It has been a while since I had a bank account in my home-country. A couple of months ago I decided to go mainstream with opening one with a major bank in Indonesia. Efficient queuing system, great customer service. I was a satisfied customer. Until they asked me to come back for another trip for the e-banking setup.
I wasn’t angry at all, just don’t fancy commuting to the bank. I was in a different situation in Germany where customers typically have to wait for days to weeks for the e-banking setup instructions sent out in different snail mails, from passwords to the printed e-payment transaction codes (I’m not sure if the major German bank I was with issues tokens for higher type of savings accounts).
But banks is just an example of how the financial sector was traditionally not that advanced in its technology adoption. Even from my non-Finance eyes, when you have such a massive customers pool and in possession of sensitive financial data of those customers, it just explains itself.
Counting down to the Indonesia Fintech Festival & Conference (IFFC) due next week (August 29th to 30th, 2016), as a non-financial professional who observes fintech, I would anticipate the following among those to be discussed in the event and to materialize in the near future.
Catching up with customers protection
Amidst the billions of dollars invested in the development, fintech in Indonesia is unregulated. The Indonesian Financial Services Authority (OJK) is said to be in the process of preparing the relevant regulations towards the end of the year.
Placing regulations and aligning a strong law enforcement are needed to ensure consumers’ personal data are protected. Not to mention, protecting consumers from fraud, including the majority unbanked population in remote areas of archipelagic Indonesia, as the world bank study points out.
Educating the market
As with the other fintech events I tend to see them as means to educating the market on fintech as another technology uptake that should and could improve lives. At the same time, it opens up the often neglected communications between innovators and regulators. When policies are in place while fintech is now taking a mere 1% market share of commercial banking sector in the country, learning from the past, this minimizes being reactive to the upcoming waves of innovations.
With 255 million and counting population Indonesia could have leveraged more on its young workforce to boost fintech innovation and championing it in the region.
my yellows 