseveral major banks in the first quarter of 2026.<\/p>\n
The OJK believes that this move is part of banks\u2019 business strategies\nand is considered reasonable as long as it is done prudently, maintains\ngood governance, manages risk, and does not disrupt service quality for\ncustomers.<\/p>\n
According to the OJK, this efficiency trend is inseparable from the\nmassive adoption of digital technology in the financial sector, which is\nchanging people\u2019s behaviour and needs regarding banking services.<\/p>\n
\u201cThe decrease in workforce is partly influenced by the increasing\ntrend of adopting information technology in the financial sector,\u201d said\nHead of Banking Supervision at the OJK, Dian Ediana Rae, in a written\nresponse, quoted on Sunday (17\/5\/2026).<\/p>\n
The OJK explained that the automation of digital services, both in\nterms of fundraising and lending, is making banks\u2019 business processes\nmore efficient.<\/p>\n
Furthermore, digitalisation is also considered to be enabling banking\nhuman resources to be redirected to jobs with higher added value and\ncomplexity.<\/p>\n
\u201cThis can encourage efficiency in the business processes carried out\nby banks,\u201d wrote the OJK.<\/p>\n
In the midst of pressure on the profitability of the banking\nindustry, efficiency measures are seen as one of the strategies for\nbanks to maintain their competitiveness. Previously, the OJK recorded\nthat the Cost-to-Income Ratio (BOPO) of banks increased to 86.96% in\nMarch 2026 from 85.84% in the same period last year, while the Net\nInterest Margin (NIM) decreased to 4.38% from 4.51%.<\/p>\n
However, the OJK emphasised that efficiency should not be carried out\nby ignoring employment aspects. The regulator said that banks need to\nretrain and reskill employees, including reallocating them to other\nbusiness units.<\/p>\n
In addition, employee reductions must also comply with applicable\nlabour regulations.<\/p>\n
The OJK also encourages banks to continue carrying out digital\ntransformation and strengthening human resource competence so that the\nbanking industry remains resilient in the face of changing financial\nservice landscapes.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/massive-digitalisation-ojk-reveals-the-fate-of-bank-employees-1780680449", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }