Open Banking Ecosystem: The Future of Financial Innovation

Jakarta, August 1, 2024 — Leading players and experts from the financial and technology sectors shared insights on the future of financial innovation in a panel discussion titled "Open Banking Ecosystem: The Future of Financial Innovation." This event, part of the Digital Transformation Indonesia Conference and Expo (DTI-CX), was held at JCC Senayan from July 31 to August 1, 2024.

The discussion opened with a keynote by Munadi Herlambang, Institutional Director of PT Bank Negara Indonesia (BNI), who presented data showing an increase in financial inclusivity from 85.1% in 2022 to 88.7% by the end of 2023, with 30 million merchants having adopted QRIS as their payment method. The Indonesian government aims to achieve a financial inclusion rate of 90% of the population.

The session was followed by a panel discussion moderated by Rimko Nurral, Partner at PWC, featuring speakers from various sectors including entrepreneurs, associations, banking, fintech companies, and foreign direct investment perspectives.

The discussion began with Raine Renaldi, Chief Economy & Digital Assets, KADIN, highlighting the positive economic impact of open banking, demonstrating how open banking creates new business opportunities and innovations. Access to open banking also allows companies to provide more relevant offerings to their customers.

Aries Setiadi, Executive Director, AFTECH, mentioned that there are currently 25+ fintech business models in Indonesia. Fintech complements banking services by enhancing financial inclusion, educating consumers, and promoting financial well-being through services like insurance and investment. One of fintech's goals is also to connect banking services with technological solutions for various industries.

Sigit Prihatmoko, Vice President of the Corporate Innovation at BNI, shared insights on how BNI continues to enhance its service offerings to keep up with technological advancements. He mentioned specific ecosystems being developed by BNI, such as within universities and healthcare services. Collaboration with other technology service providers is key to sustainable innovation.

Ferdy Nandes, Business Director at Aspire Indonesia, supported these statements and highlighted that there are many misconceptions that fintech companies are competitors of banking services. In fact, fintech companies exist to extend banking services to businesses, SMEs, and the broader community. The open banking system enables third-party developers to improve customer experiences through financial products optimized for industry needs.

Ferdy also elaborated on how open banking through Aspire's B2B products can simplify financial management processes and enhance control over business finances. "Our mission is to provide end-to-end solutions for B2B clients," said Nandes. He also mentioned three key areas to remain relevant: product, people, and process.

• Product: Continuously synergize with banking institutions and other fintechs to develop products that meet customer needs and gain their trust.
• People: Commit to developing talent to build an ecosystem that continuously innovates and accelerates technological progress.
• Process: Maintain the pace of business innovation in accordance with existing regulations.

Tom West, CFA, Director at Juicebox, added that there are risks associated with every innovation. Clear regulations are essential to help build the trust needed by foreign investors.

KADIN, as a representative of active entrepreneurs, plays a crucial role as a communication bridge between policy regulators and the needs of businesses for continued growth. AFTECH, as a fintech association, helps its members implement business ethics codes to maintain customer trust for the sustainable development of the fintech industry.

The panelists collectively agreed that the future of financial innovation lies in the collaborative efforts of various fintech ecosystem players to support the success rate of innovations. Rimko added that PWC believes that by 2030, only 60% of banking services will be operated internally by banks. Another 20% will be delivered through embedded finance services, 15% through partnerships with fintech services, and the remaining 5% by technology companies to fill the banking service gaps in the market.

About Aspire

Aspire is the all-in-one finance software for growing businesses. The company serves over 15,000 startups and SMBs in Southeast Asia, helping them save time and money with multi-currency accounts and cards, expense management, payable management, and receivable management solutions - all in one account.

Headquartered in Singapore, Aspire has over 400 employees across four countries and is backed by global top tier VCs, including Sequoia, Lightspeed, and Y-Combinator.