Indonesia’s digital banking sector is in the midst of extraordinary growth. In May 2024, digital banking transactions reached IDR 5,570.49 trillion, reflecting a 10.82% rise compared to the previous year. Earlier in January 2024, transactions surged 17.19% year-on-year, showing that the sector’s momentum is accelerating at a steady pace.
Between 2018 and 2023, the frequency of digital banking usage jumped by 158%. This rapid increase highlights how digital solutions have become a key part of everyday financial activities across the country. The adoption is not limited to big cities, as mobile-first platforms are bringing access to financial services to wider segments of the population.
Rising User Base and Gen Z’s Role
Indonesia had around 31% of its population using digital banking in 2022. This figure is projected to reach 39%, or about 75 million users, by 2026. A major factor behind this adoption wave is the younger demographic. Gen Z is especially influential, with 57% of users in this group preferring SeaBank. Their preference for seamless mobile onboarding and intuitive design is pushing banks to prioritize innovation.
By 2029, the country is expected to add about 13 million first-time bank account holders. Digital banks will play a critical role in this inclusion, serving younger users and those from underserved areas who are increasingly drawn to mobile-first services.
Revenue Growth and Market Potential
Indonesia Digital Banking Expansion is not only about rising transaction volumes but also strong revenue forecasts. The sector’s revenue is expected to hit USD 8.6 billion by 2029, supported by a projected CAGR of over 13% between 2024 and 2029.
Embedded finance, which includes digital banking, is on a parallel growth path. This segment is forecast to expand to USD 10.54 billion by 2029, recording a CAGR of 32.4%. Similarly, net interest income for digital banks is projected to reach USD 3.63 billion, showcasing the strong earning potential of this sector.
The broader fintech ecosystem is also expanding. Projections suggest financial technology services in Indonesia will grow from USD 20.93 billion in 2025 to USD 32.67 billion by 2030. Digital banking is at the core of this transformation, anchoring the financial industry’s shift toward digital-first models.
Policy Support and Future Outlook
A supportive regulatory environment is adding strength to Indonesia Digital Banking Expansion. The OJK’s digital banking roadmap and Bank Indonesia’s unified QRIS payment system are creating a framework that enhances trust and adoption. These initiatives help build consistency across platforms while supporting innovation.
With digital payments already showing a 149.46% year-on-year increase in January 2024, the outlook is promising. The combination of demographic trends, regulatory support, and mobile-first technology is positioning Indonesia as a leader in digital banking transformation in Southeast Asia.
By 2029, the sector will not only capture higher revenues but also contribute to financial inclusion, economic growth, and a more connected financial ecosystem for millions of Indonesians.
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