(Photo Courtesy of KB Bukopin)

KB Bukopin Closes Branches to Adapt to Digital Era

NOVEMBER 03, 2022

Jakarta. KB Bukopin recently announced that it is closing a number of branch offices in response to today's digital era.

KB Bukopin said that it is strengthening its existing branch services by transforming them into digital and smart branches.

"The existence of a physical banking branch office is still needed by the bank to meet the needs of customers who want to receive special financial services. Digitization can be divided into several sides, namely the external [digitization] from the customer's side and internal from the bank side," the company's press release reads.

According to KB Bukopin, banks must maintain their relationship with customers through in-person and virtual meetings, thus calling for digitalization.


The Covid-19 pandemic has caused a shift in customer transactional behavior as they now favor digital means. Due to digitalization and changes in people's behavior, the existence and function of conventional bank branches will decrease over time. Banks must be able to adapt to these changes by changing existing business patterns such as by digitizing branch offices.

"So that the allocation of branch network development costs can be optimized into other forms through the
development of product and service technology that can answer all customer needs for changes in transactional behavior," KB Bukopin's press release reads.

Financial Services Authority data showed that as of June 2022, the number of commercial bank branch offices stood at 25,641, a decline compared to 29,699 in the same period last year. OJK also reported that the number of branch offices peaked in 2015 at 32,953. This marked a 22.19 percent decline based on June 2022 figures.