Danamon reports 52 percent rise in foreign currency savings driven by customer transactions

Jakarta - PT Bank Danamon Indonesia Tbk recorded a 52 percent year-on-year increase in foreign currency savings, reaching approximately Rp8.5 trillion to Rp9 trillion, supported by the development of transaction services and a growing number of customers in the emerging affluent and priority segments. Consumer Funding and Wealth Business Head of Bank Danamon, Ivan Jaya, said the growth was underpinned by innovative service features, competitive exchange rate offerings, and rising customer transaction activity. “Our foreign currency savings rose 52 percent year-on-year. The current value is in the range of Rp8.5 trillion to Rp9 trillion,” Ivan said after Danamon’s 70th Anniversary Media Luncheon in Jakarta on Tuesday. According to him, one of the drivers of this growth was the introduction of the Global Currency Card on the Danamon LEBIH PRO product, which allows customers to transact using up to 12 foreign currencies through a single account. Ivan said the feature was developed to meet the needs of customers travelling abroad, pursuing education in other countries, or performing the Hajj and Umrah pilgrimages. In addition to feature development, the company offers competitive exchange rates to encourage transaction activity while boosting foreign currency fund accumulation. “By transacting, funds will be placed. If placed in savings, it will certainly help reduce the cost of funds,” he said. Ivan noted that Danamon’s foreign currency transaction volume also increased by around 25 to 35 percent compared to the previous year. He added that the average foreign currency transaction value for travel needs is in the range of 4,000 to 5,000 US dollars per transaction, still below the 10,000 US dollar threshold that requires supporting documents under Bank Indonesia regulations. The regulation on foreign exchange market transactions is part of BI’s policy to maintain rupiah exchange rate stability and strengthen risk management for foreign currency transactions. The increase in transactions also helped drive fee-based income from the foreign exchange business up by around 35 percent year-on-year. According to Ivan, the foreign exchange business growth trend has been ongoing since 2023, with a compound annual growth rate of around 35 to 40 percent. Besides the foreign exchange business, income from bancassurance products grew by nearly 30 percent year-on-year. Investment products such as mutual funds and bonds also still recorded double-digit growth despite fluctuating financial markets. “We are trying to invite customers to transact with us because by transacting, funds will be placed. If funds are placed in savings, it will certainly help reduce the cost of funds,” Ivan said. Ivan stated that the growth in foreign currency savings was supported by an increase in new customers, particularly in the emerging affluent segment and the priority segment, which has higher international transaction needs. According to him, the company will continue to strengthen foreign currency transaction services through the development of digital features and competitive exchange rate offerings to meet customer needs while increasing fee-based income. The government, together with Bank Indonesia, is also continuing to expand the cross-border transaction ecosystem through the development of cross-border digital payments. The QRIS Cross Border service has been implemented with several partner countries to make it easier for Indonesians to transact when travelling abroad, while also supporting trade and tourism activities. In addition, Bank Indonesia is also continuing to expand cross-border payment cooperation, including with China, as part of efforts to strengthen the connectivity of Indonesia’s payment system with partner countries. This step is expected to further facilitate the transaction needs of Indonesians abroad.