Embracing IT Talent for the Future of Digital Banking

The technological revolution we are facing today is in its infancy. The affordability of technology and accessibility allows the emergence of new innovations that also affect the banking industry.

In 2016, the penetration of internet users in Indonesia reached 132,7 million out of a total population of 256,2 million. While the device used to access the internet from smartphone as much as 63,1 million. This is what encourages the development of the digital world and the emergence of new innovations that make it easier for us to carry out daily activities only through email smartphone which is connected to the internet.

Referring to this fact, customers' preferences for banking products and services are no longer limited to the presence of branch offices. This means that in order for banks to continue to provide the best services and products to customers, banks must be innovative in creating products and services in line with technological advances, one of which is by digital banking.

Since 2011, digital banking in Asia has increased. Based on a study conducted by McKinsey shows that financial services customers have now turned to computers, smartphone, tablets in carrying out banking activities instead of having to visit a branch or contact hotline service.

The rise digital banking in Asia is also driven by a much stronger ecosystem to enable this to happen digital banking, which includes the rapid increase in internet adoption and smartphone and growth E-commerce which results in a demand for digital banking can reach a wider range of customers.

A survey conducted by McKinsey in 2014 showed that 92 percent of respondents used internet banking when compared to 2011 which was only 52 percent. In addition, 61 percent of respondents have accessed banking services by using smartphone, or a threefold increase compared to 2011. McKinsey revealed that across Asia, there are more than 700 million customers using digital banking and is expected to be 1,7 billion by 2020.

Indonesia is one of the countries included in the list of the top 10 Asian countries with increased penetration digital banking. The results of a survey conducted by McKinsey in 2014 showed that Indonesia experienced an increase in penetration digital banking by 36 percent and is predicted to continue to increase.

digital banking considered as a new way of doing banking transactions mainly thanks to its potential to save costs. Banks should see that this is not just digitizing existing products, but changing mindsets and solutions to become digital according to the behavior and needs of the community.

Based on 2016 Indonesian Tech Startup report, DailySocial.id conducted a survey to a number of investors regarding which sectors are the prima donna and their focus in 2017 where there are four sectors that are expected to be the center of attention, namely fintech (financial technology), e-commerce, Software-as-a-Service (SaaS) and on-demand or service marketplace.

Fintech is the development of the financial services industry that relies heavily on the internet and digital innovation. Fintech exists because there is a conventional financial service segment that has not been able to reach various circles of society.

This opportunity is well captured by PT. Bank Central Asia Tbk. (BCA) by organizing BCA Finhacks (Financial Hackathon). Armed with the latest ideas and collaboration between industry players and developer IT, through Finhacks, is expected to present digital innovations and become a solution for the financial world, especially banking.

Finhacks itself was held in 2016. Nearly 500 innovation ideas from developer IT throughout Indonesia has been successfully captured by Finhacks and has resulted in payment system innovations using e-wallet. Carrying the concept #Codescape, BCA once again held Finhacks 2017 which invites IT developers or practitioners to collaborate and compete to produce innovations that can answer challenges in creating banking service technology innovations that are easier, safer and more enjoyable for customers' daily lifestyles.

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Disclosure: This article is an advertorial as a collaboration between BCA and DailySocial as part of a series of Finhacks 2017 activities