05 March 2018
Ever wanted more convenience with your finances? The ease of carrying less cards and only being a few taps away from completing payments on your smartphone is something that would be crazy to say no to!
With the ease of online banking and Indonesia being a young population with 42.4% aged between 25-54 years we can all agree that it will certainly add convenience for everyone!
The digital technology industry is increasingly becoming more prevalent within the Association of Southeast Asian Nations (ASEAN). According to a McKinsey survey, digital banking has increased 7.2x more from 2011 to 2014 and will only grow more in Indonesia.
Here are a few things to consider when going cashless:
It is definitely a given that transitioning into cashless will provide convenience. Say goodbye to your chunky wallet and hello to your smartphone being the hub for communicating with friends, your photo library and now your platform to virtual banking!
· Reduced Tax Avoidance
In many developing countries, a recurring issue has always been noticeable which is tax avoidance. Bloomberg, an online news company has recorded that only 27 million Indonesian residences are registered as taxpayers in 2016. This significant difference in the population being over 260 million showcases the ability that the cashless economy has towards reducing individuals that choose to unethically avoid tax.
· Savings on cash charges
Due to the popularity of a cashless economy, many individuals will receive convenience in knowing that there is no charge when paying using their smartphone. Contrastingly, many individuals have experienced withdrawal fees when taking out cash in ATM’s.
· Reduction in crime
With the cashless society booming worldwide, crime can significantly reduce due to the elimination of the medium of exchange would interrupt their mundane operations.
· Fraud and privacy issues
Fraud when online banking is quite common as many fraudsters target users that present confidential information. Similarly, many are concerned about the surveillance it has towards the online banking users, as it can be perceived as an easy way to watch over your finances without the user even knowing.
One way to resolve this is to ensure that you are trusting sites that are secure, with a padlock so it is simply something that all users can cautiously act upon and avoid.
· Reliance on technology
For an older demographic in particular, many may struggle to shift to a cashless economy. It makes sense right? If one was raised to understand the importance of relying on the tangibles of cash it would be best to realize that it would be difficult to adjust to the technological realm of a cashless society.
Thankfully, there are platforms that have followed this digital footprint into the cashless realm including Jenius. Its debit cards are used to provide greater convenience when budgeting finances whilst being able to transfer money to friends, family and bills on one simple and efficient app!