Encouraging Digitalization, The Financial Services Authority Call Synergy Of Large Banks, Rural Banks, To Startups Effective To Reduce Costs

Chairman of the OJK Board of Commissioners Wimboh Santoso. (Photo: Capture the Katadata screen)

JAKARTA - The Financial Services Authority (OJK) continues to encourage the financial industry sector to carry out digital transformation, both from channel business processes and institutional structures in carrying out business activities.

Chairman of the OJK Board of Commissioners Wimboh Santoso revealed that specifically for the banking sector, his party has issued two supporting regulations, namely POJK No.12/POJK.03/2018 concerning Digital Banking Services and POJK No.38/POJK.03/2016 concerning Risk Management in Use Information Technology.

"The regulation is a support to accelerate the acceleration of digital transformation which is directed in several ways", he said in a webinar entitled Indonesia Data And Economic Virtual Forum held by Katadata, Wednesday, March 24.

First, continued Wimboh, related to strengthening risk management governance by developing a Cyber Accident Risk Respond and Recovery (CARR) framework. Second, driving the use of IT as game-changers, so that banks can develop services that are more suitable to consumers while increasing efficiency.

Third, encourage collaborative use of IT, both for large banks, small banks, rural banks, micro banks, as well as startups.

"So this collaboration must work together to avoid inefficient friction. OJK hopes that this collaboration will be better to minimize costs", he said.

The fourth is to support the digital implementation of the banking sector, be it products offered through digital or digital license-based banking.

"Please open it as wide as possible so that there are no regulatory restrictions related to digital implementation in both the conventional banking industry and those that are specifically digitally licensed", he explained.

To that end, according to Wimboh, the OJK will continue to develop and accommodate digital bank licensing in Indonesia, while still considering its impact on financial system stability.

"We want to convey that the authorities will prioritize the acceleration of economic recovery and future growth", he added.

"We hope that the momentum of the pandemic will prove to be a proof for the financial industry in carrying out digital transformation so that it can increase resilience and stand at the forefront of national economic recovery", Wimboh concluded.