by Karnoto Mohamad
More than 50 million people in Indonesia
A research has revealed that not all of the internet users in this country having bank accounts or insurance policies. Yet, most of them have accounts in social media websites. That kind of situation, adding up with the fact that the people are having great curiosity and consumptive behavior to the digital product, strengthen the necessity for financial services companies to build their brands in the digital world.
The bigger a digital community, the mightier impact of its online activities towards a certain brand—no matter it is a corporate brand or product brand. This condition has been proven by a research done by Infobank Research Beaureu and TwinkleSpin during 2011. The research shows that in the virtual world, financial services companies’ brands can be put at a stake by a soundless discussion in the online media. Chirpings of a digital community may give various significant judgments. They may be neutral, satisfied, or disappointed. They can also be in form of compliments or insults.
The research, entitled ‘Digital Brand of The Year 2011’, is to measure digital perception indexes of some brands of financial services companies, including financial industry, life and general insurance, multifinance, and capital markets. The result portrays that some brands and their products appearing in the virtual world have different tones. They are positive, neutral, and negative.
For banks category, Bank Central Asia (BCA) obtains the highest index (12.879). The bank’s mainstay product Tahapan BCA also gains the top index (3.742) as savings category. Correspondingly, in the virtual world, BCA credit card achieves the highest reputation among other credit cards.
For Housing Loan or Financing (KPR), KPR BTN is still indomitable (1.343). Meanwhile, for islamic banking institution, BNI Syariah earns the highest position (27) among others, though Tabungan Muamalat (57) is the most reputable syariah product.
For life insurance, Asuransi Jiwa Bersama (AJB) Bumiputera 1912 gains the highest digital index (398). Furthermore, for the general insurance, Asuransi Sinarmas earns the best index (1.083).
Adira Finance records as the best digital index (1.934) in the category of multifinance industry, defeating other financings. For securities firms, CIMB Securities Indonesia is the brand gaining the highest index (1.062).
How big the impact of financial services companies’ brand images and their products in the virtual world towards their financial performance? Infobank Research Bureau reveals that companies receiving positive tones in the virtual world earn big-scale business revenues. Yet, such condition may not always reflect the companies’ positions as market leaders.
Tahapan BCA is an example of a product ruling in both the virtual world and market. Tahapan BCA, which has the highest position in digital index, is the leader in bank savings. BCA credit card that earns the best score for digital index has also become the market leader, after surpassing Citibank credit card.
Meanwhile, KPR BTN’s best digital index is also in concord with its position as the leader in KPR business. The position has not been overcome by other banks.
However, the aforementioned pattern does not occur in some financial services companies’ brands. BNI Syariah, which attains the highest digital index among other syariah banks, has smaller asset comparing to its competitors. The bank that is a relatively newcomer also possesses smaller funds than others do.
The similar case occurs at AJB Bumiputera 1912. The brand having the highest digital index for life insurance products only serves in the sixth ranks in term of premium incomes.
Based on Infobank Research Bureau, the high level digital indexes of financial services companies’ brands are influenced by the level of the companies’ digital technology usage and social networks.
Up to now, not all financial service companies have had specific strategy to advertise and promote their brands and products digitally. Besides, ages and characteristics of base customers also influence the perceptions of brands’ digital indexes.
Customers who are above 50 years olds generally are not active internet users. Therefore, they cannot express their opinions, compliments or disappointments about certain products via online media. However, customers under 40 year olds are actively internet users.
Nevertheless, seeing from customers’ purchasing powers, those who are above 40 or 50 years old commonly more settled financially. This condition becomes a factor hindering direct correlation between digital brands and business incomes.
Virtual world will be a strategic place for financial services companies to venture their brands for a long term. This is because the number of internet users will always increase along with the technology development and the country’s demography which are dominated by youth generation.
The citizens’ average age is 28 years old and the majority of internet users are 25 years. This financial service companies should not ignore these data to be used to strengthen their brands and market penetration.
Youth generation in their 20’s will be prominent customers in the next years. People of the generation have been accustomed to chat with their peers using smartphone and to play Angry Bird game in their tablet computers. Considering that fact, the people will consider banks coming to them bringing printed brochures ‘Let’s save our money’ as silly. That kind of approach will not drag their interest, as they will see it as something out of date.
Taking account previous issues, BCA has attempted to penetrate in the virtual world by launching Tahapan Xpresi. The product, launched in October, is targeted to youths, especially internet literate generation. In order to making sure that the goal is achived, the bank employs a non-conventional strategy to advertise the product. BCA has conducted a Digital Campaign in social media. The bank launched www.klikbca.com. By doing this campaign, BCA has come in the digital community.
“The application has to be user friendly and quick in processing. Those are the points,” General Director BCA Jahja Setiaatmadja told Infobank in October.
Customers candidates are indeed able to fill application forms for the product via online, though they still have to come to banks in order to show their identity cards. This is difference from other shopping transactions where people can directly buy products in online shops which have been popping recently, as banking industries put security in the first place. Moreover, in this case, banking industries are dealing with people in the social media; there is no guarantee the people use real identities. Therefore, the banks should be extra cautious.
Amid the surety issue, banking industries have entered digital era. It requires the banks to equip themselves with electronic service channel (electronic channel or e-channel). These days, almost every bank has automatic teller machine (ATM). Apart from the ATMs are the banks’ private properties or from outsourcing, the point is that all the banks’ ATMs are getting inter-connected one to another, operated by switching companies.
ATM is a kind of e-channel. There are other e-channels such as internet banking and mobile banking. These facilities are a form of banks’ attempt to improve their electronic service to their customers.
The problem is that not all banks have had the facilities. Infobank Research Bureau notes that recently only 15 banks have internet banking and 12 banks encompass mobile banking.
Other financial institutions like insurance and multifinance companies should also welcome this electronic era. Financial services companies should be able to offer easier, faster, and safer services in this digital world.
Insurance industries now have been synergized with banking companies which have had electronic transaction infrastructures. This is because insurance companies that still depends on agents to ask for premium payments will be considered of out to date.
Financing companies have also developed online credit simulation. Besides, they build alliance with other institutions in order to give better and faster services. As an example, Adira Finance has enabled its customers to pay installments via ATM and to swipe debit cards at electronic data capture (EDC). The company also provides any cash based-payment points for them who do not have any banks accounts.
Financial institutions should not only develop fast and secure service channels, but also open their eyes to the existence of digital community. Moreover, competitions to increase brands’ images have reached virtual world. In this fast virtual world, customers’ trusts do not only establish from companies’ promotions and brands’ awareness, but mostly also from others people in the social media.
