Indonesia to reduce bank branches in region

Cutting cost: People walk past a branch of Bank Danamon in Jakarta in this file photo. The number of bank branches in South-East Asia is forecast to shrink by 18% in the next decade, led by Indonesia. — AFP

JAKARTA: Indonesia is projected to lead a significant reduction of bank branches in South-East Asia over the coming 10 years, as customers shift from physical to digital banking services, according to Roland Berger.

The Munich-based management consultancy estimates that the number of bank branches in South-East Asia will shrink by 18% in the next decade. That figure is equivalent to some 11,000 branches being shut in the region, with almost 7,000 located in Indonesia.