Wealth Management Services in Indonesia: Big opportunities, big challenges | Bahasa
Bank DBS Indonesia is democratising wealth management services through digital revolution and a wide selection of investment instruments
The dialogue series also discussed the fact that Indonesians tend to be conservative with their investments and favor bank deposits as an investment instrument. Investments in the capital market (stocks and bonds) are still limited and not widely understood by the Indonesian public, despite the fact that government bonds offer a yield of more than 7%. This calls for immediate public education by market players about investment products and all industry players should allocate time and funds to increase the number of new customers in the future.
Executive Director, Talent Rotation, Wealth Management, PT Bank DBS Indonesia, Koh Seng Swee, said “Digitising wealth management products and providing robust financial planning is Bank DBS Indonesia's way of democratising wealth management services, and bringing these services to a wider segment of the Indonesian society. This is in line with the direction of the Financial Services Authority (OJK) in Indonesia to accelerate the digitalisation of the financial sector. Besides, for us at Bank DBS Indonesia, internal digitalisation is as important as external digitalisation. Our user experience team plays an important role because they directly influence customer experience. Therefore, when designing the entire process, we also consider processes that make it easy for our Relationship Managers and Investment Consultants, whether in pricing, placing, or finalising transactions.”
In designing digital solutions, Bank DBS Indonesia focuses primarily on relevance to customers, with the delivery and financial analysis that are tailored to suit the wealth segment, from lower wealth to upper-class customers. Customers in the lower wealth category require basic financial education and more basic products while upper class customers need more sophisticated products, a broader international focus, and more input on market trends and prospects.
Expanding digital access is an important initiative, and Bank DBS Indonesia has made progress in this area, with a focus on systems and access that are directly linked to customers as well as their digital platforms to expand product reach and accessibility to bonds, structured products (market-related investments), stocks, and mutual funds/trusts.
Koh Keng Swee also added, "We believe that the wealth management industry in Indonesia is ready to grow bigger. Currently, we have a strong array of local bonds and unit trust. As a complement, we offer a growing selection of foreign investment instruments such as sharia investment in international markets that allows our customers to invest in markets in the US, Hong Kong, and China. In the next several months, we plan to expand to India, and funds that focus on specific themes, such as global disruption funds and companies that meet environmental, social, and governance (Environmental, Social and Governance, ESG) criteria."
In terms of behavior, Indonesian customers are basically the same as customers in other parts of Asia. In other words, they are still very much driven by transactions, trade orientation, and of course yield, as well as, most recently, government bonds that offer high yields. Besides, for Indonesia, which is a predominantly Muslim country, sharia products and solutions, both for investment and insurance, should be sharpened.
By looking more deeply into the composition of the Indonesian market, Koh Keng Swee said that Bank DBS Indonesia is committed to offering comprehensive services, serving various segments that make up the growing population. “We have a term that we use at our bank, namely Wealth Continuum - understanding customers from the high net worth segment to retail customers.”
"In my opinion, the most urgent task right now is financial education. I'm not talking about it just from the perspective of making money, but about connecting it to a higher purpose in life. Therefore, whatever is being designed, be it for pension funds or children's education, Bank DBS Indonesia can help and support customers to achieve it. I believe that financial institutions and banks have an important role to play in initiating and providing direction for future development," Koh Keng Swee concluded.
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About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SG50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
