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Most digital banks only half ‘mature’, OJK says
Indonesia’s digital banks, for all the potential ascribed to them, only achieved about half of the possible score in a recent assessment of their digital maturity by the Financial Services Authority.
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Digital sharia banking: A Bank Mandiri Syariah employee serves a customer at the lender’s Central Jakarta office in this undated photo. (JP/Wendra Ajistyatama)
D
igital banks operating in Indonesia have a long way to go to reach their full potential, a recent assessment suggests, as they scored only mediocre results in several criteria set out by the Financial Services Authority (OJK).
Data, technology, risk management, collaboration, institutional arrangement and customer services were the categories evaluated in the OJK’s digital maturity assessment for the agency’s digital banking transformation blueprint, issued on Tuesday.
OJK commissioner for banking supervision Heru Kristiyana told reporters that digital banks scored the highest in data and collaboration, reaching 57 percent and 53 percent respectively in those aspects, but fell short in risk management with a score of just 43 percent.
“We need to pay attention to risk management. It's still at 43 percent. We should work on it fast. We have provided a complete and detailed guide,” Heru said on Tuesday.
Read also: Indonesia sharpens legal framework for digital banking
Digital banks have been relatively late to gain a significant presence in Indonesia, even though the country with its young population and emerging economy is deemed to offer the industry ample growth potential.
According to OJK data, the value of electronic transactions and digital services in banks jumped to Rp 204.9 trillion in 2020 after gaining a whopping 4,000 percent over five years.
