Jakarta, 15 August 2022 – Reinforcing its commitment to support Indonesian people towards #FinanciallyFit, Bank OCBC NISP launched OCBC NISP Financial Fitness Index 2022, an annual research collaboration with NielsenIQ to provide an overview of Indonesia’s younger generation financial condition by looking at the attitudes and behaviors in managing their finances. The OCBC NISP Financial Fitness Index 2022 is the 2nd year of research after the previous one was published in August 2021.
The results of the Financial Fitness Index 2022 found that 42% of young Indonesians are confident their current financial plans will provide them with the financial security they need in the future. However, there is a gap between what their believe and the reality of their situation. This is proven by 80% of them admits that they do not keep financial record and only 26% having an emergency fund set up. In fact, only 9% of the respondents have set up investments schemes such as mutual funds, stocks, and time deposit. In addition, only 17% have passive income, 8% use money within their budget and only 22% really understand about their investment products.
Chinni Yanti Tjhin, Retail Proposition Division Head Bank OCBC NISP stated that “The small number of young people who save and invest in a structured manner is concerning, because having awareness is not good enough to achieve financial aspirations. In the productive age, it's time to think about how money can work for us. One of the way is to immediately transform the way we save and invest in order to achieve both short term and long term goals such as buying a dream house and providing the best education for our children.”
Overall, the Financial Fitness Index 2022 shows that Indonesia's Financial Fitness score increased to 40.06 in 2022, compared to the previous year's with 37.72. However, 76% of Indonesians have financial habits that need to be addressed, such as spending money to fulfil their friends’ lifestyle.
Inggit Primadevi, Director of Consumer Insights at NielsenIQ Indonesia, added that “Young generation who own investment products such as mutual funds, stocks, cryptocurrencies, increased to 9% this year. Unfortunately, 78%* of them claim that they do not fully understand the risks and benefits associated with investment products, and yet they tend to invest in certain assets because they are trending and appear to yield high returns.”
“The concept of saving transformation is not just saving money, but how we can get more optimal returns through selecting products that match our knowledge (risk appetite), risk profile, and investment period. Moreover, we also need to choose financial institutions that is supervised by the Financial Services Authority (OJK)," stated Chinni.
"We invite all Indonesian people, especially young generation to #BangkitSehatFinansial (#ReviveFinanciallyFit) by implementing the right way of saving - not only seeing and chasing profits instantly. They can start transforming their way of saving by diversifying their money into several financial instruments, such as dividing savings by time deposits, regular savings plan, and daily mutual funds,” added Chinni.
“As a solution to the financial problems faced by the Indonesian people, especially young generation, NYALA OCBC NISP provides Check, Choose and Cuan solutions to support them in taking concrete steps to achieve their #FinanciallyFit. First, they can check their financial health at ruangmenyala.com, choose the best education classes, as well as banking and investment products that suit their needs, and finally they can get cuan (gain) from those investments and from the benefits of free transaction fees and other attractive programs offered by NYALA OCBC NISP,” stated Amir Widjaya, Marketing & Lifestyle Business Division Head Bank OCBC NISP.
Not only that, as one of the Financial Fitness Solutions section, Bank OCBC NISP has also provided financial assistance solutions, starting from NYALA Financial Fitness Coaches, Komunitas MENYALA, educational platform ruangmenyala.com and Financial Fitness Gym.
NYALA OCBC NISP also continues to transform in providing benefits for customers; with the concept of multilevel benefits starting from Basic, Fit, Pro & Master levels, where customers can get benefits based on the combined total balance each month. Like membership, the higher the level, the customer can get more benefits every month. Not only the benefits of free transactions such as free transfer fees to any bank using the BI FAST method and online transfers, customers can also experience free cash withdrawal fees at any ATM, free e-wallet top up fees & monthly bills, and free monthly admin fees. Furthermore, customers will also get more benefits for checking their financial conditions and consultations with experts.
"This Financial Fitness Index will become OCBC NISP's annual research, as part of our commitment together with the community to improve Indonesia's financial health score, as financial independence is everyone’s right," closed Amir.
* Anak Muda: Usia 25-35 tahun di Jabodetabek, Bandung, Surabaya, Medan, Makassar
About Bank OCBC NISP
Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Deposito Bank. As of June 30th, 2022, Bank OCBC NISP serves customers through 201 office networks in 54 cities in Indonesia. Furthermore, customers could conduct transaction through the Bank's 497 ATM, more than 100,000 ATM networks in Indonesia, and connected to more than 680 OCBC Group ATM networks in Singapore and Malaysia. Bank OCBC NISP also serves customers through various digital channels, including mobile banking and internet banking – both for individuals and corporations. Bank OCBC NISP is one of the banks with the highest credit ratings in Indonesia, namely idAAA (stable) from PEFINDO and AAA(idn)/stable from PT Fitch Ratings Indonesia.