Financial Inclusion
In order to achieve an improved quality of life and sustainable development goals, we are responsible for providing access to every person or business, enabling them to leverage financial products or services.
Our Policy and Commitments
We understand that the Indonesian people's knowledge, understanding and access to financial institutions, products and services are still low and uneven. Therefore, UOBI carries out financial literacy activities in line with the Financial Services Authority Regulation Number 76/Pojk.07/2016 concerning increasing financial literacy and inclusion within the financial services sector for consumers and/or public.
To this end, as part of Bank Indonesia's working group (Pokja BI), we are committed to actively engage in implementing Financial Literacy activities for the community through Literacy, Community and Collaboration, which include:
- Literacy
By sharing knowledge about the benefits, risks and responsibilities of banking products and services, financial management and knowledge about banking in general.
- Community
By establishing discussion groups and the sharing of experiences between groups which will build communities of practice, aiming to expedite the knowledge spread.
- Collaboration
By collaborating between UOBI and related parties, it is expected that the financial literacy program can provide benefits to the wider community. The UOBI literacy activities are led by PFS Wealth and Liabilities Product work unit, assisted by business units and supported by all UOBI work functions throughout Indonesia focusing on:
- professionals/employees;
- students/college students;
- community/public; and
- Micro, Small and Medium Enterprises (MSME).
UOBI has a program to introduce financial literacy to high school and college students as well as low-income employees, allowing them to access financial products and enhance their understanding of sound financial management principles. At the same time, we expect to drive up employee and student account openings.
We have a Corporate Employee Program (CEP) that gives businesses access to payroll tools. Most of the workforce in businesses like factories earns a minimum salary, and some are unbanked.
Through this initiative, we give them access to USave and TMRW accounts, offering easy access using UOBI ATM/ Debit cards in ATM bersama and Prima networks, which will enable them to manage their finances more effectively.
We also promote savings products such as TabunganKu and Simpanan Pelajar (Simpel) aimed for students. These products offer affordable initial deposits, and no monthly fees.
Review of Policy and Performance Effectiveness
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Student-held accounts
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2021
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2022
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2023
| Student-held accounts | 2021 | 2022 | 2023 |
| Number of accounts | 1.085 | 901 | 931 |
| Balance (in billion) | 66 | 25 | 35 |
| Student-held accounts |
| Number of accounts |
| Balance (in billion) |
Support for SMEs
SMEs play a vital role
as the backbone of Indonesia's economy. Based on data issued by the Ministry of Finance in March 2021, Indonesia has 64 million SMEs, contributing more than 61 per cent of gross domestic product (GDP) and absorbed 97 per cent of the total labour force.
However, there is still much to be done to help SME growth in Indonesia, as digital transformation still needs to be accelerated further in order for SMEs to scale up successfully.
Our Policy and Commitments
We are cognisant that creating support for SMEs to scale up their operations and pursue growth will entail an end- to-end approach that priorities the incorporation of digital transformation throughout the entire process. SMEs who are able to adapt and embrace digitalisation will be sure to thrive, as more people rely on the digital economy.
UOBI continues to support our SME customers through:
- enhancing our digital banking services for our SME customers in areas of payments, collection and financing facilities;
- host webinars for SME customers in cooperation with our ecosystem partners, in the form of providing views on the economic outlook and market updates;
- reach out to our ecosystem partners such as tech companies, insurance providers, real estate agents, and developers to share knowledge and strategies on various topics including how to manage challenges related to the pandemic and economic uncertainties; and
- respond to the need for a commercial property loan in the local community with campaigns and webinars
Review of Policy and Performance Effectiveness
In fostering financial literacy and inclusion for SME customers, Transaction Banking Experience (TBEX) as a knowledge center continues to provide up-to-date information on business and relevant regulations. This online access provides extensive knowledge on how to grow businesses for the Bank’s SME customers.
To support SMEs in accessing the necessary technology for digital transformation, UOB Indonesia has been collaborating with the Bank’s ecosystem partners to launch several initiatives and programs since 2020. In 2022, the Bank enhanced UOB Bizsmart, an integrated cloud-based business solution. This solution integrates payment solutions with automated point-of-sale reporting automation connected to the customer's UOB Indoenesia bank account, enabling real-time reconciliation and direct deposit. This resulted in a 147.5 per cent year-on-year increase in transaction volume through UOB Bizsmart in 2023.
The Bank’s cash management and trade finance platform, Infinity, supports customers by ensuring that their banking transactions can be remotely and efficiently conducted. This is reflected in good growth of a 23.9 per cent year-on-year increase in number of transactions through Infinity compared to the previous year. There was a 5.7 percent year-on-year increase in the number of SME customers in 2023.
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