OJK: Adospi IoT Brings Benefits To The Financial Services Industry

Illustration. (Photo: Doc. Antara)

JAKARTA - Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets and Crypto Assets of the Financial Services Authority (OJK) Hasan Fawzi said that the adoption of Internet of Things (IoT) technology brings benefits to the financial services industry.

"IoT technology can be used for real-time banking transaction services through ATM smarts and payment terminals," Hasan said in a webinar entitled "Utilization of the Internet of Things (IoT) in the Financial Services Industry", in Jakarta, Thursday.

Hasan said that IoT technology in the financial services industry is also useful for remote monitoring and maintenance, as well as improving product personalization and financial services according to consumer needs.

The risk management strategy, said Hasan, can also be improved through the use of the IoT ecosystem to identify potential fraud or illegal actions.

"The use of IoT in Indonesia contributes to increasing digital transactions and payments," Hasan said.

Based on data from Bank Indonesia, Hasan said, the value of digital banking transactions in July 2023 reached IDR 5,035.37 trillion. This figure grew 15.5 percent compared to July 2022 which received a transaction value of IDR 4,359.7 trillion.

Furthermore, Hasan projects that the opportunity for the IoT technology market in the future is still wide open. The IoT market in the global financial services sector is estimated at US$6,781.7 million in 2028, while in Indonesia it is predicted to reach US$40 billion or around Rp572.7 trillion in 2025.

"OJK always supports digital innovation and transformation in order to create an ecosystem of the digital economy that is growing, competitive, and contributive," Hasan said.

Hasan reminded that the financial services industry involved in IoT still needs to pay attention to consumer needs, potential risks, investment readiness in the infrastructure needed, support for digital talent, and compliance with regulations related to the implementation of information technology.