Factory workers in rural parts of East Java, Indonesia view payroll requirements as the main reason for opening bank accounts, whilst also showing strong familiarity with digital banking and cashless transactions, according to CGS International (CGSI).
Among the 89 respondents surveyed, most said they held bank accounts primarily because their employers required them to receive salaries through banks, rather than personal preference. CGSI noted that this highlights payroll services as a crucial gateway for banks seeking to grow their deposit base.
Digital lenders such as Bank Jago and SeaBank were frequently referenced in interviews, which CGSI attributed to aggressive marketing campaigns, endorsements by key opinion leaders, and their integration with widely used digital ecosystems.
However, CGSI found that awareness does not necessarily translate into regular usage. Many respondents said digital banks currently offer limited differentiation compared with mobile banking apps provided by traditional banks.
The study also found that over one-third of respondents maintained multiple bank accounts, using them to separate savings for different financial goals. CGSI noted this differs from its survey of urban Gen Z users, where holding multiple accounts was less common due to administrative fees.
Cashless payment methods and borrowing products were widely used amongst respondents in tier 2 and tier 3 Indonesian cities included in the survey. Bank transfers, QRIS payments, and cash withdrawals were the most common transactions, with respondents noting that QRIS is now widely accepted, including at small neighbourhood shops.
Around half of respondents reported having loans from financial institutions. CGSI also observed rising adoption of buy-now-pay-later services, driven by increased online shopping and strong promotional incentives, with such trends expanding even in rural communities.
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