Broker Name and Date of Report

CGS International, October 10, 2025

Excerpt from CGS International report

Report Summary

• Gen Z in Indonesia overwhelmingly prefers conventional banks over digital banks, mainly due to trust in strong brand image and improved mobile app features that now match digital banks.
• While 70% of Gen Z favor conventional bank apps, digital bank users appreciate features like multiple savings pockets and frequent promotions, but high deposit rates are less important except for the appeal of daily interest payments.
• Gen Z still values physical branches for resolving banking issues, and most opened their first accounts with parental guidance, often at the same bank as their parents.
• Admin and transfer fees are significant considerations for Gen Z, who often keep multiple accounts to avoid fees and access better promotions or features.
• Conventional banks continue to dominate deposit market share (54.6% as of August 2025), with digital banks only holding about 1.2%, despite a rise in digital banking adoption.
• Credit cards are preferred over pay-later features due to better promotions and benefits, though most Gen Z respondents are not yet significant borrowers.
• Major conventional banks such as BBCA, BMRI, and BTPS are cited as top picks due to strong operational performance, improved digital offerings, and expected sector tailwinds like liquidity improvements and potential for higher loan growth.
• ESG adoption is increasing in Indonesian banks, with improved disclosure and integration into business operations, although environmental initiatives still need progress.
• The report maintains an Overweight rating on Indonesia’s banking sector, expecting continued dominance by major banks and improved profitability as digital and conventional banking services converge in quality and features.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com/