PT Bank Syariah Indonesia Tbk (BSI) presented its digital strategy in response to shifting customer preferences and the significant potential of Indonesia’s Islamic finance market. The presentation was delivered during the BI-IILM-IFSB-IsDB Joint High-Level Seminar & Investor Forum at Hotel Kempinski, Jakarta, attended by Bank Indonesia Governor Perry Warjiyo, Senior Deputy Governor Destry Damayanti, and global Islamic finance leaders, including IFSB Secretary General Ghiat Shabsigh.

BSI President Director Anggoro Eko Cahyo stated, "Indonesia is currently not only the country with the largest Muslim population in the world but also the second-largest contributor to Islamic banking assets in Asia-Pacific, at 13%."

Despite this, he acknowledged that for over a decade, the Islamic banking market share in Indonesia has remained stagnant at under 5%. Since BSI’s establishment in 2021, market penetration has increased to 7–8%, showing that a large-scale syariah bank can help drive growth.

Shifting Customer Preferences Drive Demand for Functional Syariah Banking

Anggoro explained that the growth is supported by changing public behavior. Research shows that customers categorized as “Universalist” and “Rationalist”—those who choose Islamic banks for their functional advantages and product benefits—increased from 46.2% in 2014 to 59.1% in 2024.

This shift indicates that customers are now demanding competitive and modern Shariah services. Strengthening digital infrastructure has become a fundamental step to expand the reach of Islamic financial products and services. Anggoro emphasized that this aligns with global trends, where cashless transactions are becoming a transformation.

BSI’s Digital Transformation: From BYOND to BEWIZE

To meet the growing demand for syariah-compliant digital services, BSI has transformed its offerings for both individuals and institutions. This includes the digitization of gold banking services through the BYOND by BSI app launched this year. The app enables customers to conduct financial, social, and spiritual transactions.

For institutional clients, BSI has introduced BEWIZE by BSI as part of its digital cash management transformation.

Strategic Innovation to Overcome Five Industry Challenges

Bank Indonesia Governor Perry Warjiyo stressed the importance of innovation in developing Islamic financial instruments. He said Islamic finance, driven by faith-based principles, aims not only for profit but also for social aspects such as education. “The goal of Islamic economics and financial institutions is to bring prosperity to the people,” he said.

Perry outlined five challenges that must be addressed to enhance the penetration of Islamic financial products: competitive offerings that meet market needs, pricing that reflects both commercial and social missions, digital transactions and accessibility across channels, collaboration between financial services and government, and liquidity in the capital market.

Strengthening Market Liquidity through Sukuk and Digital Access

IFSB Secretary General Ghiat Shabsigh highlighted that Islamic liquidity must evolve with the rapid global growth of Islamic financial institutions, requiring innovation and full stakeholder engagement.

In line with Perry’s remarks, Anggoro reiterated BSI’s readiness to become a driver of national economic growth through digitalization and innovation in Islamic financial instruments, including sukuk.

BSI actively supports liquidity in the Islamic capital market through sustainable ESG sukuk worth Rp8 trillion, which received over 100% subscription. BSI also offers sukuk investment products for retail investors through both primary and secondary markets, including wakaf-linked sukuk aimed at public welfare.

Through its BYOND by BSI mobile banking, customers can invest in sukuk issued by the Government. “Digitalization is one of the company’s focuses to expand Islamic financial inclusion, which currently remains far behind, as shown in surveys on syariah products and financial literacy.”

BSI also maintains a focus on customer security, good corporate governance (GCG), and adapting to evolving IT and artificial intelligence technologies to support the development of Islamic banking.

PHOTO: BSI

This article was created with AI assistance.