JAKARTA, September 23, 2021 - PT Bank Jago Tbk (JAGO) inaugurated the Sharia Business Unit (UUS) or Jago Shariah as an alternative banking service for the Indonesian community according to Sharia principles in their financial transactions.
By optimizing the latest technology, Jago Shariah offers Shariah-based digital financial solutions that focus on everyday life (life-centric financial solutions).
Bank Jago President Director, Kharim Siregar, explained that the idea of establishing Jago Shariah stemmed from the current situation where people are increasingly accustomed to using digital technology to meet their daily needs, including accessing banking products and services. However, most digital banking applications are conventional bank products, which have not been fully accepted by all Indonesian citizens, the majority of whom are Muslims.
"With the presence of Jago Shariah, we provide options for those who prefer to be served through Shariah banking products and services," said Kharim during the inauguration of the Jago UUS.
According to Kharim, the potential for Shariah finance is significant in Indonesia, which is home to more than 230 million Muslims. This is also reflected in the performance of the Shariah banking industry, which has been growing steadily over time.
The Financial Services Authority (OJK) recorded that Shariah bank assets along with UUS soared by 15.87% during the first half of 2021, in line with the growth of third-party funds which reached 16.55% to Rp491.1 trillion.
"Digitization will improve the quality of service to customers while expanding market share. We believe that the presence of digital Shariah banking applications will have a positive impact on driving the contribution of the Shariah economy to the national economy," said Kharim.
Furthermore, Kharim continued, customers also demand the quality of Shariah digital financial applications that are equivalent to conventional bank applications, especially regarding the application of technology and the ease of transaction features. Jago Shariah is expected to meet customer expectations for proficient digital Shariah applications and provide solutions to everyday financial management issues.
"We listen to these demands because we also believe that every customer deserves high-quality products and services," said Kharim.
Bank Jago is optimistic that Shariah digital financial applications can be a new breakthrough in accelerating the inclusion and financial literacy of the Shariah community who have not been served by banking services. This is the company's commitment to support the regulator's agenda in developing Shariah financial services in Indonesia.
"The development of the Jago Shariah application is in its final stages. We certainly strive to launch this application as soon as possible, because we believe that this application will be very beneficial for the Shariah customer segment who want to enjoy customer-centric digital financial solutions," concluded Kharim.
