Digital Banks No Longer Need Branch Offices

In line with the growing digital banking trend, the Financial Services Authority (OJK) will issue special regulations regarding digital banks. OJK will include one of these provisions in the OJK regulation bill on Commercial Banks. The draft regulation states that banks can carry out business activities digitally.

"Digitally refers to a bank business model that provides and runs its principal business activities through electronic channels and with a limited [minimum] or no physical office at all," the draft regulation stated. Further provisions stipulate that digital banks must have only one office that will function as the head office. This means that digital banks can operate without a physical branch office.