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Elyssa Lopez · · 5 min readIndonesia’s banks feel AI magic, but experts give caveats
To readers of a certain vintage, the name Sabrina may bring to mind an American television show about a teenage witch struggling to harness her newfound powers.
But it’s also the name of a ChatGPT-powered chatbot from Bank Rakyat Indonesia (BRI). The chatbot is integrated into the bank’s mobile app and can answer customer queries without the help of a human agent.
BRI AI chatbot Sabrina / Image credit: BRI
What may have seemed magical in the past is now increasingly common in Indonesia’s financial sector.
About 55% of fintech players in Indonesia have used AI technology in their operations, according to the latest annual industry survey conducted by the Indonesian Fintech Association (Aftech), which was published in July.
Similarly, half of the 46 banks surveyed in an August report by AC Ventures, Boston Consulting Group, and the Indonesian Chamber of Commerce and Industry (Kadin), revealed that they are focused on deploying genAI-enabled tech in their “daily activities.”
These entities have used AI in a range of applications, with some already enjoying returns on their investment. But experts warn that the tech still needs a lot of improvement to be completely reliable, which is particularly important in the customer-facing, utility-like finance industry.
Here to serve
Customer service was one of the areas that saw the most improvement thanks to AI. Three out of 10 financial institutions have implemented an AI-enabled solution to “improve customer experience,” according to the Kadin report.
SkorLife founders Ongki Kurniawan (left) and Karan Khetan / Photo credit: SkorLife
Credit scoring platform SkorLife, for instance, said its adoption of generative AI allowed the firm to provide “consistent” 24/7 customer service.
Meanwhile, more than 50% of Bank Jago’s interactions with its customers are facilitated by an AI agent. This has enhanced the bank’s “effectiveness and efficiency in serving customers,” said the firm’s corporate communication lead, Marchelo Yusuf.
Both SkorLife and Bank Jago said their adoption of AI allowed them to reduce expenses. SkorLife CEO Ongki Kurniawan revealed in the Kadin report that 40% of the startup’s operational costs are related to customer services. Neither the fintech firm nor the banking institution shared the extent of their cost savings, however.
See also: A bot for your money? Wealthtech firms divided on tapping genAI for investment advice
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Indonesia’s financial institutions have fully embraced AI, applying it in areas like credit analysis and customer service.
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