Financial literacy is a basic knowledge for everyone in an increasingly digital world. The emergence of digital banks has revolutionized how individuals manage finances by offering convenience, accessibility, and tools to navigate the complexities of the modern financial system. However, without a basic understanding of financial principles, the benefits of digital banking are not optimal.
Andreanus Setiawan, Senior AVP Growth & Acquisition PT Bank Digital BCA (Blu by BCA Digital), shared the importance of financial literacy and introduction to the digital bank during a seminar at the 2nd Floor Auditorium, SBM ITB (17/11). On that occasion, Andreanus spoke about the importance of financial planning at various stages of life, one of which is using digital banks.
“Financial planning is like a GPS that guides us towards our financial goals, where the vehicle is how we manage our savings and investments, and the fuel is our income. That’s why it’s important to understand financial planning well,” said Andreanus.
According to Andreanus, five important components must be managed in financial management. Starting from managing income, expenses, savings, investments, and risks.
Regarding income management, Andreanus emphasized the need for awareness in managing monthly cash flow and diversifying income sources. The spending strategy involves managing consumer spending, maximizing regular savings with an admin fee-free account, and using available rewards without being tempted by promotional offers.
Andreanus advocates a strategic approach to saving. That 50% of financial management success lies in managing an effective budget, setting aside funds when income is received, and ensuring debt payments, such as ideally limiting installments to 30% of income.
Andreanus also advocates an aggressive approach for young, single individuals with long-term goals and a more conservative strategy for older, married individuals with short-term goals. Andreanus also emphasized the importance of emergency funds, wise risk management through appropriate insurance, and sharing the “golden rule” in financial management.
The golden rule in financial management is that lifestyle should not increase if income increases. Buy items based on function, not prestige. The more we can delay buying things, the less they are needed. Dare to refuse. Turn worry into energy to create.
Concerning BCA Bank and BCA Digital, Andreanus emphasized the emergence of BCA Digital as a different entity. This accommodates innovative steps in digital banking within a broader framework from BCA. According to Andreanus, meeting customer needs and adapting to the ever-changing financial world is important.
