Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

Digital Payments to Aid Indonesia’s Economic Recovery

Image credit: pixabay.com

In the last ten years, technological disruption in the financial sector has given birth to new types of digital payments, which has subsequently encouraged the adoption of digital transactions. In Indonesia, digital payment is becoming increasingly popular.

About three decades ago, banks began to adopt digital channels such as phone, SMS, and/or mobile banking which is more of a “conventional” digital payment. Now as the digital economy is driving the growth of Indonesia’s entire technology sector, it is crucial for Indonesian citizens to use digital payments in order to support the country’s economic growth.

Despite massive growth in smartphone adoption and rising demand for digital banking, the majority of countries continue to rely heavily on cash. Some Indonesians do not own a bank account, demonstrating that cash is still necessary for financial inclusion. Cash is also deeply embedded in the economies of many developed markets.

Therefore, tech firms are now offering new digital financial services, such as e-wallets or e-money, which were previously integrated with e-commerce platforms. The trend was accelerated when the COVID-19 pandemic struck in early 2020, limiting people’s mobility.

In an article, OpenGov Asia reported that online banking has evolved into the most convenient service for paying bills, transferring funds, and accessing a record of your checking account activity all from the convenience of a web browser. Everything related to personal finances easier when people can bank from the comfort of their own home, at any time of day or night. Digitalisation is transforming how people interact and conduct business on a daily basis, and advances in banking technology are influencing the future of financial services all around the world. The banking industry is being transformed by increased demand from millennials and Gen Z’s for a digital banking experience.

Mobile banking or online banking has become a major differentiator for banking leaders since it allows consumers to make deposits, account transfers and manage their expenditure and profits. Online banking has been a more important feature in banking services among respondents since the commencement of the coronavirus pandemic. Financial institutions are increasingly eager to know which mobile banking services customers enjoy the most and where they stand in comparison to their competitors so they can work in certain sectors.

There is no industry in Indonesia that has grown as fast as the digital economy. It is predicted that by 2025, the digital economy in Indonesia will have reached $124 billion, up from $44 billion in 2020. Even during the COVID-19 pandemic, the country’s digital sector is projected to grow by 10%, up from $40 billion in 2019 – far outpacing other sectors that are currently stagnating.

The rising digital payments transactions reflect the evolving digital financial literacy of the Indonesian population. It also demonstrates the increasing acceptance of fintech and e-commerce services in the country. BI foresees that the uptake of digital transactions will continue with e-commerce and e-payments growing by 33.2% and 32.3%, respectively in 2021.

As more e-wallet players transition to multi-line businesses to provide financial services, the industry must strengthen interlinkages among providers to provide a more seamless experience for customers.

In contrast, banks should incorporate the open banking era by adding more application programming interfaces (APIs) that e-payment players, Fintechs, and other digital platforms can easily access. Banks will be able to create a comprehensive payment ecosystem, tap into the existing ecosystem, and broaden access and market to offer their services by utilising API. Over time, it is expected that the use of digital banking and even e-wallets will significantly contribute to economic development and the abolition of poverty in the country.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.