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
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