Jakarta, Indonesia Sentinel — As the middle and lower-income class in Indonesia faces economic challenges, banks are increasingly focusing on affluent clients. PT Bank QNB Indonesia Tbk. (BKSW) has taken a strategic step by partnering with the state-owned airline, PT Garuda Indonesia (Persero) Tbk. (GIAA), to attract wealthy customers through its QNB First priority banking segment.
QNB Indonesia is now offering GarudaMiles as part of its rewards program to its priority customers, allowing them to exchange the miles for various benefits, including flights, hotel stays, and use at a range of partner merchants affiliated with Garuda Indonesia.
This collaboration is designed to reward both new and existing QNB First clients who invest in various financial products, such as savings accounts and wealth management services, with First Rewards in the form of GarudaMiles.
This initiative is also driven by the surge in domestic travel, with the Central Statistics Agency (BPS) reporting that over 77 million local tourists traveled within Indonesia in July 2024. Domestic flight passengers increased by 11.7% year-over-year, while international passengers saw a significant rise of 45.43%.
“Understanding the needs of QNB First customers for integrated and convenient banking services, as well as their lifestyle preferences, Bank QNB Indonesia offers the innovative First Reward program through a partnership with Garuda Indonesia,” said Grace Luzar, Head of Retail Banking at QNB Indonesia, on Thursday, October 10, 2024.
QNB Indonesia is offering a generous welcome bonus of GarudaMiles, equivalent to a flight ticket from Jakarta to Singapore. In addition, the bank is providing attractive cashback offers and Life Rewards points—up to 20,000 points—that can easily be redeemed through QNB Indonesia’s mobile banking platform.
As the year-end approaches, banks are increasingly competing to attract high-net-worth individuals (HNWIs). Yuddy Renaldi, President Director of Bank BJB (BJBR), explained that banks are raising deposit interest rates to appeal to clients with savings exceeding Rp5 billion.
“Towards the end of the year, banks are competing by raising deposit interest rates and targeting the high-net-worth individual (HNWI) segment, which typically holds deposits of over Rp5 billion. As a result, savings in this category have grown significantly,” Yuddy told CNBC Indonesia.
Data from the Indonesia Deposit Insurance Corporation (LPS) shows that the number of accounts with deposits exceeding Rp5 billion rose by 33.9% in July 2024 compared to July 2021, indicating steady growth in Indonesia’s HNWI population.
This trend is also evident at PT Bank DBS Indonesia, which recorded a 32% increase in its asset under management (AUM) from July 2022 to July 2024. During the same period, the number of clients with deposits exceeding Rp5 billion increased by 16%.
Melfrida Gultom, Consumer Banking Director at Bank DBS Indonesia, highlighted this growth but declined to disclose the exact AUM figures, stating only that there are thousands of affluent clients at the Singapore-based bank.
Melfrida also noted that global expectations for interest rate cuts, which could be followed by Bank Indonesia, may attract more capital into the Indonesian market and other investment instruments. She believes that the number of affluent clients will continue to grow through the end of 2024.
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“That’s where the opportunity lies, especially with high-net-worth individuals gravitating towards those investments. This will spur competition, and in that sense, the quality of our relationship managers is crucial. What sets us apart is that we have highly experienced relationship managers,” Melfrida remarked at an event in Four Seasons Jakarta on September 12, 2024.
(Becky)
