BI Ensures Bank And Fintech Collaboration Schemes Through Open API Will Be Launched This Year

Governor of Bank Indonesia Perry Warjiyo (Photo: Special)

JAKARTA - The Governor of Bank Indonesia (BI) Perry Warjiyo said that his party would soon launch a new cooperation scheme between banks and financial technology (fintech) companies through the Open Application Programming Interface (API) standard.

According to Perry, this strategy is very useful for realizing an inclusive financial service ecosystem for all Indonesian people who have not been included in the bankable category.

"This year, together with the banking industry, we will launch the Open API standard for 54 types of services, so that the digitalization of financial transactions will be expanded", he said online at the Opening Ceremony of the Indonesian Digital Financial Economy Festival (FEKDI), Monday, April 5.

Perry added that this strategic step is one of the five main initiatives of the central bank in the blueprint for the Indonesian payment system until 2025.

"God willing, it will accelerate the settlement of financial transactions in the digital field in real-time", he said.

Open API itself is claimed to increase efficiency in the transaction and payment system. In addition, this scheme is considered capable of increasing innovation and competition, increasing financial inclusion, and reducing and mitigating risks. Moreover, the challenges of the financial industry are increasingly diverse amidst the current rapid digitalization.

For this reason, the central bank sees the need to accelerate the implementation of collaboration between banks and fintech. This is at least reflected in several banking corporate actions, which have penetrated the digital bank business model.

Furthermore, the monetary authority will also encourage the electronification of the distribution of social assistance (bansos) to make it more effective and remain targeted, and avoid potential irregularities during the execution process.

"We have also built an agreement with the Ministry of Social Affairs and the Ministry of Home Affairs on how social assistance can be electronified by utilizing information technology 4.0", he added.

In order to make this happen, the central bank called Perry continues to synergize with relevant stakeholders so that they can produce regulations that facilitate digital transformation in the national financial system.

"All of this needs to be encouraged by the regulatory reform measures that we have implemented", he said.