UNS – Irwan Trinugroho, Ph.D., banking expert in Universitas Sebelas Maret (UNS) Surakarta who is also a Faculty Member of the Faculty of Economics and Business (FEB) UNS states that the paradigm shift from product-centric to customer-centric, is one of the main drivers of digital transformation in the financial services sector, especially for the retail bank segment. According to him, this shift becomes the main factor in digital transformation, aside from internet penetration and smartphone.
The statement was delivered during the ‘Regional Conference 2020’ in Universiti Teknologi Malaysia through online meeting with a theme ‘Industry 4.0’, in which Dr. Irwan serves as a guest speaker.
Further, Dr. Irwan conveys the importance of digital-based financial innovation. This innovation is expected to increase financial inclusion at the macro level. While at the micro-level, this innovation will increase the efficiency of the bank business process, new customer acquisition, an increase in the number of transactions, an increase in fee-based income, and finally will improve bank performance.
“In the Indonesian context, the implementation level of digital banking is varied. It depends on the type of bank, bank size, and market target,” explains Dr. Irwan on Tuesday (30/6/2020).
The Chair of the Center for Fintech and Banking UNS adds that several features of advanced technology-based innovation services have been introduced by some banks that need investment. Primarily for the development of technological infrastructures such as biometric recognition, big data, and artificial intelligence.
However, according to Dr. Irwan, there are several matters that need to be concern on the digital transformation process in the financial service sector. Among others are related to the risk of technology failure implementation and security risk in implementing technology.
“This includes improving and developing employee expertise. Especially in the mastery of technology and education and digital financial literacy to customers and the public,” explains Dr. Irwan.
At the end of his presentation, Dr. Irwan explained some policy recommendations related to the financial industry, which includes financial service consolidation that should be considered to reduce competition pressure. “Additionally, there is a potential for collaboration between banks and fintech companies that can be explored,” he concluded. Humas UNS
Reporter: Kaffa Hidayati
Editor: Dwi Hastuti
