OJK Launches Blueprint for Digital Transformation of Banking Sector
The Financial Services Authority of Indonesia (OJK) announced the strengthening of cooperation with the Dubai Financial Services Authority (Dubai FSA) in the areas of Islamic finance, sustainable finance, fintech, cybersecurity, and technology-based supervision. As another development, OJK launched the "Digital Banking Transformation Blueprint" to accelerate the digital transformation of the banking sector in Indonesia.
The Blueprint on digital transformation of banking sector is focused on the following elements:
- Data protection, data transfer, and data governance
- Information technology governance, information technology architecture, and information technology adoption principles
- Information technology risk management, including outsourcing arrangements and cyber-security of commercials banks
- Collaborations, including data-sharing platforms and bank collaborations in the digital ecosystem
- Institutional arrangements, including funding support, leadership, organizational design, human resource talent, and culture
The aforementioned elements represent strategic steps to encourage banks to create financial product and service innovations that can meet consumer expectations and are consumer-oriented. OJK has prepared the Blueprint after considering various aspects such as studies on the future of banking, conditions of digitalization in banking, international standards, best practices in the banking industry, stakeholder inputs, and harmonization with the policies or regulations of relevant authorities. This Blueprint is principles-based (provides rules in the form of guiding principles), takes facilitative approach, and will continue to be updated to accommodate various developments in the banking sector.
Related Links (in Indonesian)
- Press Release on Strengthening Cooperation with DFSA
- Press Release on Digital Transformation Blueprint
Keywords: Asia Pacific, Indonesia, Banking, UAE, Dubai, Islamic Finance, Sustainable Finance, Fintech, Regtech, Cyber Risk, Outsourcing Risk, Dubai FSA, OJK
Previous Article
HKMA Announces Sustainable Finance Initiative at COP26Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.