indonesia - home · financial inclusion insights by …finclusion.org/uploads/file/reports/2015...

INDONESIAQUICKSIGHTS REPORT

FII TRACKER SURVEYConducted August-November 2015

December 2015

KEY DEFINITIONS

• Access – Access to a bank account or mobile money account means a respondent can use bank/mobile money services either via their own

account or via an account of another person.

• Active account holder – An individual who has a registered DFS account and has used it in the last 90 days.

• Active user – An individual who has used any DFS for any type of transaction in the past 90 days via his/her own account or somebody

else’s account.

• Adults with DFS access – Adults who either own a DFS account or have access to someone else’s account.

• Arisan – Informal rotating credit savings group.

• Below the poverty line – In this particular study, adults living on less than $2.50 per day, as classified by the Grameen PPI.

• Credit-only financial institutions – financial institutions that only offer loan disbursement services to their customers.

• Digital financial services (DFS) – Financial services provided through an electronic platform (mobile phones, electronic cards, the internet,

etc.). For this particular study, digital financial services include bank services and mobile money services.

• Grameen Progress out of Poverty Index (PPI) – A poverty measurement tool from the Grameen Foundation wherein a set of

country-specific questions are used to compute the likelihood that a household is living below the poverty line.

• Financially included – Individuals who have registered for a financial service account with a full-service financial institution.

• Full-service institutions – A financial institution that offers customers at least one of the following services: savings, money transfers,

insurance or investments.

• Mobile money (MM) – A service in which a mobile phone is used to access financial services.

• Mobile-money value-added services –Individually branded service products offered by mobile money providers in addition to or along

with their basic mobile money services.

• Registered active user – A person with a registered DFS account that has used it in the last 90 days.

• Services beyond basic wallet – DFS transactions that go beyond simple deposits, withdrawals or money transfers.

• Urban/rural – Urban and rural persons are defined according to their residence in urban or rural areas as prescribed by the national bureau

of statistics. 2

• Banks and arisans continued to dominate the financial services landscape in 2015.

o Banks remain the most widely used financial service institutions; 27 percent of adults

have used a bank and 22 percent of adults are active users, having used their account

in the past 90 days.

o Among semi-formal and informal financial services, arisans (informal rotating credit

savings groups) are still the most commonly used financial service. Just over one-

quarter of adults use arisans, most of whom do not use bank accounts.

o Combined, nearly half the population use banks and arisans, and those products serve

distinct groups. Most users opt to only use one of the two types of services.

• Mobile money awareness and use are on the rise.

o Awareness of mobile money providers is a first step to building toward usage, and

awareness grew by 2 percent since 2014. Awareness grew the most among urban and

above poverty populations.

o Mobile money use increased from 0.1 percent to 0.4 percent. While still a very small

proportion of the population, this suggests that increased awareness may be starting

to translate to increased use.

o There remains a lack of specific knowledge about how mobile money services work.

Key to converting more awareness into usage will be building knowledge around what

mobile money services exist, and how to open an account.

o Near universal basic literacy and numeracy mean that these are not barriers to mobile

money uptake. In some countries, the population’s reading and numeracy limitations

hinder adoption.

INDONESIA

Notable statistics

24%have

financial

accounts

3% have a

nonbank financial

institution account

23% have a

bank account

0.3% have a

registered mobile

money account

2015: Registered financial services users*(Shown: Percentage of Indonesian adults, N=6,060)

*Overlap representing those who have multiple kinds of financial accounts is not shown.

3Source: InterMedia Indonesia FII Tracker surveys Wave 1 (N=6,000, 15+), August-November 2014; Wave 2 (N=6,060, 15+), August-November 2015.

http://www.finclusion.org




3%

23%

0.3%

24%

4%

20%

0.1%

23%

Nonbank financialinstitution

Bank

Mobile money

Any financial service

2%

22%

0.2%

23%

3%

19%

0.1%

21%


Bank

Mobile money


7%

27%

0.4%

31%

4%

26%

0.1%

28%


Bank

Mobile money


INDONESIA

At-a-glance: Bank accounts continue to be the primary means of financial

access

Financial account access Registered financial service users(Shown: Percentage of Indonesian adults for each year)

Active financial account holders*

Types of account ownership are not mutually exclusive. *A registered account used in the last 90 days.

4

2014 (N=6,000) 2015 (N=6,060)

Source: InterMedia Indonesia FII Tracker surveys Wave 1 (N=6,000, 15+), August-November 2014; Wave 2 (N=6,060, 15+), August-November 2015.





Survey Summary

• Annual, nationally representative survey (N=6,060) of Indonesian adults aged 15+

• Face-to-face interviews lasting, on average, 83 minutes.

