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Personal data protection key as fintech grows
In the last three to five years, fintech has been a major driver of the digitalization of traditional Indonesian financial institutions.
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Illustration of a data center. (Shutterstock/sdecoret)
F
or a long time, new market entrants found it difficult to break into the financial services industry. The large, well-established financial institutions that we call “incumbents” had advantages with respect to size, and their large network of branches provided them a multiplier effect.
They had strong compliance systems in place to manage ever-increasing regulations, and they had the client base and resources to prosper even in tough economic conditions.
Well, not any more. Fintech disruptors have been finding a way in. Fintech companies, often start-ups, are fast-moving, focused on a particular innovative technology or process everything from mobile payments to insurance.
There are many such companies today in Indonesia and they have been attacking some of the most profitable elements of the financial services value chain.
In Indonesia, payments and lending are two such areas where we have seen tremendous innovation by fintech companies in customer experience, ease of use, access to finance and ability to reach the unbanked segment of the population.
In the last three to five years, fintech has been a major driver of the digitalization of traditional Indonesian financial institutions.
Today, having mobile banking, online banking, chatbots and a social media presence have become a necessity for any leading bank or any other financial institution.
