The Challenges of Digital Banking Transformation in Indonesia

Technological developments are involved in all fields, including banking. Hence the digital banking transformation is unavoidable. 

These changes are expected and support the rapid development of today’s science. Through this change, consumers can get services and access more easily.

In addition, digitalization also opens up new job opportunities to support business continuity in the digital era. However, every change has risks and challenges, including digitalization—from the threat of misuse of personal data and cyber-attacks to data protection breaches.

Safety and security should be the focus when carrying out the digitization of a business, including the organization’s readiness to deal with it, starting from preparing all resources, including the preparation of the internal individuals.

Also Read: Is Property Business Still Valuable During the Pandemic?

Banking Digital Transformation Challenges

According to Roberto Akyuwen, OJK’s Senior Executive Analyst, there are nine challenges that banking digital transformation actors, namely must face:

1. Data Leakage Risk

Data leaks are vulnerable done the digital era, and the banking system is no exception. Banks would have to regulate the protection, prevention, and ways to overcome the leakage of personal data.

2. IT Investment Strategic Risk

It is essential to pay attention to selecting third-party hardware and software providers. Errors in choosing a vendor can harm the data migration that is carried out, such as data leaks, phishing, and so on.

3. Cyber Attack

Cyber-attacks are very likely to occur without deterrents or barricades to contain them. Forming a cyber security team as the vanguard in tackling cybercrime is an important thing that must be prepared.

4. Human Resources

Organizational readiness to welcome change must prepare through guidance, counseling, and training, especially in human resources and relevant skills in the digital era.

5. Communication Network Infrastructure

Communication networks need to be carefully designed so that they can support the acceleration of digital transformation. This communication network will facilitate the internet-based communication process.

6. Regulatory Framework

The regulatory framework is a legal rule that regulates how the transformation is carried out and the Government’s support in this regard.

Examples of Digital Banking Transformation in Indonesia

The banking industry in Indonesia has also experienced digital transformation. It is done so that the system and work methods are applied to follow the community’s needs and the times’ progress.

The following are real examples of digital banking transformation in Indonesia:

1. The Emergence of the Bank’s Official Website and Application

Internet banking is a familiar concept in Indonesia that can facilitate various transactions. You can check account mutations, and balance, and make payments with them.

In addition, there is also a mobile banking application that can access via our smartphones. Mobile banking is more practical because it can be used for transactions, from paying electricity bills or health insurance (BPJS) to buying internet credit or data.

2. Electronic Money

The following form of digital banking transformation is the presence of electronic money. This type of money allows various transactions without cash and is greatly encouraged during and after the pandemic.

You can use electronic money with a card or through an application on a cell phone. Most people prefer to use mobile phones to scan and pay; nowadays, people can travel without a wallet or cash.

The two examples above are small samples of the digital transformation banks in Indonesia have carried out. Banking digitization allows administrative management to be no longer a hassle and minimizes recording errors.

For the record, in digitizing, the bank must have full support from the government through the regulations issued. In addition, the public also needs to be educated to adapt to the facilities offered.

In carrying out digital transformation, of course, there are factors that banks must consider significantly. Management consultants can help with many of these factors for banks planning to survive in the digital transformation era.

Also Read: Advantages and Benefits of a Management Consultant for Your Business Progress

In 21 years of work, Skha has helped many clients across industries, one of which is banking, to carry out digital transformation. Skha provides personalized one-stop solutions for each client. Learn more about our services through our service page, and contact us for more information.


Walfajri, Maizal. “Ada 9 Tantangan Transformasi Digital Perbankan Menurut OJK, Simak Cara Antisipasinya.”

Newssetup Kontan. https://newssetup.kontan.co.id/news/ada-9-tantangan-transformasi-digital-perbankan-menurut-ojk-simak-cara-antisipasinya. Diakses pada 5 Juni 2022.

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