• Second survey (wave 2) conducted from 8/2/2015 to 11/15/2015

• Tracks trends and market developments in DFS based on the information gathered in the first survey,

conducted in 2014

Data Collection

• Basic demographics and poverty measurement (Grameen Progress Out of Poverty Index)

• Access/use of mobile devices

• Access/use of mobile money

• Access/use of formal financial services (e.g., bank accounts)

• Access/use of semi-formal and informal financial services (e.g., microfinance institutions, cooperatives, village

savings groups)

• Financial literacy and preparedness

• General financial behaviors

INDONESIA

FII Indonesia Tracker Survey details

5





INDONESIA

% of survey % of survey

Gender Age

Male 49% 15-24 22%

Female 51% 25-34 22%

Geography 35-44 21%

Urban 52% 45-54 16%

Rural 48% 55+ 18%

Income Aptitude

Above the $2.50/day

poverty line40% Basic literacy 95%

Below the $2.50/day

poverty line60% Basic numeracy 98%

Survey demographics

Figures are weighted to reflect national census data demographics.

6Source: InterMedia Indonesia FII Tracker survey Wave 2 (N=6,060, 15+), August-November 2015.





7%

27%

0.4%

31%

4%

26%

0.1%

28%

Nonbank financial institution

Bank

Mobile money


INDONESIA

Access to financial services(Shown: Percentage of Indonesian adults for each year)

More Indonesians are accessing financial services vs. 2014

Types of accounts are not mutually exclusive.

7

2014 (N=6,000) 2015 (N=6,060)






3%

23%

0.3%

24%

4%

20%

0.1%

23%


Bank

Mobile money


INDONESIA

More Indonesians now have registered accounts and most are bank accounts

8


2014 (N=6,000) 2015 (N=6,060)

Registered financial service users(Shown: Percentage of Indonesian adults for each year)






75%

95%

93%

81%

92%

91%


Bank

Mobile money


INDONESIA

Registered account holders are mostly active account users

Active financial account holders(Shown: Percentage of Indonesian adults)

9

Active financial account holders(Shown: Percentage of registered users for each type of account, by year)


2014 20152014 (N=6,000) 2015 (N=6,060)

2%

22%

0.2%

23%

3%

19%

0.1%

21%


Bank

Mobile money



2014 & 2015: Bases (n) too small for further analysis.


Bank

Mobile money






INDONESIA

Bank uses, by type(Shown: Percentage of active bank account holders)

10

Due to the changes in the questionnaire some data points may not be directly comparable across years.

*The number of registered mobile money users is too low to draw conclusions.

Active bank account holders are increasingly using their accounts for

advanced activities

28%

14%

6%

8%

65%

77%

2014 (n=1,100)

2015 (n=1,291)

Basic activities and P2P onlyAt least one advanced activity

(i.e., bill pay, loan activities)

Basic activities only

(CICO and account management)










12%

12%

19%

22%

25%

31%

37%

0.1%

0.0%

0.4%

0.2%

0.1%

0.5%

0.4%

1%

1%

2%

2%

2%

3%

3%

12%

13%

20%

23%

26%

32%

38%

Below poverty line (n=3,598)

Rural (n=2,850)

Females (n=3,708)

Total population (N=6,060)

Males (n=2,352)

Urban (n=3,210)

Above poverty line (n=2,462)

INDONESIA

2015: Active account usage by demographic(Shown: Percentage of each subgroup)

There are pronounced income and geographic disparities for active account

use; lower income, rural users are much less likely to be active account holders

11

Largest gap in

active financial

account

holdings


Active mobile money account holders Active NBFI account holdersActive bank account holders All active financial account

holders

Source: InterMedia Indonesia FII Tracker survey Wave 2 (N=6,060, 15+), August-November 2015.





Indonesians know of at least one point-of-service in their area; very few know

of any mobile money agent locations

INDONESIA

2015: Proximity to points-of-service (POS) for financial institutions(Shown: Percentage of Indonesian adults N=6,060)

68%

51%

0.9%3%

28%32%

9%12%

16%

5%1% 2%

34%32%

22% 21%

12%

4%2% 2%

30%27%

22%20%

4%

40%

8%10%

47% 47%

Any POS* Informal group MM agent Retail store with anMM agent

Bank branch ATM BPR** Cooperative

12

1-5 kms from home More than 5 kms from homeLess than 1 km from home Don’t know

*POS includes post office banks and pawnshop; not shown. **A BPR (Bank Perkreditan Rakyat) is a rural credit bank.






INDONESIA

2015: Key indicators of preparedness for digital financial services (Shown: Percentage of Indonesian adults, N=6,060)

68% 62% 63% 96% 99% 76%

79%

Have access to

a mobile phone

69%

Ever send/receive

text messages

98%

Have basic

numeracy

99%

Have

the

necessary

ID*

62%

Own a

SIM card

62%

Own a

mobile phone

13

Experience with text messaging and basic numeracy are advantageous to

furthering digital financial services use

*Identification documents (ID) necessary for registering a mobile money or a bank account include one of the following: a National ID, passport, voter’s card,

driver’s license, company or government ID, birth certificate or school ID.

;

2014

(N=6,000)






MM OTC use, 0.1%

MM registered

users, 0.3%

INDONESIA

14

Conversion from awareness of mobile money (MM)

providers* to mobile money use(Shown: Percentage of Indonesian adults for each year)

2014 (N=6,000) 2015 (N=6,060)

MM registered

users, 0.1%

0.01

conversion

rate

More Indonesians now know of mobile money vs. 2014, which may be

translating to increased use

6%

aware

*Awareness of at least one mobile money provider.

