The Future and the Challenges of the Indonesian Banking Industry in the Digital Era

Batara Maju Simatupang, Kevin Bastian Sirait

2019

Abstract

This article focuses on researching the IT challenges faced by the Indonesian banking industry in the digitalage. The rapid development of technology has provided benefits for the banking sector in integrating technology to meet the demands of its customers. Although, this advantage comes with its challenges, as with the emergence of the fintech (financial technology) industry. This study uses an action research method, which is applied to identify challenges faced by conventional banks and provide solutions to overcome the identified challenges. Based on the analysis, it was found that conventional banks have a gap between their digital products and the expectations of their customers; in which majority of the respondent is engaging in the implementation of open application programming interface (API) to facilitate the digital banking activities of its customers via the software and the web-service product created by the Indonesian conventional banks. The implication is that the IT gap between banking services and their customers must be overcome. For this reason, it is recommended that conventional banks work together in order to meet customer expectations and/or banks can use a customer-centric approach in product development.

Paper Citation

in Harvard Style

Simatupang B. and Sirait K. (2019). The Future and the Challenges of the Indonesian Banking Industry in the Digital Era. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 25-33. DOI: 10.5220/0009198100250033

in Bibtex Style

@conference{ebic19,
author={Batara Maju Simatupang and Kevin Bastian Sirait},
title={The Future and the Challenges of the Indonesian Banking Industry in the Digital Era},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={25-33},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009198100250033},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - The Future and the Challenges of the Indonesian Banking Industry in the Digital Era
SN - 978-989-758-498-5
AU - Simatupang B.
AU - Sirait K.
PY - 2019
SP - 25
EP - 33
DO - 10.5220/0009198100250033