Digital Money in Indonesia 2013
Preface
Why this viewport
Indonesia is currently undergoing a transformation in financial services, with the spread of Digital Money aided by the rapid penetration of mobile phones. Along with other countries in the APAC region, it is engaged in creating an enabling environment to promote financial inclusion as well as improve payment systems for broader use.
At ShiftThought we work with organisations around the world to shift the thinking from a focus on Mobile Money to planning for the wider set of initiatives we term as Digital Money. Through this Country Series of viewports we share with you findings from our on-going in-depth analysis of the state of play of Digital Money Initiatives in each country, within the context of the larger region and world-wide trends.
Digital Money services are no longer confined to a single industry, and this breaks down traditional models of competitive analysis. Our approach is designed to helps players to understand the strategies and business models coming from industries other than their own, across a range of products and services and from different parts of the world, to distil best practices for building successful brands that provide innovative access to financial services.
This viewport shares the analytic frameworks we developed to communicate the complexities of the transformation underway in the country, within the broader context of the developments in Digital Money across the world.
Key Questions Addressed
The Digital Money Country Viewport Series provides an understanding of the digitisation of payments globally and for each of the major regions and countries of the world. It provides contextual knowledge relating to markets and initiatives to help regulators, developers and practitioners discover answers to questions such as the following:
1. What are the trends in the use of Digital Money in meeting market needs?
2. How have regulations changed recently and what other changes are likely?
3. How should you prioritise markets for launch?
4. Which are the leading innovations in each market, and what made them successful?
5. Which attempts at Digital Money services failed to take off and why?
6. How do you get consumers to adopt and stick with your new way of transferring money and making payments?
7. How do you make it beyond Year 1, and achieve commercial success?
8. How should you prioritise consumer segments?
9. What channels must you support?
10. Who should you look to partner with in each part of the world, and what if you are competing with them?
11. How do you get cash in and out of your digital wallet, what agent network is best for you?
12. What is the most effective way of managing regulatory compliance?
13. What approach should you take towards branding your services?
14. How should you manage personal data, with a win-win approach?
15. What technologies should you favour?
16. What is the package of services you will need to offer?
What makes this viewport unique
This viewport is based on our in-depth research and analysis of over 1500 different digital money initiatives in over 200 countries and territories. We analyse the strategies of over 4000 players around the world, tracing their reach, ownership and partnering strategies across 32 services in order to determine and assess their current initiatives relating to Digital Money. This aims to provide a clear understanding of all the kinds of services that now compete with or supplement each other, how they apply in differentgeographies based on needs and regulations, and what they could mean to your business. What is at a premium is your time, so this aims to be educative but also to act as a ready reference that helps you harness new opportunities at the intersection of online, offline, mobile, social and local.
The Digital Money Series
This viewport is part of the Digital Money Series that covers innovations in different services involved in digitising money and providing improved financial services around the world.
Audience
This viewport will be particularly useful to providers who are in Indonesia or invest in the country, or operate in countries that have large volumes of related money transfers. It will also be useful to Development agencies, Regulators and Government bodies and Funding organisations around the world. As this viewport covers a historic period in the development of branchless banking, in a country that is one of the pioneers of mobile-based branchless banking, it will be useful to people who are involved in similar projects elsewhere in the world.
As other countries have also adopted similar regulatory models, this viewport is relevant to those interested in other countries engaged in similar market development activity. You will also find this series of viewports useful if you are in Telecoms, Banking, Payments, Technology, Cards, Retail, Money Transfer, Venture Financing – indeed few industries are not actually touched by the revolution we make sense of here.
It will be relevant whether or not you are considering entry into financial services. If you are considering entry it will help you uncover aspects that we hope will contribute to the success of your enterprise. If you are not considering entry it will provide a useful guide for you to anticipate and detect changes that may affect your business. Did the advent of acceptance of cards affect your business? If it did, then get prepared for Digital Money 2.0.
Why this viewport
Indonesia is currently undergoing a transformation in financial services, with the spread of Digital Money aided by the rapid penetration of mobile phones. Along with other countries in the APAC region, it is engaged in creating an enabling environment to promote financial inclusion as well as improve payment systems for broader use.
At ShiftThought we work with organisations around the world to shift the thinking from a focus on Mobile Money to planning for the wider set of initiatives we term as Digital Money. Through this Country Series of viewports we share with you findings from our on-going in-depth analysis of the state of play of Digital Money Initiatives in each country, within the context of the larger region and world-wide trends.
