State-owned lender Bank Negara Indonesia (BNI) expects to see its non-interest income increase by around 20 percent this year, mainly supported by a stronger customer base and improved digital banking services.

The publicly listed bank expects that several channels, such as automatic teller machines (ATMs) as well as mobile and internet banking, will be the major contributors to the growth, in addition to trade-finance transactions, BNI senior executive vice president for information and technology (IT) Dadang Setiabudi said.

“Our fee-based income is related to how big our customer base is and how we encourage them to use access provided by BNI,” he said on Monday.

As of December last year, the lender had around 22 million individual deposit accounts and 451,476 corporate deposit accounts.

The bank will develop its electronic channels to enable more customers to carry out their transactions more conveniently, Dadang went on.

The firm’s financial report shows that its electronic banking fee income climbed by 8.2 percent year-on-year (yoy) to Rp 1.2 trillion (US$90.07 million) in 2016.

The numbers of mobile and internet banking users also jumped by 25.8 percent and 47.1 percent to 6.9 million and 1.5 million customers, respectively, during the same period.

In total, BNI reaped Rp 8.58 trillion of non-interest income last year or 23.1 percent higher compared to 2015.

The growth of its non-interest income exceeded that of its net interest income at 17.4 percent.

To support this year’s business, the bank has allocated Rp 1 trillion of capital expenditure (capex) this year, around 40 percent of which will be set aside for its digital banking development.

“We will focus more in digital banking in 2017. We want to ensure our corporate customers can transact using mobile banking,” Dadang said.

BNI is also looking to work on the “Semarang smart city” concept and partner with several financial technology firms.

It has so far cooperated with several e-commerce firms, such as Tokopedia and Bukalapak, to facilitate their customers’ transactions through BNI’s payment channels, including its individual banking agents, Agen46.

The deployment of the agents is part of the government’s program to improve the country’s financial inclusion and literacy. They are equipped with mini electronic data capture (EDC) machines to carry out transactions.

BNI now partners with the Health Care and Social Security Agency (BPJS Kesehatan) as well to strengthen its agency and customer base.

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“Our fee-based income is related to how big our customer base is and how we encourage them to use access provided by BNI,”

The institutions signed a series of agreements and memorandum of understanding (MoU) on Monday.

Under the partnership, BPJS Kesehatan’s agents could become BNI agents and use the bank’s facilities to support their operations, BNI institutions and transactions director Adi Sulistyowati said.

The lender hopes to see the number of its agents increase to 100,000 by the end of this year from around 40,000 currently.

BPJS Kesehatan membership and marketing director Andayani Budi Lestari said a stronger supply chain was essential for the agency to improve its services.

“Seventy-eight percent [of customers] said they were satisfied [with our services] last year. We’re aiming to increase this to 80 percent this year. There are some issues that can be resolved through IT,” she said.

BPJS Kesehatan hopes to increase the number of its members to 200 million this year from 176.2 million as of Monday.

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