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Compliance Challenges Loom Large in Indonesia’s Digital Banking Landscape
Jakarta, July 10, 2018
As digital disruption continues to reshape the banking landscape, Indonesian banks are grappling with a range of compliance challenges that threaten to undermine their efforts to stay ahead of the curve.
Survey Highlights Compliance Concerns
A recent survey by PwC Indonesia revealed that cyber security threats pose a significant risk to digital businesses in the next two to three years. Additionally, 72% of respondents believe Go-Jek is an emerging serious competitor to Indonesian banks, with Alibaba’s Alipay also seen as a potential threat.
Key Drivers for Digital Strategy
The survey found that customer experience and revenue growth are key drivers for digital strategy, with 44% of respondents citing the need to enhance customer and employee experience as their primary objective. However, the report highlighted several compliance challenges facing Indonesian banks, including:
- Risk management teams still adapting to digital innovation, with responsibility for managing risks split between various teams.
- Physical branches remaining the best way to provide a good customer experience, followed closely by mobile channels.
Technology and Up-skilling Challenges
The survey also found that while technology is seen as a strategic enabler and integral part of corporate strategy, many banks are struggling to upskill their teams to be ready for the future.
Quotes from PwC Indonesia Consulting Director
“PwC Indonesia hopes to see in the coming years, the digital services expansion of telecom companies might further strengthen their mobile wallet/money solutions,” said Santoso Widjaja, PwC Indonesia Consulting Director. “This might lead to either a fierce competition or effective collaboration with banks and technology companies.”
About PwC Indonesia
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PwC Indonesia is comprised of KAP Tanudiredja, Wibisana, Rintis & Rekan, PT PricewaterhouseCoopers Indonesia Advisory, PT Prima Wahana Caraka, PT PricewaterhouseCoopers Consulting Indonesia and Melli Darsa & Co., Advocates & Legal Consultants.
About PwC
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At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at https://www.pwc.com.