Mass banking and Shariah banking

In just two years, 2010 and 2011, the number of adult Indonesians with “any financial relationship”, or AFR, has grown from 25 million people to 36 million.

That represents a 44 percent jump in just the last two years.

Equally remarkable is the reversal of the decline in the number of people with an active account, witnessed from December 2006 to December 2009, triggered by the introduction of minimum balances and higher service fees.

At the end of December 2011, 27 percent of adults had a financial relationship, up from 20 percent just 24 months ago. The core relationship is a savings account for most customers, with a small fraction made up by micro-loans as the key.

Much of this growth has been enjoyed by the Big 4 banks, but the next six that make up the top 10 are increasing the pressure each month.

—–> The Jakarta Post

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