We perceive the pandemic from a different standpoint because we see the massive surge in the adoption of digital technology in financial transactions for the last two years.
Jakarta (ANTARA) - The COVID-19 pandemic has spurred a massive increase in the digitalization of financial transactions over the past two years, chairperson of the Indonesian Banks Association (Perbanas), Kartika Wirjoatmodjo, has said.

"We perceive the pandemic from a different standpoint because we see the massive surge in the adoption of digital technology in financial transactions for the last two years," he stated at the G20 side event on 'Digital Payment Innovation of Banking' in Jakarta on Monday.

While the adoption of digital technology in financial transactions increased steadily from 2015 to 2019, the process saw record acceleration in the past two years due to the pandemic, he noted.

The advances in digital technologies have posed a new challenge for the banking sector, which must adapt constantly to ensure it remains a key player in the industry, the chairperson remarked.

The banking sector must abandon its old business model and promptly adopt a digital-friendly business model that would cater to technological changes, Wirjoatmodjo said.

The banking sector must also consider the future of ATMs, their risk, and their relevance amid the current surge in the digitization of financial transactions, he added.

"We need to consider whether the machine will become an advantage in our competition or is it merely an industry commodity?" Wirjoatmodjo remarked.

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People have begun switching from their earlier preferred payment methods of direct transfers, debit cards, or credit cards, to the digital payment system, the chairperson highlighted.

Such trends are appropriate as people will always prefer quicker, easier, and more convenient payment methods, he opined. Hence, the banking sector must follow customers' preferences and expand digital transactions, he added.

"Customers are the most advantaged by these changes because they now have more choice of payment methods that they can use in their daily activities," Wirjoatmodjo remarked.

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Translator: Astrid FH, Nabil Ihsan
Editor: Rahmad Nasution
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