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Physical Bank Branches Falter as Digitalization Trend on The Rise

Bank branches decreased by 19.8 percent to 25,344 on November 2022 from 2018.
Fahmi Ahmad Burhan & Aprianto Cahyo Nugroho
Fahmi Ahmad Burhan & Aprianto Cahyo Nugroho - Bisnis.com
03 Maret 2023 | 08:00 WIB

Bisnis.com, JAKARTA – In recent years, the number of bank branches has consistently decreased in line with the rapid growth of digitization in financial services.

Financial Services Authority (OJK) Banking Statistics data on Nov 2022 revealed that commercial bank offices fell to 25,344 from 32,332 a year earlier. During the same period, bank branches decreased to 3,450 units from 3,583, while the number of commercial banks remained the same at 107 companies.

Further data analysis shows that bank branches decreased by 19.8 percent as of November 2022 from 2018, while commercial banks only decreased by 6.9 percent. Many banks saw a decline in the number and volume of branch office transactions throughout 2022 and are now focusing on the potential of the digital market.

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