"Banks that do not carry out digital banking or open banking will, of course, be left behind," BI Governor Perry Warjiyo said during an online discussion held by Infobank here on Tuesday.
Since May, 2019, the Indonesian central bank has encouraged open banking as part of the 2025 Indonesian Payment System Blueprint.
Through open banking or banking digitization, Warjiyo said, banking services can be connected with other digital platforms, including financial technology companies (fintech) and online trading companies or e-commerce, through Application Programming Interface (API), thus providing ease of transaction to customers.
The BI Governor also outlined four aspects that banks need to pay close attention to while developing open banking. The first aspect involves the transformation of the technology infrastructure, wherein all banking service systems are interconnected, for example, services related to treasury, credit, and funds.
The second aspect, he continued, is building a data warehouse from various information systems owned by the bank, including the metadata of depositors and debtors.
"Whether the metadata has also been built using artificial intelligence, analytical big data, it must be developed to process various data so that it can be useful," he added.
The third aspect relates to the development of business models based on information technology systems and metadata owned by the bank to provide interactive services online to customers, he said.
Hence, all services that were earlier exclusively provided to certain customers would, with open banking, become available to all customers. Thus, all customers would get the same services, especially in personal banking, he noted.
The last aspect concerns changing the mindset from the highest levels of the company to subordinates in carrying out the digital transformation, he added.
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