FinTech Indonesia Survey On Collaboration And Regulationby Fintechnews Singapore August 30, 2016
In partnership with Asosiasi Fintech Indonesia, Deloitte launched its findings: FinTech Indonesia Survey 2016, on fintech industry landscape in Indonesia, the challenges and ways to address them. The finding indicates that collaboration and strategic partnership are needed for economic growth through financial innovation. It is presented in conjunction with the Indonesia Fintech Festival & Conference hosted by the Otoritas Jasa Keuangan (OJK) and the Indonesia Chamber of Commerce (Kadin Indonesia).
Innovating Financial Services Requires Collaboration For Economic Growth
The key findings of FinTech Indonesia Survey 2016 shows that the majority of Indonesian fintech companies desire greater collaboration with other parties. 44% of fintech companies cited collaboration as at least one of several priorities and 51% described collaboration as critically important. It also shows that a collaborative environment can yield great results that will benefit the wider Indonesian fintech community. The majority of the companies surveyed (38%) highlighted an increased sharing of best practices within the community is the greatest benefit of increased collaboration within the fintech players in Indonesia, while 25% of them believe it will increase the ability to leverage market data and analytics for customer profiling.
“We are now in the era of financial innovation, especially with the rise of technology development. Through this survey, we would like to highlight how collaboration can help to improve public access to technology-oriented financial services. Boosting cooperation and increase connections among fintech companies in Indonesia are one of strategic objectives of the association.” – Karaniya Dharmasaputra, Secretary General of Asosiasi Fintech Indonesia said.
“In addition, the result shows that many fintech companies in Indonesia are finding it difficult to advance financial inclusion and that greater Indonesian market is largely unfamiliar or misinformed about financial concept. Therefore, we will continue to encourage collaboration and education to pave the way for creating a long-term fintech ecosystem in the country,” Karaniya added.
Erik Koenen, Advisor in Financial Services Industry, Deloitte Consulting comments, “The increase adoption of technology in the financial sector shows that Indonesia market has a huge potential and this needs to be an important agenda for the government, as shown in the report. Collaboration among fintech companies or between fintech companies and financial institutions will be able to drive Indonesia’s economic growth.”
Regulatory Process Is “Not So Clear”
The survey also finds that the majority of fintech companies think current regulatory processes are slow and unclear, hence working with the government is crucial. 5 areas with the highest demand for increased regulation are: Payment gateway (60%), E-money or e-wallet (58%), Know your client (KYC) (57%), Peer to peer (P2P) lending (57%), and Digital signature (54%).
FinTech Indonesia Survey 2016 conducted by Deloitte seeks to uncover the key challenges that Indonesian fintechs face today and explore ways to address the challenges. Over 70 fintech companies who shared their personal experiences, expertise, and ideas, took the survey through a methodology that consists of three activities: a comprehensive survey to CEOs of selected fintech companies; response collection and; analysis and validation of conclusions by team of business consultants.