OSIDA uses integrated data analysis automation in detecting weaknesses of the bank business early on, OJK Banking Supervision Chief Executive Heru Kristiyana stated here on Tuesday.
"This is a banking supervision initiative to build the concept of implementing innovative supervision and being a game-changer outside of the usual things," he stated.
Kristiyana explained that with OSIDA, the banking supervision system will focus on in-depth analysis and follow up on red flags.
The result of data analysis can allow the OJK to follow up on the results of supervision on a wider policy scale, he highlighted.
With OSIDA, data analytics automation that has been mainly descriptive now includes automation in the area of diagnosis, predictive, and prescriptive analytics that can be utilized for offsite surveillance needs and onsite checks, he pointed out.
Furthermore, OSIDA can detect early warning signals and compliance checks that are expected to examine anomalies from early indications of governance weaknesses in bank business activities, potential violations, data manipulation, and non-compliance with provisions, he elaborated.
OSIDA also helps supervisors to intervene and monitor actions early as anticipatory measures, Kristiyana noted.
"In the implementation of the initial stage, OSIDA's analytical scenario is still in the scope of analysis per bank individually (separately) and industry-wide," he remarked.
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According to Kristiyana, in its development, data processing similar to OSIDA is expected to not only be involved in the banking industry data but also in the data of the Capital Market and Non-Bank Financial Industry to cross-analyze each sector to detect increased risk in one sector that can have an effect on another sector.
"The implementation of OSIDA is part of the development of supervisory technology, which is currently being intensively conducted by all financial services industry supervisory authorities around the world," he concluded.
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Translator: Indra P, Kenzu T
Editor: Rahmad Nasution
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