financial technology

FINANCIAL TECHNOLOGY

Financial technology / FinTech is a result of a combination of financial

services and technology that eventually changes the business model from conventional to moderate, which initially had to pay face to face and bring some cash, now can make long distance transactions by making payments that can be done in a matter of just seconds.

FinTech is a company that innovates in financial services with a touch of modern technology. FinTech emerged in line with changes in people's lifestyles which are currently dominated by users of information technology that demands fast-paced life. FinTech can solve problems in buying and selling transactions and payments such as not having time to look for goods to a shopping place, to a bank / ATM to transfer funds, reluctance to visit a place because of the service that is less pleasant. In other words, FinTech helps buying and selling transactions and payment systems become more efficient and economical but still effective. The types of Fintech are quite diverse, ranging from asset management, fundraising, e-money, peer to peer lending, payment gateways, remittances, stocks, to covering the insurance field.

Fintech is currently booming in Indonesia and has had an impact on the wider community by changing the payment system in the community and helping start-up companies reduce capital costs and high operational costs in the beginning and provide access to financial products so that transactions become easier and more effective

The benefits of FinTech can be felt by both consumers and traders, consumers will get better service, more choices and lower prices while for FinTech players (merchants of products or services), FinTech provides simplification of the transaction chain, reducing operational costs and costs capital and cutting the flow of information. For a country, FinTech provides benefits: encouraging the transmission of economic policies, increasing the velocity of money in circulation so as to improve the economy of the people and in Indonesia, FinTech also encourages the National Financial Inclusion Strategy / SKNI

The strong flow of technology in the payment system encourages Bank Indonesia as the central bank of the Republic of Indonesia to ensure payment traffic that has been penetrated by technology continues in an orderly and safe manner and supports the pillars in achieving the vision and mission of Bank Indonesia so that in maintaining order traffic payments Fintech then Bank Indonesia issued several provisions or legal basis for operating FinTech in the payment system in Indonesia. 18/40 / PBI / 2016 concerning the Implementation of Payment Transaction Processing, Bank Indonesia Circular Letter No. 18/22 / DKSP regarding the Implementation of Digital Financial Services and Bank Indonesia Regulation No. 18/17 / PBI / 2016 concerning Electronic Money

As for the role of Bank Indonesia in maintaining payment order traffic related to FinTech in terms of providing markets for business players, Bank Indonesia ensures consumer protection, especially regarding guaranteeing the confidentiality of consumer data and information through cyber security networks, in terms of savings, loans and equity participation, Banks Indonesia requires every business actor to comply with macroprudential regulations, deepening of financial markets, payment systems to support cyber operations and security to safeguard consumer data and information, in terms of investment and risk management, Bank Indonesia also requires every business actor to comply with macroprudential regulations, deepening of financial markets, payment systems as supporting operations and cyber security to safeguard consumer data and information and in terms of payment, settlement / clearing and clearing, Bank Indonesia ensures the protection of consumers, especially regarding the data and information confidentiality of consumers through cyber security networks.

Bank Indonesia's initiative related to FinTech is to guarantee the security and order of payment traffic by becoming a Facilitator. Bank Indonesia is a facilitator in terms of providing land for payment traffic, intelligent business analyst. Through collaboration with international authorities and agents, Bank Indonesia has become an analyst for business actors related to FinTech to provide insights and directions on how to create a secure and orderly payment system, Assessment. Bank Indonesia conducts monitoring and assessment of every business activity involving FinTech and its payment system using technology and Coordination and Communication. Bank Indonesia maintains relations with relevant authorities to continue to support the existence of the FinTech payment system in Indonesia. Bank Indonesia is also committed to supporting businesses in Indonesia by providing regular briefings on FinTech.