Digital Money services are no longer confined to a single industry, and this breaks down traditional models of competitive analysis. Our approach is designed to helps players to understand the strategies and business models coming from industries other than their own, across a range of products and services and from different parts of the world, to distil best practices for building successful brands that provide innovative access to financial services.
This viewport shares the analytic frameworks we developed to communicate the complexities of the transformation underway in the country, within the broader context of the developments in Digital Money across the world.
Key Questions Addressed
The Digital Money Country Viewport Series provides an understanding of the digitisation of payments globally and for each of the major regions and countries of the world. It provides contextual knowledge relating to markets and initiatives to help regulators, developers and practitioners discover answers to questions such as the following:
1. What are the trends in the use of Digital Money in meeting market needs?
2. How have regulations changed recently and what other changes are likely?
3. How should you prioritise markets for launch?
4. Which are the leading innovations in each market, and what made them successful?
5. Which attempts at Digital Money services failed to take off and why?
6. How do you get consumers to adopt and stick with your new way of transferring money and making payments?
7. How do you make it beyond Year 1, and achieve commercial success?
8. How should you prioritise consumer segments?
9. What channels must you support?
10. Who should you look to partner with in each part of the world, and what if you are competing with them?
11. How do you get cash in and out of your digital wallet, what agent network is best for you?
12. What is the most effective way of managing regulatory compliance?
13. What approach should you take towards branding your services?
14. How should you manage personal data, with a win-win approach?
15. What technologies should you favour?
16. What is the package of services you will need to offer?
What makes this viewport unique
This viewport is based on our in-depth research and analysis of over 1500 different digital money initiatives in over 200 countries and territories. We analyse the strategies of over 4000 players around the world, tracing their reach, ownership and partnering strategies across 32 services in order to determine and assess their current initiatives relating to Digital Money. This aims to provide a clear understanding of all the kinds of services that now compete with or supplement each other, how they apply in differentgeographies based on needs and regulations, and what they could mean to your business. What is at a premium is your time, so this aims to be educative but also to act as a ready reference that helps you harness new opportunities at the intersection of online, offline, mobile, social and local.
The Digital Money Series
This viewport is part of the Digital Money Series that covers innovations in different services involved in digitising money and providing improved financial services around the world.
Audience
This viewport will be particularly useful to providers who are in Indonesia or invest in the country, or operate in countries that have large volumes of related money transfers. It will also be useful to Development agencies, Regulators and Government bodies and Funding organisations around the world. As this viewport covers a historic period in the development of branchless banking, in a country that is one of the pioneers of mobile-based branchless banking, it will be useful to people who are involved in similar projects elsewhere in the world.
As other countries have also adopted similar regulatory models, this viewport is relevant to those interested in other countries engaged in similar market development activity. You will also find this series of viewports useful if you are in Telecoms, Banking, Payments, Technology, Cards, Retail, Money Transfer, Venture Financing – indeed few industries are not actually touched by the revolution we make sense of here.
It will be relevant whether or not you are considering entry into financial services. If you are considering entry it will help you uncover aspects that we hope will contribute to the success of your enterprise. If you are not considering entry it will provide a useful guide for you to anticipate and detect changes that may affect your business. Did the advent of acceptance of cards affect your business? If it did, then get prepared for Digital Money 2.0.
EXECUTIVE SUMMARY
FAST FACTS
1: THE CONTEXT
Digital Money around the world
Digital Money in APAC
2: DIGITAL MONEY IN INDONESIA
The Digital Money Dashboard
Comparative analysis by Purpose
Digital Money Drivers
Timeline of Digital Money
Economic Outlook
Business Models
Digital Money Adoption
3: MARKET SEGMENTS
Key Segment Analysis
Payments Infrastructure and Access
4: THE SERVICES EXPLORED
Where is the money?
5: REGULATORY ENVIRONMENT
Overview of regulations
List of Regulations
Rules
6: ECOSYSTEM ANALYSIS
Evolving models
Players in the Ecosystem
7: DIGITAL MONEY INITIATIVES
Summary of Initiatives
Initiative Profiles
8: PLAYER PROFILES
Summary of Players
Player Profiles
Appendix
What is Digital Money?