0.1% use

mobile

money

0.06

conversion

rate

8%

aware

0.4% use

mobile

money






INDONESIA

6% 6% 6%8%

3%

10%

3%

8%9%

8%

13%

3%

14%

4%

Total population Male Female Urban Rural Above poverty line Below poverty line

Demographic trends for mobile money aware(Shown: Percentage of Indonesian adults who fall into each category)

The greatest increases in mobile money awareness are within urban and

above-poverty populations


2014 (N=6,000) 2015 (N=6,060)





11%

12%

26%

28%

37%

39%

45%

51%

Not previously included

10%

29%

Not previously included

New market entrant

24%

37%

38%

Skye

Mo cash

ECash

BBM Money

Rekening Ponsel

Dompetku

T-Cash

XL Tunai

INDONESIA

Nearly all mobile money providers enjoy greater consumer awareness vs.

2014

Mobile money provider awareness by brand(Shown: Percentage of adults aware of at least one mobile money provider, by year)

16

2014 (n=309) 2015 (n=426)










INDONESIA

Consumers still lack substantive knowledge about mobile money, even

though provider awareness has grown

17

Top reasons mobile money aware do not use mobile money (MM)(Shown: Percentage of MM aware that don’t use, by year)

4%

14%

16%

18%

28%

8%

12%

9%

14%

27%

I never have money to make transactionswith the service

I don't need one, I don't make anytransactions

I don't understand the service's use

I don't know how to open one

I don't know what it is

Question allowed for multiple responses.


2014 (n=305) 2015 (n=401)









INDONESIA

20%24%

17%

29%

11%

37%

11%

23% 26%20%

33%

13%

39%

13%

Total Population Male Female Urban Rural Above Poverty Line Below Poverty Line

Demographic trends for registered bank account use (Shown: Percentage of Indonesian adults who fall into each category)

Bank account ownership increased in nearly all demographic groups


2014 (N=6,000) 2015 (N=6,060)





50%

36%

31%

14%

9%

7%

5%

4%

2%

INDONESIA

Insurance activity

Save/set aside money

Bill pay

Receive wages

Loan activity

Make bank2bank transfers

Receive G2P payments

Pay for goods at a store

Pay for large acquisitions

2015: Advanced bank account uses(Shown: Percentage of active bank account holders, n=1,291)

19

Saving or setting aside money, and transfers between bank accounts are

the most common account uses for active bank account holders

77%of active registered

users have used at

least one

advanced function

through their

accounts

(vs. 65% in 2014)

Due to the changes in the questionnaire some data points may not be directly comparable across years.

Question allowed for multiple responses.










INDONESIA

Informal savings groups and banks serve distinct groups; informal savings

groups primarily serve female, rural and poor populations

2015: Demographics of savings groups users, who do not

use banks(Shown: Percentage of savings groups users not using banks, n=1,494)

2015: Demographics of bank users who do not use savings

groups(Shown: Percentage of bank users not using savings groups, n=946)

20

Female

Rural

Below $2.50/day

poverty line

Below $1.25/day

poverty line

Iliterate

5%

14%

70%

61%

60%

1%

3%

36%

24%

42%


Half of all adults use

either a savings

group or a bank, but

just 11% use both.









INDONESIA

Digital stored-value accounts: accounts in which a monetary value is represented in a digital electronic format and can be retrieved/transferred by the account

owner remotely. For this particular study, DSVAs include a bank account or NBFI account with digital access (a card, online access or a mobile phone

application) and a mobile money account.

21

Main FSP Indicator2014 2015

Base Definition% %

Base n Base n

Adults (15+) who have active digital stored-value accounts18% 22%

All adults6,000 6,060

Poor adults (15+) who have active digital stored-value accounts9% 12%

All poor3,761 3,598

Rural women (15+ ) who have active digital stored-value accounts 8% 10%

All rural females1,712 1,716

Adults (15+) who have active digital stored-value accounts and use them to access

other financial services (beyond basic wallet, P2P and bill pay)*

11% 17%All adults

6,000 6,060

Poor adults (15+) who have active digital stored-value accounts and use them to

access other financial services (beyond basic wallet, P2P and bill pay)

5% 8%All poor

3,761 3,598

Rural women (15+) who have active digital stored-value accounts and use them to

access other financial services (beyond basic wallet, P2P and bill pay)

4% 6%All rural females

1,712 1,716

Account ownership is increasing, use of accounts for more advanced

functions also grew between 2014 and 2015

Source: InterMedia Indonesia FII Tracker surveys Wave 1 (N=6,000, 15+) August-November 2014; Wave 3 (N=6,060, 15+), August-November 2015.

For more information, contact:

Nat Kretchun, FII Asia Lead

[email protected]

Caldwell Bishop, Research Manager

[email protected]





mailto:[email protected]

mailto:[email protected]

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