OJK Encourages Banks to Partner With Tech Companies to Provide Better Services
Jakarta. Indonesia's Financial Services Authority, or OJK, is encouraging lenders to cooperate with technology companies to offer better access to online banking services for the public, a senior official said on Monday (03/04).
"The financial industry is not that different to the transportation industry when it comes to adopting new technologies," OJK chairman Muliaman D. Hadad said.
"We know that not every lender in the financial industry has the same capacity to develop new technology," he said. "Bigger banks are able to do so, but it's rather hard for the smaller banks."
Muliaman said customers are beginning to demand more online services. Although many Indonesians still use ATMs and frequently visit local branches, many, according to the OJK chairman, prefer cashless transactions on smartphones or desktop computers.
Bigger banks, such as Bank Mandiri and Bank Rakyat Indonesia, have been able to allocate resources to develop in-house technology services to bolster their online banking portfolios. Bank Rakyat Indonesia even launched its own satellite last year — the first bank in the world to do so.
Other banks, such as mid-sized lender Bank Woori Saudara Indonesia 1906, have opted to collaborate with Investree, a peer-to-peer lending marketplace, to reduce costs while reaching a wider audience.
Muliaman said the collaboration between banks and fintech companies should take a similar form to the recent partnership between Go-Jek, an app-based ride-sharing service, and Blue Bird, the country's largest taxi operator.
"OJK, as a financial services regulator, can take part in building a regulatory framework so partnerships like this can benefit everyone," Muliaman said.
Muliaman's comments came on the sidelines of the Indonesia Change Management Forum, where representatives from Bank Indonesia, OJK, commercial lenders and financial services met to promote innovation in the country's banking sector.
The forum plans to host future events that bring together leaders in the financial and technology industries to promote innovative collaborations. The forum's next event is set to be held in Jakarta in May.
Lippo Group founder Mochtar Riady, who attended the forum, said changes are inevitable for every business. Retailers, logistics companies and banks, he said, can reap the benefit of new technologies as long as these industries show a willingness to adapt to change.
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