Indonesia

Bank Indonesia leads drive to connect fintechs with country's top banks

Bank Indonesia is driving a campaign to encourage fintech companies to build betters connections with banks' digital systems.

The initiative is part of the central bank's Five Visions for the Indonesian Payment System (SPI) for 2025, aimed at expanding the digitalisation of the financial system and the economy as a whole.

During the recent international 'Digital Transformation for Indonesian Economy' seminar held at the central bank's headquarters in Jakarta, BI Governor Perry Warjiyo said, "We urge fintechs to improve their financial serices, and at the same time act to inter-link with digital banking."

Perry noted that banks and fintechs can use Application Programming Interface (API) to establish barrier-free data connection — a technology that has been instrumental in helping banks and digital businesses grow rapidly.

Banks that have successfully applied the technology include BCA and BNI. BI recorded 54 fintech firms listed in their system, with the most developed including Cashlez Mpos from Cashlez Worldwide Indonesia, Pay by QR from Dimo Pay Indonesia, and Toko Pandai from Toko Pandai Nusantara.

Perry went on to say that with the increasing speed of technological advances, finance sector leaders, like major banks, must be able to adapt and adopt, in a bid to compete with new, potentially low-cost players, like fintechs.