JAKARTA -- Indonesia has launched a branchless banking program designed to serve the millions of citizens who lack regular accounts. Domestic lenders Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia and Bank Tabungan Pensiunan Nasional are rolling out the services.
Under the program, banks appoint "agents" -- say, owners of small businesses or teachers -- to carry out banking operations for registered users. Agents can either be a person or a legal entity, and each is subject to a different set of requirements. A person, for example, needs to be a local resident, have a job in the area and "have a good reputation," according to Indonesia's Financial Services Authority. Banks will also conduct due diligence.
