FinTech
development
Bank Indonesian vs Conventional
(Ardin Dolok Saribu, Nonni Sise Riani Manihuruk, Ayang Pratama) (Doctoral's Students USU)
Preliminary
Business Bank is actually a business that has not changed. Commercial banks have
been around since the XV century. Spearheaded by DeMedici family in Florence /
Fiorenza. And indeed since the days of DeMedici, The bank's business is almost
unchanged. Used to wear stools - now wear counters. Equally counting money. FinTech in Indonesia could threaten the existence of this kind of conventional banks. Until the 1970s,
even business banks in developed countries are often referred to as Business 3-6-9. Pay interest to customer 3%, Loans 6% ... then at 9 to go play golf ... business bank in the world
so changed drastically after pegging the dollar to gold removed by Nixon in 1971. But in
Indonesia have not changed. So, I have to say - when the bank in Indonesia does not change
soon, will follow the fate of the dinosaurs. Be irrelevan or extinct. And the threat of
extinction or irrelevant to be stronger and faster along with the presence Fintech. The
development of computing and communication faster. Money transforms into electrical code.
"Banks of arms (Conventional Bank) "is threatened. Just like evolution, banks that do not
flex bell and unwilling to adapt will tergil as.
FinTech Startups began to appear. Starting from Paypal, bank business in the payment and transfer start subverted. Payments and remittances are only part of the Banking business
activities, but that is the entrance of the Fintech company. Just a step away Fintech went
into lending business - then the circuit will tereplika all banking business. Banks in
physical form and branch office buildings are expensive to maintain. Not to mention the cost
of expansion. Because Fintech Indonesia still unclear regulation, conventional banks can
still breathe. But it's only for a while. Conventional Bank might argue is not a physical bank can be replaced with either an ATM to grab or deposited money?
The problem was EXPENSIVE ATM procurement and maintenance costs. Also the
opportunity cost of money is in it. One ATM machine requires a maintenance fee
Rp 140.000.000,- until Rp 150.000.000,- per month in one location. Imagine the
charging, IKASI communes of data, taxes, advertising, an d other. And the bigger the bank,
the bigger the gamble. You want to replace the hundreds of thousands of branches or ATM?
Overnight? Yes expensive and inefficient. Gilanya, people often ngambil money at the
ATM and then shop at the store where the afternoon store deposited money to the bank. In
DBS referred to the example of China, where the cost per transaction payment Fintech only
0, 53 Yuan vs. 26 Yuan in an ordinary bank. And in a country with low banking penetration
- Digital Bank can be more powerful effect. Bank activities can be between smartphones.
BPRs are now starting to suffocate KUR. With 9% interest rate - how much deposit interest
does the BPR offer? How much margin?
And what happened at the Fintech company was extraordinary. Alibaba via Alipay
last week to process a transaction valued at $ 14, 3 billion a day. This shows Fintech has an
outstanding scalability that is unchallenged by ordinary banking. Imagine the margin
potential difference. In addition to a very large fund processing capabilities, proliferation was
remarkable. Tencent in China used 500 million users. Just imagine how conventional bank
infrastructure is needed to serve 500 million customers in one day? This is still the
automation of digital banking operations. Not touched Blockchain and his friends. And if
payments and transfers can scale that, why does not Fintech all offer insurance and wealth
management? Upon this, the new Fintech is now only combing its surface potential.
The history and meaning of Fintech
Financial technology term could apply to any innovation in the way people transact,
do business. Since the internet revolution and the mobile internet revolution, however,
financial technology has grown explosive, and the meaning of fintech, originally termed as
the application of advanced computer technology to back office banks or trading companies,
now has a broader role in commercial finance. New ways in the financial sector continue to
emerge. It aims to provide improved services. Increased use of technology in the financial
industry (fintech) is believed to increase the reach of financial services. Fintech emergence
has created a way for all entities to have access to all the tools and financial services at an
affordable cost.
Meaning Fintech will continue to evolve with advances in information technology.
