{"id":1142,"date":"2025-04-21T14:38:47","date_gmt":"2025-04-21T07:38:47","guid":{"rendered":"https:\/\/bbs.binus.ac.id\/bmm\/?p=1142"},"modified":"2025-04-21T14:38:47","modified_gmt":"2025-04-21T07:38:47","slug":"why-young-indonesians-are-and-arent-switching-to-digital-banks","status":"publish","type":"post","link":"https:\/\/bbs.binus.ac.id\/bmm\/2025\/04\/why-young-indonesians-are-and-arent-switching-to-digital-banks\/","title":{"rendered":"Why Young Indonesians Are (and Aren\u2019t) Switching to Digital Banks"},"content":{"rendered":"

By Annetta Gunawan & Agnes Yovita<\/em>\"\"In recent years, digital banking in Indonesia has grown rapidly\u2014especially among Millennials and Gen Z. Thanks to the pandemic pushing everything online, banking has followed suit. Now, opening an account, making transfers, or even closing one can all be done from a smartphone. It seems like the perfect match for today\u2019s tech-savvy generation.<\/span><\/p>\n

But here\u2019s the twist: even though sign-ups for digital banks are rising, most users aren\u2019t keeping much of their money in them. Why?<\/p>\n

That\u2019s the question researchers Annetta Gunawan, Agnes Yovita, and Brian Garda Muchardie set out to answer. Their study, using the Push-Pull-Mooring (PPM)<\/strong> model, dug into the real reasons behind switching\u2014or not switching\u2014to digital banks.<\/p>\n

Push, Pull, and… Mooring?<\/h3>\n

Let\u2019s break this down. The PPM model is often used to explain why people switch from one service to another:<\/p>\n

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    Push factors<\/strong>: What\u2019s pushing users away from conventional banks?<\/p>\n<\/li>\n

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    Pull factors<\/strong>: What\u2019s pulling them toward digital banks?<\/p>\n<\/li>\n

  • \n

    Mooring factors<\/strong>: What personal habits or mindsets are holding them back?<\/p>\n<\/li>\n<\/ul>\n

    Push Isn\u2019t the Problem<\/span><\/h3>\n

    Surprisingly, the study found that push factors weren\u2019t all that influential. Things like high fees or boring promotions from traditional banks weren\u2019t enough to make people pack up and leave. In other words, conventional banks aren\u2019t doing anything bad enough<\/em> to lose young customers.<\/p>\n

    Promos Don\u2019t Work Either?<\/span><\/h3>\n

    Even more unexpected: all those shiny digital bank promotions\u2014like referral codes or cashback deals\u2014aren\u2019t doing much either. While these may get people to download an app or sign up, they\u2019re not creating lasting relationships.<\/p>\n

    So, What Does<\/em> Work?<\/span><\/h3>\n

    Now we\u2019re getting to the good stuff. The research revealed several pull factors<\/strong> that do<\/em> make a difference:<\/p>\n

      \n
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      Low cost<\/strong>: Fee-free transactions and better rates are huge for young, budget-conscious users.<\/p>\n<\/li>\n

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      Lifestyle compatibility<\/strong>: Users are more likely to stick with a bank that fits their digital habits and values.<\/p>\n<\/li>\n

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      Alternative appeal<\/strong>: If a digital bank feels simpler, faster, or cooler than a traditional one, it stands out.<\/p>\n<\/li>\n

    • \n

      Peer influence<\/strong>: This was the biggest game-changer. Friends and family heavily influence someone\u2019s decision to try a digital bank. A recommendation from a trusted source is far more powerful than any ad.<\/p>\n<\/li>\n<\/ul>\n

      What\u2019s Holding Them Back?<\/span><\/h3>\n

      That\u2019s where mooring factors<\/strong> come in. People who aren\u2019t used to trying new things or who rarely switch banks tend to stick with what they know. For these users, loyalty\u2014or maybe just habit\u2014keeps them in the conventional banking world, even if digital banks are more convenient.<\/p>\n

      What Digital Banks Can Learn<\/span><\/h3>\n

      So, what should digital banks take away from all this?<\/p>\n

      First, it\u2019s time to move beyond gimmicks. Instead of chasing sign-ups with flashy deals, focus on building real trust<\/strong>. Encourage happy users to share their experiences online\u2014especially on platforms where Gen Z and Millennials spend their time. A thoughtful referral from a friend is worth more than a thousand banner ads.<\/p>\n

      Second, make digital banking feel<\/em> different in a good way. Offer unique features that actually solve problems\u2014like better interest rates, easier budgeting tools, or ultra-simple app interfaces.<\/p>\n

      The Future of Banking Is Personal<\/span><\/h3>\n

      Young Indonesians aren\u2019t switching banks because they\u2019re fed up. And they\u2019re not staying for the discounts. They\u2019re making decisions based on what feels right for them<\/em>\u2014banks that understand their needs, match their values, and come recommended by people they trust.<\/p>\n

      In the race for the future of banking, going digital isn\u2019t enough. To win over the next generation, banks need to go deeper: they need to go personal.<\/p>\n","protected":false},"excerpt":{"rendered":"

      By Annetta Gunawan & Agnes YovitaIn recent years, digital banking in Indonesia has grown rapidly\u2014especially among Millennials and Gen Z. Thanks to the pandemic pushing everything online, banking has followed suit. Now, opening an account, making transfers, or even closing one can all be done from a smartphone. It seems like the perfect match for […]<\/p>\n","protected":false},"author":54,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-1142","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/posts\/1142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/comments?post=1142"}],"version-history":[{"count":1,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/posts\/1142\/revisions"}],"predecessor-version":[{"id":1144,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/posts\/1142\/revisions\/1144"}],"wp:attachment":[{"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/media?parent=1142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/categories?post=1142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bbs.binus.ac.id\/bmm\/wp-json\/wp\/v2\/tags?post=1142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}