Internet banking essential in the future
Internet banking essential in the future
JAKARTA (JP): Although most people are not yet familiar with Internet banking transactions, any delay in providing the service could cause a setback for the future operation of the local banks, says an IT expert.
Elisa Lumbantoruan, the marketing director of PT Compaq Computer Indonesia, said here on Wednesday that the low level of Internet access in the country had become the main reason why many banks were still reluctant to introduce the technology.
But he warned that the use of Internet banking would in the near future become part of people's lifestyle as the technology would not only make bank transactions easier but also more private.
"If the banks implement Internet banking this year, the result will be only felt in the next few years," he acknowledged. "If it is not done now, the banks could lose the momentum," he added.
According to a survey conducted by the Association of Indonesian Internet Service Providers (APJII) in collaboration with the Indonesian Internet Business Community, Indonesia's individual Internet users rose 100 percent to two million people last year.
The number of Internet users is still relatively low compared with the total population. But APJII estimates that the number will grow very quickly in the future.
Compaq and Microsoft have been providing Internet banking software to several banks including Bank Central Asia (BCA) and Bank Internasional Indonesia (BII).
Paul Hardiman, Microsoft Indonesia marketing director said that by implementing Internet banking, banks would not only attract more customers but also reduce their own operating costs.
Internet banking costs about 15 U.S. cents per transaction, as compared with 29 cents via an ATM, 66 cents for phone banking and $1.77 for service at a branch, according to him.
He said that banks must provide reliable technology to ensure the security of their Internet banking services.
"Providing reliable security technology is better than just awaiting the issuance of cyberlaw," he said, acknowledging that many people still feared using Internet banking due to the absence of law that would protect transactions.
Paul said in the past that people were also reluctant to make transactions through ATMs for the same reason. "At present, people are not worried about the law because the system can protect customers," he added.
BCA managing director Aswin Wirjadi said that BCA, which introduced its Internet banking facility late in March, had received a good response from its customers.
He said that its internet banking users had reached 160,000, with about 12,000 transactions to 15,000 transactions per day since it was launched on March 30.
"We monitor our Internet banking use and transactions are growing ... We are optimistic that we will have 600,000 users by the end of this year," he said, adding that half of the two million Internet users in Indonesia were also BCA customers.(05)