Era Fintechwillbring a possibility on things that we previously considered impossible.This
matter may be seen when a cooperative, engineering, or other body can more synergize with
the banking in to withdraw customer's balance for daily transactions.
How the Government sees Fintech
For Bank Indonesia, the presence of fintech actually has a positive effect on the macro
economy. They can reach people who can not be reached by banking. On the one hand, banks
can not reach the fintech market because it is hit by many regulations. That is what can not be
done by the conventional banks, it could be addressed by players fintech. Even so, as the
central bank regulators also have a responsibility to download gawasi. lest fintech industry
rapidly enlarged, there is no regulation that houses, including from a legal standpoint. Do not
also the fintech players exposed to the case of financial products bodong and no rules. People
also need trust to be able to enjoy fintech products.
Before going any further, one of BI's steps in familiarizing itself with fintech is to
classify them into four groups:
1. C rowdfunding and peer to peer landing. If analogous to e-commerce, this first
classification is marketplace. But here's a special financial marketplace, which brings
together capitalists and investors.
2. Market aggregator. Iwan cite as Cekaja.com, which has the ability to collect and
collect financial data to be presented to the user. Such as someone wanting to make a
credit card, simply input their personal financial data. Later the platform will match
and show which credit card suits her, based on the data inputted.
3. Risk and investment management. The concept is like a financial planner but in the
form of digital. Users will be directed where the investment product that suits him
according to preference given.
4. Field of payment, settlement and clearing. Fintech here moves in the field of payment
Of the four areas, crowdfunding and peer to peer landing are included in the supervision
of the Financial Services Authority (OJK). While payment, settlement, and clearing are
included in the BI domain. The reason is if it has entered into pay-pay process, there is the
velocity of money, the central bank was the one responsible. While two more will enter the
realm of BI if there they are a payment system.
Fintech Friend or Foe from Conventional Bank?
Ofen growing fintech appear perceptions assume fintech as a threat to the banking system. The mushrooming of fintech does not mean it does not cause any worries for banks. They worry about the presence of fintech will shift their existence. Indeed the emergence of new industries often seem threatening, but fintech is not an opponent or a bank competitor. Precisely fintech is a friend for banks that can be used as a partner. With fintech, banks can maximize their function by embracing segments not covered by banks yet covered by fintech. Fintech and banks can co-exist in building Indonesia's economic growth.
For banks that still apply the old business model, the presence of this fintech can actually be a threat to them. Therefore, the existence of fintech should be able to stimulate banks to update their business schemes to be more efficient and of course adjust to the needs of the more modern consumers. In this era, banks are required to raise standards in the eyes of consumers, would not attract attention and satisfy the needs of consumers who increasingly complex and modern including bank objectives in running its businesses? Therefore, banks need to innovate again for their products, and also to meet the needs of consumers who are more modern it is necessary for banks to involve the role of technology with a slick in the business they live.
Conclusion
1. The presence of Technology and business has changed the business model and changed business processes around the world.
2. The entry of technology into the financial business whose term is called Financial Technology has changed the existing banking business model around the world 3. With the presence of Financial Technology hence increasing the level of financial
literacy society in Indonesia which still low
4. With the development of Financial Technology, the banking industry has also changed following the development of existing technology
5. If the banks do not anticipate from the existing technological developments then the presence of Financial Technologies will be a threat from the banking industry
6. On the other hand, Financial Technologies should be adopted into the banking business so that it will improve the business performance of the banking industry
REFERENCE:
DBS Insight, Fintech Disruption in Asia Pacific
PERATURAN OTORITAS JASA KEUANGAN NOMOR 77 /POJK.01/2016 TENTANG LAYANAN PINJAM MEMINJAM UANG BERBASIS TEKNOLOGI INFORMAS
PERATURAN BANK INDONESIA NOMOR 18/40/PBI/2016 TENTANG PENYELENGGARAAN PEMROSESAN TRANSAKSI PEMBAYARAN