Methodology
Glossary
FAST FACTS
1: THE CONTEXT
Digital Money around the world
Digital Money in APAC
2: DIGITAL MONEY IN INDONESIA
The Digital Money Dashboard
Comparative analysis by Purpose
Digital Money Drivers
Timeline of Digital Money
Economic Outlook
Business Models
Digital Money Adoption
3: MARKET SEGMENTS
Key Segment Analysis
Payments Infrastructure and Access
4: THE SERVICES EXPLORED
Where is the money?
5: REGULATORY ENVIRONMENT
Overview of regulations
List of Regulations
Rules
6: ECOSYSTEM ANALYSIS
Evolving models
Players in the Ecosystem
7: DIGITAL MONEY INITIATIVES
Summary of Initiatives
Initiative Profiles
8: PLAYER PROFILES
Summary of Players
Player Profiles
Appendix
What is Digital Money?
Methodology
Glossary
LIST OF FIGURES
Figure 1: Extract from AFI 2012 Progress Report on Maya Declarations
Figure 2: Mobile money deployments by World Bank region, March 2012
Figure 3: The Digital Money Dashboard
Figure 4: Channel Access In the World, Region and Country
Figure 5: Analysis by Main Service
Figure 6: Timeline of Digital Money in Indonesia
Figure 7: Trend in major indicators: GDP, CPI, Partner growth
Figure 8: Business models for Digital Money
Figure 9: Shift Thought Evolutionary Framework for Digital Money
Figure 10: The Indonesian electronic identity card
Figure 11: Penetration levels for outreach
Figure 12: A summary of financial access channels
Figure 13: Steep growth in mobile users in the country
Figure 14: Distribution of Migrant Stock
Figure 15: Top Remittance Corridors
Figure 16: The rise of non-banks in outward remittances from Malaysia
Figure 17: Global and Local Models for Digital Money
Figure 18: Estimated market share for banks in Indonesia
Figure 19: Composition of the financial system in Indonesia
Figure 20: Market shares of mobile operators in Indonesia
Figure 21: Taking the long way around
Figure 22: The Three Waves of Innovation
Figure 23: Extract from AFI 2012 Progress Report on Maya Declarations
Figure 36: The Digital Money Ecosystem
Figure 25: The Digital Money SAGE
LIST OF INITIATIVES
ATM Bersama Remittances and MB
Bank Mandiri 24-Hour Services - Internet and Mobile
...
...
VOX Virtual Online Exchange from mStars
Xl Tunai / Cash XL
LIST OF PLAYERS
Association of Regional Development Banks (Asbanda)
Axiata Group - Global
Badan Regulasi Telekomunikasi Indonesia
...
...
Utiba
Visa
Western Union - Global
Figure 1: Extract from AFI 2012 Progress Report on Maya Declarations
Figure 2: Mobile money deployments by World Bank region, March 2012
Figure 3: The Digital Money Dashboard
Figure 4: Channel Access In the World, Region and Country
Figure 5: Analysis by Main Service
Figure 6: Timeline of Digital Money in Indonesia
Figure 7: Trend in major indicators: GDP, CPI, Partner growth
Figure 8: Business models for Digital Money
Figure 9: Shift Thought Evolutionary Framework for Digital Money
Figure 10: The Indonesian electronic identity card
Figure 11: Penetration levels for outreach
Figure 12: A summary of financial access channels
Figure 13: Steep growth in mobile users in the country
Figure 14: Distribution of Migrant Stock
Figure 15: Top Remittance Corridors
Figure 16: The rise of non-banks in outward remittances from Malaysia
Figure 17: Global and Local Models for Digital Money
Figure 18: Estimated market share for banks in Indonesia
Figure 19: Composition of the financial system in Indonesia
Figure 20: Market shares of mobile operators in Indonesia
Figure 21: Taking the long way around
Figure 22: The Three Waves of Innovation
Figure 23: Extract from AFI 2012 Progress Report on Maya Declarations
Figure 36: The Digital Money Ecosystem
Figure 25: The Digital Money SAGE
LIST OF INITIATIVES
ATM Bersama Remittances and MB
Bank Mandiri 24-Hour Services - Internet and Mobile
...
...
VOX Virtual Online Exchange from mStars
Xl Tunai / Cash XL
LIST OF PLAYERS
Association of Regional Development Banks (Asbanda)
Axiata Group - Global
Badan Regulasi Telekomunikasi Indonesia
...
...
Utiba
Visa
Western Union - Global
