Indonesia, as a nation, has made a commitment to financial inclusion. Currently, over 50% of the population in Indonesia is unbanked. One means to facilitate financial inclusion is the introduction of branchless banking. Branchless banking is a mean of providing financial services that leverages the use of technology and third party agents to deliver financial services, thereby eliminating the need for a brick and mortar branch and offering a lower cost structure for financial service delivery. In Indonesia, banks are developing branchless banking products that leverage the use of non-bank employees and independent institutions as agents and mobile phones.
e-MITRA’s work focuses on providing technical advisory services to essential participants in Indonesia’s Digital Financial Services (DFS) sector, including Mobile Network Operators, financial institutions, payment platform providers, etc. The program is designed to assist in the development of strategies that lead to the growth and scale of DFS platforms in Indonesia, provide concrete tools to create DFS strategies and, ultimately, help drive momentum for private sector offerings of economically viable DFS products that reach the poor and unbanked. As a component of its technical services, e-MITRA also conducts qualitative research to be published on key issues in MFS in Indonesia. e-MITRA strives to increase access to financial services for the population at the bottom of the period through innovative DFS products. e-MITRA is a project of the Global Broadband Innovations Alliance (“GBi”). Moreover, the the technical assistance by eMITRA in developing mobile money solutions has leveraged $1,824,000 in leveraged support from Bank Mandiri in FY 2013 and $3,621,000 from BTPN.