TNP2K Facilitates Seminar on Branchless Banking for Financial Inclusion

24 June 2014

Boosting financial services access to the poor not only requires an effective financial services model but also sustained efforts to change the behaviours and habits of the poor themselves, according to Bambang Widianto, Executive Secretary of the National Team for the Acceleration of Poverty Reduction (TNP2K).

Widianto’s comments were made during the "Seminar on Branchless Banking for Financial Inclusion", under the theme of "Understanding the Needs of Financial Services for the Poor: Social and Cultural Factors Related to Inclusive Finance." It was held at the Ballroom of the Intercontinental Mid Plaza, Jakarta on 24 June 2014.

During his opening speech, Widianto expressed his appreciation to the OJK (Financial Services Authority) and hoped for the implementation of branchless banking. "I really appreciate the OJK for their support of branchless banking and that it can boost financial inclusion for the poor. With branchless banking, it is expected that access to financial services will get easier," he said.

Meanwhile, OJK’s Head of Banking Research and Regulation Gandjar Mustika said Indonesia needs to reduce the use of cash for transactions on a national scale. "The use of cash comes at no small cost because printing costs are quite high. In addition, with fewer cash transactions, then we can more easily control transactions to minimise terrorism and money laundering, "he said.

Michael Joyce, Mobile Money Policy Advisor, Cluster 3 at TNP2K, explained five points that prevent the poor from having bank accounts: distance, trust, affordability, cost and complexity.

Additional speakers came from various institutions, including RMIT University, e-Partner, MicroSave and Gajah Mada University.

This seminar aimed to get input on: the financial services model that most fits with the socio-cultural conditions of the poor, to help them escape the cycle of poverty; studies on the successes, constraints and challenges of other countries in implementing financial inclusion; and studies the application of the Family Hope Program (PKH) in changing the habits and culture of Indonesia’s poor.