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The current era of digitalization has penetrated the banking world, where various types of transactions, which are generally used to be carried out through face-to-face activities with bank tellers, have now changed by the development of modern technology infrastructure online or online.
One of the advantages of this transition is increasing accessibility for its users, of course this is also supported by development and penetration of smartphones in Indonesia. By downloading the mobile banking application on a smartphone, customers can gain access to a variety of banking facilities. They no longer need to wait in line to have their banking needs fulfilled.
The online banking services that you can access through smartphones include:
- Checking saving account and current account balances;
- Checking account mutations within a certain period of time;
- Opening savings accounts or time deposit accounts;
- Transfers, either intra-banks or inter-banks;
- Payment of bills, such as electricity, water, BPJS Employment or health;
- E-wallet and e-commerce service balance top-up
- Cardless cash withdrawals that are integrated with automated teller machines (ATMs) and certain retail stores;
- Checking and paying credit card bills;
- Checking information on exchange rates and interest rates;
- Payment of alms and donation.
There are several mobile banking applications that also feature the facilities to talk directly to customer service when you are experiencing problems during your transactions. There are many more features provided by each bank through their mobile applications, but the feature that we use the most is the digital bank transfer service or online transfer.
This service for transferring or remitting money can be carried out by customers through the same bank or different banks as their transfer destination. There are several options of money transfer channel that can be used in online banking platforms as follows:
Real Time Online
The method of transferring and sending money that we often use and encounter in daily transactions is the real-time system transfer option, or commonly known as Real Time Online. In accordance with its nickname, Real Time Online or RTOL can be done anywhere and anytime, without having to go to the bank.
This system is similar to one of the characteristics of BI-Fast, where the money transferred directly arrives at the destination account, whether it is transfers between the same or different banks. The features are also offered are in the form of payment transactions on e-commerce (virtual accounts), electronic wallet platform (e-wallet), and other OTT (Over The Top) communication services.
Real time online refers to the transaction time required by customers to transfer funds, where the system will immediately record transaction data and store it in the data center database. Unlike the RTGS system which takes several hours or even clearing which takes several days for the money to reach the beneficiary's account.
Real Time Online payment channel options can be carried out through ATM, internet banking, mobile banking, or SMS Banking. The transaction limit for each Real Time Online transaction ranges from Rp. 25,000,000.00 to Rp. 50,000,000.00 per transaction. With RTOL interbank transfer fees ranging from IDR 6,500 to IDR 7,500.
Giro Traffic (LLG) or National Clearing System (SKN)
LLG and SKN are commonly used for transfers with larger amounts, with limits up to 500 million rupiah. Even though the transfer limit is larger than RTOL, LLG takes time for the funds to arrive in the beneficiary's account. Remittance time ranges up to 4 hours and can only be done during business hours.
This system uses bank clearing facilities, so the running time follows bank working hours (8am - 3pm). Transfer requests received after operating hours will be processed on the next working day.
For transfers using the LLG or SKN system, the money sent will be recorded and processed in the Bank Indonesia system before being forwarded to the beneficiary's account. Transfer fees using this delivery line are set by Bank Indonesia or SKNBI with a maximum of IDR 2,900 per transfer.
Real-Time Gross Settlement (RTGS)
For transfers of a very large amount, there is another channel that is often used, called the Real-Time Gross Settlement method. Just like Real-Time Online, this method can be done through m-banking if the account’s transfer limit allows, or through the nearest bank branch. The difference between this system is that this system is usually used to send large amounts of money, which is above 100 million rupiah per transfer. RTGS transfer does not have a cap for its transfer amount limit.
Even though it is called real-time, due to the large amount of transfers, sometimes this remittance process can take up to 4 hours. However, transfer times availability is not limited to banks' operating hours. The transfer fee for the RTGS method is also quite large compared to the LLG or RTOL transfer fees. the cost of transfer via the RTGS line can go up to 35 thousand rupiah.
BI-FAST
Adapted from the Bank Indonesia website, BI-Fast is a national retail Payment System infrastructure that can facilitate retail payments in real time, safely, efficiently, and available at any time for 24 (twenty four) hours a day and 7 (seven) days a week.
According to Bank Indonesia, BI-FAST which was implemented in stages since December 2021, with the initial priority set for individual credit and debit transfers. The next stage would be implemented gradually for BI-Fast services which include bulk credit, requests for payment, and will be realized in 2023. After that, BI-FAST will also expand services for other types of transactions such as instrument-based transactions, QRIS, and cross border.
BI-Fast aim to improve services for banks customers in these points :
- Real Time
Following on the perceived obstacles in the Bank Indonesia National Clearing System (SKNBI) service, which has not been able to fully meet the banking needs due to limited service time (available only within business hour), settlement time for the funds once arrived that is not in real time (both at the bank level and customer domain), as well as the limited options of payment channels, which in turn reduces the convenience of transacting in cash and non-cash.
Therefore, a system was created to eliminate all of the problems above, by bringing real time features that can be accessed at any time, with availability not limited by working hours, where funds will be received on time by customers and banks, whether it is a credit transfer (push) or a debit transfer (pull).
- Complete
At this initial stage, BI-Fast services can be accessed through mobile channels connected to the internet network as well as the nearest retail outlets. then in the near future, BI-Fast will grows it’s channel network to facilitate customer transactions, namely through QRIS instruments, Automated Teller Machines or ATMs (including virtual accounts), credit cards (including virtual accounts), electronic money/e-wallets and even Electronic Data Capture or EDC.
- Secure
BI-Fast is expected to strengthen the resilience of the national retail payment system by providing an alternative to the existing national payment system infrastructure. Where this service is equipped with features such as Fraud Detection System and Anti Money Laundering/Combating Financing of Terrorism (AML/CFT). Next, BI-Fast will also be equipped with a feature that provides automatic notifications to customers.
- Efficient
The BI-FAST feature uses a proxy address that works as a substitute for an account number and is intended to increase transaction convenience, because a proxy address is an alias that is easier to remember than an account number. The proxy addresses provided are mobile phone number, e-mail address, and/or other proof of identities as determined by the service provider.
- Inexpensive
Bank Indonesia (BI) has set two price schemes in the use of BI-Fast, namely the price from BI to the Bank; and the price from the Bank to the Customer. The price from BI to the Bank is set for IDR 19.00 per transaction, while the price from the Bank to the Customer is set at a maximum of IDR 2,500.00 per transaction. The amount of the transaction fee will be reduced gradually based on periodic evaluations. The maximum amount limit for BI-Fast transactions at this stage is set at IDR 250,000,000.00 per transaction.
Those are some of the different types and fees for money transfers between banks in Indonesia. If your business carries out transfers between and inter-banks in large frequencies, oftentimes bookkeeping can get complicated. For this reason, Aspire all-in-one finance management system provides integrated features for all your operational financial needs, that can sync perfectly with your bookkeeping software.
With Aspire, send and receive money via virtual accounts to various banks all around Indonesia. All transactions will be recorded neatly and integrated with the company's bookkeeping software and budgets. Check out the other Aspire features that can help streamline your company's operational finance management process.
Keep Aspiring with Aspire.
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
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