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Jenius’ ingenuity: From pension bank to Indonesia’s leading digital bank
Launched in 2016, Jenius is the digital banking arm of Bank BTPN. The bank was initially established as a pension fund bank that also branched out to the small business lending segment as well as sharia banking.
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Launched in 2016, Jenius is the digital banking arm of Bank BTPN. The bank was initially established as a pension fund bank that also branched out into the small business lending segment as well as into sharia banking. (JP/Muthi Kautsar)
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nternet-only bank Jenius, owned by publicly listed bank BTPN, has become the leader in the market, with 3.18 million users as of the first quarter of this year. While being an early adopter has given the company a leg up, retaining its position as a top player will be challenging as digital banking evolves in Indonesia.
Launched in 2016, Jenius is the digital banking arm of Bank BTPN. The bank was initially established as a pension fund bank that also branched out to the small business lending segment as well as sharia banking, among other services.
Center of Economics and Law Studies (CELIOS) director Bhima Yudhistira said BTPN was “brave” to invest in digitalization despite having pensioners as its client base, but he added that, at the time of Jenius’ launch, millennials and Gen-Zers were ready to adopt digital banking.
“There is some advantage in being [an early] adopter. They have acquired the biggest market share, and they have time to test their market,” he told The Jakarta Post on Friday. “Also, they now know how to anticipate digital security issues.”
Bhima also said that Jenius began operating at a time when fund transfers between different banks were costly, and the bank gained many clients with its free transfer offer.
Meanwhile, BTPN digital banking business product head Waasi B. Sumintardja said the conception of Jenius began in late 2014, as the company foresaw the rise of digital services for the next five years, including an increasing use of mobile banking.
According to the Financial Services Authority (OJK), it was not until 2016 that most banks in Indonesia had mobile banking services. OJK data show that the user base of e-banking services (SMS banking, mobile banking and internet banking) grew to 50.4 million people in 2016 from only 13.4 million in 2012.
