Bank Proprietary Channel Transaction Value Soars 317 Percent in a Decade

The value of transactions through proprietary channels grew by 28.63 percent to Rp 52.55 quadrillion in 2022 compared to the previous year. As a result, over the last decade, the transaction value has surged by 317.57 percent.

Proprietary channels are payment channels developed and owned exclusively by banks for the benefit of their customers. The technology is based on short message service (SMS), mobile, web, subscriber identity module tool kit, and/or unstructured supplementary service data.

Internet banking remains the main driver of the value of banking proprietary channel transactions, reaching Rp 42.55 quadrillion (80.97 percent) in 2022. The details of the transaction value for these banking services are as follows:

* Payment/Purchase Transactions: Rp 1.79 quadrillion
* Intrabank Transactions: Rp 21.17 quadrillion
* Interbank Transactions: Rp 19.59 quadrillion

Transactions through proprietary channels using SMS/Mobile Banking amounted to Rp 9.99 quadrillion (19.02 percent). The details are:

* Payment/Purchase Transactions: Rp 585.59 trillion
* Intrabank Transactions: Rp 6.85 quadrillion
* Interbank Transactions: Rp 2.56 quadrillion

Meanwhile, transactions using SMS/Mobile Banking totaled Rp 3.13 trillion (0.01 percent) in 2022. The details are as follows:

* Payment/Purchase Transactions: Rp 64.83 billion
* Intrabank Transactions: Rp 2.03 trillion
* Interbank Transactions: Rp 1.04 trillion

Similarly, the transaction volume also grew by 51.37 percent to 11.77 billion transactions last year compared to the previous year. Thus, cumulatively over the last 10 years, it has jumped by 510.57 percent.

The volume of proprietary channel transactions showed a decline in the last decade, namely in 2019. However, after that, it grew again as shown in the graph.