Fintechs Must Plan Carefully to Succeed in Indonesia’s Evolving Landscape
The Indonesian fintech industry is rapidly evolving, driven by supportive government policies, innovative regulations, and increasing collaboration between fintechs and legacy financial institutions. To stay ahead of the competition, fintech companies must carefully plan their hiring roadmap and integrate sage talent management practices.
A Rapidly Changing Landscape
Indonesia’s fintech regulation is playing a crucial role in fostering growth and innovation across fintech subsectors. The Payment System Blueprint 2025 roadmap and the SNAP national standard have opened up opportunities for innovation in open banking, enabling startups to compete more effectively with established players.
Funding Opportunities
Startups such as Brick, Ayoconnect, Finantier, and Brankas have collectively secured over US$70 million in funding. Cryptocurrency regulations have paved the way for startups like Pintu, Tokocrypto, Reku, and others to secure over US$300 million. These developments have facilitated API cooperation and improved interoperability between fintechs and legacy financial institutions.
Cultural Adaptation
However, fintech companies must also adapt their operating models to accommodate cultural differences and working styles of established players, which may differ from those of startups. Incumbent players must also make an effort to comprehend the imperatives and difficulties faced by startups when seeking partnerships.
Talent Management
To succeed in this landscape, fintechs must prioritize talent management and integrate sage practices into their hiring roadmap. This includes:
- Identifying top talent
- Developing a diverse and inclusive culture
- Providing ongoing training and development opportunities
Understanding the Retail Customer Landscape
Fintech companies must gain a comprehensive understanding of Indonesia’s fintech retail customer landscape to assess the broader ecosystem. A recent survey by BCG found that almost three-quarters of respondents were utilizing a fintech product, but over 60% did not use any lending, wealth, deposits, or insurance products. This presents an opportunity for fintechs and traditional financial institutions to increase consumer awareness and adoption.
Conclusion
The Indonesian fintech industry is poised for growth, driven by supportive government policies, innovative regulations, and increasing collaboration between fintechs and legacy financial institutions. To succeed in this landscape, fintech companies must prioritize talent management, adapt their operating models, and gain a deeper understanding of Indonesia’s fintech retail customer landscape. By doing so, they will be well-equipped to navigate the evolving fintech landscape and capitalize on the opportunities that lie ahead.