Increase Service Security, OJK Issues Banking Digital Transformation Regulations

Photo: Antara

JAKARTA - The Financial Services Authority (OJK) continues to improve the quality of the implementation of digital transformation in the banking sector by adjusting changes in people's economic behavior which is increasingly towards digital.

In line with that, OJK issued POJK Number 21 of 2023 concerning Digital Services by Commercial Banks (POJK Digital Services) and SEOJK Number 24/SEOJK.03/2023 concerning the Assessment of the General Bank Digital Maturity Level (SEOJK Digital Maturity Assessment for Bank/SEOJK DMAB).

OJK Banking Supervision Chief Executive Dian Ediana Rae conveyed that the revolutionary development of Information Technology (IT) and finance has increased public interest in digital experience in every interaction with banks so that digital transformation becomes the bank's need to remain competitive.

Therefore, as a tangible manifestation of support for digital transformation, in 2021, OJK has issued a Blue Print for Banking Digital Transformation.

As a follow-up to the issuance of Banking Digital Transformation Blue Prints, OJK issued POJK Number 21 of 2023 concerning Digital Services by Commercial Banks (POJK Digital Services) which is a refinement of the previous regulation, namely POJK Number 12/POJK.03/2018 concerning the Implementation of Digital Banking Services by Commercial Banks.

In addition, the issuance of POJK Digital Services is also a mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

"One of the important points of POJK Digital Services is to provide the same level of playing field to the banking industry in the development of digital services so that the implementation of digital services is no longer limited by risk profile requirements, but is more detailed based, with a focus on IT infrastructure and IT infrastructure management which is able to optimally support the implementation of digital services," he said in his official statement, quoted on Sunday, December 31.

Subsequently, POJK Digital Services regulates the scope and requirements of digital services, procedures for licensing digital services, cooperation in the implementation of digital services, utilization of IT, electronic signatures, adoption of IT that supports the business function of banks, as well as protection of customers and personal data protection.

Furthermore, OJK also issued implementation provisions from POJK Number 11/POJK.03/2022 concerning the Implementation of Information Technology by Commercial Banks (POJK PTI), namely SEOJK Number 24/SEOJK.03/2023 concerning the Assessment of the General Bank Digital Maturity Level (SEOJK Digital Maturity Assessment for Bank/SEOJK DMAB).

SEOJK DMAB is a guide for determining, assessing and evaluating the level of bank digitization. This guide can also be used as a monitoring tool for banks and OJK on the development of digital transformation carried out by banks.

Dian conveyed that the assessment of the level of digital equity of banks includes an assessment of aspects of governance, architecture, risk management, cyber security and security, technology, data, collaboration and consumer protection.

"The eigenvalue (self-assessment) of the bank's digital maturity level is carried out periodically at least 1 (one) time in 1 (one) year taking into account the conditions of the internal and ex-tail banks," he said.

Dian hopes that the issuance of POJK and SEOJK can encourage the implementation of digitalization and collaboration by banks to increase competitiveness and meet the expectations of stakeholders while still paying attention to bank readiness from various aspects.

Information about POJK, SEOJK, infographic, and summary of provisions can be accessed through the SIKEPO application to get an overview of the provisions in its entirety. SIKEPO can be accessed via a browser with a sitepo.ojk.go.id address or via mobile application that can be downloaded via mobile devices in Google Playstore and Apple's App Store.