E-BANKING NOT just SERVICES

Character generation to the next customer that the car, all in an instant, and Internet-mindedness made in the conventional banking transactions through the branch where it met the face of the cashier or teller and customers increasingly abandoned. Not surprisingly, banks were competing to build as automatic teller machines (ATMs), online transaction services, and networks based on other information technology via internet and cell phones.

Micro and Retail Director of PT Bank Mandiri Tbk Budi G Sadikin said, for banks, developing e-banking is not just following the trend of growing customer needs a car, but also pursue other goals that also strategic, such as lowering the cost of funds (cost of funds), improve efficiency, and earn a commission (base fee income). So it was clear that e-banking is not only services, but has become a major strategy to grow the banking and sustainable profit.

E-banking is not just improving customer loyalty, but also can be a factor decoy for new customers, said Budi.

E-banking is essentially a number of channels (channel), ie ATM, short message service (SMS Banking), Internet (internet banking), phone (call center), and string machine in card stores (merchants).

As more modern society, e-banking transactions continued to increase rapidly. This is indicated by the increasing number of payment cards (APMK) which is derived from e-banking transactions.

Based on data from Bank Indonesia, as of October 2009 there were 12 million more credit cards and 43 million plus a debit ATM card. In fact, it is estimated there are approximately 80 million people who do not have a savings account at a bank.

Meanwhile, the transaction value debit ATM card plus the transaction in October 2009 to 73 trillion USD in cash, interbank transactions around 71 trillion, between banks Rp 6 trillion, and spending worth Rp 5 trillion. The figures are almost twice larger than the initial performance of 2006.
In a managed ATM Artajasa, transactions from 2007 to July 2009 rose 100%, from 4.5 million transactions per month to 9 million transactions. In fact, in 2010 predicted to reach 18 million transactions.

The rapid increase in transactions also occur in e-banking channels, such as internet and mobile banking. The impact, if five years ago a comparison of conventional transactions through branches and e-banking transactions are 70 versus 30, the current condition in which turn an e-banking transactions reached 70% of total banking transactions.

One of the very dirasaksn impact of banking is to increase service commission (fee-based income). Revenue was obtained for e-banking transaction fees. Eg phone payment via ATM fees USD 3000 - USD 5000 per transaction. The payment of electricity bills by an average ATM fees USD 2500 per transaction.

If the 2004 commission income contributed only 5% of total banking revenues, at the end of 2009 fee income contribution reaches 10%. Later, this type of nonbunga revenues grow faster than interest income.

In advanced countries, like Japan and Korea, the contribution of commission income could reach 30% -40%. This is clearly very profitable banks, especially in this business has operational risks. Unlike the inherent credit risk of default, in addition to other risks.

For some transactions, client costs will be cheaper too. For example to transfer transactions to other banks through the clearing and settlement immediately (real time gross settlement, or RTGS), the teller transaction costs USD 5,000 for clearing and Rp 25.000 - Rp 35,000 for RTGS.

However, according to Budi Sadikin, if the client transaction through SMS in Bank Mandiri only Rp 2,500 for clearing and Rp 15,000 for RTGS. Transfer to another bank can be more cheaply and quickly by using the ATM facility through ATM cost Rp 5,000 per transaction. Its also online, direct deposit until then also into account the purpose.

When people too much because no longer need to queue at the bank teller. Community productivity increased because the time can be used for other productive activities. National efficiency is created, measured from the efficiency of Bank Indonesia in printing expenses banknotes and coins, said General Manager of Consumer Services Fund and PT BNI Anggoro Eko Cahyo.

E-banking is also a powerful weapon banks to raise funds for savings cheap. Proved at the end of 2009 the portion of savings to the total third party funds reached 31% than the year 2005 that only 24%. To take advantage of e-banking service, customers must have a savings account to save money that will be transacted. Thus, the e-banking interest, the more banks to raise funds cheaply. Saving money is cheaper because the interest is only 2% - 3%. While deposits are expensive funds interest 6% - 8% depending on bank size.

Reduction of cost of money will mean a lot to the banks. With the cost of money is low, banks can win everything. Currently, for example, cost of funds banks an average of 6%. With the cost of funds, the interest rate banks offer loans reach 12%. Try to imagine a bank that has a cost of funds is only 3%. The bank would push interest credit could be up to only 9%. Impact, with these advantages, of course, the relevant bank, the debtor can choose the best debtor, who may have previously partnered with other banks. Banks can automatically push relevant problem loans that do not need to backup the eroded profits.

The increased portion of the savings banks as well as to make regardless of question is always higher inflation in Indonesia. Customer savings are not a problem to accept lower yields on inflation because the savings do not understand where to invest. In contrast to the deposits where the depositor is certain demands on the yield of inflation so that the investment is not shrinking.

The use of e-banking also makes the efficiency of the bank rose sharply because banks no longer need to build the physical network and absorb a lot of labor in large numbers for operations in the branch. According to Budi, the cost to open a branch of approximately USD 700 million, while the cost for a single ATM machines around Rp 80 million.

Director of PT Bank Internasional Indonesia Tbk (BII) Liestyo Stephen said, efficiency occurs because the use of e-banking, real costs transferred to the customer. For mobile banking and internet banking, for example, customers who provide their own means, ie a mobile phone, laptop, phone, electricity.
If the calculated counting, transaction costs in the branch could reach Rp 10,000 per transaction, while e-banking is only around Rp 3,000 per transaction.

E-banking transactions predicted growing rapidly. For one thing, cell phone users continues to grow. Mobile phone users in Indonesia currently has reached 110 million. That's why, in his plan this year, BII will add 300 units of ATMs and ATM rejuvenation 100 units. Advantage ATM BII is able to accept ATM cards from almost all banks are connected to the national ATM networks such as ATM Bersama, Prima and the Alto, as well as international networks such as Visa, Mastercard, and Plus.

To anticipate the growing evolution of e-banking transactions, Stephen has prepared a number of strategies. One of them is the use of a special card attached RFID chip (radio frequency identification) that can be scanned at merchant outlets to transact offline.

In addition, BII will also take advantage of online transactions using a short message with tech support USSD (unstructured supplementary service data). Thus, mobile subscribers later functioned as a wallet of money that can be used for a small nominal transactions.

Stephen said, e-banking is not only useful from the collection of funds, but also can be used to support credit, the main task of the bank. With the development of debtor information system and a single identity number, the filing of the application or mortgage agreement, for example, simply through e-banking.

Although the role of e-banking is becoming more important for banks, however, says Stephen, a physical network, such as branch offices, still can not be abandoned. Society remained basically want to see the physical structure of the partner banks in the vicinity. Physical network can make the customer believe in the bank.

However, the physical network construction project is certainly not a loss of banking, but it could be a new opportunity. In branch offices, for example, banks can focus on activities as a dealer of investment products and bancassurance which still requires face-to-face between the customer and the bank.

The existence of e-banking in turn also creates a challenge that no light for small banks to survive given the e-banking investment is not cheap. However, small banks can actually get around that by using information technology shared by many banks.