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Jakarta Post

Blockchain will change banking industry

  • Muhammad Shodiq
    Muhammad Shodiq

    Vice president, Syariah & MSME Academy head at CIMB Niaga

Jakarta   /   Fri, November 3, 2017   /  12:52 pm
Blockchain will change banking industry A teller on a bank. Banking industry in Indonesia is undergoing a significant transformation driven by technology. (Shutterstock/File)

The Indonesian banking industry is clearly the most attractive market in Southeast Asia. The margins are not just good, they are excellent. Having more immediate prospects for loan growth and economic growth are not the main drivers for that attraction, but rather the longer term upside potential of a large market with low penetration. But in the meantime, high margins make for attractive, profitable banking. But the banking industry in Indonesia is undergoing a significant transformation driven by technology. Vikram Pandit, who ran Citigroup during the 2008 financial crisis, had said developments in technology could cut the number of banking jobs by 30 percent in the next five years. With advances in technology, the relationship that customers have with their bank and with their finances has changed. Customers rely less and less on walking into a branch for their banking needs, an...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.