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Bank's Crucial Role in the Education Sector

Bank's Crucial Role in the Education Sector

Jakarta, 6 May 2022 – Banking’s role is very large in encouraging the economy of a nation. This is because, apart from collecting funds and distributing them to public, banking’s function can also support the smooth running of education in the country.

Director General of Higher Education (Ditjen Dikti) Nizam said that education is an investment that has a long-term return and has a very large impact on the progress and competitiveness of the nation.

This also causes quality higher education to require costs that are not cheap. In addition to the development of facilities and infrastructure as well as human resources to provide quality education, it requires large investment and financing. 

According to him, education is a non-profit sector, so the presence of financial institutions, especially banks, to support investment and financing in this sector is very crucial. 

"The presence of a financial system that can provide access to education funding with long-term returns is urgently needed. Both in investment financing and in financing the provision of education," said Nizam. 

He also did not deny that currently not many banks are really pushing the education sector by providing financial solutions directly in universities. 

Nevertheless, he appreciates one of the banks that has long targeted the education sector very seriously and aggressively by establishing branch offices on campuses, currently is only PT Bank Negara Indonesia (Persero) Tbk or BNI. 

"BNI is the best partner in developing the Research and Technology Higher Education Financial Ecosystem," he said.

BNI Campus Financial Ecosystem 

This makes BNI considered as the only bank that is nicknamed the Campus Bank in Indonesia. This is done by BNI in the effort to encourage the expansion of the Campus Financial Ecosystem program. 

As of the end of 2021, third party funds (DPK) collected from universities and educational institutions reached Rp 12.01 trillion, the majority of which came from CASA. These funds continue to increase in line with the expansion of BNI's programs, acquiring several campuses in Java and Bali to be included in the Campus Financial Ecosystem program.  

The Campus Financial Ecosystem is a program that BNI will focus on in providing complete digital-based financial solutions to university institutional customers and the campus academic community.  

Binus University Banking-Economics Observer, Doddy Ariefianto himself admits that BNI is a bank that really exists in the world of education. BNI's presence on campuses has even been felt for a long time. 

It is not surprising that currently BNI has managed to collect quite large deposits from the education sector. "In the future, it's just a matter of how BNI can develop further business potential in the world of education. It's not just about getting Third Party Funds (DPK) through tuition payments," he said. 

He added that BNI also had to start thinking about other potentials from the education sector. One thing that banks can do, in this case BNI, continued Doddy, is to start targeting financing related to education for students and the academic community.  

“Because the business incubator is on campus, the technology nursery is there. Funding for students is also of course very helpful, because many students have so far had difficulty paying for their education," he explained.  

Likewise, according to the Research Director of the Center of Reform On Economics (Core) Indonesia, Piter Abdullah, banks need to increase the CASA ratio to reduce the cost of funds. One of them is through collaboration with various universities that have a large number of students.  

"This strategy has been pursued by BNI for a long time. In its position as a state-owned bank, it has been quite a long time since BNI could seize the state university market," said Piter. 

According to Piter, a similar strategy has also been adopted by several other banks through collaboration with private universities. However, not all banks can follow this strategy. 

"Because generally the world of education already has cooperation with certain banks," he explained. 

Separately, BNI Institutional Relations Director Sis Apik Wijayanto said that the company has a very long cooperation with many universities in Indonesia. 

"Of course we will continue to strengthen the Campus Financial Ecosystem. This is also one of our programs to increase Third Party Funds, especially CASA while forming an institutional ecosystem based on digital solutions that help universities and the academic community," he said. 

For information, the Campus Financial Ecosystem is a program that BNI focuses on providing complete digital-based financial solutions to university institutional customers and the campus academic community. So far BNI has reached several universities such as UI, ITB, and finally UNUD. BNI has also collaborated for the Implementation of Computer-based Written Exams for Higher Education Entrance Test institutions registered on up to 125 campuses. (*)
 

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