Singapore bank OCBC is proposing to set up a digital bank in Indonesia. The bank’s CEO Samuel Tsien said this is an effort provide banking services for the mobile-savvy customers in Indonesia. The digital bank will not be a standalone unit. Another Singapore bank, United Overseas Bank, had announced a digital bank for 5 markets in Asean – Singapore, Indonesia, Malaysia, Thailand and Vietnam. It aims to have 3 to 5 million customers in the next 5 years with this digital bank, which will be operated at a steady-state cost-to-income ratio of 35%. The bank said it would use a unique data-centric business model, that taps the entire customer life cycle comprehensively. DBS Bank has already launched Digibank India, India’s first mobile-only bank that is driven by technology from biometrics identification to artificial intelligence. The bank has since acquired more than two million customers in India.
