Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Xetra  >  Software AG    SOW   DE0003304002

Real-time Quote. Real-time Tradegate - 05/31 07:33:39 am
34.612 EUR   +0.12%
05/25 SOFTWARE : Banks must seek greater digital engagement, Software AG s..
05/24 SOFTWARE AG : ’s ARIS Community Hits 400,000-Member Milestone
05/24 SOFTWARE AG&RSQ : 5/24/2016
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Software : Banks must seek greater digital engagement, Software AG says

share with twitter share with LinkedIn share with facebook
share via e-mail
05/25/2016 | 09:03pm CEST

German enterprise software company Software AG believes that banks in Indonesia need to take greater risks in developing their digital systems to better accommodate the specific needs of their customers, mainly by harnessing the capabilities of the internet to their fullest potential.

With a third of the population accessing the internet, banks must do more to engage with their customers to identify specific needs so that their banking experience can be improved on a more personal and integrated level.

This is done through the encouragement of financial inclusion.

Software AGs Asia strategic accounts director Jae H. Park said that there was a substantial demand for financial access through digital means in many areas in Indonesia, but banks have yet to take the risk in developing this approach fully as many in regional areas still rely on traditional financial methods.

What the countrys banks need to do to improve is to help deliver better access to credit facilities such as loans, preferably through digital means because of their directness and efficiency.

Merely calling up customers and offering to sign them up for credit cards, he said, would not improve financial inclusion, as it had to be dealt with in a more relatable way.

Park added that a 1 percent increase in financial inclusion in Indonesia would enable the countrys gross domestic product ( GDP ) to grow by 0.3 percent, along with the creation of 1.7 million new jobs if the rate reached 20 percent.

Furthermore, financial inclusion would also help increase credit growth for banks and raise government revenue. Banks can do more to achieve this by integrating their digital services better to directly see customer insights, he said on Tuesday.

Up to 110 million citizens are still categorized as unbanked, meaning that they do not use banking facilities. Specifically, only 1 percent of the Indonesian population use credit cards.

As a software production company, Software AGs bank clients in Indonesia include Bank Mandiri and Bank Danamon, the former of which has been a partner for over five years.

The company said that both their clients had already taken steps to integrate their digital systems in the direction of real time detection of customer requirements.

Additionally, the companys director for global solutions for banking and insurance Filippo de Montis added that the typical bank branch had to be reinvented as a showcase of high-contact customer engagement.

One way banks can do this is to have their systems connect with new data sources such as social media and travel agencies ( for business travel purposes ) to better identify customers financial requirements.

Therein lies the challenge of effectively improving financial inclusion and understanding the customer. Real time capabilities are always interesting, but banks here have yet to fully adopt the risk of doing so, de Montis elaborated in his explanation.

A majority of Indonesian banks, from Software AGs observation, are still hovering around basic digital methods, despite a third of the population already having access to the internet, albeit in larger cities.

De Montis emphasized the need to integrate internal customer data and then expanding the value by adding outside data sources.

(c) 2016 Emirates News Agency (WAM) Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

share with twitter share with LinkedIn share with facebook
share via e-mail
React to this article
Latest news on SOFTWARE AG
05/25 SOFTWARE : Banks must seek greater digital engagement, Software AG says
05/24 SOFTWARE AG : ’s ARIS Community Hits 400,000-Member Milestone
05/23 SOFTWARE AG : Announces New webMethods DevOps Edition for Automating, Accelerati..
05/23 SOFTWARE : Announces New webMethods DevOps Edition for Automating, Accelerating ..
05/17 NEW STRATEGIC PARTNERSHIP : APICS Introduces Enterprise Accessibility To Global ..
05/12 SOFTWARE AG : Named A Leader by Gartner in Magic Quadrant for Enterprise Archite..
05/09 NEW : Display Scores with capella reader 8 for Windows and for Mac
News chart
Full-screen chart
Income Statement Evolution
More Financials