Banking - BI reported digital banking transaction of IDR 5,335tn in Jan24

Banking - BI reported digital banking transaction of IDR 5,335tn in Jan24 Bank Indonesia (BI) reported that the performance of digital banking transactions recorded an increase in Jan24, growing by 17.19% yoy with a transaction value reaching IDR 5,335.33 tn. According to Bank Indonesia Governor Perry Warjiyo, detailed that the value of electronic money transactions reached IDR 83.37tn or grew 149.46% yoy. Meanwhile, payment transactions via QRIS recorded growth of 149.46% yoy with a transaction value reaching IDR 31.65tn with 46.37 million users and 30.88 million merchants, most of whom were MSMEs. (Source: Kontan). Comment: We believe digital related banking transaction will continue to increase. Bank under our coverage and others bank especially KBMI3 & KBMI4 will continuously developing apps and various products related to digital banking to increase customer experience. We might witness competition getting stiffer and we think conventional big banks will still become the winner as they do not need any customer acquisition cost. Maintain overweight stance on banking industry.