Indonesia’s Digital Banks Enter ‘Mature Phase,’ Says Allo Bank CEO

---

JAKARTA, Investortrust.id – Indonesia’s digital banking sector has reached a mature stage, marked by widespread customer adoption and a growing dependence on convenient digital services, according to Indra Utoyo, President Director of PT Allo Bank Indonesia Tbk (BBHI).

Speaking during a podcast hosted by Investortrust as part of the road to Digital Banking Awards 2025, Indra highlighted how digital banks have become indispensable players in the local financial system.

“The development has shown that everyone must transform digitally. For legacy players, it’s about remaining relevant. That’s why many traditional banks are transitioning into digital or hybrid banks,” Indra said on Friday, July 4, at the Investortrust editorial office in Jakarta.

He noted that this shift underscores how digital banking has become the standard rather than a novelty, pushing older banks to digitize operations, including reducing physical presence and realigning with new consumer habits.

‘Digital First’ Model Gains Ground

Indra also emphasized the contrast between legacy institutions undergoing digital transformation and newer entrants, such as Allo Bank, that were designed from the ground up to deliver “digital first” services.

“We entered the market with a digital-first service model, and that will remain central to our growth,” he said.

He credited Indonesia’s vibrant fintech sector for cultivating digital habits among the public—particularly through QRIS-based payments—which laid the foundation for broader digital banking adoption.

“Fintech has taught people to transact digitally. It created a new customer expectation for fast and easy financial services. That has become the new normal,” Indra added.

Focus on Identity and Financial Fundamentals

According to Indra, the next challenge for Indonesia’s digital banks lies in strengthening their business identity and ensuring sound financial management. With digital banking no longer in its infancy, differentiation and operational discipline are crucial for sustainability.

“Digital banks must now manage their balance sheets effectively if they want to grow. That’s the challenge ahead,” he said.