Digitalization, Emerging Technologies, and Financial Stability: Challenges and Opportunities for the Indonesian Banking Industry and Beyond (original) (raw)

One of the challenges financial institutions is how to adapt to a changing business environment, increasingly demanding and differentiated customer preferences, digitalization and technological change. Using a documentary analysis approach, the article navigates the ramifications of API based open banking, Block Chain Technology (BCT) and entrance of Fintechs, Bigtechnology companies (Bigtechs) and Telecommunications companies (Telcos on the performance of general banking sector and financial system stability. Results underscore the role of digitalization revolution and ICT in fundamentally changing the financial service development and delivery, by empowering ICT savvy non-financial institutions including financial technology companies (Fintechs), TELCOS, and Bigtechs to become players in the industry; enhancement of financial inclusion thanks; reduction in transaction costs; and inducing traditional banks to adopt new business models that leverage Big Data and data analytics appro...