Valuable Lessons from the COVID-19 Pandemic: Changing the Way People Think of the Importance of Financial Management

30 Mar 2021

  • Concerns caused by the COVID-19 pandemic have made the public desired to understand financial management and investment risks
  • Bank OCBC NISP welcomes this trend by strengthening financial literacy and inclusion programs that help people to maintain financial health during the pandemic

Jakarta, March 4, 2021 – The challenging situation during the COVID-19 pandemic has opened people’s eyes to realize the importance of financial literacy and management. A McKinsey study that was conducted in May 2020 found that Indonesian consumers are concerned about not being able to meet their spending needs amidst this pandemic. In fact, consumer concerns in Indonesia are much higher than consumers in China and India. Furthermore, the study also found that about half of consumers who have concerns about their job, only have savings of less than four months in their living expenses. The survey also showed that concerns caused by the COVID-19 pandemic have triggered consumers to understand more about financial management and investment risks.

“The Covid-19 pandemic has not only increased the public’s awareness of the importance of financial management, but also public expectations of financial institutions’ on products and services, both at an individual level to business players. The bank believes that increasing awareness of financial literacy programs is not only part of business initiatives, but it is also part of the Bank's commitment in conducting responsible banking in encouraging the public to become financial literate. “stated Ka Jit said Ka Jit, Director of Bank OCBC NISP in Jakarta (4/3).

Financial literacy to help people maintain financial health
One of the phenomena that occurred during the pandemic was the increased participation of retail investors in the capital market. Until December 10, 2020, SID growth was recorded at 48.82%. This is one of the positive impacts of the COVID-19 pandemic, in which the public's interest to invest in stocks is getting higher and will contribute to the strengthening and growth of the capital market. However, this increase in Indonesia’s investment trend must also be followed by good financial literacy, hence the investment behaviour could be based on a proper financial planning, proper understanding of risk tolerance and the investment period. To educate the public, especially the younger generation about investing in the capital market, Bank OCBC NISP regularly organizes the #CuanBarengRachel program which raises various topics including stock review, 2020 capital market kaleidoscope, and the prospect of stocks in 2021.

Amidst various limitations of physical interaction, Bank OCBC NISP has innovated to drive the Financial Education program for high school students, university students and teachers. The program has been adapted into educational game modules, financial cycle simulations, and seminars, all conducted online. Another digital financial literacy program are delivered as discussion or workshop program that is conveyed in a lifestyle concept that is closely related to Indonesian youth’s daily lives with the headline Tidak Ada Yang Tidak Bisa' (re: no such thing as can’t) or #TAYTB in various event formats. The #TATYB Live Talk routine program runs twice a week through the Bank OCBC NISP Instagram account (@ocbc_nisp) which discusses the latest business and economic conditions, tips on maximizing Bank OCBC NISP’s #BankingfromHome solutions and investment tips. Another program is the talk show #TAYTB Show, which has now been watched by more than 14 million netizens. Not only that, for business players, Bank OCBC NISP presents virtual education classes which are consistently held twice a month, #ONprenuership and Wtalks (specifically for women entrepreneurs)

Investment Solutions and Regular Savings Plan in Pandemic Conditions
Apart from literacy, access to banking financial services is an important lesson from the COVID-19 pandemic. Mobility restrictions certainly require a digital banking solution that is not only safe and reliable, but also convenient. Bank OCBC NISP has developed products that make it easier for people to prepare emergency funds and investments through the #SAVE20 product solution with an affordable nominal starting from IDR 20,000 anytime, anywhere through the Bank OCBC NISP mobile banking application, ONe Mobile. Customers can develop these funds in the form of regular savings plan and mutual funds. Based on data on financial management products at Bank OCBC NISP, if a customer starts saving and investing consistently with a value of Rp20,000 every day starting from the age of 20, the customer can get Rp3.7 billion at his retirement age.

Financial Solutions for Women MSME Entrepreneurs
Beside for individual customer, Bank OCBC NISP also provides products and services for business player, including educational programs through WTalks as well as products and services for Micro, small and medium enterprises (MSMEs). Bank OCBC NISP's support for women entrepreneurs is strengthened by the #TAYTB Women Warriors (www.taytb.com/womenwarriors) program which provides solutions more than just funding, which includes:

  1. Banking services that enable women entrepreneurs to manage their personal and business finances easily and safely, at any time and anywhere.
  2. Financial and non-financial solutions (beyond banking) to support businesses that enable women entrepreneurs to develop their personal and business funds
  3. Support to improve women's abilities and qualities by building business communities, providing educational programs

“Welcoming our 80th year, we aspire to be Indonesia’s’ young generation and entrepreneurs’ companions to start new habits, especially managing finances with investment products from low risk to high risk ones, such as stocks. We believe that financial literacy and inclusion must go hand in hand. We manifest this commitment through our consistency in conducting financial literacy and inclusion programs to enrich people’s quality of life, especially in this challenging and dynamic situations, we have prepared various educational programs and increased access to prudent banking products and services supported by digitization to help people maintain their financial health.” Ka Jit concluded.

About Bank OCBC NISP

Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Bank Deposit. As per December 31st, 2020, Bank OCBC NISP serves its customers through 236 office networks in 57 cities in Indonesia, equipped with 592 Bank OCBC NISP ATM units, accesible in more than 102,000 ATM networks in Indonesia, as well as connected with more than 650 OCBC Groups ATM networks in Singapore and Malaysia. Bank OCBC NISP also serves its customers through digital channels, including mobile banking and internet banking, both for individual and corporate. Bank OCBC NISP is one of the banks with the highest credit ratings in Indonesia, with idAAA (stable) rating from PT Pemeringkat Efek Indonesia (PEFINDO) and AAA(idn)/stable from PT Fitch Ratings Indonesia.

Bank OCBC NISP

Corporate Communication Division

OCBC NISP Tower, Jl Prof Dr Satrio Kav 25, Jakarta 12940

Tel: 021- 25533888; Fax: 021-57944000

corporate.communication@ocbcnisp.com

Website : www.ocbcnisp.com



Aleta Hanafi
Division Head
aleta.hanafi@ocbcnisp.com,
Mobile: 62-8119860068
Duhita Rahma Mahatmi (Gandis)
Public Relations & CSR
duhita.mahatmi@ocbcnisp.com
Mobile: 62-8111071069
Masniar Hutajulu
Public Relations
masniar.hutajulu@ocbcnisp.com
Mobile: 62- 85218211636
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